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Council approves $32,383 flood-repair contract with Otman Excavating; 75% expected to be reimbursed
Summary
The Oronoco City Council awarded a $32,383 contract to Otman Excavating for repairs to three flood-damaged areas, noting roughly 75% of costs should be reimbursed through a Minnesota state disaster‑recovery account; the city’s 25% share will be charged to Parks & Trails account 100-45120.
The Oronoco City Council voted to award a bid to Otman Excavating to repair three areas damaged during recent flooding.
City staff said bids were opened Aug. 8 after soliciting eight contractors for a small-project procurement (projects under $175,000). Two firms responded; the low bid from Otman Excavating totaled $32,383 and a second bid from Griffin Construction was about $355 higher. City staff recommended awarding to Otman based on the competitive pricing and unit‑price contract structure.
“Those bids were excellent,” a city staff member said during the meeting, noting unit prices mean the final payment will reflect actual quantities of work performed.
Staff told the council that about 75% of eligible costs are reimbursable through a Minnesota state disaster‑recovery account tied to the flooding; the remaining city portion (approximately 25%) will be charged to Parks & Trails account 100‑45120 and then reimbursed when the state pays its share. Work is expected to proceed once required DNR permitting and the 10‑day public‑comment period are complete, with staff estimating completion before Thanksgiving.
A councilmember moved to approve the award; another seconded the motion and the council approved it by voice vote.
Next steps: staff will finalize the DNR permit process, execute the contract with Otman Excavating and submit a combined reimbursement request to the state once work is complete.
