Alma City Commission rescinds tentative award, approves Spence Brothers for Elmo wastewater project

The Alma City Commission voted 5–1 to rescind a tentative award to ENL Construction Group and instead grant the contract for the Elmo wastewater treatment plant to low bidder Spence Brothers after a special meeting that focused on contractor responsibility, engineer oversight and the long-term financing implications of the project.

City Manager told the commission the city faces tight funding for the project and presented three formal options: keep the tentative award to ENL (option A); rescind and award the contract to low bidder Spence Brothers (option B); or rescind and award to Spence Brothers with an alternate mechanical subcontractor (option C). He warned the commission that “our CWSRF is only 20.5 million,” and stressed that every dollar for the project would count.

The city attorney reviewed the bid instructions and applicable state contract law, explaining that the city may object to proposed subcontractors, request substitutions under the bid instructions and is not bound until contracts are signed. “What we have is a tentative award or essentially an intent to engage,” the City Attorney said, and summarized the three resolutions before the commission.

Commissioners deliberated over two linked concerns: the experience of the proposed mechanical subcontractor and the potential long-term cost of financing if the city has to borrow on private markets. One staff memo noted an alternate mechanical subcontractor price of $848,489 that kept Spence Brothers’ package below the other bid; commissioners contrasted that figure with the roughly $1.8 million figure noted for a competing package and warned that market interest at about 6% would markedly raise lifetime costs.

Multiple commissioners said they relied on Fishback, the city’s engineering consultant, and on performance bonds and city oversight to manage subcontractor risk. “The general is responsible for all scheduling,” the City Manager said, noting Fishback had been retained to oversee the work. The City Attorney also emphasized contractual protections, including performance bonds, as financial recourse if work proved deficient.

A commissioner moved to rescind the tentative award to ENL and approve option B, awarding the project to Spence Brothers. The motion was seconded and carried on a 5–1 vote.

In public comment, John R, who identified himself as a construction company president, told the commission he had no issue with awarding the work to Spence Brothers and called the bidding process competitive and fair. Bob Spence, CEO of Spence Brothers, thanked the commission and said the company had put “a lot of thought” into its estimate and would “take care of” the project.

The commission did not set a date for contract signature during the meeting; the attorney reiterated that contracts are not binding until signed and that the city retains authority to continue investigations if new issues arise. The meeting closed with commissioners thanking staff, Fishback and the contractors for their work on the expedited procurement process.