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Algoma council awards $2.35 million contract for Merryman Acres street and utility work
Summary
The Algoma City Council voted to award the 2025 Merryman Acres utility and street construction contract to Peter's Concrete for $2,350,136.45 after receiving nine competitive bids; staff said engineering and contingency keep the total under earlier estimates and final blacktop will be funded from the TIF when the subdivision is substantially built out.
The Algoma City Council voted to accept the low bid of $2,350,136.45 from Peter's Concrete to build utility and street infrastructure in the Merryman Acres subdivision.
Staff told council the project drew nine competitive bids ranging from $2,350,136.45 to $3,108,406.80 and that the recommended award, plus 15% for engineering and a 10% contingency, remains below the city—ngineer—stimate. The scope includes water, sanitary, storm sewer, electric service and street lighting, fiber pedestals, curbs and a binder course of blacktop; staff said final paving would be deferred until the subdivision reaches approximately 85 to 90% build-out and that final blacktop would be paid from the TIF when that work occurs.
"We had nine competitive bidders that bid on the project, which is a real good number," said the presenting staff member, noting the low bid and the planned contingencies that keep the project under the earlier estimate.
Staff said work is expected to begin in early spring. Council members asked staff to confirm that certain driveways and developer-responsible sections would remain at the developer's cost; staff said those items are excluded from the city's contract when they are on private property.
The council moved to adopt Resolution 12-45-2025 to accept bids and award the contract; the motion was carried by roll call vote.
