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Council hears infrastructure updates as canal dredging bids top budget by over $2 million
Summary
City manager John told the council that canal dredging bids came in '2 plus million dollars' over budget, prompting the city to consider additional MDEQ survey work, rebidding with a reduced scope, or seeking supplemental funding; other project updates included MDOT ramp work, paving bids under budget and generator awards paused pending federal review.
City manager John told the Diamondhead City Council on May 6 that canal dredging bids for the city came in “2 plus million dollars more than the budget was for,” a shortfall that may force the city to ask MDEQ for additional funding, rebid the project with a reduced scope or prioritize inland canal work first.
John said MDEQ requested additional survey work to clarify navigable channel depths, and the city has sent updated project materials to the agency. "They came in, 2 plus million dollars more than, the budget was for," John said, adding that the city would either seek added grant funds or rebid with a limited scope focused on inland canals before addressing the main channel.
He also provided a series of routine infrastructure updates: MDOT’s ramp work toward Gulfport is progressing with base material being installed and roundabouts planned later; Noma Drive phase 1 parking lights were installed and a ribbon-cutting was scheduled; the 90-day Noma dredging project is nearing a May 25 completion; and paving 2025 bids came in well under the city’s estimated budget, allowing the city to consider adding more roadwork.
On traffic safety, Councilman Clark asked about a newly installed stop sign at Diamond Head Drive East and Golf Club Drive. John cited the Manual on Uniform Traffic Control Devices warrants and provided hourly counts, saying the study showed the major approach met the criterion with counts "between 300, 400, 500, 577 cars" in an hour and similar counts on the minor approach; he said traffic engineers recommend a traffic circle and the city will pursue funding.
John also said FEMA/MEMA funding for siren systems lacks available funds under the current disaster award and that generator federal awards have been paused pending review, delaying those projects.
What this means: the sizeable overrun for canal dredging is the most immediate funding issue noted by staff and is likely to affect schedule and scope unless the city secures additional grant funds or narrows the contract work.
Next steps: staff will continue coordination with MDEQ on surveys, consider rebidding with a reduced scope, and pursue funding options for engineering recommendations such as a traffic circle.
Representative quotes
"They came in, 2 plus million dollars more than, the budget was for," John, city manager.
"At the major approach, we have, between 300, 400, 500, 577 cars coming through there in an hour," John, city manager, explaining traffic warrant counts.
The council took no final funding vote on the dredging at the May 6 meeting; actions discussed will return for council direction or budget consideration as staff pursues survey clarifications and funding options.
