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Board delays Union Street sidewalk contract amid $1.9 million local share and funding gaps

City of Pacific Board of Aldermen · April 22, 2026
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Summary

Pacific aldermen tabled approval of a TAP contract for Union Street sidewalks after staff reported an approximately $1.96 million city share with roughly $736,000 unfunded; members directed staff to meet with East West Gateway and the contractor and return with options on May 5.

The City of Pacific Board of Aldermen on April 21 delayed action on a proposed contract with CE Contracting Inc. for Union Street sidewalk improvements (TAP project 990‑1691) after officials warned the city faces a large local funding obligation.

Administrator Literal told the board, “Basically, our city share is $1,900,000, $1,958,000,” and said the current budget leaves roughly $736,000 unfunded. Public works commissioner Bergman and other members said that canceling or changing the scope could jeopardize nearly $1 million in grant funding already allocated for sidewalks.

Why it matters: the TAP grant covers about 80 percent of eligible sidewalk work, but city‑funded items included water main replacement and street overlay that the administrator said were not covered by the grant. Board members warned that the project is likely to require significant local money and that the city has already spent design and engineering funds.

“There’s a $131,000 in costs for design and surveying that we’ve already paid,” Bergman said, urging the board to seek ways to reduce scope before giving up on the grant. Several members recommended meeting with East West Gateway and the contractor to pursue a narrower scope that preserves grant‑eligible work, such as sidewalks, curb and storm sewer, while removing or postponing city‑funded waterline and paving work.

After extended discussion about rebidding, scope changes and the risk of losing grant funding, Alderman [functional_label] moved to table the resolution and direct staff to meet with East West Gateway and the contractor and to provide a financial breakout. The board agreed to table the item to the May 5 meeting to allow staff time to pursue those options.

As a related near‑term action, the board approved a $5,142 pay estimate to compensate Crosspoint School for a small right‑of‑way interest needed for the project. Administrator Literal said the design is complete and that failing to secure easements by the grant deadline would likely terminate the project.

What’s next: staff will meet with East West Gateway and CE Contracting to explore scope changes and cost reductions and will report back at the May 5 meeting when the contract item returns to the agenda.