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Kalona council: water project bids far exceed estimates; staff to review cost options
Summary
Council heard that bids for the Water System Improvements Project ranged from $6.14 million to $7.88 million—well above a $4.07 million preengineering estimate—and voted unanimously to have staff and financial advisors review options to cover the added cost.
Kalona’s City Council was told on July 6 that construction bids for the Water System Improvements Project came in significantly higher than expected, and members directed staff to analyze financing and cost-reduction options.
City staff reported that five bids were submitted for the project, with four allowable under bidding requirements. The lowest allowable bid was $6,144,447.50 and the highest reported bid was $7,879,550.00; the preengineering projection had been $4,073,405.00. Rick Teed of Garden and Associates told the council that while the Southtown Transmission Main and the wells divisions were below their engineering estimates, the water treatment plant improvements were “significantly over” the estimate.
Council members were told staff will work with Northland Securities to calculate necessary water revenue rates to support increased borrowing. On a motion by Council Member Beran, seconded by Council Member J Schmidt, the council voted unanimously to direct staff to review cost options and return with recommended next steps.
The vote did not award a construction contract. The council’s action directs further financial analysis and project refinement before any final decision on contractor selection or rate changes.
