Thursday, March 28, 2024

Pateros awards water contract to Smith Excavation

Bid higher than expected

Posted

PATEROS – The Pateros City Council voted to award Smith Excavation the contract for the Water Distribution Improvement Project, the final section of the system in the amount $1,152,189.26 despite the fact that Smith, the lowest of two bidders, came in with a figure about $250,000 greater than the city’s remaining funding budget of $1.72 million.

The city’s Finance Committee met on July 16 to discuss the city’s options regarding the funding shortfall and recommended the following to council members at their July 20 regular virtual meeting:

Award the contract to Smith Excavation and apply to Rural Development (RD) for $500,000 to complete the four schedules included in the bid award. Those schedules include:

A. Water line extension on Industrial Way and Pedersen Road. Installation of additional fire hydrants and a water fill station.

B. Rerouting of water main under Pateros Garden Apartments to Lakeshore Drive.

C. Removal of old pump station located on Dawson and U.S. 97.

D. Installation of new water meters for the entire city.

The $500,000 requested from RD will provide a buffer in the event of unexpected issues that may arise during the project and would only use that money to complete the project. No additional schedules can be added, and the goal is to spend the entire $500,000.

If RD is unable to provide the money in its grant funding cycle the city would then need to determine which schedule to remove to remain within the original $1.72 million amount.

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