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The only bid for the reconstruction of Bridge Avenue this summer came in about $2.4 million higher than the engineer’s $9.8 million estimate, Albert Lea city councilors discussed Monday. 

The $12.24 million bid, from Ulland Bros., was 24.8% higher than the engineer’s estimate. 

City Engineer Steven Jahnke said much of the higher costs are tied to factors that will affect the city’s share of the project with underground sewer and water reconstruction. The project is a joint one for the city and Freeborn County because the road is owned and maintained by the county, but the underground utilities are owned and maintained by the city. 

“We were surprised to see the estimate,” Jahnke said. “We thought we were going to be close based on the projects we bid in the past.” 

He said in talking with other contractors, the project’s size is much larger than most local firms could complete this year, and there is already a lot of roadwork slated in the area. He noted there were also concerns about how the project was to be completed in stages. 

He said he did not think the project would get better results if it was rebid, based on the discussion with the other contractors, and it would essentially push the project back a month. 

The project is slated to receive about $5.79 million in federal funds. 

Matthew Hansen with SRF Consulting, the firm hired by the city and county to oversee the project, said in a letter to Albert Lea City Engineer Steven Jahnke and Freeborn County Engineer Sue Miller at the end of last week that the firm analyzed Ulland’s prices to better understand why the difference in the bid and estimate and had discussions with other contractors and city, county and state staff to understand potential factors influencing the cost difference. 

Some of the reasons it discovered were the following:

• Project staging: The construction was split into three segments: a north, middle and south segment, creating more detailed project coordination and higher than anticipated costs. 

 The middle segment near the Freeborn County Fairgrounds could not be disturbed until after the fair.

Hansen and Jahnke noted if the Freeborn County Fair is canceled, the project’s construction staging would become less restrictive and could result in cost savings. 

• Project size and schedule: Many of the other contractors indicated they already had work lined up for 2020 and would be hard to commit additional crews to a project as large as this one. 
• Underground utilities: The underground utility costs have increased. 
• Pile support utility construction: The project includes about 700 feet of pile-supported sanitary sewer, requiring a specialty subcontractor.
• Timing: The bid date factored into higher than anticipated costs.
• Rebidding options and changed conditions: There was no interest in other contractors submitting a bid because of the size and complexity of the project. 

Second Ward Councilor Larry Baker asked if plans still called for removing the stop lights at Bridge Avenue’s intersection with Hawthorne Street.

Jahnke said a study conducted for the street showed that removing the stop lights and replacing them with rapid, flashing lights is the safest option moving forward. That option is included in the contractor’s bid.

The council ultimately voted to acknowledge Ulland Bros. as the low bidder on the project and to recommend the county commissioners award the contract for the project. Because the federal funding has been allocated to Freeborn County, county commissioners will award the contract. This is scheduled to take place during the Board of Commissioners meeting May 5. 

 

 

Estimated Bridge Avenue funding breakdown

Total construction costs, including engineering and right-of-way: $14.4 million

Estimated federal funds: $5.79 million

Estimated county sales tax: $1.5 million

Estimated county funds — other: $2.13 million

Estimated city sanitary sewer fund and/or revenue bonds: $1.58 million

Estimated city water fund and/or revenue bonds: $1.4 million

Estimated city funds state aid: $1.01 million

Estimated city funds bonding: 1 million

 

* Final breakdown to be determined by city and county engineer based on actual project costs.