The East and Ray Street reconstruction project has been awarded to MDC Contracting of Charlevoix for $633,624.25.
All three bids came in at a steeper cost than had been anticipated—6.5 percent higher than engineering firm C2AE had estimated.
“We received a $583,519 Downtown Infrastructure Grant (DIG) to reconstruct East Street in between Main and Ray and the entire two-block length of Ray Street,” Boyne City Manager Michael Cain told the Boyne City Commission on Tuesday July 22… “One of the grant requirements is that the project be completed by the end of this calendar year.”
After meeting with the abutting property owners, plans for the project were presented and approved by the city commission. The bids were received and opened on July 17.
According to Cain, Larry Fox of C2AE said bids have been coming in higher than expected for other municipalities as well.
As it stands, the project is roughly overbudget by $50,000—$19,000 of that is in contingency funds.
“Staff has met since this memo went out and looked at various options with regards to are there ways we can make up the difference on this project?,” Cain said. “We came up with a few items that made this project look better.”
Cain said the city could hold off on marking the pavement until after the winter. There is also nearly $2,800 in trees that were going to be planted but the funding could come from the city’s tree planting program instead. There is an additional $17,000 in empty conduit to be installed to handle future needs. One or two of those conduits could be removed, potentially.
Cain suggested the commission award MDC’s bid as-is and allow him and city staff time to find more savings.
Cain reminded commissioners that the project must be completed within this calendar year to ensure it receives the DIG grant moneys.
“I agree that we can make some minor adjustments and take some things down if you feel that’s appropriate but I would recommend the award to MDC Contracting,” said Fox.
Boyne City Commissioner Laura Sansom said even though the bids are slightly higher than previously thought, the project needs to be done, especially since it is significantly funded by grant moneys.
“We need to take advantage of this grant,” said Boyne City Commissioner Derek Gaylord. “This will pretty well shore up our downtown operations with regard to street and sub-surface.”
Including the DIG grant, the city has budgeted a total of $747,990 for this project that is expected to begin at the end of August and be completed by the end of October.
A motion to award the bid in full to MDC was unanimously approved.
Harbor Springs Excavating’s bid was $638,275.40
Tri County Excavating Group’s bid was $684,640.20