Bids come in over estimate for 271st Street and Hagedorn projects

The Tea City Council met March 1 and discussed the bids for the 271st Street and Hagedorn projects.

Mayor John Lawler said the bids came in much higher than their original estimated cost, which was first estimated in March 2019. They bid the project as one bid when he noted it could also be bid as two projects.

Since the bids came in a million dollars more than what they had first estimated, Lawler and council members decided they needed to talk to landowners in the Hagedorn Industrial Park about the bids before taking any action.

HDR’s Ben Scholtz said one option would be not to combine the projects. They could have completely different contractors working on them at the same time or different times. They could not pave one or both areas at the beginning. They could just do the underground utility projects to start with.

Scholtz said rebidding the projects separately could draw in more bidders. He noted that waiting or bidding again always carries the risk of the prices being higher.

The council decided they needed to meet with landowners and did not take any action on the bids.

Scholtz also updated the council on South Dakota Department of Transportation’s plan to submit a grant for the 85th Street interchange. They are asking for a letter of support from the city. The slurry seal project with Sioux Falls was bid out last week and they will be going with a company from Minnesota this year.

The council approved the agreement for E-911 and dispatching services between the city of Tea and Lincoln County. Rates for 2021 are $4 per capita based on the 2010 Census. The years 2022 and 2023 will be based on the 2020 Census.

They approved the pay application for the 85th Street elevated water storage tank from Maguire Iron for $79,320.

The council went into executive session at 7:26 p.m.