LETTER: Councilmember further clarifies street project particulars
Tuesday, March 26, 2013 5:30 AM
I wish to clarify some more points about the Main Street project.
Regarding construction bidding, subcontractors generally do not bid separately on big projects. The general contractor gets quotes from subs, selects one from a firm (usually the one that gives the general contractor the best price), and then the general includes the subs it will use in its bid for the entire project.
Bids have been historically low since the recession started as contractors fight to stay in business. From my observation of last year's Hwy. 44 construction, Mathy Construction used few, if any subs.
The council was sent MnDOT's line-item projected costs about two weeks ago, but we were told we could not release the information until after the bids are opened, which now appears to be April 3.
One shock to me was that the actual roadway costs (not including amenities and infrastructure) appears to be more than $1.5 million of state money; the city's contribution could be a big chunk of money besides all the piping. We have to hope for the best.
Meanwhile, the council will be looking for cuts in the previous council's budget to avoid a previously projected major increase in utility costs.
I hope to pay the bonding costs (bond attorney, city finance advisors and bond sale company) up front, rather than borrow that money also.
I also hope to pay the first interest payment upfront rather than borrow money for that and pay interest for 20 years.
Spring Grove councilmember Nancy Nelson