By BECKY KISER
Hays Post
The low bid for construction of the North Vine Street Corridor Improvement Project in Hays is more than $3.5 million higher than the engineer's estimate.
The $11.9 million dollar bid comes from Smoky Hill LLC of Salina.
The estimate by the city's project engineer WSP is $8.46 million, while the estimate from the Kansas Department of Transportation is $8.15 million. KDOT will be administering construction of the project.
Assistant City Manager Collin Bielser says the cost increase should not have a negative impact on the city's budget.
"We think some of the reasons for the high bid was obviously the coronavirus pandemic — availability of workforce and disruption in the supply chain for materials. Perhaps it was a real reflection of the project. We don't really know," Bielser said Tuesday.
There are few details about the bid included in the agenda information packet for Thursday evening's city commission work session.
"My understanding is it's an internal document until it's awarded," Bielser said.
"But originally it was going to be funded by the city anyway so we have that extra federal funding. And so we don't want to lose the opportunity for that federal funding which is a little over six million."
Hays received a $6 million federal BUILD grant to cover a portion of the project, which was estimated at a total cost of $9.3 million. The remainder of the funding will come from an increase in the Transient Guest Tax.
The bid from Smoky Hill Construction, combined with $1.2 million for construction engineering by Kirkham Michael of Ellsworth, totals $13.1 million.
Subtracting out the $6,057,827 BUILD grant leaves the city’s share at $7,110,430, which KDOT has rounded to $7,111,000. It is to be paid to KDOT by May 14 from the city's Capital Projects Fund.
No impact to other capital projects is expected at this time, according to Bielser.
"It's over-estimate, but still within our budget," Hays mayor Shaun Musil told Hays Post in a text. "We could cut corners but it has to be done right the first time."
The other bid for the project came from KOSS Construction, Topeka, for $12.7 million.
"Every capital project has its own funding source. So while the Capital Projects Fund will provide the payment to KDOT, the North Vine Street corridor project will be reimbursed with a bond, the debt service for which will come from transient guest tax proceeds," Bielser wrote in an email Tuesday afternoon.
The BUILD grant requires construction to begin next month.
The federal funds were committed to Hays prior to the declared coronavirus pandemic.
"That's money that is part of the project and isn't in jeopardy to be pulled elsewhere," Bielser noted.
City commission work sessions and meetings are being livestreamed and broadcast live on Nex-Tech and Eagle Communications cable TV. Due to social distancing rules, the public is not permitted in commission chambers and all city buildings are closed to the public.
Public comment for non-agenda items will be accepted in writing and can be emailed to [email protected].