Resolution accepting bid for the Riverfront Drive Lighting and Streetscape Project 11140.

Adoption of attached resolution.

On February 24, 2025, City staff proposed a project for the installation of new streetlights in the area of Old Town, and the relocation of the current streetlights to North Riverfront, which were planned as a 2025 project previously. Bids were received and on May 27, 2025, staff recommended rejection of the bids as they were significantly higher than the proposed project budget. The single bid was $1,080,392, compared to the approved project budget of $742,000.
 
On June 23, 2025, after staff discussions with representatives of the Old Town Association, the City Council ordered that the project be re-bid with a reduced scope of work.

• New streetlights from Main Street to Rock Street (original project was from Main Street to Lafayette Street
• Bid benches and bike racks as Add Alternates (part of the base bid in the original project)
• Remove the installation of the Old Town Monument, which was very costly
• Salvage and store removed roadway lighting for installation as part of a future project
• Add/Alt to reinstall the above lights on North Riverfront Drive

Bids were opened for the re-scoped project on July 21, 2025. One bid, from Hunt Electric Mankato dba River City Electric, was received.  

 

	Hunt Electric- Mankato DBA River City Electric
Base Bid	$607.152
Add/Alt A (Reinstall Lights - N Riverfront Drive	$184,522
Add/Alt B (Benches and Bike Racks)	$25,224
Bid Total (Including Alternates)	$816,898
Approved Budget	$742,000

A few notes regarding the bid and the overall project:

• Lighting increased 6-7% and is higher than we traditionally see for lighting projects like this.
• Included in Alternate A is $141,000 for anticipated foundation repairs on the North Riverfront Project, which may not be needed.
• The project will need construction oversight. Those costs are estimated at $24,000.

It is recommended that the Base Bid and Add/Alternate A be awarded for a combined total of $791,674, which is $49,674 higher than the approved budget. Staff would recommend not accepting Alternate B and consider the purchase and placement of the benches and bike racks using City staff and be considered as part of the 2026 budget.
 
To address the sources for the project, staff recommend using the full amount of the one-time energy payoff, $540,000. Previously, we had anticipated using $537,000. In addition, staff recommend allocating $70,674 in additional funds from the Streetlight fund. Previously, $205,000 was planned for the 2025 North Riverfront Drive project. In the event the additional foundation repair funds are not needed, staff would recommend returning the funds to the Streetlight fund.
 
If approved, the Streetlight fund would have a cash and investment balance of $1,059,991 year-to-date. In this recommendation, the adjusted fund balance amount continues to position the account ahead of its reserve target of 12 months debt service and 3 months operating expenses.
  As such, the proposed sources and uses for the project are as follows:

 

USES:
Base Bid	$607,152
Add/Alt A (Reinstall Lights on N Riverfront Dr)	$184,522
Inspection/Engineering	$24,000
Total Uses:	$816,674
SOURCES:
Streetlight Operations Fund	$275,674
One-Time Energy Payoff from Debt Payments	$540,000
Total Sources:	$816,674

If approved, construction would occur later in the fall and, depending on the time required to procure materials, could extend into the spring of 2026.