Orchard Hill bids come in higher than hoped

WASHINGTON — Washington County unsealed bids for a long-debated office renovation project last week, the lowest of them $184,000 above the budget projected by consultants at Carl A. Nelson & Company.

The price concerned some officials, since the county plans to finance the project with one-time funds allocated from the American Rescue Plan Act. The remaining $4.1 million dollars must be allocated by the end of this year, and spent by the end of 2026, according to federal guidelines, but it’s not clear how Washington County will pay for the project if costs exceed its ARPA account.

At almost $2.6 million, the Orchard Hill bid alone wouldn’t break that proverbial bank. But it’s higher than expected, leaving less room for other sizable renovations planned with the same money at the county courthouse and nearby McCreedy Building.

Still, those involved say they think the county could get by, trimming some interior decoration work from the Orchard Hill contract, and expecting lower-than-projected bids on the planned projects in other county facilities.

“There’s value engineering items that we’ve identified … the $180,000 that we’re talking about isn’t insurmountable,” said Supervisor Marcus Fedler, the decision-making board’s liaison with consultants on the project. “It’s something that I think we can find ... I’d say that, based on the information that we got on bid day, we’re not going to find a number better if we try to rebid it.”

The low bid was selected from seven applications for the work, all within $500,000 of one another. Carl A. Nelson & Co. Project Manager Ryan Harris said he wasn’t sure why the cost came in high, but speculated it may be thanks to rising costs since the company first made its estimate months ago.

“Generally we like our projects to be on-budget or just under-budget, but it didn’t happen with this one,” he said. “I need to get some more bid breakdowns from the bidders to figure out where it went over and why, but right now I think the biggest thing is probably inflation.”

After a deadlocked 2-2 tally to accept the $2.587 million bid from Woodruff Construction, the board plans to vote on the matter again next week. Supervisors Bob Yoder and Stan Stoops said they voted no because they wanted all board members present for the decision, and Board of Supervisors Chair Richard Young was absent Tuesday morning.

Assuming it moves forward, the Orchard Hill renovation project will represent a major consolidation of local government staff under one roof, moving public health, environmental health, Information Technology and the supervisors’ own department out to the building on Washington’s northwestern edge.

Harris said he didn’t expect any of the budget-saving tweaks to have an impact on the departments on the campus. Nonetheless, county agency officials say they’re keeping a close eye on the ever-evolving plans.

“They’ve got some adjusting to do,” Washington County Public Health Fiscal Administrator Peggy Wood said, at a Board of Health meeting last week. “That’s a big project that obviously affects (us.)”

Comments: Kalen.McCain@southeastiowaunion.com