The remaining amount was to be paid from the city’s sewer reserve fund.
However, City Administrator Beth Linn told the council on Sept. 22 that two bids received for the project ranged from $392,428 to $400,710.
The council agreed to reject the bids and work with Schlagel & Associates to consider revisions to the plans and bring the project within budget.
“It will give us time to see if we can come back to you with a slightly different project,” Linn told the council.
The original scope of work included “upgrading an existing 8-inch clay sanitary sewer main and manholes to improve flow capacity for the developed parts of town and provide additional capacity for future development,” according to a memo the council received in August.
Linn said the mains have been prone to backup and overflow problems in the past.