Watertown Council Secures Neighborhood Upgrades Under Budget Amid Competitive Bidding

Northeast Radio SD News – Watertown, SD - The Watertown City Council moved forward with two neighborhood street projects during its April 20 meeting, taking advantage of a competitive bidding environment to secure contracts for significantly less than initially estimated. The approved projects target both routine pavement maintenance and critical drainage issues in specific residential sectors of the city.

The council unanimously approved a $517,270.80 bid award to Duininck, Inc. of Prinsburg, MN, for the 2026 PMP A Milling and Asphalt Paving project (Project No. 2602). This initiative combines the city’s annual mill-and-overlay work with its large patch project.

The winning bid came in approximately $82,700 under the $600,000 budget allocated in the Capital Improvement Fund. City Engineer Justin Petersen noted the financial favorability during his recommendation to the council.

“We got one bid from Dunnick and in the $517,000 range, and the budget was $600,000, so it’s under budget, and we recommend approval,” Petersen said.

The project involves nearly 16,000 square yards of milling and asphalt concrete composite, along with the removal and installation of curb and gutter. Currently, the segments slated for work include:

·         16th Ave Circle NE 

·         16th Ave NE 

·         18th Ave NE 

Solving Drainage Hurdles at 4th and Highland

A second contract was awarded to Halme, Inc. of Lake Norden, SD, for the 4th St W and Highland Blvd Neighborhood Street Reconstruction (Project No. 2604). With a bid of $248,173.90, this project also arrived under its $270,000 budget.

While the project includes standard reconstructions totaling approximately 350 feet on 4th St W and 250 feet on Highland Blvd, its primary objective is functional rather than purely aesthetic. Peterson explained that the intersection is “primarily trying to, drainage related, trying to renew the streets”.

Councilman Heuer praised the engineering department for prioritizing this specific location, noting its reputation among residents.

“First off, just commend you guys for taking some of this drainage issues that happen in this neighborhood,” Heuer said. “I mean that’s one of the roughest areas in town when it comes to that kind of stuff”.

The scope of work for this area includes traffic control, removals, base course, concrete curb and gutter, asphalt pavement, driveway approaches, and sidewalks. Petersen clarified that the reconstruction would not widen the existing roads and that the city is working to move three trees to avoid damaging them.

A “Hungry” Bidding Environment

When asked why the recent bids have consistently come in under engineering estimates, Petersen credited a shifts in the local market.

“It seems like we’ve had some really good bidding environment this year. People seem to be hungry,” Petersen remarked.

He further noted that Halme, Inc. is already performing work for Watertown Municipal Utilities (WMU) in the same vicinity, which likely enabled more competitive pricing for the 4th Street project. The council passed both bid awards without objection.