Somerton, Yuma streets costing less

SOMERTON - This city, at least, has found some consolation in the ailing economy.

A street improvement project will end up costing Somerton more than $100,000 less than anticipated, owing to what the mayor says is more intense competition among contractors looking for work.

"The economy favored us," said Mayor Martin Porchas, "because now contractors have less work and there's more competition for the work and the costs come down."

The city council recently awarded DPE Construction of Yuma its bid of $282,389 for the project that includes repaving Spring Street between Columbia and Somerton avenues, as well as Columbia and Musgrove Avenue between Spring and Main Street. The work includes new sidewalks and stormwater system.

The bid, the lowest among seven bidders, was less than the city engineer's estimated cost of the project - $387,613 - and less than what the city had set aside - $403,648.

Money from a loan the city received from the Greater Arizona Development Authority in 2007 will pay for the project.

DPE, which previously built the city's Public Safety Building, is expected to begin work on the project next month, Porchas said.

"The community is going to see work on the streets for the rest of the year and throughout next year, because the other projects are bigger that the first," he said. "I hope that afterwards we will have money left over to do more work on the streets of the city."

Will Toms, senior estimator for DPE Construction, said the economy is one, but not the only, factor in the amount of the bid.

“It is a little harder to find work and we are bidding more aggressively because of the economy," Toms said. "We have made cutbacks over the last year to sustain where we are at. The key is keeping above water. It would have been a higher bid a few years ago because jobs were plentiful.

But, he added, close proximity to raw materials was a key factor in DPE's ability to provide a low bid.

“We have very good sources (near Somerton) and we had an advantage due to the location."

Toms said hiring local companies to perform local jobs is essential.

“We are trying to keep everything local here for our economy. If a local contractor gets a job, it helps the local businesses in the surrounding area, because workers are there and when they get paid, they are going to spend their money in Yuma. We want keep the work here so everybody can prosper.

“We are very excited to get the contract."

The Somerton street project is not the first one in the area to come under bid as a result of greater competition.

The winning bid submitted by Phoenix-based Royden Construction Co. to the do the current 16th Street widening project in Yuma was nearly $2 million less than the $11.5 million estimate of the Arizona Department of Transportation. ADOT is overseeing the project, which is funded with federal stimulus money.

ADOT officials at the time attributed the lower-than-anticipated bid to higher competition.

"ADOT is seeing this (trend) statewide as we go to bid, particularly with (stimulus) projects," said Lucy Shipp, spokeswoman in Yuma for the state agency.

The leftover funds can be applied to additional road projects, she said.