Walnut Grove City Council voted unanimously to accept a bid from IHC Construction Services LLC for the LAS sewer plant expansion, approving the bid at $4,055,000 and authorizing staff to proceed with the notice of award and contract review by the city attorney.

Council members said the bid creates a funding gap of roughly $697,000. The vote came after staff presented a summary of the city’s accounts and the projects included in the current budget and after brief questions from council about operating costs for the sewer system.

The council’s finance remarks noted account balances across operating and reserve funds and identified sources staff will examine to cover the shortfall; council did not approve a specific financing plan during the meeting. When a councilmember asked for the city’s monthly sewer operating expense, staff said they did not have that figure immediately available and that the precise monthly amount was “not specified” in the materials provided that night.

Councilmembers also addressed contract procedures: the notice of award and contractor bonds and insurance will be forwarded to the city attorney for review before a formal contract is executed. A councilmember clarified that approval to accept the bid would allow the city to issue the notice of award so the process need not wait another meeting; attorneys will still review the documents before any signatures for the construction contract are required.

The motion to accept the IHC bid passed unanimously. The council did not record individual vote tallies in the meeting transcript; the presiding official announced the vote was unanimous.

Council members said staff would follow up with the attorney’s office and return with contract documents and any financing recommendations at a later meeting.