The bids for the next two phases of the Sanborn Boulevard construction project came in over budget Thursday at Mitchell City Hall.

No action was to be taken during the sealed bid opening process. City Administrator Stephanie Ellwein said a decision to choose what route the city will take will occur at the Feb. 4 City Council meeting.

"We need to make sure that we can use the funds that were anticipated to pay for the project," she said. "If that's the case, it sounds like we'll be moving forward with at least Phase II."

The bids on Thursday had three parts. Phase II is the construction on Sanborn between First and Seventh avenues, which will include complete reconstruction of water and sewer utilities, sidewalk and curb and gutter. That work will closely replicate the Phase 1 project, which was completed in 2018 from Havens Avenue to the bridge over Dry Run Creek. In the bid documents for contractors, the city requested that work be completed in 2019, and city officials have been planning on doing that work later this year.

The engineer's estimate for Phase II, which has been used as a budgeting mark for the city, was $3,977,000. The lowest bid for that part of the project came from H&W Contracting, of Sioux Falls, for $4,685,995.22.

Another set of bids came in for Phase III of the project, which is the work between Seventh and Ninth Avenues on Sanborn. That project will include much of the same work, with a focus on storm sewer work to help that area - which is known for flooding during heavy rains - drain better towards Dry Run Creek. The city's bid document calls for that work to be done in 2020.

For the Phase III bids, the lowest bid came from H&W Contracting for $3,264,121.45. The engineer's estimate was $2,923,000.

The city also took bids on the structural rehabilitation of the Dry Run Creek bridge on Sanborn Boulevard, as well, as that project is also set to take place in 2019 at the same time as the Phase II work, according to the description provided to bidders. The estimate for that aspect of the project was $865,000, and all three bidders were under that mark. BX Civil & Construction, of Dell Rapids, had the low bid of $483,000. Also bidding on the project was Complete Contracting Solutions. BX was also the firm that led the work on the Phase I construction.

Ellwein said the city will have to choose among its low bidders for the project, and leaders will have to decide which phases of the project are most feasible to complete in 2019.

Complete list of sealed bids for the Sanborn Boulevard utility and street improvement phases II and III below:

H&W Contracting, phase II bid schedule A: $4,685,995.22; Phase III bid schedule B: $3,264,121.45; Structure rehabilitation bridge project: $559,970.29.

BX Civil and Construction, phase II bid schedule A: $4,752,249.54; Phase III schedule B: $3,480,275.30; Structure rehabilitation project: $483,000.

Complete Construction Inc., phase II bid schedule A: $4,775,072.41; Phase III bid schedule B: $3,930,181.95; Structure rehabilitation project: $800,590.15.

Engineer estimates: phase II bid schedule A: $3,977,000; Phase III bid schedule B: $2,923,000; Structure rehabilitation bridge project: $865,000.