The city of Washington has awarded a contract to a St. Charles firm for construction of the team track rail siding facility proposed off West Main Street in the west industrial park.

City council members Monday night approved an ordinance awarding the contract to Kolb Grading by a vote of 7-0. Councilman Tim Brinker was absent.

Darren Lamb, community and economic development director, told the council that the mayor will sign the ordinance for the contract contingent on final approval by the Missouri Department of Economic Development and the federal Economic Development Administration.

Kolb submitted the lowest base bid of $3,256,153.30, which includes construction of the rail siding, a guard/office building and lighting for the facility.

Lamb said construction could begin by mid- or late-November.

Seven contracting companies submitted “competitive” bids on the project, Lamb said.

Other expenses associated with the project are geotechnical services for about $46,000, which includes an estimated $30,000 for construction testing; archeological services for $68,071; an environmental assessment for $6,250; and grant administration for $40,000.

Another expense is $185,100 for engineering work, but that amount excludes the reimbursable cost for printing and bid advertising. All of these projects have been approved.

Another cost is an estimated $200,000 for construction and signalization work by Union Pacific Railroad.

Lamb said the final industrial track agreement with Union Pacific has not been finalized and will be brought before the council for final approval at a later date.

That brings the total cost of the project to $3,801,574.30, about $300,000 below the latest overall cost estimate of $4.1 million.

Lamb told the council the project will be funded by an estimated $2,052,810 community development block grant, about $962,701 through the EDA and the city’s share, $786,063.30.

Lamb said the block grant funds must be spent by Sept. 30, 2012, which also is the expected completion date for the project.

After the work is finished, the city will consider using a third-party manager to maintain the team track, Lamb said.

The 4.4-acre lot where the team track will be constructed is adjacent to the Canam Steel plant.

The team track will provide a secure facility where local industries and businesses can load and unload products and materials onto railroad cars and trucks.

CG Power Systems USA Inc, formerly Pauwels Transformers, needs the rail siding to be able to ship extra-large transformers it is manufacturing at its new plant in the Heidmann Industrial Park.

Canam Steel is interested in utilizing the rail siding to ship a “new line” of bridge steel. Other companies also have expressed interest in utilizing the facility.

In addition, the team track will eliminate the rail siding along Front Street, between Cedar and Stafford streets. The city plans to utilize that site for a public parking lot in the future.