Bids totaling nearly $2 million have been awarded to area contractors for street work and materials to be completed this year.

The Austin City Council has awarded Ulland Bros., Inc. two bids: asphalt street reconstruction work in the post office area — First Street, Second Street, Third Street, Second Avenue, Third Avenue and Fourth Avenue Southeast — and the bid for seasonal asphalt hauling.

Ulland was the lowest bidder of three for both the post office project ($1.21 million) and asphalt hauling with a base bid of $288,750.

City engineer Jon Erichson said bids were higher this year due to energy costs; the asphalt hauling prices reflect a 31 percent increase.

Other projects were awarded to Rocon, Inc. of Owatonna, with the lowest bid of two at $398,000 for concrete rehabilitation on Oakland Place to Oakland Avenue East to Eighth Avenue Northeast; and to Flint Hill Resources, the lone bidder with $114,000 for oil for street maintenance. The bid for oil came in at 15 percent higher this year, which Erichson also attributed to higher energy costs.

The city will fund the post office project with municipal state aid, Mower County dollars associated with the jail and justice center, assessment bonds and other sources. The concrete rehabilitation project will be funded using a federal highway grant and state aid.

The city council approved all bids 5-1 on Monday with council member John Martin absent. Council member Marian Clennon said she voted no on all bids because she did not believe she was given enough information to make a decision.