Photo by Andrea Walton.CALAIS — In a short City Council meeting Thursday, City Manager Mike Ellis reported what he called “bad news” about the Route 1/North Street paving project that the city hoped to get done this summer. The paving project received two bids, one for just over $10 million and another for around $9 million. Both bids are well over the Maine Department of Transportation-approved cost of the project, and have been rejected by MDO…