Park Rapids City Council OKs bidding specs for joint city-county project

The Park Rapids City Council, on Tuesday, March 25, approved plans and specifications and ordered delayed advertisement for bids for the Central Avenue street and utility improvement project.

City Engineer Jon Olson with Apex Engineering Group reviewed the preliminary engineering report for improvements along Central Avenue (CSAH 1), King Street, Grove Avenue and East River Drive.

Olson said a cooperative project around Central Avenue has been on Hubbard County’s capital improvement plan for several years and was originally scheduled for construction in 2019. However, the city was in the midst of its U.S. Hwy. 71 roundabout project and asked that it be postponed, and the county scheduled it for this year.

“We did identify some additional city needs,” Olson said regarding the adjacent streets. “We’ve included them in the project scope at this time, but they will be bid as an alternate to give the city flexibility when it comes time to evaluate the bids and make a determination on contract awards.”

The proposed Central Avenue improvements extend from State Hwy. 34 north to the city limits – “just shy of a mile,” Olson said.

The city’s alternate-bid projects include approximately 1,200 feet of King Street from Mill Road to Central Avenue, 360 feet of Grove Avenue from Hwy. 34 to King Street and 325 feet of East River Drive extending west from Central Avenue – a section unserved by city water and sewer, Olson said.

He said the city and county are awaiting plan approval from the Minnesota Department of Transportation (MnDOT) before they can advertise for bids, and are working on a cooperative agreement, defining each other’s long- and short-term roles and responsibilities.

Olson said they are targeting April 29 as a bid date, contingent on MnDOT approval, followed in May by a public hearing on the project. “At that public hearing, we’ll actually have low-bid construction amounts to talk over,” he said.

Construction is slated for this summer, he said, with a final assessment hearing in the fall.

Olson estimated that the Central Avenue improvements will cost about $4.9 million, or 77% of the project, with the King-Grove-East River alternate coming in at $1.5 million or 23% of the $6.4 million total.

He projected the county will fund about $2.9 million of the project, including Central Avenue street improvements including stormwater, sidewalk and lighting, while the city will be responsible for Central Avenue sanitary sewer and water upgrades and all the alternate-bid improvements, to the tune of about $3.4 million.

To assist with the city’s portion of the project, Olson recommended assessments to adjacent properties totaling about $2.35 million. “We are also pursuing some lead service replacement funds through the PFA (Public Facilities Authority),” he said.

Based on his estimated assessment rates, Olson said a 50-foot wide lot with both water and sewer services being replaced would pay $18,500, scaling to $29,000 for a 100-foot lot and $39,500 for a 150-foot lot.

“We will recalculate these numbers once bids are received, and before that (May) public hearing,” Olson stressed. “Final assessments are set following the improvements, and those are based on the actual construction costs incurred during the project.”

He said assessments are typically financed over a 20-year term.

Olson asked the council to approve a resolution authorizing the county to receive bids, contingent on county and state approval.

Council member Joe Christensen noted there are multiple parcels in the project corridor that could be assessed over $100,000 based on Olson’s rate estimates. Adding that the east side of Central Avenue is owned by three people, Christensen said, “That’s not a very nice thing to do to three people.”

City Administrator Angel Weasner said the city is aware of this and will have to discuss it. Olson said there are ways to handle issues like this, such as deferment. “We haven’t gotten to that point in the discussion yet,” he said.

Council member Tim Little’s motion to approve the project’s plans and specifications and to order delayed advertisement for bids passed unanimously, absent Mayor Pat Mikesh.

In consent items and general business, the council:

• Proclaimed April 25 as Arbor Day in the city. 
• Approved a temporary building official services contract with Township and Range, LLC. Weasner said this is due to current limitations on building official Paul Klettenberg’s license until he passes the state licensure exam. 
• Approved commercial rehabilitation procedural guides to distribute to applicants for commercial rehab assistance through the Small Cities Development Program.
• Denied a $121,000 revolving loan requested by Dragonfly Home Decor and Gifts, as recommended by the city’s Economic Development Authority on March 11.
• Approved an amendment to the cell tower site lease agreement with Tower Co., extending the company’s lease for an additional 20 years. 
• Reappointed Larry Novak to the parks and beautification board for a three-year term.
• Paid Ferguson Waterworks $3,359 for water and sewer supplies and $3,572 for an annual subscription to meter-reading software.
• Paid Girtz Excavating $2,560 to excavate and repair a water main break on Court Avenue between 1st and 2nd Street.
• Paid Hawkins, Inc. $2,027 for water treatment chemicals.
• Paid Hoffman Electric, Inc. $3,131 to retrofit eight street lights.
• Paid Ramstad, Skoyles, Winters & Bakken, P.A. $1,429 for legal services on general municipal issues.
• Paid TKDA $13,675 for engineering services on the municipal airport’s taxilane reconstruction project.
• Advertised for a seasonal, part-time parks and beautification employee.
• Approved payables totaling $44,806 and prepaids totaling $103,821.

The city council’s next meeting is scheduled for 6 p.m. Tuesday, April 8 at city hall.