GRANITE FALLS -- City council members in Granite Falls have awarded a $2,427,449 bid to Quam Construction in Willmar for sanitary sewer improvements.
It represents one of the largest utility projects every undertaken by the city, according to City Manager Bill Lavin. Quam Construction offered the low bid for the project, which will replace deteriorating sanitary sewer lines. Problems with the lines have led to sewer back ups in basements during large rain events and high inflow volumes of groundwater transported to the wastewater treatment plant.
Council members also awarded $2,705,000 in general obligation bonds for the project to Piper Jaffray of Minneapolis with a true interest cost of 3.0355 percent on the 15-year issue. The city had maintained it's A+ bond rating and was able to piggy back on the state of Minnesota's AAA rating, according to the city manager.
In other business, council members approved a second reading of a social host ordinance on a 3-2 vote. The ordinance is similar to one approved previously by Yellow Medicine County. Police Chief Russ Blue and Yellow Medicine County Sheriff Bill Flaten supported its approval.
In another matter, council members instructed the city manager to notify the Housing and Urban Development that the city opposes the awarding of a $469,500 bid by Emmanuel Ku as owner of Genghis Kahn LLC., for the purchase of the Riverview Apartments. Council members cited concerns about Ku's record as a landlord in New York and other eastern states.
HUD recently accepted bids for the senior housing facility and the bid by the New York landlord was the apparent high bid.