SPICER -- The Spicer City Council awarded the Lake Avenue South project Wednesday, but waited to decide how to finance its $1.6 million project debt.
Chad Monson Excavating of Willmar was chosen for the roadway and city utility project south of Green Lake for a low bid of $2,538,421. The project will cost Spicer and Kandiyohi County an estimated total of $3.3 million -- that figure also includes engineering, inspections and other project costs.
During the council's July 23 meeting, Spicer had project bids for the project, but the council waited to sign a cooperative construction agreement with the county before awarding the project. Even though the council signed the agreement Wednesday, Councilman Ron Schneider expressed concern about the county's funding of the project.
Schneider argued that the county should have more financial responsibility regarding the project's two water retention ponds. The ponds are designed to prevent polluting sediments from reaching Green Lake through storm water drainage.
Schneider said even though the project's ponds are not required by law, that the county receives as much benefit from the ponds as Spicer does, and therefore, should fund more for their construction.
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"I know what you're saying," said Councilman Troy Block, regarding Schneider's concern. "But I think that's all (the money) we're gonna get, Ron."
After the agreement approval, the council tabled discussion about project financing because financial adviser David Drown of David Drown Associates Inc. was not available for Wednesday's meeting.
During earlier meetings, Spicer has discussed a bonding plan to cover its project debt. Most discussed on July 23 was an option to join a bond-financing program offered through the Minnesota Rural Water Association.
According to a July 23 letter from Drown, the program controls financing costs and lowers interest rates by pooling the borrowing needs of several communities and financing them all in a single bond issue. The letter also indicates the program would reduce bond payments for the city project by $60,000.
Work on the project will not start until Spicer receives the federal easements for two parcels of land affected by the project.
The two parcels, owned by the Minnesota Department of Natural Resources, are required for the filtering ponds and a turn lane. The parcels are federally funded and require cultural surveys and federal easements.
The city has been waiting for the easements since late May.
