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City seeks design contract to rebuild Lincoln Avenue alley and nearby parking lots while utilities replace alleys

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Summary

Staff proposed a design agreement with Interstate Engineering (not‑to‑exceed $74,900) to plan reconstruction of an alley and three adjacent city parking lots north of Lincoln Avenue, timed to coordinate with upcoming utility work; Committee approved initiating the public improvement and the design agreement.

City staff recommended initiating a public improvement to reconstruct the alley north of Lincoln Avenue from Union to Cascade Avenue and to repair or reconstruct three adjacent city parking lots; the Committee of the Whole approved proceeding to request plans and specifications and authorized staff to negotiate a design contract with Interstate Engineering not to exceed $74,900.

Public works staff said Otter Tail Power’s planned utility work will disrupt alleyways in the area and recommended coordinating alley reconstruction with parking‑lot repairs to reduce repeated business disruption. Staff noted existing stormwater problems and deteriorated pavement in the central parking lot; staff proposed reconstructing the central lot while performing mill‑and‑overlay resurfacing on the east and west lots. Staff also proposed paving a small gravel lot north of Pickett CPA.

Interstate Engineering provided a professional‑services proposal for design and bidding services with a not‑to‑exceed fee of $74,900. Staff said the timeline in the proposal would allow plans and specifications to be ready by May and construction to occur during the 2025 season. Council members asked that staff analyze whether restriping or reconfiguration could maximize parking capacity when the lots are reconstructed; staff committed to include that analysis in design.

Funding options discussed included the parking‑lot capital reserve (roughly $154,000 carried forward plus an annual $35,000 budgeted allotment), anticipated damage assessments or utility contributions related to the alley work, limited Municipal State Aid (MSA) dollars and insurance/dividend reserve funds. Staff said the proposal would be funded from those parking and capital reserves and that a full funding plan would be presented if the project proceeds to construction.

The Committee approved initiating Public Improvement 5855 (Lincoln Avenue alley and parking lot improvement) and authorized Interstate Engineering to proceed with design under the quoted not‑to‑exceed amount.