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Otsego approves participation in County Road 137/CSAH 37 improvement project; city share estimated at $661,000
Summary
The City of Otsego voted to sign a funding and construction agreement with Wright County and the City of Albertville for improvements to County Road 137/CSAH 37. The project’s total estimated cost is about $7.9 million; Otsego’s estimated share of $661,000 is planned to come from three city funds.
The Otsego City Council voted to approve a funding participation and construction agreement with Wright County and the City of Albertville for improvements to County Road 137 and County State-Aid Highway 37.
City staff said the project is still at the pre-bid stage. “These are still estimates at about $7.9 million,” Adam (city administrator) told the council, and Wright County has secured approximately $2.5 million in grant funding to lower the local cost.
The council’s nut graf: the city’s estimated share is $661,000, allocated across three funds. Staff described the breakdown as follows: Fund 203 (park development) would largely pay for a trail extension tying the Magnolia Landing development to Lift Station 7; Fund 414 (capital improvement revolving) would cover typical street improvements — pavement, storm sewer, curbing and lighting — with an allocation of $224,000; and Fund 360 (water availability/connection fund) would cover an estimated $203,000 for trunk water main improvements.
Council members questioned how the city would be invoiced once the county bids the work. City staff and counsel advised that Wright County will bill the city for 95% of Otsego’s share based on the as-bid numbers once the county has awarded contracts, with the final remainder invoiced after project completion. “Typically, the county would invoice us once the county board has actually awarded those contracts,” Adam said.
Traffic and capacity were among the most-discussed concerns. Councilmember Dunlap and others raised whether the road improvements will handle traffic expected from planned commercial development in the area, notably a Costco site. City staff and the county’s project consultants told the council that county and developer traffic studies were used to test capacity and that consultants concluded the roadway project, including single-lane roundabouts, will accommodate the development’s expected traffic patterns. “Costco’s extensive data about their operations helps us to greatly ... in that,” a city staff member noted, explaining peak-period differences between commercial and residential traffic patterns.
Council members also asked about a pedestrian bridge in the corridor; staff clarified the bridge is under state control and that the current agreement does not change the bridge’s structural limits.
After discussion, Councilmember Corey moved to approve the agreement; the motion was seconded and carried with the council voting in favor.
The council’s approval allows staff to execute the intergovernmental agreement so Wright County can proceed toward bidding and awarding construction contracts. Staff emphasized the city’s billed obligation will be based on the county’s as-bid share and that final costs may differ from the current estimates once bids are returned.
Looking ahead, staff directed that the county will invoice the city after contract award and again after project completion for any final adjustments. The city engineer and city attorney reviewed the agreement and the cost-share allocation prior to the council vote.
