County rejects Rice railroad-crossing bids, awards Mayhew Lake roundabout contract and debates funding engineering through sales tax

Benton County engineers recommended rejecting bids for a pedestrian railroad‑crossing project in Rice after bids came in substantially higher than the engineer’s estimate, and commissioners approved that recommendation. County staff and Rice community members had planned to proceed under a grant but noted that compressed timelines and railroad coordination (flagging and railroad insurance procured through BNSF) had raised bidders’ costs; the board asked staff to re‑advertise later this fall with a winter bid opening and work with MnDOT State Aid to preserve the transportation‑grant award.

Separately, the board considered bids for a roundabout at Mayhew Lake Road and CSAH 29 (project SP005‑070‑014). The county received multiple bids; the lowest responsible bidder (Knife River, North Central Division) came in about 2.7% above the engineer’s estimate. Staff recommended awarding the contract despite the modest overrun because the project carries multiple funding sources, including HSIP federal funds ($1,940,000) and a carbon‑reduction grant ($440,000); the county’s portion (including city utilities work) was identified and staff asked the board to authorize the chair to sign the award contingent on MnDOT Office of Civil Rights/DBE compliance (7.5% DBE goal). The board voted to award the project by roll call, with the motion contingent on DBE review.

Commissioners then held a lengthy discussion about staffing and funding for road engineering and inspection. County engineers presented a five‑year project plan and noted the department’s limited in‑house inspection capacity (three engineering technicians) versus the county’s multi‑year project schedule, which requires engineering and permitting work well in advance of construction. The board discussed using local option sales tax revenues to fund engineering and consultant work (including reimbursing in‑house staff time on sales‑tax projects), citing that current local option sales tax receipts are running above initial estimates. Staff noted that engineering for large projects (for example, a major Mayhew Lake Road buildout) could require up to $1.3 million in 2026 for planning and design; the board discussed phasing and whether to use sales tax proceeds to cover engineering to make projects more competitive for state and federal funding.

No formal decision to reallocate sales tax to engineering was taken; commissioners asked staff to further evaluate options and legal permissibility and to return with a recommendation.