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Maplewood approves $2.68 million bond authorization and awards $8.26 million street contract
Summary
Maplewood council adopted a resolution authorizing issuance of $2.68 million in general obligation bonds to fund part of the 2025 street improvement program and awarded the 2025 Maplewood Street Improvements base contract to Park Construction Company, with surveying to be provided by Bolton & Menk, Inc.
Maplewood’s City Council on May 27 approved a resolution authorizing up to $2,680,000 in general obligation improvement bonds to help fund the 2025 street improvement program and awarded the city’s low bid for construction to Park Construction Company.
The bond authorization, presented by city staff, is intended to cover a portion of the program’s costs and will be repaid over about 15½ years. “This funding is needed for the 2025 street improvement projects,” staff said during the meeting.
Bruce Kimmel of financial advisor Ehlers summarized the presale report, telling the council that bond proceeds will supply about 26% of the program’s cost and that the city’s practice of using internal loans for assessment portions adds flexibility. “You are still assessing at least 20% of the bond issue,” Kimmel said, noting that structure helps the city sell the bonds as general obligation debt. He also estimated, under conservative interest assumptions, about $250,000 of annual debt service over a 15-year repayment period.
Kimmel said Maplewood’s debt management and budgeting have kept the city under its $50 million debt goal, a factor that helps sustain favorable credit metrics. He noted Dorsey & Whitney will serve as bond counsel and that staff expects a competitive sale ahead of formally closing the financing.
On the construction side, Assistant City Engineer John Jeroshe reported that staff opened bids May 9 and received three valid proposals. The low base bid was from Park Construction Company at just over $8,260,000 — roughly $400,000 under the engineer’s estimate. Jeroshe described the full project estimate as just over $9,817,000, which includes a 10% contingency allowance and an 8% overhead allowance.
Staff recommended awarding the base bid only to Park Construction Company and recommended Bolton & Menk, Inc. be used for construction surveying services. Councilmember Lee moved to approve the bid award; the motion carried by voice vote. A second motion authorized Bolton & Menk to provide surveying and allowed the mayor and city manager to sign the attached work order.
The city plans to begin construction around June 9 and will hold a neighborhood meeting for residents in the affected areas before work starts. Project streets include South Lehi pavement rehabilitation and a full reconstruction segment along Prosperity and Hazelwood that will add new curb and gutter, utility improvements and a west-side trail.
The council’s actions on May 27 give staff authority to proceed with the next steps in the financing and contracting process; the city will return with final bond sale results and any additional contract paperwork as those items advance.
