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Hibbing approves budget pledge for $10M Public Safety Building, moves ahead on asbestos design and GMP amendments
Summary
Council approved a resolution pledging operating funds required by the state for a $10 million Public Safety Building grant, accepted an IEA proposal for asbestos design/monitoring, and approved guaranteed maximum price amendments from AP Midwest LLC for early bid package(s).
Hibbing City Council on April 2 approved a series of actions meant to keep the city’s new Public Safety Building project on schedule with state grant requirements and construction next steps.
Finance Director Sheena Mower presented Resolution 25‑4‑02, which approves an estimated operating budget and pledges funds the state requires for the city to enter into a $10,000,000 grant agreement to construct the new Public Safety Building. Mower told the council the estimate includes roughly a $115,000 increase in ongoing operating costs and a nearly 180% increase in square footage to meet operational needs; she said the largest increase is for a budgeted full‑time maintenance position. The council approved the resolution unanimously.
City engineer Jesse Storey (city engineer) and other staff also presented a quote from IEA for asbestos project design and on‑site air monitoring and project management at the current Public Safety Building site. Storey summarized the cost as a $1,900 fee for project design and an estimated $8,000–$11,000 fee for on‑site air monitoring and project management. Council approved moving forward with IEA to coordinate abatement design and contractor solicitation.
City attorney Andy Borland summarized guaranteed maximum price (GMP) amendments submitted by AP Midwest LLC for the project and noted staff and counsel had met multiple times with the contractor to negotiate contract language. Borland recommended approval of bid package No. 1 and the GMP amendments; the council approved the GMP amendments as presented.
Action and next steps: council approved (1) the operating budget pledge needed for the $10M state grant, (2) IEA’s design and monitoring work for hazardous-material abatement (design fee and monitoring budget), and (3) AP Midwest LLC’s GMP amendments and bid package #1 so construction procurement can proceed.
