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Mitchell council approves multiple public-works awards and SRF loan steps for sewer and water projects
Summary
Council awarded the 6th Avenue utility project and approved loan-related resolutions and an FAA reimbursement agreement; a public hearing opened for the 13th Avenue/Wisconsin stormwater project seeking up to $1.56 million in SRF funding.
The Mitchell City Council approved several procurement and financing actions aimed at infrastructure and utility improvements.
Staff recommended awarding the low bid for the 6th Avenue utility project (bid schedule A to Metro Construction at $648,640.90; schedule B to Rex Winkle Concrete at $21,673.55) and the council approved those awards after staff reported 11 bids were received. “The low bid for bid schedule A was by Metro Construction for $648,640.90,” said Mr. Sher during the bid report.
Council also approved a non-federal reimbursement agreement with the Federal Aviation Administration for runway 18–36 project oversight and design services. Staff listed the agreement estimate at $107,282.30 and said the city’s share would be roughly 2.5 percent (about $2,682.60); staff recommended authorization for the mayor to sign.
During a public hearing, staff opened discussion on the 13th Avenue and Wisconsin improvement project, which targets stormwater and wastewater upgrades between Minnesota and Wisconsin avenues. The city is seeking up to $1,560,000 from the Clean Water State Revolving Fund; staff said loan terms would likely be about 4% for 30 years and that the state board could forgive part of the principal if eligible.
Separately, the council approved Resolution R2026-09 to implement a segregated "search charge" of $355 per month per user as an accounting step to obligate existing sewer revenue for the debt service tied to a loan. Staff emphasized the action does not increase overall sewer rates but earmarks an existing revenue portion to pay the SRF loan debt service. Council subsequently approved Resolution R26-10, providing necessary authorization for a $3,930,000 loan for sewer-facility improvements on Omen Street.
The votes were taken by roll call where recorded; council members voiced support and asked clarifying questions about loan forgiveness likelihood and construction timing. Staff said an aggressive schedule could allow bidding and construction within the year.
Next steps: staff will submit SRF applications and proceed with standard loan/bond documentation and construction procurement steps.
