Gaylord council approves plans and advertises bids for new Public Works building, gives preliminary OK to $1.8M bond

The Gaylord City Council on Feb. 25 approved plans and specifications for a new Public Works building and authorized staff to advertise for construction bids, and it gave preliminary approval to the issuance of up to $1.8 million in general obligation capital improvement bonds to help pay for the project.

City consultant George, presenting the required public-hearing overview, described the project as a roughly 6,600-square-foot public works facility with preliminary cost estimates between about $1.65 million and $1.8 million and noted the city’s process for capital improvement plan (CIP) bonds and the 30-day public comment period that follows resolution approval. "You don't issue bonds tonight," he said, explaining that the city would size any bond issue after construction bids are received and consider 15- and 20-year payment terms.

City engineer Justin reviewed detailed plans and specs: a 60-by-110-foot building with 18-foot side walls, three 16-foot doors for large equipment, two 10-foot doors, offices with a mezzanine above, full-length floor drains and plumbing to allow vehicle washing, and piped compressed-air lines and hose reels to serve the bays. Justin said the documents include a bid alternate to re-side and re-roof the existing shop so the contractor can price that work separately.

Council members pressed the engineer and public-works staff on several specified items that have a noticeable line-item cost. One council member asked about a $65-gallon commercial hot-water heater listed in the specs; Justin said code requires a 65-gallon capacity for an emergency eyewash system. A different council member questioned a roughly $16,000 commercial pressure-washer specification and urged considering a single designated bay or reuse of the department’s existing washer. Justin said the pressure-washer in the plans is a commercial-grade, centrally plumbed unit sized to serve the full 110-foot bay and that code and operational needs can drive higher costs than residential-grade equipment.

The engineer presented two build alternatives for bidding: a wood-framed option estimated at about $2.1 million (including alternates) and a post-frame option estimated near $1.7 million. George gave debt-service illustrations showing a 15-year option with lower overall interest (an example estimate cited a 3.23% average rate and approximately $2.29 million in total debt service) versus a 20-year option with a slightly higher rate (about 3.61% and roughly $2.00 million in total debt service).

An initial motion to approve the plans and specifications failed for lack of a second after members asked the staff to return with cost-comparison information and possible reduced-spec alternates. After additional discussion and a request to treat items such as the hot-water pressure washer and potential firewall as bid alternates where feasible, the council passed a second motion to approve the plans and authorize advertising for bids. The council also approved a resolution giving preliminary approval to issue GO bonds in an amount not to exceed $1.8 million and accepted language to revise the CIP to allow re-siding and reroofing the existing public works building as an alternate.

The council and staff set a tentative bid-opening date of April 7 and planned to review results at the April 15 council meeting. If bids align with the estimates and permits are obtained, construction could begin as early as late May with substantial completion targeted on or before Nov. 30.

Votes at a glance - Resolution approving plans & specifications and ordering advertisement for bids: motion carried. - Resolution giving preliminary approval to issue GO capital improvement bonds (amount not to exceed $1.8M) and adopting the revised CIP: motion carried. - Ordinance No. 381 (zoning code amendment for commercial/industrial architectural standards): adopted (see separate action).

What’s next Staff will post the bid advertisement, seek construction bids, and return the results to the council at the April 15 meeting. The council also directed staff to provide clearer cost-breakdown options (for example, alternatives to the commercial pressure-washer and potential firewall options) so members could evaluate trade-offs before finalizing the contract award.