RANIER — The Ranier City Council Monday agreed to move forward with a project that would add water lines to the Three Points North and Riverside Park areas.
Along with agreeing to adopt a resolution to order the improvement that will extend water service along County Road 140 and Unorganized Township Road 415, the council Monday accepted a $342,605 bid from Wagner Construction Inc., the lone bidder for the project.
In September 2011, the council rejected a $540,713 bid for the same project from Wagner Construction because the council agreed the amount was higher than expected. A feasibility study conducted by the project’s engineering firm, Short Elliott Hendrickson Inc., estimated the cost to add water lines to the areas west of the old Ranier at about $419,000.
Wagner Construction came back to the council in April with a bid of $426,605. Still wanting to bring the cost of the project down, the council took no action last month and Jeff Ledin, senior professional engineer for SEH, said he would continue to rework the project to exclude water pipe installation through rock.
A letter to the council from Wagner Construction Monday said the contractor would “agree to a deduct change order No. 1 omitting the rock drilling bid item for a lump sum deduct of $84,000. Change order No. 1 would also convert the contract from a unit price contract to a lump sum contract.”
In order to move the project forward, the council also agreed to two easement appraisals to property owners Susan Schnick and Randy Pozniak.
The easement appraisal for Schnick’s property is in the amount of $4,206 and Pozniak’s is in the amount of $12,467. The cost will be paid by the city to the property owners.
The council also agreed to adopt a resolution that will provide a $480,000 sale of a general obligation improvement bond for the project. The bond will allow the city to pledge to levy a property tax to meet debt brought on by the water project.
Ranier City Clerk Kim Nuthak explained the amount will include construction fees, engineering fees, and attorney fees. The $480,000 will be shared among the 37 residences receiving water service for a total of about $13,000 per parcel.
The council agreed to adopt another resolution to authorize the city of Ranier to enter into a credit enhancement program agreement with the Minnesota Public Facilities Authority. The program will help the city reduce the cost of borrowing for the project and provides limited state bond guarantees, which result in higher credit ratings for counties and lower interest rates on general obligation bonds.
In other business Monday, the council agreed to replace a street light on Duluth Street at a cost of $2,235 to the city.
“This is the most it would cost,” Nuthak said of the price. “We’re hoping it’ll be about $400 less.”
The council also agreed to send a letter to Ranier property owners letting them know of a property tax rebate available due to the 2012 tax increase.
Pozniak, who is an accountant, said clients who take advantage of the rebate could have the potential to get back “big bucks.”
The Ranier Liquor Store’s year-to-date net profit is $7,001, which is down from last year’s profit of $10,030.
