The Hubbard County Commission approved an expanded scope and additional debt for the jail remodeling project.
In addition to the larger launch location, the scope of the project was expanded to renovate space at the Hubbard County Government Center.
The scope change will add an additional $3,012,404 to the project, according to Minneapolis architects BKV Group Inc.
The total cost of the project is estimated to be $10,750,678 to $12,187,278, including a $1.2 million to $1.4 million contingency.
The motion passed 4-1 on Tuesday, May 7, with County Commissioner Steve Keranen voting against it.
The scope changes are:
- The garage and vehicle access west of the Hubbard County Law Enforcement Center (LEC) has been expanded from 11,000 square feet to approximately 14,000 square feet. Additional costs will be approximately $1,260,000.
- Additional administrative space on the east side of the LEC will include a new lobby, offices and dispatch facilities. This increases the cost of the project by approximately $550,000.
- Approximately $800,000 will be added for equipment, controls and security measures for the prison pod.
- Reconfiguring the first floor of the Hubbard County Government Center to allow more space for attorney's offices will cost about $400,000.
“If we were to guarantee that amount as bail instead of the original amount, the end result would be about $185,000 a year more than planned,” County Governor Jeff Cadwell said.
Debt repayments on this new general obligation (GO) bond will be aligned with the 2014 GO bond payoff, he explained. Current debt service is $825,000 per year. The new debt to cover the cost of the project will be approximately $1.015 million annually.
Keranan said he supports most of the modifications. “I don't agree with this garage addition. I'm sorry. That's a huge amount of money.”
Mr. Cadwell approached the Shell Prairie Agricultural Society about renting storage space at the showgrounds. “It's not heated. It doesn't have a floor. In the long term, we want to put the equipment in an air-conditioned space.”
If the county built a heated, wired and insulated 60-by-50-foot remote garage for seasonal equipment, it would cost about $975,000 plus land purchase costs.
That's only $285,000 to $350,000 less than the currently proposed prison conversion plan, Cadwell noted.
Keranen disagreed that the garage had to be heated. He added that local contractors could offer a better price than $975,000, which he called “very high.”
Mr. Cadwell recommended that the proposed scope be approved. “We're at the point where we're putting the money in.”
Bruce Schwartzman said there could be significant tax breaks for the prison portion. “This could save you hundreds of thousands of dollars.”
County Commissioner David De La Hunt asked about bond rates.
Cadwell said Ehlers recommends that the county keep the money in the investment rather than try to repay a portion of the project cost because the return on investment is higher than the cost of issuing additional bonds. I answered.
Cadwell added that the interest rate on debt is around 3.1%, while the interest income on savings is better than 4.5%. Over the past two years, interest income has increased from $400,000 to well over $1.1 million, he said.
There are two options to pay off the project's debt, he continued. The county could allocate some of that interest revenue or use a portion of the $1.1 million it collects each year for capital improvements.
In any case, Cadwell said the $185,000 additional debt will not be added to the general tax bill.
County Commissioner Ted Van Kempen said he has heard both support and opposition to the project.
In a 4-1 vote, with Board Chair Char Christenson abstaining, the board selected ICS to be the project's construction manager. ICS is headquartered in Minneapolis with an office in Park Rapids.
Another low-priced, qualified bidder was Contegrity Group of Little Falls, Minnesota.
Contegrity offered a fee of $899,820, while ICS suggested $838,625. The difference is $61,195.
The board also accepted a low bid for a geotechnical evaluation of the prison expansion. Chosen Valley Testing Inc., St. Cloud, quoted $9,870.
In other business, the Board:
- The sheriff's office has approved the purchase of two thermal drones from VERTEX Unmanned Solutions of Plymouth, Minnesota. The cost is $13,964, which is covered by grants and donations, said County Sheriff Corey Oakes.
- A low bid of $2,099,930 was accepted from Anderson Brothers Construction Company of Brainerd LLC for two CSAH 6 road construction projects. From CSAH 15 to CSAH 49, reclamation, bituminous resurfacing, and aggregate shouldering will occur. Work is expected to begin in late July, according to County Engineer Andrea Weleski.
- Accepted a quote of $169,972 from Bert's Truck Equipment in Moorhead for a box/snow removal equipment for a county highway department snow plow.
- Accepted a quote of $19,035 from B&P Weed Control in Bemidji for 2024 annual roadside weed spraying.
- We accepted a low quote of $17,829 from Up North Sports in Park Rapids to purchase a new Toro Z Master 4000 commercial lawn mower for the county's Parks and Recreation Department. According to County Land Commissioner Cory Kimball, the mower selected has very good reviews, has 35 horsepower and he has a 72-inch deck.
- Low quote accepted for 360 cubic yards of engineered wood fiber surfacing for playgrounds at Hartland Park, Lake George Park, and Farris Park. Kimball said there are depressions around the swings and slide. “The new surface gives the park a great welcoming look and creates a safety barrier against trips and falls,” Kimball said in the report, adding that no full paving work has been done at all parks since 2018. he added. St. Croix Recreation was the lowest bidder at $7,850.
- We accepted a low bid from Dick's Plumbing and Heating of Bemidji to replace a cracked heat exchanger at the North County Highway Shop. The price is $4,799.
- Approved a resolution conveying the access zoning to Lake Benedict to the Minnesota Department of Natural Resources and classifying it as “protected land.” Mr. Kimball reminded the board that this is a pre-approved exchange with a DNR parcel at Heartland Park. Ownership will be transferred to the county with approval from the Minnesota Legislature.
- Approved to sell all highway department surplus items through K-BID online auction. These include trucks/plows, tools, and office equipment.
- Approved the transfer of hunting lodge lease number 16 from Kenneth Wilson to Darby Diedrich Jr. and number 28 from Daniel Ness to William Walker, Tami Leigland, Jordan Illiniemi and Olivia Illiniemi.
- Discussion about the possibility of installing a disc golf course at Deep Lake Park.
- Approved implementation of this employee development opportunity and authorized management to sign the service agreement.
- A close session was held to evaluate Cadwell.
