Bid letting for city water project delayed

More rate increases for city residents are in effect. After the matter was on the agenda for three meetings, the New Rockford City Commission got serious about sewer, sanitation and street light rates at their April 1 meeting. Auditor George Ritzke has said that the sanitation fund is running a deficit, as the city has absorbed 3 percent annual increases from Waste Management for a few years without raising rates. Ritzke recommended a 15 percent increase in the base sanitation rate. Upon suggestion from Commissioner Stu Richter, the increase was raised to 18 percent to cover the 3 percent increase expected in October when the contract renews again. Add small increases in sewer and street light fees, and the typical city utility bill will increase from $81.26 to $87.42 per month, based on 4,000 gallons of water usage. This increase was made effective immediately, so residents will see the impact on their May 1 bill.

Wade Senger of Interstate Engineering reported that he would submit plans and specifications for the water project to USDA-Rural Development for final approval. Upon final review, the local committee had decided to remove valley gutters from the plans in some areas and put them in other places to improve drainage after snow melt caused some issues recently. Bid opening has been pushed back to mid-May, as it takes two weeks for USDA to review the plans, and then the bid notice must be published for three weeks.

Commissioner Stu Richter asked about how the late spring bid opening might affect the project. Senger replied that while the best time to solicit bids is in February, he had received calls from a few contractors still looking for a project. He said the 2-year commitment on New Rockford’s project also makes it attractive to bid.

The commission considered three offers from financial institutions for the interim financing needed. Dougherty & Company, LLC, a Minneapolis based investment firm with an office in Bismarck, offered the best rate, 2.25 percent. The city has worked with the firm on past projects, according to City Auditor George Ritzke. Other firms who made offers include Bank Forward (4.5 percent) and Municipal Capital Markets (2.52 percent).

Drainage issues north of the BNSF railroad tracks will also be addressed through the project. Commissioner Hager identified some drainage problems behind commercial property on Central Avenue from 13th Street all the way to 8th Street by the BNSF Station. Hirchert said that Senger had reviewed the area and they plan to reconstruct the valley gutter at Tenth Street and First Avenue South.

Amanda Hegland delivered the NRABC’s annual report. She said the organization processed four Renaissance Zone applications, 13 housing incentive requests, and one FlexPACE loan application in 2018. They also approved two childcare grants, one each for an expanding and a new childcare facility. By Hegland’s calculation, the NRABC has brought in nearly $3 in investment for every dollar of city sales tax money it received last year.

The city’s snow plow is ready for the scrapyard. Public Works Superintendent Bruce Hirchert reported that the plow, which was purchased for a mere $200 15 years ago, is no longer useful. The city did invest $10,000 into repairs after purchase, but the commissioners agreed that they had gotten their money’s worth.

Tax Equalization Director Kristy O’Connor led the tax equalization meeting at 7:30. The city saw $943,000 in new construction in 2018. Building permits soared last year from an average of 25 to 75 last year. She said most permits were for repairs due to damage caused by the July 8 wind storm.

O’Connor sent out 18 notices of increase to property owners who had made improvements to their property or purchased a property in the past year, but none of those residents attended the meeting. There were 19 residential sales and 13 commercial sales in city limits last year.

The agency processed $22,576 in homestead credits, a state program that offers property tax relief to homeowners 65 years and older who are on limited income. Another $5,339 in veterans credits were also given. The state then pays the property tax on behalf of qualifying residents.

Overall, residential structures increased by 2 percent, and commercial structures were bumped up 4 percent.

The city received a complaint from a resident about snow piled on her yard and boulevard by city workers. Commissioner McKnight requested that a written response be sent to the resident to acknowledge receipt of the complaint.

The Planning and Zoning Commission met to consider requests from Ryan Hager and Justin Ystaas to rezone the property that houses their businesses. A public hearing has been set for 7:30 p.m. on Monday, May 6. At the meeting city commissioners will hear the planning commission’s recommendation for both requests and then make a decision. The proposal is to change both from residential to light industrial.