The Albert Lea City Council on Monday accepted a $1.41 million bid for an addition to City Garage.

The bid came from Larson Contracting Inc.

The project consists of a 6,375-square foot, one-story addition. The building would replace the administrative portion of City Garage and combine the street, utility and parks departments into one location.

The project will start this summer, said Albert Lea City Engineer Steven Jahnke. He hopes city staff can occupy the additional space by February 2018.

The project was included in the city’s master plan. Five other bids were received.

The Larson Contracting bid was more than $120,000 less than the engineer’s estimate.

The project would include having one break room and converting the two other break rooms into additional storage and workspace to increase efficiency.

Half of the addition is expected to be paid for with surplus funds from the city’s general fund.

Twenty-five percent of the project will be funded by the city’s sanitary sewer enterprise fund and 25 percent from the water enterprise fund.

Sixth Ward Councilor Al “Minnow” Brooks said he has received questions from a couple of residents of whether there is a need to raise water rates, and then take money out of the fund.

In response to the question, Albert Lea City Manager Chad Adams said water and sewer employees incorporated under the city’s Utilities Department will be in the building.

“That’s why we are utilizing different funds, to basically have those separate business enterprises pay for their fair share of costs,” he said. According to Adams, a primary reason for water and sewer rate increases are for core infrastructure projects, not for projects such as the addition.

He said it is possible and more likely than before that the city will be able to reduce water rate increases.

According to Jahnke, the project is needed.

“We’ve went through the master plan and really went through the justification,” he said. “It came in as one of the high-priority buildings. It gives us the opportunity to put all of our staff in one place, versus in three different locations. So there’s lots of benefits for it.

“We’re looking forward to moving forward with it.”

Phase two of the project would add fleet space for city vehicles. The flow for all of the vehicles is planned to be improved and a salt storage shed would be added. A timetable for phase two has not been established.

In other action, the council:

• Accepted a bid from Ulland Brothers for less than $422,600 for the realignment of Plaza Street on both sides of Bridge Avenue.

• Approved plans and specifications and ordered the advertisement of bids for the Lake Avenue and East College Street project, which includes the complete reconstruction of bituminous surface, curb and gutter, sidewalk, water main, sanitary sewer and storm sewer of Lake Avenue from Clark Street to Elizabeth Avenue and East College Street from Newton Avenue to east of Elizabeth Avenue.
• Approved the purchase of 2017 Ford F-450 4X4 truck and 2017 John Deere compact utility tractor. The truck is budgeted to cost $55,000 with trade-in. The total price for the tractor and attachments is a little more than $71,000. The trade-in value of the replacement unit is $22,100, lowering the total purchase to $48,984.
• Accepted a grant award in the amount of $3,527 from the Minnesota Historical Society for registration and travel expenses for city staff to attend a conference in Pittsburgh.
• Urged the House and Senate to remove a provision that would increase truck size or weight increases in the wake of legislation introduced this session to increase truck weight limits from 80,000 to 90,000 to 97,000 pounds for certain truck configurations. A report made by Adams stated that allowing more weight to be carried on trucks is a concern to public safety and infrastructure.
• Recognized former Albert Lea hockey coach Roy Nystrom for his decades of work as a coach and as an Albert Lea educator.
• Approved a lot consolidation through an administrative lot survey in connection with a request from a property owner to combine properties to build a new home after a residence at 205 Elizabeth Ave. was destroyed by fire.
• Approved a lot reconfiguration at 1500 Bay Oaks Drive through an administrative lot survey to split property for the building of a new home.
• Supported local government aid after neither the Minnesota House tax omnibus or Senate tax omnibus bills included an LGA increase the city deemed as being enough to maintain essential city services without the likely burden of a tax increase on local families and businesses. Adams said an increase in LGA funding is possible because of the state’s large budget surplus.
• Oversaw appointments made to the Charter Commission and Planning Commission by Albert Lea Mayor Vern Rasmussen Jr.
• Scheduled a special meeting between the council and City Charter Commission for 4:30 p.m. May 1 in the council chambers at City Hall.
• Approved an application for Albert Lea Wrestling Boosters to conduct gambling at Green Mill Restaurant & Bar.