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City council notes: June 3

City council notes: June 3

Contract awarded for city hall renovation project

Midstates Builders of Spencer was awarded the contract for the renovation of what will be the new Spencer City Hall after submitting a low bid of about $1.87 million.

The city council awarded the contract Monday following a public hearing and approving and confirming the project plans for the new city hall with CMBA Architects.

The project involves renovation of the existing building, 101 West Fifth Street, previously owned by Northwest Bank. There will also be an addition constructed to house offices and the council chambers.

In a bid tab, MidStates Builders lists an expected start date of June 10 and a completion date of January 31, 2020.


There are also three alternates listed in the bids.

MidStates Builders provided estimates of $2,900 for a rooftop unit with gas reheat, $2,800 for furnaces with two-stage heating and $23,300 for the replacement of the carpet and base on the building’s upper level.

Steffes Companies of Milford submitted a bid just shy of $2 million, the only other bid.

Council approves development agreement with MWI Components

The Spencer City Council approved a Tax Increment Financing (TIF) Rebate through the city for its purchase and construction work on the former speculative building, which the company purchased in April.


Per the agreement, MWI will receive rebates for 12 years or $450,000, whichever comes first.

According to an agenda memo, the city previously arranged approval of a development agreement with the company at the time of the building’s sale.

The city installed the property’s sewer main and will split with MWI the $47,788 cost of the additional main section that was installed. The city will lower MWI’s rebate amount by $5,000 per year until the cost is recouped.

The former speculative building is located on the west side of Spencer at the Green Industrial Center.


MWI has begun construction on the property and expects to operate there this fall, the agenda memo states.

Outdoor alcohol service ordinance passes 2nd filing

An ordinance that would make it easier for Spencer restaurants to serve alcohol outdoors passed its second filing on Monday.

The council voted 5-0, with Ward 1 Councilman Tom Nelson and Councilman at Large Rich Prentice absent, to approve the filing.

Fire training facility contract awarded

American Fire Training Systems was awarded a contract for the future Class A Fire Training Facility in Spencer after submitting a bid of $369,214.


Tower construction is anticipated to begin in late summer or early fall with hopes that training can begin in early winter.

American Fire Training Systems, which specializes in fire training facility construction, was the only company to submit a bid. The bid was about $9,000 more than an engineer’s estimate.

“To be honest with you, this was one of the best bids ever,” Spencer Fire Chief John Conyn told the council. “The next vendor that I had spoken with and had also given information was in the $590,000 range.”

Spencer officials toured a fire training facility in Denison while planning this project.


“Speaking with the vendor, we have upgrades that ours will be a step even greater than Denison’s, which is some bragging rights,” Conyn said.

After grading work, utilities and the tower cost, the entire project cost is $691,701.

The city is not covering the entire cost.

Revenues for the project will come from a Spencer Municipal Utilities waterline reimbursement of $152,800; a sewer reimbursement through the sale of industrial lots of $141,931; Clay County reimbursement of $125,000 over five years and fire reserve funds of $271,969.


An educational facility on the property will be discussed in the future, according to an agenda memo.

“I really do believe it’s important for our firefighters to get the training for fiefighting,” Ward 5 Councilman Ron Hanson said. “I really do think this is a tool that really will help them.”

Quail Construction awarded work on landfill storage building

The Spencer City Council awarded a contract for a landfill storage building to Quail Construction of Spencer, which submitted a low bid of about $102,750.

Four bids were received for the project, which was in the city’s fiscal year 2019 budget and capital improvement plan.


The construction budget for the project was $135,000.


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