With the clock ticking, Rushford is putting pressure on airport hangar contractor Olympic Builders for a project to begin this past spring. At the October 23 council meeting, Acting Mayor Jim O’Donnell, filling in for Mayor Terri Benson, noted that City Engineer Matt Wagner of Mead & Hunt is pressuring the contractor after attempts to get a response went unanswered.
The city contracted with the company to replace a six-unit hangar damaged in a fire in October 2019. While the contract has liquidated damages and clauses that give the city leverage, the project timeline is crucial as the city needs to complete it per Federal Aviation Administration timelines. “They haven’t even broken ground or moved any dirt,” added O’Donnell.
The city began planning the replacement in 2020. As stated then, without nine rented hangar units, the city would lose its National Plan of Integrated Airport status with the Federal Aviation Administration (FAA) and no longer have access to $150,000 in funding from the agency each year. If degraded to an “unclassified” airport, the city also risks facing competition from other airports for projects and being at the whim of the agency for any project approvals.
The project suffered the economic effects of COVID-19 and inflation, with the low bidder, Olympic Builders of Holmen, Wis., coming in $363,000 over the engineer’s estimates in 2021. The city secured Airport Improvement Project funds, an Airport Rescue Grant under Bipartisan Infrastructure Law, and a Non-primary Entitlement Block Grant to fund the $1.146 million project.
In March 2022, the FAA also agreed to issue the city a one-time hardship waiver, allowing the airport to continue receiving funding until 2025 and allowing two additional years to rebuild the airport to the level required to maintain its classification. The FAA will conduct another hangar count this fall.
Utilizing additional federal dollars also meant the project had federal stipulations. The contract provided a post-bid addendum for $5,564, and the council awarded the bid to Olympic Builders in April 2022. Rushford’s Public Works Department completed site prep that fall.
At the December 12 meeting, Wagner notified the council Olympic Builders had requested additional funding for the five-unit hangar due to increasing costs.
“Olympic notified the city on October 7 that there would be additional costs related to price increases since the contract was not executed within the bid hold period,” stated Wagner’s letter.
The total cost was $28,357 for material and labor increases necessary to move the project forward. The contractor requested an extension of the project completion date from July 31, 2023, to October 1, 2023. The council granted the change. However, no activity has occurred at the site.
“It sounds like they’re not communicating,” added O’Donnell. “We’ll have to stay on top of that.”
City Administrator Tony Chladek will provide an update at the next meeting.
In better news, the water tower reconditioning project is receiving a closeout per the recommendation of KLM Engineering. The firm conducted a final inspection. Contractor J.R. Stelzer Company of Lincoln, Nebr., has completed all paperwork to submit to the state.
The project included interior and exterior reconditioning, repairs, and a new city logo painted on the tower’s side. The completed project met the original bid and came with a two-year warranty. There will be an additional inspection before the end of the two years.
“Everything I heard from public works, the company was good to work with, and it was a really smooth project,” said City Clerk Kathy Zacher.
The council approved the closeout unanimously.
The council also unanimously approved an Economic Development Authority recommendation to renew the agreement for administrative services with the Rushford Peterson Valley Chamber of Commerce. The agreement’s objective is to promote economic development, provide methods about the resources and advantages of the community, and planning. Services include cable access channel management, centralized communication for community connections, targeted marketing and promotion, community beautification planning, grant writing, providing one-on-one information to new residents, developing a high school talent recruitment program, and the Open Door Tour highlighting business opportunities. In the new contract, additional services are $16,000.
The council received an update regarding the former Farmers Win Cooperative property downtown. Knight Barry Title Group will prepare title paperwork. Construction Management Services conducted a walk-through of the properties and is preparing an inspection report.
Councilor Sally Ryman suggested the city notify adjacent business owners regarding the survey. Many businesses didn’t get a survey of their properties at the time of purchase.
The next regularly scheduled council meeting is Monday, November 13, at 6:30 p.m. at city hall. The public is encouraged to attend.
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