Mitchell council approves multiple public-works awards and SRF loan steps for sewer and water projects
March 02, 2026 | Mitchell, Davison County, South Dakota
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The Mitchell City Council approved several procurement and financing actions aimed at infrastructure and utility improvements.
Staff recommended awarding the low bid for the 6th Avenue utility project (bid schedule A to Metro Construction at $648,640.90; schedule B to Rex Winkle Concrete at $21,673.55) and the council approved those awards after staff reported 11 bids were received. “The low bid for bid schedule A was by Metro Construction for $648,640.90,” said Mr. Sher during the bid report.
Council also approved a non-federal reimbursement agreement with the Federal Aviation Administration for runway 18–36 project oversight and design services. Staff listed the agreement estimate at $107,282.30 and said the city’s share would be roughly 2.5 percent (about $2,682.60); staff recommended authorization for the mayor to sign.
During a public hearing, staff opened discussion on the 13th Avenue and Wisconsin improvement project, which targets stormwater and wastewater upgrades between Minnesota and Wisconsin avenues. The city is seeking up to $1,560,000 from the Clean Water State Revolving Fund; staff said loan terms would likely be about 4% for 30 years and that the state board could forgive part of the principal if eligible.
Separately, the council approved Resolution R2026-09 to implement a segregated "search charge" of $355 per month per user as an accounting step to obligate existing sewer revenue for the debt service tied to a loan. Staff emphasized the action does not increase overall sewer rates but earmarks an existing revenue portion to pay the SRF loan debt service. Council subsequently approved Resolution R26-10, providing necessary authorization for a $3,930,000 loan for sewer-facility improvements on Omen Street.
The votes were taken by roll call where recorded; council members voiced support and asked clarifying questions about loan forgiveness likelihood and construction timing. Staff said an aggressive schedule could allow bidding and construction within the year.
Next steps: staff will submit SRF applications and proceed with standard loan/bond documentation and construction procurement steps.
Staff recommended awarding the low bid for the 6th Avenue utility project (bid schedule A to Metro Construction at $648,640.90; schedule B to Rex Winkle Concrete at $21,673.55) and the council approved those awards after staff reported 11 bids were received. “The low bid for bid schedule A was by Metro Construction for $648,640.90,” said Mr. Sher during the bid report.
Council also approved a non-federal reimbursement agreement with the Federal Aviation Administration for runway 18–36 project oversight and design services. Staff listed the agreement estimate at $107,282.30 and said the city’s share would be roughly 2.5 percent (about $2,682.60); staff recommended authorization for the mayor to sign.
During a public hearing, staff opened discussion on the 13th Avenue and Wisconsin improvement project, which targets stormwater and wastewater upgrades between Minnesota and Wisconsin avenues. The city is seeking up to $1,560,000 from the Clean Water State Revolving Fund; staff said loan terms would likely be about 4% for 30 years and that the state board could forgive part of the principal if eligible.
Separately, the council approved Resolution R2026-09 to implement a segregated "search charge" of $355 per month per user as an accounting step to obligate existing sewer revenue for the debt service tied to a loan. Staff emphasized the action does not increase overall sewer rates but earmarks an existing revenue portion to pay the SRF loan debt service. Council subsequently approved Resolution R26-10, providing necessary authorization for a $3,930,000 loan for sewer-facility improvements on Omen Street.
The votes were taken by roll call where recorded; council members voiced support and asked clarifying questions about loan forgiveness likelihood and construction timing. Staff said an aggressive schedule could allow bidding and construction within the year.
Next steps: staff will submit SRF applications and proceed with standard loan/bond documentation and construction procurement steps.
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