Getting started Work on the new city hall project was going strong less than 24 hours after the city council approved the final bids. A crew from Anderson Brothers of Brainerd removed the last remaining Staples World photo by Tom Crawford trees on Wednesday and was digging the footings on Thursday morning of last week. An official ground-breaking is planned for May 28.

Work on the new Staples City Hall and Library building began last week after bids were formally approved at the May 12 city council meeting.

Also okayed at the May 12 city council meeting was the sale of general obligation library bonds and steps in the process of issuing lease revenue bonds by the city.

The total cost of the city hall/library came in at $2,499,693, with two items removed from the bids to keep the cost under the city's $2.5 million cap.

Equipment from Anderson Brothers Construction of Brainerd was on the Second Avenue and Sixth Street site Wednesday, with excavation work started on Thursday.

Also at the Tuesday night council session, approval was given for the city to sell general obligation library bonds to cover a portion of the cost. The council also requested the Staples Economic Development Authority to issue lease revenue bonds to cover the remainder of the cost.

New city hall The main entrance to the new city hall will be on the southeast corner of the building, facing a public parking lot area that will be south of the building. After entering through the front door, people will be in a lobby area and can go either to their left into the city offices, or to their Architect's drawing right and enter the library portion of the building. Across the lobby from the front doors will be a new city council chamber. An employee parking lot will be east of the building, while additional parking will be in the southeast corner of the block.

The council first approved the sale of general obligation library bonds of $1,975,000. Myron Knutson, from Public Financial, the city's bond and financial consultant, told the council the city had been given a A bond rating by Standard and Poor's. "In the report, they had a lot of very favorable comments about the finances of the city," he said, adding it was very beneficial to the city. "The higher the bond rating, the lower the interest rate."

Knutson said the city was also able to use Build America bonds, a two-year program under the federal economic stimulus program, that will allow the city to save about $200,000 in interest over the 25 year life of the bond. The federal government buys down that interest, Knutson said. "As far as I know, Staples is the first city in Minnesota to use this program," he said, adding that the University of Minnesota had sold bonds under this Build America program just that day.

The effective interest rate of the successful bidder, Dougherty and Company of Minneapolis, was 3.83 percent, Knutson said, which is an excellent rate. There were a total of four bids received for the sale of city bonds.

The city then formally requested the SEDA to issue Lease Revenue bonds for approximately $625,000 for the remainder of the city hall project. The EDA will in effect own the city hall building while the city pays off the bond.

Prior to voting on the project, council member Stan Carlson questioned if the city's $420,000 library grant was actually increasing the city's total cost by more than the grant amount. Both City Administrator Nate Mathews and Brent Dammann, architect with Widseth, Smith Nolting, agreed that conditions of the grant, such as requiring energy efficient windows and other similar measures, bring some added costs. Mathews said the biggest added cost is in mechanical requirements. Dammann agreed, adding that some electrical parts of the construction are also added cost. Council Member Rob Schmieg noted that the city likely would have done those same energy efficient measures without the grant requirement.

Overview Construction has started on the new Staples City Hall and Library in the block east of Sixth Street and south of Second Avenue (old Highway 10). The building will face south to a parking lot while the west and north sides of the Architect's drawing building will face the streets. The main entrance is on the south, with a side entrance on Sixth Street. Two houses, as well as the Nordell building and the Nordell apartments remain on the same block as the new city hall.

The state grant requires that new buildings exceed energy codes by 30 percent.

The new city hall is designed to meet sustainable building requirements passed by the state Legislature in 2003.

Carlson also asked if funds raised by the Friends of the Library group were available for construction costs. Mathews replied that FOL funds were being used to purchase children's furniture, kiosks and other specialized needs in the library. He also noted that Great River Regional library is paying for new computers for the library.

The vote on the bond sale was 7-0 in favor, as was the vote on the request for SEDA to also sell bonds.

Also approved on a 7-0 vote was the bids accepted for the city hall project. Northway will be the construction manager, with 22 different bids awarded under a Best Value bidding system. The low bid was given the most weight, worth 30 percent in this process, with other factors such as local involvement also graded. Area bidders included Jordahl Concrete of Motley getting the concrete and masonry bid at $228,355; Holst Construction of Staples for carpentry ($244,900) and metal stud framing and drywall ($73,000); and Japke Decorating getting the painting bid at $13,640.

Staples World photo by Dawn Schimpp Timbs Uprooted Pine trees along 2nd Avenue in Staples were bulldozed over and removed May 14, to make room for the new Staples City Hall and Staples Public Library that will be located along North 6th Street and 2nd Ave.

Electrical went to Holden Electric of Baxter for $200,000; plumbing and heating and ventilation bid of $276,000 went to Lundberg/ Thelen of Aitkin and Brainerd and Anderson Brothers of Brainerd received the site work bid for $285,000. Thelen also received the roofing bid at $95,400.

Acoustical components and a folding panel partition, totaling just over $20,000 in costs, were removed from the project but Northway said the hardware for both would be included in the structure and they can be added at a later time.

In other matters, the city council:

o APPROVED two documents related to the Ernie's Food Store (Staple Food Corporation) building project. An easement agreement allows passage back and forth across the property to adjacent lots A petition and waiver agreement (developer's agreement) lays out all costs before the development takes place.

o GRANTED permission to Ringnecks Forevermore to conduct a raffle on Jan. 30, 2010.

oHEARD a report on the Public Works Commission's meeting of May 4. The city moved to okay Minnesota Power to proceed with providing lights on existing poles near the intersection of Highway 10 and County Road 83 (hospital corner) and that Lakewood Health systems would be charged for the electric consumption of the lights.

o HEARD Mathews' report on activities he has been working on, including attending several meetings, labor negotiations with city union groups, meeting with DNR forestry people regarding pine bark beetle problems at Pine Grove Park and several other items.

o WERE INTRODUCED to Josh Malchow, a senior student inter n from Winona State University, who is interning under City Administrator Mathews through June 19.