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The city of Pipestone plans to replace this fuel station and underground fuel tanks at the Pipestone Municipal Airport. The project is expected to cost $1 million, 60 percent of which will be paid for with a grant from the state. Photo by Kyle Kuphal
The Pipestone City Council plans to issue up to $3.3 million in bonds to help pay for the cost to replace fuel tanks at the Pipestone Municipal Airport, street and utility improvements on Second Avenue Southwest, and repairs to Seventh Avenue Southwest, Ninth Street Southwest and 11th Street Southwest. All three projects are expected to take place in 2026.
Council members took action on a couple of the projects and approved a resolution expressing their intent to reimburse the cost of the projects with the bonds during their Nov. 17 meeting.
That included approving a proposal from Bolton & Menk to provide design and bid administration services related to the replacement of the airport fuel tanks for $85,000. A grant from the state will pay for 60 percent of that amount, which is $51,000, and the city will pay for 40 percent, which is $34,000. The total cost of the fuel tank replacement project is expected to be around $1 million. State grant funds will also pay for 60 percent of that, leaving around $400,000 for the city to pay.
According to the proposal, the city desires to replace a 12,000-gallon underground aviation gasoline tank and a 4,000-gallon jet A fuel tank and the related systems with new above-ground tanks and systems. The existing underground fuel tanks are at the end of their useful lives and groundwater is seeping into the tanks. The new equipment will include a 10,000-gallon aviation gasoline tank and a 5,000-gallon Jet A tank, and a new concrete pad, card-reader and fuel pump.
The city of Pipestone plans to repair concrete panels like these on Seventh Avenue Southwest in Pipestone. The project is estimated to cost around $71,790.
Photo by Kyle Kuphal
City Council members also approved a resolution ordering the improvement and preparation of plans for the Second Avenue Southwest project that includes street and utility improvements from state Highway 30 to 10th Street Southwest. That project is estimated to cost $2,193,391.20.
A public hearing was held Nov. 3 to take comments on proposed assessments for that project and a preliminary assessment roll based on initial estimates showed that the owners of 50 properties would be assessed a total of approximately $443,000 for that work. City Engineer Travis Winter said that if the funding, which could include grant and loan funds from the Minnesota Public Facilities Authority, falls into place, construction could begin in May or June and would likely take about three months.
The project including Seventh Avenue Southwest and other streets in that area would include an estimated $71,790 worth of repairs to concrete panels. The street surface was replaced in that area in 2017 and the concrete has broken apart in some areas.
Mayor Dan Delaney said he thought it was a good idea to bond for the three projects and that the Council could decide at a later time whether to use the entire $3.3 million in potential bond proceeds. There is for example, about $250,000 in airport funds available that could be used for the city’s portion of the fuel tank replacement project rather than using bond proceeds.
In other business: The Council voted to waive four outstanding bills for curb stop replacements. The decision was based on a change to the city’s assessment policy earlier this year. Among the changes were that the city will no longer assess property owners for storm sewer, or sanitary sewer or water service lines from the main line to the property line. Instead, that work will be paid for with funds from utility fees or other sources of revenue. The outstanding balances ranged from $423.48 to $1,360.96.