Public hearing in Atlantic, Wednesday, over sewer bonds and Park & Rec bldg. contract
April 1st, 2013 by Ric Hanson
A public hearing is set to take place during the City Council meeting Wednesday evening in Atlantic, with regard to the issuance of a maximum of $7.28-million dollars in Sewer Revenue Bonds. City Administrator Doug Harris has previously reported to the Council, that current interest rates makes it beneficial to issue the bonds, rather than draw down the remaining $6.6-million from the State Revolving Loan Fund (SRF) to finance the Wastewater Treatment Plant. The total amount of the issue is $7.28-million, according to Harris, because the City is required to establish a sinking fund which provides bond holders with some additional security, and, it will ultimately be used to pay off the final payments. Harris estimates a savings to the City of $23,500 per year for the first 17-years of the bond maturity structure, for an overall savings of $391,177. The Council will consider a resolution to enter into a SRF agreement for the bonds, following the public hearing.
In other business, the Atlantic City Council, Wednesday, will hold a public hearing as well, on the plans, specifications, estimated cost and form of contract for the Parks and Recreation Department’s Maintenance and office facility. As we reported last Friday, the Parks and Rec Board on Thursday, approved a base bid and alternate additions for the project, from Iron Specialties, of Atlantic, for $291,362. If the bid is approved by the Council following the public hearing, the project would be paid for using 2012 Bond proceeds.
The Council will also act on a resolution approving the contract and bonds for Dostals Construction Company, with regard to the Sunnyside Tennis Court reconstruction project, in the amount of $295,000. The revised start date for the project is May 1st, with completion expected by no later than July 31st. If the project is not finished, the contractor would be subject damages amounting to $500 per calendar day. The Council will also act on resolutions: approving the contract and bonds amounting to $227,538 for a sanitary sewer relining project; and the 2013 Street Improvement project, which amounts to slightly more than $1.75-million.
Prior to adjournment, the Council will enter into a closed session, as allowed by the Code of Iowa, Chapter 21.5 (i), which pertains to personnel and/or legal matters. The Atlantic City Council meeting begins at 5:30-p.m., Wednesday, at City Hall.