DECATUR ó At a special city council meeting May 6, Crossland Heavy Contractors was formally awarded the contract to build Decaturís new wastewater treatment plant.
Council members also voted to pass a resolution confirming the details of the water and sewer revenue bonds that will fund the project.
Buster Beardsley, a representative of Crewís and Associates of Little Rock, told council members the bond issue is for approximately $ 3. 035 million. After paying bond fees, the city will have around $ 2. 9 million left for construction to add to the $ 5. 1 million previously secured for the project.
Beardsley said municipal bonds for the additional $ 3. 035 million are being offered to the marketplace but are not yet sold. The cityís interest rate, however, is guaranteed.
After reviewing the water and wastewater departmentís financial statements, Beardsley said it appears the city will not have to raise rates or make any changes.
ì Iím really proud of what the bond council has done for us. Itís been a long roller-coaster ride for all of us, î Montgomery said.
Montgomery read a letter from Johnny Quinn, of McClellands Engineering, to the council members. It stated that after reviewing the bids, the engineering firm recommended the city offer the contract to the low bidder, Crossland Heavy Contractors.
City utilities manager James Boston told council members that, after doing some research, the city decided to use the deductive alternates suggested in the bid. By using several different brands of heavy equipment, the city will save around $ 13, 000.
After factoring in the $ 13, 000 savings, Boston said the total construction costs will be around $ 7, 669, 421.
Crosslandís bid was higher than expected because of the rising costs of construction materials, leaving the city $ 180, 000 short on the contingency fund. The fund was budgeted for three percent of the total construction fees, approximately $ 230, 083, to cover unforeseen costs and overruns.
Montgomery explained his plan to pay the construction company in stages, and invest the remaining money in a FDIC insured account. He told council members the interest from the account will generate enough money to cover the shortfall.
Boston said a project engineer will be on sight, and will keep overruns to a minimum. The engineer will review Crosslandís insurance and bonds in the coming weeks.
ì This is a big step for our small community, î Montgomery said If all goes as planned a groundbreaking ceremony for the project will be held on June 6, Boston said. Construction is anticipated to begin on June 16 and take one year.
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