City approves sale of bonds for treatment plant

Moving forward with Phase 2 improvements at the wastewater treatment plant, the Concordia city commission approved three items related to the project during its regular meeting on Wednesday.
The commission approved a resolution authorizing the improvements to the treatment plant and the issuance of bonds for such improvements, a resolution authorizing the public sale of general obligation bonds not to exceed $4.1 million and authorizing the mayor to sign the certificate deeming preliminary official statement final.
Phase 2 of the project, which is funded by a water bill fee charged to all city residential and commercial water customers, includes updating old and dangerous high voltage electrical boxes and panels, installing a generator that will run the entire plant in emergencies, upgrades of the influent pumps, and switching from producing Class B biosolids to Class A, which includes construction of a 20-foot extension to the north side of the administrative building.
Phase 1 of the improvements to the plant, which included rehabilitation and upgrades of the clarifiers, grit chamber and return sludge facility, and the installation of a screwpress, was completed in 2019, with a total cost of $2,749,140.53.
Funding for both phases of the improvements began in December 2014 with a $10 per month fee for each water customer. That fee is expected to remain on the water bills through the retirement of the bonds for both phases.
The city commission had approved implementing a $4 per month fee, beginning in January 2021, after the $2 per month fee to cover the cost of the improvements at the swimming pool ended.
City finance director Amber Farha reported to the commission on Wednesday, that given the current estimated bond rate of around two percent and a total bond of $4,045,00, the city anticipates an additional $3 per month fee beginning January 2021. That would amount to a $1 per month increase after the $2 fee for the pool improvements ends.
Dustin Avey, managing director in the public finance group with Piper Sandler, met with the commission on Wednesday and reported that based on bids that had been received on projects in July and August it is expected that the interest rate on the bonds will be below 2.08 percent.
“The market has been, just quite frankly, incredible. The number of bids, number one, but also just the interest rates that have been proposed, something I have never seen in 20 years in the business. So your timing should be very, very good,” Avey said.
A timeline for moving forward on the project calls for the bond sale on September 16 and the closing of the bond issue on October 8.
In other action taken during the meeting, the commission approved a license agreement with OCCK, Inc. to place and maintain bicycles and related equipment located within the city-owned parking lot at Seventh and Washington.
OCCK partnered with Blue Cross and Blue Shield of Kansas and Zagster in 2019 to provide a bike sharing program in Concordia, Belleville, Mankato, Beloit, Lincoln, Minneapolis, Salina and Ellsworth.
Zagster has gone out of business.
OCCK has now partnered with Tandem Mobility, LLC for maintenance of the shared bikes. Therefore, the license agreement approved by the city commission on April 17, 2019, needed to be replaced to reflect the change in bicycle maintenance service.
For a small fee, bicycle riders can rent a bike for short rent or for a month, returning it when they are done.
Bikes are equipped with GPS to help Tandem Mobility locate bikes not returned on time.
OCCK and Tandem Mobility will contract with a local or regional bike repair shop for routine maintenance and repairs. The bikes and racks are owned by Tandem Mobility.