Sale of bonds for treatment plant project approved

An ordinance for the issuance of general obligation bonds for Phase 2 wastewater treatment plan improvement project, and a resolution authorizing the sale of those bonds, were approved by the Concordia city commission during its regular meeting on Wednesday.
The commission approved a bid for the sale of $4,045,000 in bonds from First Banker’s Banc Securities, Inc., Overland Park, at a rate of 1.61 percent over 20 years.
The city received nine bids for the bonds.
“It was probably more bids than we have seen in some time, and really more than we typically see,” Dustin Avey, managing director in the public finance group with Piper Sandler. “All nine bids were below the 2.08 percent that we shared with the commission last month.”
After the commission authorized the issuance and sale of the bonds in August, the city sought a rating with Standard and Poor for the bonds and received an A+ “Strong” rating.
“Really what is most notable in the rating report is that rating is really reflective of the city’s policies and procedures, financial practices and budgetary practices. The staff and commission deserve a lot of credit for the securing of an A+ from Standard and Poor,” Avey said.
Phase 2 of the improvements at the treatment plant, with an estimated cost of $3.8 million, 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.
Bid letting for Phase 2 is expected to take place this fall with construction beginning next spring.
The first phase of the project was completed in 2018 at a cost of $2,749,140.53 and included rehabilitation and upgrades of the clarifiers, grit chamber and return sludge facility and the installation of a screwpress.
Funding for both phases of the project is coming from a $10 per month fee charged to all the city’s residential and commercial water customers.
Adding a $5 fee to all water customers was approved in December 2013. That was increased to $10 in December 2014.
It is anticipated that the fee will remain on the water bills until the bonds for both phases of the project are retired.
The city commission had approved implementing an additional $4 per month fee to water customers, beginning in January 2021, after the $2 per month fee to cover the cost of the improvements at the swimming pool was removed.
City finance director Amber Farha reported to the commission in August that because of the low bond rate, the city anticipates an additional fee of $3 per month, beginning in January 2021, would be needed. That would be an increase of $1 per month after the $2 fee for the pool improvements ends.
Also during the meeting, the board approved a resolution setting a public hearing date of November 4 at 5:30 p.m. for the condemnation of Thunder Strikez Bowling Alley, 1909 Lincoln St.
Thunder Strikez was destroyed by fire on September 6.
The resolution is required for the city to hold any insurance proceeds against the property until clean-up and removal are to the city’s satisfaction.
City building inspector Bruno Rehbein said he does expect the city to receive some insurance holdings.
An application for a Revolving Loan Fund-Disaster Relief grant of $25,000 from Concordia Hospitality DBA Taco John’s was approved by the commission.
CloudCorp executive director Kim Reynolds, in submitting the application to the commission, said that Taco John’s came under new management at about the time the COVID-19 pandemic started to have an economic impact on area businesses.
Reynolds said that the funds will aid in the retention of 13 full-time equivalent employees.
The city has approved 11 applications for Disaster Relief grants to businesses totaling $249,500.
Four action items related to a Community Block Development Grant (CDBG) application by the city were approved by the commission.
The city is applying for a $97,950 grant for the purpose of demolishing 10 dilapidated houses and three garages/sheds through voluntary participation.
The commission approved an agreement with the North Central Regional Planning Commission (NCRPC), Beloit, to administer the grant.
NCRPC will prepare a grant agreement between the city and the Kansas Department of Commerce.
Each year the city provides money for its demolition program from the capital improvement fund. This year that amount was increased to $48,975 to use as match for the grant.
If awarded, the grant funds will be used to help address blight in the community, which is a goal of the commission.
There were 80 structures within the city limits that were identified as ones that could be included in the program.
There were 10 property owners who agreed to participate.
The structures would be demolished at no cost to the property owners.
Along with the administrative agreement with NCRPC, the commission also approved a NCRPC inspection services agreement, a resolution certifying legal authority for the CDBG program and a resolution assuring Kansas Department of Commerce guaranteed funds for CDBG.
A memorandum of agreement between the city and Cloud County to accept Coronavirus Relief Funds, and authorizing Mayor Mark Matthew to sign the agreement, was approved by the commission.
The city intends to accept $293,065.74 in relief funds from the board of county commissioners to provide reimbursement for expenses resulting from response and mitigation efforts to slow the spread of COVID-19 within the community since March 1 and to provide financial support for future purchases necessary to support long-term virus response and mitigation efforts (direct aid).
The direct aid funds must be spent by December 30.
The memorandum of agreement is an effort to ensure the city will spend the funds on eligible expenses to respond to and mitigate the health and economic impact of COVID-19 in the community.
Concordia Police Chief Ric Fredrickson was presented the AAA Kansas Community Traffic Safety Award during the meeting by Bob Hamilton, law enforcement liaison with the Kansas Department of Transportation.
The Concordia Police Department received the Gold Award for its work addressing local traffic safety issues over the past year.
Hamilton said that Concordia was one of 38 police departments receiving the Gold Award.