Monette City Council holds special waste water plant meeting

Tuesday, December 13, 2016

The Monette City Council were summoned to a special meeting with Wayne Menley, with Miller-Newell Engineers, Inc. and USDA representative Rick Carter Dec. 8 to discuss new business concerning the waste water treatment plant.

The results of the bid held the first of Dec. were heard. Four bids were entered and the lowest, submitted by McCalahan Industries of Rogersville MO, was accepted as recommended in a letter by the engineers.

Following some discussion the Council elected not to accept an alternate option, backup generator, for $30,000 due to budget concerns. The generator may be revisited later depending on the availability of contingency funds. The Council did agree to the possible additional charge of up to $100,000 for any de-watering necessary.

The bid was structured in such a way to list de-watering as a separate additive to be charged only should the need arise. The amount of de-watering, if any, is unknown until digging begins. The charge is listed on a cost-plus basis with $100,000 as a maximum cap. The city will only be charged for work completed and no more than the maximum cap. Any money not spent will be included in contingency monies.

The subtraction of the generator and addition of de-watering adjusted the total to $2,190,000.

The cost of the contract along with a contingency of $50,700 and engineering fees, inspection and legal services leaves $2,522,000 needed to fund the waste water treatment plant project.

Menley assured the Council of a reference check on McCalahan Industries and felt confident with the decision to accept the contractor based on positive news of past collaborations.

The Council also passed resolution 2016-5 authorizing the application for an additional $95,000 USDA grant.

Carter shared information on a limited offer of an interest rate of 1.875 on the loan for the cities portion of the waste water plant funding. Should the decision wait until January chances are the interest rate would rise to around 2.5.

Carter discussed a brief time line including the decision to accept the bid and enter into the contract with McCalahan ending with the closing of the loan scheduled for Dec. 28 locking in the 1.875 interest. The savings from the lower rate were estimated to be around $461 a month and a total of more than $200,000 over the life of the loan.

The Council reviewed numbers totaling the project.

$1,397,00 loan

$1,005,000 grant

$25,000 from the city

and additional grant of $95,00 will complete the funds needed to meet the $2,522,000 needed.

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