City approves funding for water plant improvements
Staff reporter
Marion City Commission approved a financial proposal Monday from USDA Rural Development for improvements to the city's water treatment plant.
Dale Yager of Rural Development, presented and reviewed the necessary documents for the city to receive a $1,340,000 loan and $500,000 grant. The loan will be a 40-year bond at a maximum annual interest rate of 4.25 percent.
An increase in rates for the city's 1,008 water users has been implemented to cover bond payments.
Commissioner Jim Crofoot asked what the procedure would be if bids came in lower than anticipated. Yager said the loan would be spent first, followed by the grant. If bids are more than anticipated, Yager said the city can obtain additional loan and grant funds. The source of additional funds would be dependent on the city's water rates.
Annual bond payments will be $70,243.
Temporary notes can be secured by the city with local banks to cover expenses until bids have been finalized and funds are released, Yager said.
All contractors for the project will be bonded, including a performance bond which will give the city a one-year project warranty.
A resident inspector can be provided by the city or engineer.
In other city business:
— Owners of property at 201 N. Freeborn will be given until Aug. 1 to complete necessary improvements to make property compliant with city codes.
City building inspector Marty Fredrickson said he and the owners met and discussed the required improvements. Fredrickson said the owner was "overwhelmed" with the amount of work to be completed within the four-month period.
The owners also are considering removing the house and selling the lot.
City attorney Dan Baldwin suggested the city select a few improvements and place a timeline to have them completed. Mayor Martin Tice instructed Baldwin to create a resolution with deadlines and expectations to be presented at the commission's next meeting.
— City public utilities superintendent Harvey Sanders reported a water line has been installed on Denver Street for five new houses. Electricity will be installed when the ground dries out.
Crews are preparing the city pool for opening and preparing for cleanup week to begin Monday.
— City treasurer and assistant city clerk Angela Lange presented and the commission approved the March utility billing tie-out.
— A proclamation was approved declaring April as fair housing month.
— Warrants for $89,029 were approved.
— City administrator David Mayfield reported he and Lange will attend a grant workshop June 20 in Topeka for the possible application of a grant for a fire truck.
The next commission meeting will be at 4 p.m. Monday in the city building.
