Akeley pledges water main revenues to start work
Water main reconstruction on a three-block portion of Highway 34 in Akeley is moving forward, the council approving a bid of $333,341 from Casper Construction of Grand Rapids at a special meeting Tuesday night.
The council also approved the acquisition of $430,000 in temporary revenue bonds pending anticipated grant and loan funds of $400,000 from the Minnesota Public Facilities Authority for the improvement.
The city is expected to receive an estimated $245,000 grant for the project.
Anticipated engineering costs are $54,800 with a 5 percent "contingency" added to the amount. Additional costs include the cost of issuance of the bonds and other miscellaneous amounts.
Todd Hagen of Ehlers and Associates explained because the city is pledging net revenues from the water system for the payment of the bonds, the bonds can be general obligation without a referendum and will not count against the city's debt limit.
Hagen anticipates a low interest rate for the bonds to be sold June 8 and closed by July 15. He said Ehlers will solicit competitive bids from local banks and regional underwriters.
The first interest payment on the bonds will be Feb. 1, 2012.