Council seeks to refinance bonds, approves repairs

Wednesday, June 12, 2013

GENTRY - Council members, at their June 4 meeting, authorized the mayor and clerk to execute documents to refund two city bonds, approved a bid for summer street repairs and selected an engineering firm for professional services needed for emergency sewer repair.

Kevin Faught, vice president of public finance for Stephens Inc., a firm hired to advise the city regarding refinancing existing water and sewer bonds at a more favorable interest rate, told council members two of its bonds were possible candidates for refinancing at a savings to the city, 2003 water revenue bonds issued through USDA Rural Development in the amounts of $2,646,600 and $340,000.

Because the market continues to fluctuate, Faught recommended authorizing the mayo rand clerk to execute documents for the city to issue 2013 bonds not to exceed $2,900,000 principal amount to refund the existing 2003 bonds. The authorization would make it possible for the city to lock in a favorable interest rate should one become available.

The council approved the authorization with rules suspended, on three readings with a single vote and with an emergency clause attached.

The council approved the low bid of DECCO, a total base bid plus a deductive alternate of $67,327, for its planned street paving projects this summer. Other bidders were Hutchens - $70,860; and Tomlison - $72,025. Because the bids came in considerably less than the $110,000 budgeted for street projects this summer, the council also authorized additions to the project to get more paving work done - up to the budgeted amount.

David McNair, Gentry's public works supervisor, said he hoped to get the paving work completed before school starts in August.

The council also approved the purchase of a 4-wheel-drive 2012 John Deere tractor for the street department at a state-bid price of $21,424.56. The tractor purchase, along with the recent backhoe purchase, were budgeted items for the department, with prices coming in at less than the budgeted amount. The city had budgeted $75,000 for purchasing a backhoe and tractor and spent less than the planned $50,000 on a new backhoe and will be spending less than $25,000 on a new tractor.

The council again approved sewer relief for June through September water and sewer bills for those requesting the discount and paying their bills on time. The relief in sewer charges has been granted each year to water and sewer customers who can show that water has been used for watering or filling of swimming pools - which would mean used water would not pass through the city's sewer system and water treatment plant.

The council authorized the mayor to hire a contractor to trim or remove trees in the cemetery which posed a safety hazard to cemetery visitors or which were damaging headstones. Since money was not budgeted for the work, the budget will be adjusted at the end of the year to include money spent for the work. The contracted work would only be for work which city crews are unable to complete because of the special equipment needed.

After reviewing qualifications, the council selected James Surveying of Gentry, CEI of Bentonville and ESI in Springdale (in that order) as firms with which the mayor was authorized to negotiate a contract to do survey work for repair to the city's sewer system. Civil Engineering of Siloam Springs, Tracy Consulting Engineers of Tulsa (Okla.) and ESI were selected as the providers with which the mayor was authorized to negotiate an engineering contract for the project.

McNair said the city has a water-infiltration problem along Pine Street because of broken sewer line. The additional water running into the city sewer system has caused a manhole to overflow and adds to the stress on the city's water treatment plant.

McNair says he hopes the repair project can be started within 30 days and finished within another 30 days. He said state health department officials had assured him of quick turn-around on plan approval.

The council also, by ordinance, authorized the city to enter into a contract with Seven Valleys Construction Company, of Cassville, Mo., to do the work. The ordinance was passed on three readings with a single vote, with an emergency clause. The need for immediate repair to prevent leakage from the city's sewer system and avoid a public health hazard was cited as reason to bypass the normal bidding process for the work.

Mayor Kevin Johnston told council members that vacant positions had recently been filled with the fire, police and public works departments. He said he had inquired about the late tornado warning messages from BC Alert and was told that local phone systems cannot handle the call volume. Johnston said work was being done to resolve the issue and suggested that residents also sign up for cell phone alerts at bcalert.com.

Johnston also reminded council members that the court room/council chambers was not certified as a safe room in the event of severe weather, adding that Benton County has very few certified storm shelters which are open to the public.

News, Pages 1 on 06/12/2013