GRAVETTE — GRAVETTE - Following the swearing-in of Gravette City Council members Thursday night, they elected Melissa Smith as chairperson of the Committee of the Whole. More than two hours of discussion of numerous topics followed.
No legal actions are taken at committee meetings where council members discuss topics in a somewhat informal setting. Oftentimes a consensus is determined which allows business at regular meetings to move more smoothly.
This was the case at Thursday’s meeting when the group heard a report from Bob Wright, senior management director of the Little Rock investment firm, Crews & Associates.
That firm has been advising/representing the city as it prepares to issue $3,000,000 in bonds to finance improvements in the city’s wastewater treatment facility. This project has been on the table for many months as the city complies with standards set by the Arkansas Department of Environmental Quality.
Voters Approved
Gravette voters, in June 2009, approved the issuance of the bonds to be financed through a 3/4-cent sales tax. Collections from that tax have been accumulating since that time.
Wright’s report includes plans for the bonds to be issued. One issuance is in the amount of $1,970,000; the other totals $1,030,000.
Depending on anticipated sales tax collections, which, Wright said, have been conservatively estimated, the report indicates the final bond payment can be expected to be paid in 2020, three years ahead of the 10-year-bond date.
The Council is expected to approve the issuance of the bonds at its regular monthly meeting, Jan. 24. Actual issuance of the bonds is expected in early March.
Wright anticipates, with the low interest rates at this time, 2.73 percent, that the early retirement will be possible.
Wright praised “the good work by everybody involved with the project for the good timing” in issuance of the bonds.
In related information involving the wastewater treatment facility, Larry Buffer reported a Missouri firm, Seven Valleys, has submitted the low bid of $1,046,463 to begin work on the project. This hinges on recommendation by the city’s engineering firm, Morrison-Shipley, for the council’s acceptance. Work to repair leaks in the lagoons is progressing, with cost of that work to be paid from the bond proceeds.
Bids from four other firms ranged upwards to $1,349,020.
Other Council Business
In other discussions the council heard from fire chief David Smith that a replacement for one of the city’s ambulances, purchased used several months ago, needs to be considered, because repair costs on the vehicle are mounting. The city has $54,824 in its ambulance depreciation fund which, Smith indicated, will help cover the estimated $125,000-$130,000 cost of a new vehicle.
Tim DeWitt’s report from the street department indicates the county road department is expected to begin grader work in the Hiwasse area, particularly on Gordon Hollow Road. The city is contracting with the county for rural road work in the recently-annexed Hiwasse area.
DeWitt expressed the need to replace an old vehicle for street department use. He suggested a 3/4-ton, four-wheel drive truck. More than $24,000 has been accumulated in a vehicle depreciation fund.
Mayor Byron Warren informed the council the Arkansas State Highway Department is re-evaluating the need for a traffic light at the Atlanta and First street intersection of Highways 59 and 72.
Water Tank Online
From the water department, Corey Reardon said that repairs on the city’smillion gallon water tank have been completed by the company which installed the tank. This work was covered by warranty and involved draining the tank for several weeks. The tank is back online, Reardon said.
He also reported the water west tank, which had never been put in service when that project was completed several years ago, is now working with new, properly installed valves. Reardon also said he is still attempting to find a firm which can correct defective electronicly read meters. The electronic system, which was also installed several years ago, continues to cause problems and now almost 300 meters require hand reading.
Copies to close out the city’s 2012 budget were examined, as well as the 2013 projected budget. These documents were presented by Tracy Sewell, the city’s business director.
Allyson Ransom, director of communications, gave a report on grants, including information the city has been reimbursed $15,000 for pool repair and that work on the Highway 59-72 beautification project is ready to begin as reported elsewhere in this week’s Eagle Observer. She also reported the Nature Walking Trail has been inspected by state officials who gave a thumb’s up for the work that has been done.
News, Pages 4 on 01/16/2013