VALPARAISO | The first two projects to be funded by the water department's proposed bond issue are ready to go. All they need is for the council to approve the bond issue.
The $2.25 million bond issue will be up for final approval at the council's March 22 meeting. On Tuesday, the city's Utilities Board awarded contracts for water main improvements on Meadow Lane to H & G Underground Utilities, of LaPorte, for $91,312, and the contract for similar work on Park Avenue went to G.E. Marshall Inc., of Valparaiso, for $524,571. Both were the low bidders of 13 companies.
Both contracts are below the engineer's estimate of $97,668 and $592,635, respectively. The utility offered incentives hoping to make it easier for one contractor to do both jobs more cheaply, but it didn't turn out to be the case. One of the requirements of the bids was that they be good for at least 60 days so the city will have time to approve the bond issue and sell the bonds.
If the bond issue is approved March 22, it is expected the bonds would be sold and the money available by the end of April. The bonds will be paid for with revenue from the recent water rate increase. The main focus of the bond funds is to jump-start the department's water main replacement program with $1 million. The utility plans to set aside $500,000 each year starting in 2011 to deal with infrastructure improvements.
Funds left after the Park and Meadow projects are done will be used for other water main projects next year. The bond issue also will be used to replace the filter material used at the water treatment plants, make security improvements at the plants, upgrade distribution facilities and repave the parking lot at the utilities' offices on Billings Street.
Utility Director John Hardwick said the original bond issue was to be $1.9 million, but the financial consultant, H.J. Umbaugh, suggested the rate increase would be able to support the additional amount. The utility hopes to use the additional funds to have a gas-powered generator installed at the Billings Street office and make additional improvements to the distribution center.
The center, which is next to the Billings office, was built in the 1950s and needs to have its heating, air conditioning and electrical components made more efficient and brought up to code. The concrete floor also needs to be torn up and the sewer system replaced. Distribution Manager Chuck McIntire said it is crumbling and the odor is so bad at times that employees have to leave the building.
Instead of replacing the maintenance building as originally planned, the building will be divided in half with a wall so that two of the bays can be heated. McIntire said up to eight vehicles can be stored in the two bays, and the change will help them last longer.
