City could save $70,000 on well through state fund

Albion City Council decided Tuesday night, Jan. 8, to use a bid alternative for the new city water well that would allow possible use of state program, the Drinking Water State Revolving Loan Fund (DWSRF) for the project financing.
Use of this program could result in a net savings of about $70,000 in the overall project cost, according to a letter from Roger Protzman of JEO Consulting Engineers, engineer for the project.
The estimated total cost is $468,000. The city has already scheduled a bid opening on the project for Jan. 30, 2019.
Using the DWSRF program could result in 25 percent loan forgiveness if the project meets requirements. The repayment could take place over as little as five years, with an interest rate of 2.6 percent.
Protzman pointed out that the project specifications would need to be amended to include the DWSRF assurance documents that place some additional requirements on the contractor and the city. These include buying American iron and steel, meeting Davis Bacon wage rates, and establishing minimum wage rates for various employee skill sets.
JEO estimated that use of the DWSRF program would save about $144,500 in project cost. However, there would be additional engineering, contractor and interest costs that would reduce the net savings to about $70,000.
The council approved an addendum to the agreement with JEO the city to use the DWSRF program, if feasible. JEO will provide the bid package amendments at an additional cost of $3,000.
One and Six-Year Street Plan
The council reviewed proposed projects for the city’s one and six-year street plan. The plan is to be considered for adoption at the council’s February meeting.
The one-year plan map includes work on side streets adjoining Fairview Street for phases of the storm sewer project, as well as some drainage structures and culverts on South Street to the southwest of the present city campground.
Concrete paving of Park View Street in the South Park Subdivision is also part of the one-year plan if the subdivision development proceeds.
Mayor Jim Jarecki reported that city facilities and equipment had been inspected, but the meetings with city department heads will be held in February.
In other business at the January meeting, the council:
• received the 2018 activity reports for city council and the Albion Planning Commission for review;
• reviewed a monthly report from City Administrator Andrew Devine on city projects and activities.