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City of Marion will save thousands on loan

Staff reporter

Marion City Council took the final step Monday to secure general obligation bonds for water treatment plant improvements.

By waiting an additional two weeks, federal guidelines had changed to allow a lower interest rate for the loan.

The city received a $1,340,000 loan and a $500,000 grant from USDA Rural Development for a 40-year term. The original interest rate was 4.25 percent but was lowered to 3.5 percent. The lower interest rate will save the city $400,000 for the life of the loan.

In other business:

— Ditch Diggers was the low bidder of $76,359 for a water line replacement project on Santa Fe and Vine streets. Other bids were from Middle Creek Corp. for $77,400 and Meis Construction for $117,500.

Mayfield said $58,500 had been budgeted for the project but funds were available.

Councilman Gene Winkler pointed out that Ditch Diggers had included five hydrants while the specifications called for four. Clarification will be made with the company.

— An engineering report regarding repairs and improvements to city streets was reviewed.

Costs to overlay Eisenhower Drive alone were well over one million dollars. Asphalt was quoted at $50 per ton by Kaw Valley Engineering.

Bond counsel Sarah Steele said the city could bond street repairs without a bond election and it would be best if the streets included in the bond were main traffic ways.

Mayfield suggested a work session for the council to sort through the report and prioritize repairs.

A special session will be determined at the next council meeting.

— The council decided to extend the Bucks for Building program through December 2007. Councilman Stacey Collett and Winkler wanted the program to run through this year, but were outvoted 3-2.

— A water purchase contract with Marion County Improvement District #2 was approved to include wording regarding the city's loan with Rural Development.

The contract is for 40 years but the city can modify it annually. Rates for Marion County Lake water customers have not modified since June 18, 2002.

— Collett will represent the council when Kansas Water Office will facilitate a discussion about Marion Reservoir between various entities.

Mayfield said he was certain there would be a charge for this. When the charge is determined, the council could decide whether to participate.

— Mayfield reported he attended a billing clerk school and will attend the League of Kansas Municipalities meetings. He will not be in attendance at the next city council meeting.

— Jami Williams, city economic development director, reported she will provide customer training to employees at St. Luke Hospital. She attended community development training as a county representative, and has included a church page on the city website.

— Water treatment plant improvements are ahead of schedule, reported superintendent Marty Fredrickson. The old clear well has been removed and a new contact basin is under construction.

— City clerk Angela Lange reported she and Williams had designed a new magnet to be used for the council to use on a vehicle for parades.

The next council meeting is at 5:30 p.m. Oct. 9 in the city building.

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