The Le Mars City Council is set to hold a special meeting on Tuesday, January 14, at noon to finalize a major water bonds purchase agreement. The meeting is expected to be brief, lasting no more than five minutes, according to Finance Officer Joe Mohning.
Mayor Rob Bixenman, unable to attend due to prior commitments, will have Mayor Pro Tem Steve Wick preside over the meeting. Some council members may join via phone.
Major Water Project Investments
During the December 17 meeting, the council approved a water loan agreement to fund three key projects:
- A Reverse Osmosis Water Treatment Plant
- A New Water Well
- A Water Main
The total cost of the approved bids for these projects is $22,875,955.59, well below the original engineer’s estimate of $30,097,285. Factoring in additional engineering fees, unforeseen costs, and contingencies, the total budget for the projects is set at $27.2 million, compared to the initial estimate of $35 million.
Lowest Bids Accepted
The city successfully negotiated lower bids for the projects:
- Reverse Osmosis Plant: Hoogendoorn Construction from Canton, South Dakota, secured the contract with a bid of $20,390,000, the lowest among five bids.
- New Water Well (Well 15): L&L Builders from Sioux City submitted a bid of $2,198,285.99, below the estimated cost of $2,494,875.
- Water Main: Vander Pol Excavating from Orange City won the contract with a bid of $287,639.60, significantly lower than the estimated $652,410.
The city has arranged a water revenue loan agreement to finance the projects. This agreement allows borrowing up to $39.9 million as a line of credit, although the current plan is to spend $27.2 million.
The city’s bond attorney, Dorsey & Whitney LLP, and financial underwriter, D.A. Davidson & Co., will oversee the bond sale.
Impact on Water Rates
Residents should prepare for a gradual increase in water rates over the next four years to cover the repayment of these bonds.
Additional Updates from the Meeting
- Public Reports Delivered: Annual reports were presented by Public Facilities and Cemetery Supervisor Brad Eppling and Street Supervisor Scott Kneip.
- Town Hall Scheduled: Mayor Rob Bixenman announced his first town hall meeting will take place on Thursday, January 30, at 5:30 p.m.. The meeting aims to gather public input on key council decisions, including budget matters.
- Election Signs Reminder: City Administrator Scott Sturgeon reminded residents to remove election signs from their yards.“The election was in November,” he said. “Please store the signs in your garage or another place until the next election.”
- Approval of Bills: The council approved payments totaling $1,569,241.25 for the period ending December 31.
- Reappointment to Parks Committee: Tom Hansen was reappointed to the Parks and Recreation Committee for a three-year term ending December 31, 2027.
- Liquor Licenses Renewed: Two liquor licenses for Habitué Coffeehouse and Bakery were renewed, including a five-day license for January 14-18.
- Floyd Valley Healthcare Praised: Mayor Pro Tem Steve Wick praised Floyd Valley Healthcare for providing excellent care during his wife’s knee replacement surgery.“It’s top-notch service out there,” he said.
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