Council OKs $1M in water plant bonds

The city council took another step Tuesday toward replacing its 70-year-old water plant by approving the issuance of $1 million in bonds to help pay for the estimated $6 million plant.
The council approved a resolution giving preliminary approval for the issuance of $1 million in excess revenue bonds to go toward the city’s new water plant. The bonds will be issued at an interest rate not exceeding 4 percent and maturity date of 12 years.
David Riggins of Government Consultants in Baton Rouge said the issuance of the $1 million in bonds will replace the U.S. Department of Agriculture loan that the city had originally planned to use.
“This is a better arrangement, a better deal for the city, and it’s less costly,” Riggins said. Once the state bond commission approves parameters of the issuance of the bonds, officials will start the process of doing away with the USDA loan, Riggins said.
Riggins hopes to get interest rates in the range of 2.75 percent to 3.2 percent on the bonds, he said. The city already borrowed $5 million for the project and had applied for the USDA loan to get the other estimated $5 million that the original water plant was going to cost, Riggins said.
“So this will eliminate, save the town that $3.8 million by doing this new water plant that we’ve gotten quotes and stuff on,” he said.
Mayor Rodney Grogan said the total cost will be $6 million for a “brand new” water plant. In October, Grogan said the plant will be a 50-foot by 100-foot, non-conventional facility, which means different chemicals would be used.
At October’s council meeting, the council approved a resolution retaining the services of Providence/GSE Associates and authorizing Grogan to enter into an engineering agreement for the construction of a 3 MGD compact clarification water treatment plant. The resolution also included work authorization to consultant Professional Engineering Environmental Consultants.
Grogan said the city tried to go the route of constructing a conventional water plant, but the bids came back as high as $11 million for that type of plant with the lowest bid at $10.4 million.
City officials traveled to Batesville, Arkansas, and Melvin, Arkansas, to inspect non-traditional water plants similar to the one the City of Patterson plans to build.
The design for the plant should be finished by February 2015, and groundbreaking of construction of the plant could start probably in June or July 2015, Grogan said. Construction of the plan will take about a year, he said.
In other business, the council:
—Approved a variance request to be able to put a new mobile home at 411 Main St.
—Approved a change order for the Willow Street Sewers from Taft Street to Martin Luther King Jr. Avenue.
—Adopted a resolution of substantial completion for the Willow Street Sewers.
Heard an announcement of the Christmas lighting in the City Hall parking lot at 5:30 p.m. Nov. 23; the Patterson Boat Parade at 6 p.m. Dec. 13, which will take place in the Lower Atchafalaya River from Cajun Jack to Bridge Road; and the Christmas Parade at 2 p.m. Dec. 14 starting at Place Norman Shopping Center and ending at Red Cypress Road.