Council OKs special election for wastewater treatment plant bonds

Wednesday, April 18, 2007

By Ralph Pokorny

Nevada Daily Mail

Tuesday night the Nevada City Council voted 5-0 to hold a special election on Aug. 7 to ask Nevada voters to approve $9.8 million in revenue bonds to cover part of the cost of rebuilding Nevada's wastewater treatment plant.

The remainder of the $15 million total cost estimated by the Missouri Department of Revenue will come from $5.2 million in revenue bonds voters approved in 2003 and were never issued.

Nevada's sewage treatment plant is 29 years old and in need of replacement to meet current state and federal clean water regulations.

If the voters approve these bonds they will be funded through the State Revolving Fund, which provides lower than market interest rates, Bill McGuire, city manager, told the council.

The DNR, which oversees and regulates wastewater programs has recommended that the city ask voters to approve a large enough bond issue to cover the total cost of designing and constructing a facility that will meet Nevada's needs for the next 20 years, he said.

"Funds to repay the bonds are a part of current sewer rates and the capital improvement sales tax that was approved in 2003. No rate increases are being recommended to service this debt," McGuire said.

He told the council that the city expects to sell the bonds only when accurate project costs are available to avoid arbitrage issues.

The council raised sewer rates in December 2006 so that Nevada would qualify for financing through the State Revolving Fund.

"The city began addressing this problem several years ago and it has now reached a critical situation. The flow volume coming into the plant far exceeds design capabilities and we are unable to meet treatment requirements for industrial wastes. The effect this has on both the physical and economic growth of Nevada is obvious," McGuire said.

"Inspectors from the Missouri Department of Natural Resources are here almost every day taking samples of the discharge from the plant. This is something that they usually only do once a year," he said.

McGuire also told the council that the city had developed a schedule that will meet the requirements of the DNR that starts with the Aug. 7 special election and follows with project design and construction.

"If we meet the timelines of this schedule, we believe that we will avoid cease and desist orders and large fines that could result by our inability to comply with our state permits standards. A critical timeline in the schedule is Aug. 7, when we must ask the voters to approve $9.8 million in bonds," he said.

McGuire told the council that they are planning to hold town meetings to help educate the public about this issue and that he hoped that the council members would be able to participate.

In other business the council:

* Voted 5-0 to send an ordinance setting fees at the City-County Community Center back to the parks board to consider charging non-profit organizations to use the facility. The proposed ordinance allows non-profit organizations and local governments to use the facility for no charge unless they are using the kitchen. The council was concerned that individuals would be charged, while non-profit organizations, which often have adequate money to pay the same fee as individuals and businesses, would not be charged.

* Voted to approve the reappointment of Jesse Ornelas to a third term on the IMPACT Tourism board. His term will expire in April 2010.

* Voted to approve the appointment of Brent Coursey to fill the unexpired term of Lavita Popovich on the IMPACT Tourism board. His term will end in April 2010.

* Voted to approve the appointment of Mike Farran to fill the unexpired term of Mark Loomer on the airport board. Farran's term will expire in March 2009.

* Voted 5-0 to accept the low bid of $7,812 from Jim's Appliance, Nevada, for a 35-pound. capacity washer-extractor for the Fire Department to use to clean their turnout gear.

* Voted to accept the low bid of $317,230 from Blevins Asphalt, Mt. Vernon for hot mix overlay and curb and gutter for the 2007 street construction projects. Apac-Missouri Inc. submitted a bid of $320,292.95. The cost of the work will be paid with revenue from the city's one-half-cent transportation sales tax.

* Gave final approval to a contract with Washington Electronics, Pittsburgh, Kan., for annual maintenance of the city's storm sirens.

* Voted to pass on first reading a special ordinance vacating the south two feet of East Cherry Street in front of the Key Building to facilitate its sale to Harold Neas. The planning commission voted to send a positive recommendation to the city council. The northwest corner of the building extends into the right-of-way.

* Voted to adopt Resolution No. 1192 authorizing the city to sponsor an emergency shelter grant application for the Council on Families in Crisis to the Missouri Department of Social Services-Division of Family Services. The money will go to cover part of the operating cost of the Moss House.

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