Archive for Thursday, August 9, 2007

Repaving contract for late summer street projects

August 9, 2007

Timing has remained good for the city of De Soto in recent weeks.

Last Thursday, the De Soto City Council approved a bid for asphalt paving projects to be completed in the coming months and authorized a number of agreements meant to finance past and future capital improvement projects. In both cases, council members were told they entered the market at the right time.

City engineer Mike Brungardt said the city received seven bids for the paving contract. The winning bid from Asphalt Improvement Co. of Lawrence for $214,000 was substantially lower than the estimate of $241,262. The council awarded the bid and a 20 percent project contingency fund.

Brungardt attributed the low bids to a slowdown in construction activity with the current housing slump.

"Contractors are hungry for work," he said.

Work on the street's curbs might start this month, but the mill and overlay work probably wouldn't start until September, Brungardt said.

The city also is repaving 82nd Street from Ottawa to Ferry streets this year as its annual Community Development Block Grant project. Another Lawrence firm, McAnany Construction, won that contract with a low bid of $100,000.

Curb work on Ottawa Street started last week, Brungardt said. The street's old asphalt is to be milled next week and new pavement should be laid this month, he said.

The recently adopted five-year capital improvement plan projects the city will spend $100,000 on mill-and-overlay projects in 2008, 2009 and 2011, $173,000 in 2012, and $200,000 in 2010.

To fund other planned capital projects for this year and next, the council approved borrowing $1.31 million in temporary notes from County Club Bank at 3.8709 interest. The notes will pay for guardrails over Cedar Creek on 93rd Street, work on City Hall and the Community Center, a new water pump, repay the city for general fund dollars spent on the Lexington Avenue traffic signal and the Cherokee Woods improvement district.

In addition, the council authorized refinancing $1.235 million in bonds the city issued in 2000 for City Hall and sewer improvements. UMB Bank was the winning bidder to refinance the bonds with a 4.048 percent interest rate.

City financial adviser Jeff White said the bids met current market expectations, which were now favorable for cities. The city benefited from Standard & Poor's recent rating of the city as "strong" for its financial practices, he said.

Commenting has been disabled for this item.