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KINGSFORD -- Financing for the Kingsford Heights water project is being finalized after the low bid was nearly $1.3 million higher than anticipated.
The city will receive an additional $235,940 in bond funding, which will be added to $600,000 previously negotiated by state Sen. Ed McBroom, R-Waucedah Township, bringing the total additional amount to $835,940, said City Manager Mike Stelmaszek.
The city has been approved for a 40-year low-interest Drinking Water State Revolving Fund loan in the amount of $3,215,940, which includes $1,166,200 in principal forgiveness. With the additional funds, Kingsford will pay back $2,049,740 at a 1.875% interest rate, Stelmaszek said.
Much of the project will be funded through an American Rescue Plan State Revolving Fund grant of $4,143,800, which is federal money channeled through the state. Additionally, the city is expected to pay up to $556,200 from its water fund and $275,000 from its sewer fund.
The city is in the process of bonding for an additional $1,284,000 on the open market.
The SRF bond payments will be about $80,000 a year with principal and interest combined, plus the amount of the bond on the open market, Stelmaszek said. This will be paid from the water rate increase that occurred on July 1, 2022.
A bid was awarded last month to Payne and Dolan of Gladstone for $8,396,315. The project is expected to start this summer and be completed next year.
It includes replacing approximately 244 lead water service lines to homes with copper pipes and replacing nearly 13,000 feet of existing galvanized water main. Some of the pipes are 100 years old.
Water lines will be replaced on Wilson Avenue, Harrison Street, Cleveland Avenue, Saratoga Streets and parts of Bell Court and Rexford Avenue. The work includes sidewalk restoration, full curb replacement, full-width pavement replacement and some hydrant replacement.
At its May 15 meeting, the city council approved a resolution to apply for another State Revolving Fund loan for a 2024 Heights water project. In a presentation to the council, engineers GEI Consultants outlined the $13.5 million project, which includes a portion of Woodward Avenue. It would replace an additional 350 service lines to homes.
In other news, the council:
-- Learned new playground equipment for Lodal Park and Ford Addition Park will be installed June 6.-- Approved new banners to hang from street lights. City officials will have the discretion to choose which ones seem best of the four options.
-- Approved with conditions, and a letter of understanding, a request from Dan Brown and volunteers to make improvements around the Spigarelli Field at Lodal Park. The work includes a new press box, new scoreboards, cement pad for the existing batting cage and adding another cement pad for a new batting cage. It would be donated and the work would be completed after the Aug. 3-5 centennial celebration.
-- Has accepted a bid of $94,783 from A&B Construction for a salt shed foundation. The city previously accepted a bid of $108,392 from the contractor for a 65-foot by 90-foot fabric shed to be built near the public works building.
-- Has accepted the resignations of Christopher Weseman from the public works department and Joseph Metras from Kingsford Public Safety.
-- Will accommodate the inaugural Northpointe 5K Color Walk/Run on Saturday, June 17. It will start on Pyle Drive and end at Northpointe. No roads will be closed. For more on the event, go to https://runsignup.com/Race/MI/Kingsford/CommunityStrongColorWalkSupportingMentalHealth.
-- Will have a public hearing on the proposed 2023-24 fiscal year budget at 6:45 p.m. Monday, June 5, during the next regular council meeting.