Pleasanton council passes resolution to begin bond issue on water plant roof

Max McLiney, Pleasanton's financial advisor, passes out copies of a schedule of the bond process to members of the city council. (Photo by Roger Sims / Linn County Journal)

By Roger Sims, Journal staff

linncountyjournal@icloud.com

PLEASANTON – After voting to hire a contractor to replace the roof of the water plant building and clarification system at the June 1 meeting, the Pleasanton City Council on Monday, June 15, voted unanimously to pass a resolution on financing the $215,000 construction cost with a bond issue.

At the June 1 meeting Jason Hoskinson with BG Consultants, the city’s engineering firm, told the council that when it appeared likely that no one would bid on the project, company officials approached Olathe-based INCO-USA about doing the job.

INCO’s $215,000 bid was the only one received during the open bidding process.

While the building isn’t that large, the work will require tearing off the old roof structure and support beam, making some repairs to the walls, installing premade trusses and covering the trusses with metal roofing.

However, it is expected that the water plant, the city’s only source of water, will need to be shut down and the filters and clarifier system protected several times during the process. City Clerk Candy Houtman said that the system has 550 customers.

At the June 15, meeting Max McLiney of McLiney and Co., the city’s financial advisor, discussed financing the roof project. He said the work would not add to residents’ property tax burden, but residents and businesses would pay for it nonetheless.

“It won’t be paid by tax revenue,” McLiney said. “It will be paid by water revenue.”

He said options would likely be to pay off the bond over either five years or 10 years.

At the June 15 meeting, the council completed the first requirement set out by McLiney by approving the financing of the project with a bond issue. The next two steps will be the council voting on the bond sale on July 20 with closing of the bond issue by Aug. 11.

Once the issue was closed, construction would begin in August, he said.

Council President Rochelle Schreckhise asked McLiney what the interest rate would be. but at that point he only had a rough idea of what it would be. Schreckhise also asked him to bring figures for a five-year and a 10-year payoff.