Financing for lift station halted again
Posted on Wednesday, May 7, 2008
URL: http://www.nwanews.com/tnebc/News/4391/
Tabled again, an ordinance providing issuance of a promissory note for financing of a sewer lift station was not approved as a consequence of a clause in the contract allowing overages in the cost of installing the lift station to be charged to the city.
Howard Slinkard, city attorney, said he had just received the papers he had been requesting and was concerned about the clause allowing increased costs to be the city’s responsibility.
Slinkard said the contract, in essence said “ the city will put in whatever it takes to get it built. ”
Slinkard expressed concerns that price overruns would be the city’s responsibility, a condition that was not in the original plan.
Slinkard said all parties were present at the last council meeting when the council discussed decreasing the amount of the bond because of quoted prices. He said no one spoke up at that time about possible cost overruns.
“ Nothing was said until 12: 30 today, ” Slinkard said.
“ We will not sign a contract that gives a blank check, ” said Mayor Jackie Crabtree. “ If there are cost overruns, we’ll handle them separately, if they’re reasonable. ”
Kevin Faught, representing bond counsel, presented the bond papers and said there was no prepayment penalty.
The issue was tabled pending further investigation and agreed to have a special meeting, if necessary, to adopt the ordinance to complete the project.
In other business, the council adopted the ordinance providing a contract with Dr. Gary France, Pea Ridge Veterinary Clinic, for boarding stray dogs.