Bonds approved for street, storm sewer improvements

The $1.3 million bonds were sold with an interest rate of 3.01 percent, and will be funded over a 15-year period.

"That was a very excellent percentage rate for us," Fort Scott City Manager Joe Turner said.

The first annual payment of $154,000 will be made in 2011. For the next 10 years, the annual payments will be reduced to $140,000. The annual payment will then decrease to $60,000 for the final five years.

According to Turner, the reason for the decreasing payments is because the bond issue covers street and storm sewer improvements. The storm sewer will last longer so it was financed for a longer period of time.

"We're funding, with this bond issue, storm sewer and street improvements," Turner said. "The storm sewer improvement we are advertising over a longer period of time because they will last longer than the street improvements."

Also during Tuesday evening's meeting, the commission approved the low bid of $605,302 from Kansas Heavy Construction, LLC of Shawnee, for the asphalt and concrete work for the street and sidewalk improvements. Turner said they hope to begin the work in early May and hope to complete the project by mid-August.

The street and sidewalk improvements will be done in two parts, National Avenue from Wall Street to 6th Street, and Country Club Lane. Turner said the initial plan was to work on Country Club Lane first then move to National Avenue, however the plan may have changed.

"The more I think about it I think we should start with the downtown area because, right now, we have a lot of open cuts on National," he said. "My preference right now would probably be to start on National."

According to Turner, the work on the storm sewer improvements will be bid out separately. He said bids will be received at 11 a.m., March 31. If the bids are favorable, it will be awarded on April 6.