Council accepts low bid for sewer project, approves interim loan and 24-month hookup window

Spring City — The Spring City Council voted to accept the apparent low bid for the Spring City sewer improvement project, authorize interim loan financing and set a 24-month period for existing in-city properties to connect to the sewer when service becomes available.

Council accepted the low bidder identified in the bid opening as "Intellects" (apparent low base bid $2,699,000; alternate/additive work shown at $500,564, producing a combined bid figure reported in meeting materials near $3,199,000). The council recorded that acceptance is contingent on approval by USDA Rural Development, a condition required under the project's funding program. The motion to accept the low bid was approved unanimously.

The council also authorized interim financing to bridge construction until Rural Development funding is finalized. The interim loan facility was described in meeting discussion as a line of credit through the bank named in the packet (referenced in the transcript as "Cash Philly Bank"), with a credit amount reported up to approximately $4,698,000. The council adopted a motion authorizing the mayor to sign the interim financing documents on behalf of the city; that motion passed unanimously.

Council members confirmed the award and financing were contingent on USDA Rural Development underwriting and final approvals. "Any motion needs to be contingent on the USDA Rural Development approval," a council member noted during consideration.

Separately, the council approved a sewer-connection policy that requires properties inside city limits that are within the sewer service area to connect and to begin paying the sewer service rate when sewer service is available to the property. The council set a 24-month allowance for existing homes to make the physical hookup from the date service becomes available to their property; during that period residents who are already billed for sewer service will pay the monthly service fee even if their lateral is not yet installed. The council's motion on the timeframe passed unanimously.

Council members and staff discussed project coordination with other crews working in town, the possibility that the contractor would install laterals to property lines as part of alternates, and administrative details for billing and impact fees. The council directed staff to circulate finalized letters and materials explaining the hookup schedule and billing to affected residents once the USDA approval and scheduling are clarified.

Votes: contractor acceptance and interim financing motions passed unanimously; hookup timeframe adopted (24 months) by unanimous vote.