Lamar council approves contracts for Well 15 and raw water main, sets public hearing on $39.9 million loan

The City of Lamar City Council on Nov. 21 voted to award a $2,198,285.99 contract for the Well 15 project and a $287,639.60 contract for a raw water main, and set a Dec. 17 public hearing on a water‑revenue loan with a principal amount not to exceed $39,900,000.

Council action came after staff and consultant recommendations and a short discussion of project financing. The council adopted Resolution 24‑55 to award the Well 15 construction contract to L and L Builders for $2,198,285.99 and adopted Resolution 24‑56 awarding the raw water main contract to Vanderpool Excavating LLC for $287,639.60. The council also adopted Resolution 24‑57 to establish a Dec. 17, 2024, public hearing on a water revenue loan agreement with a principal cap of $39,900,000.

Why it matters: City staff said the projects — the Well 15 site, a reverse‑osmosis water treatment site and the raw water main — will be funded with bonds and paid through user rates. Staff told the council the financing package includes construction and engineering costs, bond counsel and administrative fees, and contingencies.

Details and votes: The bid opening for the raw water main showed 11 bids were received on Nov. 21, 2024, at 1 p.m., and staff and McClure Engineering recommended the low bidder. Roll‑call votes recorded in the meeting transcript show all council members present voting yes on the three resolutions. The transcript records the following yes votes for the Well 15 resolution: Council Member Sturgeon, Council Member Hick, Council Member Goodchild, Council Member Wick and Council Member Friends (motion carried). For the raw water main resolution the roll call recorded: Rich Howe (yes), Bruns (yes), Hick (yes), Sturgeon (yes) and Wick (yes). For the public hearing resolution the roll call recorded: Bruns (yes), Sturgeon (yes), Hick (yes) and Wick (yes); the motion carried.

Financing figures discussed: Staff reported an “all‑in” project cost submitted to the city’s financial advisor of $27,147,000, which staff said includes McClure Engineering fees and a roughly 3% construction contingency (approximately $700,000). Staff contrasted that figure with the larger principal cap the council authorized for the hearing ($39,900,000), explaining the higher number functions as an authorized borrowing limit rather than an expectation of spending to that ceiling. Staff said water rates are being adjusted over a four‑year period to cover loan payments.

Next steps: The council set Dec. 17, 2024, at 12 p.m. for a public hearing on the proposed water‑revenue loan agreement. Staff said any change orders that raise project costs above the approved all‑in amount would require separate council approval, and that available cash on hand could cover amounts beyond the bond as needed.

Sources: Meeting transcript and on‑record motions and roll‑call votes recorded by the council clerk during the Nov. 21 meeting.