Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Water Infrastructure topic
No spam. Unsubscribe anytime.
Commission approves $1.3M–$3.7M engineering contracts and adopts up to $101.18M water‑system bond
Summary
The Kalamazoo City Commission approved multiple water‑system construction engineering contracts and adopted an ordinance authorizing Water Supply System Revenue Bonds Series 2025B not to exceed $101,180,000, which staff said includes 40‑year, 2% financing and principal forgiveness that lowers ratepayer costs.
The Kalamazoo City Commission on July 7 approved a slate of contracts and an ordinance to fund major water‑system upgrades, including construction engineering agreements tied to pump‑station reconstruction and related water transmission work.
City staff asked the commission to approve a professional services agreement with Tetra Tech for construction engineering on Pump Stations 5 and 14 (Contract 1) for $1,297,639 and a second Tetra Tech contract for $3,724,152 for Contract 2 reconstruction work. Commissioners also approved a $2,488,541.77 contract with Peters Construction Company for utility improvements on Newton's Court, Fellows Avenue and John Street.
Chief financial staff outlined the companion financing: adoption of an ordinance authorizing Water Supply System Revenue Bonds, Series 2025B, in an amount not to exceed $101,180,000. City staff explained the financing is structured over 40 years at a 2 percent interest rate and includes principal forgiveness; staff estimated roughly $20 million in reduced interest costs and $20 million in principal forgiveness compared with conventional borrowing, yielding an approximate $40 million savings relative to standard bonds that would otherwise be repaid by ratepayers.
Vice Mayor Hess invited Mr. Pascensi to summarize the bond structure, and he told commissioners the package built on earlier approvals and will fund projects already scoped and contracted. Commissioner Prado and others emphasized the compliance and capacity risks if the pump stations are not rebuilt; one commissioner noted potential impacts of about 2,800 gallons per minute — roughly 4,000,000 gallons per day — if the stations were taken offline.
All motions related to the engineering contracts and the bond ordinance were approved by roll call.
Votes at a glance: the motion to adopt the bond ordinance and related contract approvals passed unanimously in roll call votes of present commissioners.
The commission’s next steps will be executing the approved contracts and proceeding under the adopted bond ordinance; staff said details on project schedules and construction impacts will be posted on the city website and shared with residents.
