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Dallas aldermen approve up to $3.6M financing and award over-budget contracts for water-line project
Summary
The Town of Dallas approved an installment financing resolution with BB&T for up to $3.6 million at 3.59% to fund a multi‑phase water‑line replacement and awarded Phase II and III contracts to the low bidder despite bids that substantially exceeded earlier estimates.
Mayor Rick Coleman and the Board of Aldermen voted May 13 to approve installment financing and to award contracts for Phases II and III of the town’s water‑line replacement project.
The board adopted a resolution accepting Branch Banking and Trust Company’s (BB&T) recommended terms for an installment financing contract not to exceed $3,600,000, with a 20‑year amortization and an interest rate of 3.59% per year. The resolution calls for annual, level repayments (estimated at $255,367.03 per year if the full amount is borrowed), yearly installments beginning April 26, 2014 and continuing through April 26, 2033, and liening the replaced water lines and Town Hall as collateral. The board also agreed that $25,000 of proceeds will be spent on Town Hall improvements.
The financing followed a public hearing in which staff explained the solicitation process conducted by DEC Associates and presented BB&T’s offer. The Board voted to adopt the resolution (motion by Alderman Beaty; second: Alderman Withers); the motion carried unanimously.
After recessing to review late bid tabulations, Diamond Engineering reported the low bids for construction. The board was told Phase II had been estimated at $801,570 but the lowest responsive bid came in much higher at $1,464,065.50; Phase III’s low bid was $872,209.75. Diamond Engineering’s Johnny Denton apologized to interim Town Manager Jim Palenick and the board for not communicating detail changes made after the original estimate.
Citing the previously authorized financing authorization of up to $3.6 million, the board awarded both contracts to the identified low bidder, Advanced Development Concepts, LLC (Phase II: $1,464,065.50; Phase III: $872,209.75). The awards were moved by Alderman Martin, seconded by Alderman Withers, and carried unanimously.
The board and staff noted that Local Government Commission approval may be required before finalizing financing and that the exact borrowed amount will be set after construction bid awards and final determinations of Phase II and III costs. The awards authorize the town to proceed with contracting and to draw on the previously approved financing as needed.
Next steps: staff will pursue LGC approval and finalize contract documents with Advanced Development Concepts, LLC.
