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LCUB OK's $1.4 million for Town Creek interceptor project phase II

Lenoir City Utilities Board awarded a bid to Garrison Construction Company, Inc. for $1,425,654.95 for the Town Creek interceptor project phase II.

“This is the second phase for Town Creek interceptor … this is carried up from Highway 321 and up to the project,” said Greg Jones, water and wastewater manager.

Members of the Board discussed how much the developer would be able to pay for the second phase of the sewer line.

“Shannon [Littleton] has discussed that with him. I believe it’s upward of $200,000,” Jones said.

“He has indicated to me that this is part of the development project and part of this money will go to [this] sewer project,” said LCUB attorney Littleton.

The Board also discussed the SRF loan amount for the

waste-water treatment plant


LCUB took out an SRF loan to pay for the plant expansion but received bids for lower amounts than expected. Because of this, utility charges have increased drastically for some industrial plants in the area.

“With a $180,000 increase in their sewer and water bills, I think that’s who’s suffered the most,” said Board member Joe Simpson.

“I really wanted to do something to try to save the employees that we have that work at some of these industrial plants … it’s tough times right now, and I know it’s going to be 2011 or 2012 before we finish that project. If we have to get it looked at it again or have our rates change then, we could,” Simpson said.

“If we don’t help these people and they decide to take their 400 employees somewhere else, do we even need that plant?” he added.

Board debated paying off the loan or putting off repayment to allow industrial plants to have lower rates.

“Rule of thumb is that, on a job of this magnitude, you need to hold back 20 percent for things of unknown cause,” Jones said.

“If instead of borrowing what we borrowed, if we decreased that debt, what kind of savings would we have?” said Lenoir City Mayor Matt Brookshire.

“I want to be fair to these issues,” Simpson said.

The Board moved to discuss the item further at a special-called meeting.

In other business, the Board:

• Approved the superintendent’s reports for March and April 2008.

• Approved Brown, Jake and McDaniel, PC, to audit the LCUB accounts for the fiscal year ending June 30.

• Authorized the gas, water and sewer departments to seek annual bids for materials.

• Approved the purchase of a 2009 half-ton F-150 short bed truck for $14,318 from Ted Russell Ford.

“The maintenance department, for the last few months, has highly recommended that we do this and I was just waiting for a time when it wouldn’t be a [financial] problem,” Nelson said.

• Approved the purchase of two 2009 half-ton F-150 short bed, extended cab trucks for $17,149 each from Ted Russell Ford.

• Awarded a bid to Altec, as the lowest and best bidder for a 2008 line truck. The truck will replace another line truck, Unit 21, and will cost $162,640.

“We’ll probably get it in hopefully sometime in August,” said Fred Nelson, LCUB general manager.

“These two are the collector trucks … they carry the locating equipment to find big underground faults,” Nelson said.


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