GMSA Ok's Utility Relocation Package

The Grove Municipal Services Authority this week approved 5-0 a plan to finance utility re-location for the Highway 59 widening project via a $4 million loan from Bank of America at 3.99% interest, maturing Sept. 20, 2020. The note will be re-paid from utility revenues and secured by one percent sales tax monies. It will be administered by the local Bank of Oklahoma.
The Oklahoma Department of Transportation will reimburse the city about $2 million, making the total project cost around $6.5 million. The city will also contribute about $775,000. The city must have actual monies on hand in order to be reimbursed by ODOT. Actual work should start sometime in October, pending all right-of -way acquisition.
A second water tower and 16-inch water line from the existing elementary school standpipe to US 59 will be built as well, along with three lift stations.
The financing package was approved 5-0 by the City Council at Tuesday evening's meeting.
Bid packets were sent out to 12 financial institutions by Municipal Finance Services, Inc. with a hoped-for interest rate of 4.25%; Bank of Oklahoma bid 4.11% but no local banks bid on the project as they could not guarantee a fixed interest rate for 15 years.
In other action, GMSA:
--Approved purchase of a GeoXT Trimble for the city's 911 coordinator not to exceed $4,784, with staff continuing to search for a lower-priced GPS mapping unit. This will be a second unit, a demo, saving $2,851 over a new unit. It will locate all GMSA utilities by GPS.
--Approved payment of a bill for sludge removal expenses.