Trustees hire contractor for reconstruction of Church, Center streets
Village of Saukville officials may not have a lucky number, but the numbers certainly turned in their favor concerning the reconstruction of Church and Center streets this week.
The first piece of good news came when bids were opened Jan. 26 for the long-planned road project.
The low bid on the work, $990,000 submitted by Advanced Construction of Green Bay, was well below the $1.4 million estimate prepared by the village’s engineering firm, Ruekert & Mielke.
Sean Sullivan, project manager from Ruekert & Mielke, said timing was the key factor in getting such a favorable bid.
Sullivan said contractors are looking for work at this time of year, as evidenced by the 25 firms that requested bid packets and the six that submitted proposals.
“Bidders were very tight with their prices. It was a great time to get bids,” he said.
Although special assessments related to the road work have yet to be calculated, the lower-than-expected bid is likely to translate into lower costs for adjacent property owners.
The second piece of good financial news came when bids were received from six financial institutions for the $2.7 million in general obligation bonds that would be sold to finance the road work and other capital projects.
Thanks to a very favorable bond rating from Moody’s Investor Service, the village received a low bid from UMB Bank of Kansas City making that money available at an average interest rate of 2.34%. Repayment of the bonds will run from 2018 to 2032.
Compared to the high bid from Piper Jaffray of Minneapolis — with an interest rate of 2.5% — the winning bid will save the village $38,600.
With a calculated true interest rate of 2.35%, the borrowing will cost $495,000 in interest charges over the life of the bonds.
Michael Harrigan of Ehlers, the village’s financial adviser, noted that part of the borrowing includes refinanced debt.
“At one point, we thought that part of the borrowing might have to be pulled because of rising interest rates,” Harrigan told trustees. As it turned out, the refinancing will save the village money.
Harrigan and Village President Barb Dickmann said one of the points that played in the village’s favor during the rating review by Moody’s was the financial management plan recently put into place by the Village Board.
“They were impressed that a community of our size was so forward-thinking to have a plan in place,” Dickmann said.
The Village Board unanimously approved the construction contract with Advanced Construction and the bond bid submitted by UMB Bank on Tuesday.