With closing on the loan for the Berne waste water treatment plant upgrade just a few weeks away, Ben Adams of Commonwealth Engineering met with Berne City Council Monday evening to ask for approval to award R.E. Crosby, Inc. of Fort Wayne the contract for the project.
Crosby submitted the low bid of $8.8 million during the June 23 council meeting, a figure that was much higher than the estimated $7.3 million to complete the project.
The wrap form of financing with State Revolving Loan Fund approved by council in June will allow the city to wrap repayment of its project bonds around existing bonds; thus, repayment of the new bonds would not begin until existing bonds are paid off.
The wrap cost on the $7.3 million original estimate would have been $8.04 per month for the average ratepayer, while the level cost would have been $14.84. With the higher cost, now the wrap figure is expected to increase to approximately $9.65 a month; the level option cost would have risen to about $16.45.
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