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Hutchinson City Council Authorizes Sale up to $4.34M in General Obligation Bonds

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By Lucky Kidd

  

HUTCHINSON, Kan. — The Hutchinson City Council Tuesday authorized sale of up to $4.34 million in general obligation bonds, and revised ordinances related to an increase in bonding costs for projects it earlier authorized in order to reimburse expenses incurred prior to bond issuance.

The largest part of this bond issue is for turfing of two fields at the Fun Valley Sports Complex and replacement of a bridge at 16th and Baker. Other projects include improvements to the Hutchinson Zoo and Rice Park, the Bad Bobby Trailhead and projects at the Fire Training Center.

Finance Director Angela Richard said bond issuance for a possible demolition of the Atrium Hotel is not included in this issue because bond counsel had indicated those bonds have to be taxable bonds rather than tax exempt as the other bonds will be.

The Council authorized entering into a $1.2 million low interest loan application for water system improvements from the Kansas State Revolving Loan Fund was approved by the Hutchinson City Council Tuesday.

The project, funded through water system revenues, involves replacement of about 1.4 miles of six-inch cast-iron waterline in an area roughly bounded from Maple to Cochran between 9th and 17th. Some of the lines being replaced are more than 100 years old, the newest installed in 1961. During their lifetime, the lines to be replaced have had 82 breaks.

The loan for up to 20 years carries a 2.36 percent interest rate and includes up to a $600,000 forgiveness of the principal amount. Construction of this project is currently projected to start next June.

A bid was accepted from APAC Kansas for infrastructure work in the new Plum Creek Subdivision on 43rd east of Plum Creek Elementary School. APAC submitted the only bid on the project of $1.862 million, which came in just over $150,000 above the engineer’s estimate.

The project includes street, water, sanitary and storm sewer and sidewalk construction, with substantial completion to be completed by the end of June 2025. There will likely be a change order to the bid to take out the sidewalk project, as developer Jim Strawn will be able to do this part of the project through his construction firm.

Related to this bid, the council approved issuance of just over 1.6 million dollars in temporary notes for initial financing.

A contract was approved with JEO Consulting for engineering services on rehabilitation of the Avenue C Bridge on the Woodie Seat Freeway. This bridge also goes over the Kansas and Oklahoma Railroad, and plans are to do this project at the same time the freeway is shut down for the Phase 2 construction project on the north end of the freeway. This contract will be done at an hourly rate with total cost not to exceed $44,260.

The Council approved a special event district for the Hutchinson Rod Run October 4-5, which allows consumption of alcohol on city streets in a designated area, which is Main Street between the BNSF and Union Pacific tracks and the streets a block either side of Main along with the DCI parking lot, the 100 block of south Walnut and the north half of the 100 block of South Washington.

A Planning Commission recommendation to rezone a property in the 1700 block of East 23rd from office commercial to special commercial to allow an existing loft apartment to remain in existence was approved,

The Council also presented proclamations for National Hispanic Heritage Month and National Recovery Month, and appointed Rachel Terry to fill an unexpired term on the Housing Commission and Marilyn Fisk to the Hutchinson Recreation Commission for a full four-year term.

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