The Chandler City Council approved the sale of Certificates of Deposit at a special meeting on Thursday enabling the city to bank $2 million for projects.
The funds are being used for water and sewer construction. Dustin Traylor of RBC Capital Markets said the recent utility rate increases implemented by the city are expected to raise the revenue to pay off the bonds.
“It was a great day to sell certificates of deposit for the city,” Traylor said.
Much planning and forethought went into getting the city the excellent 2.375% fixed interest rate at the sale. The project has been a priority since 2018.
Chandler had its A+ bond rating with Standard and Poors affirmed at the sale, Traylor said,
The sale now has to be approved by the Texas Attorney General’s office before they can close, probably on June 24.
On a related item, the council awarded Capps Capco Construction a bid for an upgrade of sewer lines to the wastewater treatment plant and for the plant itself. The city only received two bids and the Capps-Capco offer was $631,225.50. The city has used the company for previous projects. Capco has also done work in several other East Texas cities, including a major one this year in Athens.
Another bid awarded on Thursday was for rehabilitation of three water storage tanks.
The bid went to A&M Construction of Rowlett for $464,350. The bidding process was highly competitive, with three submissions. The winning bid was well under the engineers estimated cost of $639,150.
The breakdown of the A&M bid is $117,750 for the Martin Street Ground Station, $189,800 for the Farm-to-Market Road 315 elevated station and $156,800 for the Cherry Street Elevated Station.
Capco Engineering reviewed all bids and provided a bid tabulation sheet. A&M Construction specializes in the type of work called for in the contract documents.