Peabody council gives initial OK to water line bid

The Peabody City Council tentatively approved a bid from Eatherly Constructors Inc. and BRB Contractors Inc. for the construction of a long-awaited water transmission line from Hillsboro to Peabody at a special meeting Monday night.

The decision takes the City of Peabody one step closer to having a new water source and the City of Hillsboro closer to having a major new income source for the water department.

“We were hoping to have you in and out of here by October because that’s when they are going to overlay the 13-mile road,” said David Oursler, a member of the Peabody council.

Final approval for the project will be given after all of the funding is in place.

Eatherly will be completing the water line and section line alternate for a cost of $915,270, the booster pump station for $260,000 and the Hillsboro ground storage tank rehabilitation for $85,000. BRB will do the telemetry for a cost of $30,000.

The total base bid for the project is $1,290,270. The total cost of the project is $1,535,000.

“We’re ready to tell you to start right now,” said Peabody Mayor N.M. Patton.

Patton said the only problem was that the project could not begin until they know where their funding is coming from.

Currently, the city has been approved for a $400,000 Community Development Block Grant, a $47,500 grant from the Kansas Department of Health and Environment, and a $157,5000 grant and $480,000 loan from Rural Development.

This leaves a balance of $450,000.

“All of the money would have to be in place before you can issue a work order,” said Al Reiss, of Reiss and Goodness Engineers.

The city is waiting to find out if they will receive a $250,000 grant from Rural Development. If so, then the city can purchase a temporary note for the remaining $250,000.

Once they apply for the note, it will likely take 30 to 45 days before the city receives the money.

Peabody has been working on this project for six years.

“We have just been standing on the sideline and encouraging them and helping any way possible,” said Hillsboro Mayor Delores Dalke. “The important thing for Hillsboro is that in approximately nine months, we would be processing water for the City of Peabody and start receiving payments.”

She said once that happens, Hillsboro residents can expect a decrease of $2.50 per month in the surcharge on their water bill.

Once the project begins, the contractors will have 210 days to complete it.

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