Council approves SRF loan increase and awards Tulip sewer-improvement contract
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Summary
Tupelo moved to increase an existing State Revolving Fund (SRF) loan and awarded a $2.78 million contract for the Tulip sewer improvement (South Industrial Park), citing project cost increases and SRF fiscal-year adjustments.
The Tupelo City Council on July 1 approved an increase to an SRF loan and awarded the Tulip sewer-improvement contract to the low bidder, Paul Smithy Construction.
The council removed two items from the table and approved a loan-agreement increase requested for a previously approved SRF loan. Staff said the original SRF loan was $18,000,000 and that an increase of $2,640,000 was needed; the new loan figure discussed was $20,000,006.40. The council then approved the Tulip sewer-improvement contract for work in the South Industrial Park (near U.S. 45 South/Bluebird Utilities) to Paul Smithy Construction, the low bidder at approximately $2.78 million.
Why it matters: The action funds and awards construction work to upgrade sewer infrastructure in a commercial/industrial area the city owns (Bluebird Utilities). The SRF loan increase and contract award together enable the project to proceed.
Details: City staff identified the contract as an SRF fiscal-year '21 project and confirmed Paul Smithy Construction submitted the low bid at about $2,780,000. The council approved both the loan increase and the contract; discussion focused on budget numbers and removing the items from the table before final votes.
Next steps: The loan increase and contract award were approved with the condition that relevant loan paperwork and contract documents be completed and returned to council as required for finalization.