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LMU moves forward with 2022 water main project

The Lenox Municipal Utilities Board gave the go ahead to replace the last of the water mains in Lenox at their September 9 meeting. The board also approved to replace the flooring in the LMU office.
Jeff Godwin and Austin Sonntag from Snyder and Associates attended the meeting. Godwin said USDA will provide a loan for the 2022 Water Main Project. They will be applying for a CDBG grant with application due at end of September. Successful applicants will be notified in December. The grants come out quarterly, so if LMU isn’t chosen for this quarter then they can re-apply for the next quarter of grants. Godwin said they have a good chance of getting the grant but there are also a lot of applications.
Once they get the CDBG grant, it will take another two to three months to put together environmental reviews to verify the project eligibility. The earliest date for bid letting would be April 2022. Godwin said they would like to a survey crew to come in to Lenox in the next few weeks to put together plans for water main permits and begin the process to put together bid packets.
Godwin said with the funding, USDA will ask Lenox to get interim financing until the bid letting. There will be some expenses including legal and engineering fees. LMU can get a zero percent SRF loan through the State of Iowa or they could pay for it out of their reserve funds. LMU will get reimbursed once USDA financing is done. Estimated costs could be $120,000 and $125,000 or more for design and specs before construction. Interim financing will be arranged through a financial institution but the interest rate is not known what they will be.
Godwin added that supply costs are high right now, so a delay in bidding could be a good thing for LMU. USDA will review all paperwork through the bid letting process to make sure the project qualifies for the loan.
The board approved an agreement with Snyder to move forward with the 2022 Water Main Project.

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