According to Goins, the District selected a compromise between two sizes of tanks, 1 million and 1.5 million to save money. The contractor selected to perform the work at Pete Light Springs is Chicago Bridge and Iron. Originally, the bid called for 1 million and 1.5 million gallon capacity tanks, though Engineering Consultant Ricky Oakley issued a change order to reduce the size of the composite tank.
Goins said that the tank would cost $2,020,000.
To partially finance the tank, the commission agreed to refinance a loan to exploit lower interest rates. Goins said that Kristen Millard of Morgan-Keegan Financial of Lexington offered to refinance a note held by the District since 1988. By reducing interest payments from five percent to 3.5 percent, the District would save $403,000 over the remaining 20 years of the note’s life.
He added that the savings “influenced” the commissioners’ decision. “By dropping the payments down and reducing the size of the tank, we are back to where we were in our budget.”