MUSCATINE — A new bank will now manage bonds issued by the city of Muscatine.
Muscatine City Council, minus absent Councilman Santos Saucedo, approved a resolution accepting a change in the entity appointed as paying agent, registrar and transfer agent for general obligation bonds issued by the city.
Beginning July 9, UMB Bank will acquire the corporate trust business of Bankers Trust Company, which had collected city funds to pay principal and interest to registered bond holders and handled bond transfers.
Finance Director Nancy Lueck said the only change with the acquisition is "who is processing our payments."
"There's no increased costs, no effect," she said. "It's just who we'll be making payments to and who will be making payments to the bond holders."
UMB will also track bond holders for the city, she said, including bond sales.
Council also awarded Leander Construction Inc. the $1,728,000 contract for the High Strength Waste Receiving Facility project. The cost estimate for construction was $2,060,000 and received two bidders, Leander the lowest.
The facility will be built in unused space at the Recycling Center. Planning for the project has lasted six years due to cost. With some adjustments to location of the facility and using existing resources, costs were reduced.
Completion of the project will lead to the start of the Muscatine Area Resource Recovery for Vehicles and Energy program, which aims to convert food waste into fuel.
In other business
Council approved a request to approve a cooperative agreement with the Iowa Department of Transportation for grant funding for the Park Avenue Lane Conversion project.
Council members discussed the possibility of closing a portion of South Houser Street for two days while crews remove cut-down trees.