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Franklin approves $26.7 million wastewater plant expansion contract with PACE Construction
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Summary
The Board of Public Works and Safety approved a construction agreement and notice to proceed for PACE Construction to expand Franklin's wastewater treatment plant, with a 730-day schedule to substantial completion and funding provided through recently closed sewer bonds.
The Board of Public Works and Safety on Oct. 6 approved a construction agreement and issued a notice to proceed to PACE Construction for the City of Franklin wastewater treatment plant expansion.
City staff told the board the construction contract price is $26,689,000 and the notice-to-proceed will be effective one week after the meeting. The construction schedule calls for 730 days (about 24 months) to substantial completion and 790 days to final completion, the staff presentation said. The board voted to approve the agreement unanimously.
The staff presentation said the agreement packet includes the signed construction agreement, performance and payment bonds, an E-Verify affidavit and a certificate of liability insurance naming the city as an additional insured. “The agreement packet includes the agreement form, the certification of compliance with applicable law, performance bond, payment bond, and certificate OE Verify affidavit and the certificate of liability insurance,” a city staff member said during the presentation.
Board members and staff said the city closed on sewer bonds last week and the bond proceeds were deposited into the city account before returning to the board to authorize construction. “When we closed on the bonds and the money has been deposited Thursday into our account,” a board member said during the discussion. The bond interest rate cited in the meeting materials was 4.325512 percent.
City staff described anticipated operating changes from the new process. Staff said electric energy use should fall, polymer costs for sludge dewatering will rise and ferric sulfate purchases will fall. The new process will produce more sludge, and “sludge disposal is gonna be considerable because we're changing the process,” a staff speaker said, adding overall operating costs are expected to increase even though some efficiencies are expected.
Board members said the contractor has worked in Indiana, including Shelbyville, and staff reported checking references with other owners and engineering firms with positive feedback. The city also confirmed the contractor provided insurance coverage and endorsements; the contractor will carry the builder’s risk and name the city as additional insured, staff said.
The board approved the motion to authorize execution of the construction agreement and the issuance of a notice to proceed. The board noted it previously accepted the contractor in the bid process and selected the bidder subject to funding availability.
Next steps include issuance of the notice to proceed, mobilization by the contractor and monthly construction oversight by city staff and the engineering consultant. Staff told the board the city will expect to monitor change orders closely and cautioned that additional change orders are not preferred.
The approval authorizes the mayor to sign the construction agreement and the city to proceed under the terms included in the agreement packet. No additional conditions were attached to the board’s approval at the meeting.
