Laramie approves $10.9 million GMP, taps reserves to replace West Laramie lift station

Laramie — The City Council on Sept. 16 approved work authorizations and budget changes to replace the aging West Laramie Main Lift Station, awarding a guaranteed maximum price (GMP) of $10,894,861 to construction manager-at-risk Hensel Phelps and approving related design and administration amendments.

City public works staff said the existing lift station serves about 10,000 residents in West Laramie and is approaching the end of its useful life because groundwater exposure and corrosion have deteriorated the steel dry well and pump house. “The new dry well will be epoxy-coated steel to extend the useful life,” Director Webb said, adding the replacement will include improved staff safety features such as a staircase, handrails and built-in ventilation.

The project budget changed substantially during design and bidding. Staff reported a current budget of $10,183,500 and a total proposed project budget of $12,398,500. To cover the gap, council approved a budget amendment that draws $1,825,000 from wastewater reserves and transfers $390,000 from a planned A-line design project. Council also noted a $9,500,000 State Revolving Fund (SRF) loan approved Oct. 3, 2024, to help finance the work.

Director Wade described the wastewater fund as one of the city’s smaller enterprise funds, noting it had roughly $18 million in available resources in 2024 and that the project cost estimates have risen from about $4 million to roughly $12 million during planning. “A fund of this size is not really built for millions of dollars of swings,” Wade said, adding that staff expects wastewater rates may need to increase in the near future and that the SRF amortization will spread debt service over 20 years.

Council also approved Amendment No. 03 with engineering firm Tetra Tech for construction administration and SRF compliance support in the amount of $790,000 with a $79,000 contingency. Staff explained SRF-funded projects require additional federal reporting on materials, time and wages, increasing construction administration workload.

Motions: Councilor O'Doherty moved to award the work authorization to Hensel Phelps for the West Laramie Main Lift Station (GMP $10,894,861) and to approve Resolution 2025-75 amending appropriations for FY2025–26; Councilor Newman seconded. The motion passed 9–0. Councilor Vigil moved to approve Amendment No. 03 with Tetra Tech ($790,000 plus $79,000 contingency); Councilor O'Doherty seconded and the motion passed 9–0.

Staff said the new wet well will be concrete and the overall replacement will reduce future maintenance hazards and extend system life. Questions from council focused on frequency of such capital projects, relative fund size, and an expectation that staff will continue financial planning with a rate consultant.

The council authorized the mayor and city clerk to sign the contracts and budget amendment documents. Work is expected to proceed under the CMA/CMAR delivery; staff said design began in 2023 and that Tetra Tech and Hensel Phelps completed design in 2025.

The motion and associated budget amendment and contract authorizations mark formal council approval to proceed with construction and contract administration for the West Laramie Main Lift Station.