The Ashland Board of City Commissioners on Sept. 9 approved an amendment to the city’s engineering agreement for the Ashland Water Resource Recovery Facility expansion that allows the city to use up to $4 million in U.S. EPA STAG (State and Tribal Assistance Grants) funds for engineering services. City consulting engineers also briefed commissioners on why engineering and construction costs increased and on the timing of state and federal reviews.

The amendment to the existing contract with Strand Associates Inc. was described by Mark, a representative of Strand Associates, who told the commission, “Strand has been working very closely with city management and with the US EPA on the proposed amendment.” He said the city “was very fortunate through, congressional, set aside amendment to receive a $4,000,000 EPA STAG grant,” adding that the specific amendment amount allows the city to access those grant dollars for engineering work.

Why it matters: the amendment moves previously incurred and future engineering costs into a grant-eligible category, potentially reimbursing the city for eligible engineering expenses and protecting the city’s ability to draw down federal funds as the project moves into construction.

What the commission heard: Strand said the amendment package is intended to let the city access the STAG ceiling for engineering services and to cover increased engineering effort tied to delays, post-design services and inflation. The firm described the amendment amount as $1,347,000 (amendment budget) and said that within that total roughly $458,000 is being held as contingency for unplanned needs late in construction, such as additional operator training or preparation of digital operation-and-maintenance manuals. Strand also told the commission the city can submit invoices for engineering work dating back to Oct. 1, 2023 for reimbursement once the EPA paperwork is finalized and that “about a million dollars of engineering” already paid would be eligible for reimbursement.

Commissioners pressed for context on the cost increases. A city commissioner noted the overall increase relative to the original contract and asked why the project has taken several years to reach the bid phase; Strand traced the timeline to the original selection in 2019, a pause of roughly a year, a 6-month re‑advertisement, and an additional roughly 13‑month state review backlog tied to a surge in federal infrastructure funding. Strand said those pauses and inflationary pressure contributed to higher costs and that extending the construction window from 36 to 42 months was chosen so the city could continue accepting landfill leachate revenue while contractors complete work.

Formal actions and next steps: the commission completed second reading and final adoption of an ordinance authorizing the mayor to execute Amendment No. 1 to the Strand Associates agreement (the ordinance was adopted by voice vote). Later in the meeting the commission voted to announce its intent to award the construction contract for the Ashland Water Resource Recovery Facility Expansion and Improvement Project to the apparent low bidder, Judy Construction Company, in the amount of $99,782,000; that award is expressly conditioned on approval by the Kentucky Infrastructure Authority. Strand and city staff said the EPA paperwork to finalize the STAG award and the amendment was expected to be processed in roughly two weeks after the city’s submission.

Project background and contract history: Strand said the original engineering agreement was executed in 2022 and covered three phases (design and bidding, post‑design administration, and post‑design field services). The proposed amendment covers additional post‑design work, inflationary adjustments and contingency funds. Strand emphasized that because the firm's contract is time-and-expense, the city is billed only for hours worked and expenses incurred; contracting now preserves the city’s access to the federal ceiling should those costs be needed.

Unresolved or conditional items: commissioners were informed that the construction award remains contingent on Kentucky Infrastructure Authority approval and that some of the amendment funds are uncommitted contingency dollars that the city could choose to use later in the project. Commissioners also discussed, but did not take additional binding steps on, how contingency funds might be used for operator training or manuals toward the end of construction.

The meeting record shows the amendment ordinance passed and the commission approved the intent to award the low bid subject to KIA approval; staff will proceed with federal grant paperwork and with the KIA process for the construction award.