Service committee authorizes bidding for 16 North sewer‑separation phase 1, estimates cost at $64 million

The service committee voted to send a resolution to council authorizing the director of public service to solicit bids and enter contracts for the 16 North Sewer Separation Phase 1 project, an estimated $64 million construction effort.

City staff told the committee the overall 16 North project has been split into two phases with U.S. Environmental Protection Agency approval. Phase 1 will cover the Mount Vernon Road corridor and must be completed before July 2028; phase 2 is planned for the Hudson Avenue corridor and is scheduled for bidding and construction from 2028 through 2031. Staff said the split allows the city more time and staged work. The project had a loan agreement with the WDA entered in 2022, staff noted.

Staff characterized the total estimated cost of the project at $64 million and said the city may seek “slight rate increases” in future to help fund the project. A sewer‑rate evaluation is under way to determine whether current rates will cover operating expenses and the additional debt service the project will add.

Committee members approved sending the resolution to the council for formal action. No specific contract award was made at the meeting; the vote authorized future bidding and award subject to appropriation of funds and the usual procurement process.

The committee did not adopt a final financing plan at the meeting; staff indicated additional actions, including rate evaluation and possible future rate adjustments, will be requested as the project advances.