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Commission tentatively awards $35.5M wastewater treatment design‑build package, approves SCADA integration and early orders
Summary
Commission adopted a resolution to accept a guaranteed maximum price (GMP) for primary treatment and UV projects at the wastewater treatment plant and approved related SCADA integration and limited pre‑purchase expenditures to keep the schedule.
The Traverse City City Commission on May 19 adopted a resolution to accept a guaranteed maximum price (GMP) for primary treatment and UV upgrades at the city wastewater treatment plant and took related actions to keep the three‑year construction project on schedule.
Art (last name not provided), a city project lead, told the commission the contractor’s GMP came in at about $35,500,000, approximately $1.2 million below the 90‑percent design estimate. He said the city expects to close a Clean Water State Revolving Fund (CWSRF) loan in mid‑July and that execution of the construction contract is contingent on the loan closing. City staff recommended three approvals: adoption of the tentative award for construction at the GMP, authorization of an out‑of‑scope agreement with Jacobs for SCADA integration, and approval of roughly $225,000 in early purchases for long‑lead items that would be rolled into loan proceeds.
A city clerk read a motion that would authorize an out‑of‑scope agreement with Jacobs in the amount of $386,110.97 for SCADA integration services and authorize execution of documents with Commercial Contracting Corporation for shop drawings and identified long‑lead equipment in the amount of $225,000, with both expenditures to be reimbursed from loan proceeds if the CWSRF loan closes. City Clerk Benjamin Meritette clarified that the resolution, while described as tentative, would authorize contract execution if the financing (CWSRF loan) is satisfied.
Commissioner Shaw moved the package and Commissioner Stanley seconded. The commission voted to approve the three requests; the motion passed.
Staff said the project is funded in part by a CWSRF award and that the full project budget (including contingencies, SCADA integration, oversight, and higher contingency for underground unknowns) will appear at a future meeting as part of the loan closing paperwork. Art said the city is pursuing a city‑representative firm for construction oversight and expects the full packaged loan application to show total project authorization in the low‑$40,000,000 range after contingencies and oversight are added.
