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Levelland council awards $26.3 million wastewater-plant contract and seeks roughly $7 million more to finish project
Summary
The Levelland City Council voted to award a $26,265,000 construction contract for a new 1.8 MGD wastewater treatment plant and authorized officials to finalize documents. Staff said the project as bid leaves an approximate $7 million funding gap and urged rapid financing decisions to avoid delays.
The Levelland City Council voted to award the construction contract for a new 1.8 million-gallon-per-day wastewater treatment plant to MH Civil Constructors Inc. and authorized the city manager to sign necessary documents for the $26,265,000 base bid.
Council and staff said the plant is urgent: the existing facility is about 41 years old and has been operating beyond its intended life. Staff warned that delaying the project would risk system failures and continued service problems.
City staff told the council the low bid opened on March 13, 2025, totaled $26,265,000; the project carries a 5% construction contingency ($~1,313,000). The city has already spent roughly $2 million on engineering, design and bidding. Parkhill (the engineer of record) reduced fees by about $232,000, leaving an estimated total project cost near $30.6 million and a remaining funding shortfall of roughly $7 million. Staff recommended several financing options, including issuing certificates of obligation and considering a short-term tax levy to spread costs over the first years of construction.
City staff recommended moving forward now rather than rebidding. Staff said final contract paperwork typically takes 30 to 45 days to assemble and that the city should aim to have financing in place by early September because pending state legislation could change how cities issue certificates of obligation. The council expressed repeated concern that any additional debt should not come at the expense of employee pay increases.
The motion to award the bid and authorize the city manager to execute contract documents passed (no council members recorded as opposed in the meeting record provided). Council asked Parkhill and Hilltop Securities to continue working on cost controls and to return financing options for the approximately $7 million shortfall.
Staff directed the manager and finance adviser to pursue financing options, including certificates of obligation and a temporary tax levy, while seeking internal account adjustments that might reduce borrowing needs. The council also instructed staff to notify the contractor promptly so work can begin within the schedule constraints.
