Council approves Sladen Constructors for Medford wastewater plant upgrade preconstruction services; $302.8 million project estimate

The Medford City Council on Wednesday approved a construction manager/general contractor (CMGC) contract with Sladen Constructors Inc. to lead preconstruction work and later serve as construction manager for the city’s regional water reclamation facility upgrade.

Public Works Director John Byle told council the work follows a new NPDES permit from the Oregon Department of Environmental Quality that requires the White City wastewater treatment plant to reduce nitrogen and phosphorus discharges. “The current cost estimate is $302,800,000,” Byle said; he described the largest cost items as four new secondary clarifiers, expansion of aeration/biological nutrient removal facilities and conversion to tertiary treatment.

Byle and other staff explained why the city chose the CMGC delivery method instead of traditional design–bid–build. CMGC brings a contractor on early so they can advise on constructability and help reduce risk of no-bid outcomes and large change orders; staff said Sladen had local craft capacity and submitted the lowest contractor fee. Under the planned schedule, final design is expected to be complete in June; DEQ’s permit requires construction be complete by September 2028, a deadline staff described as challenging.

The approved contract has two parts: preconstruction services (a not-to-exceed fee just under $3 million) and a later guaranteed maximum price (GMP) amendment that the council will have to approve before the construction phase begins. Byle said Sladen’s contractor fee for the eventual build portion is 6.75% of the cost of work in their proposal; another proposer had offered 10%.

Councilors asked about timing and environmental benefit. Byle said DEQ ordered the upgrades to remove nitrogen and phosphorus that fuel algae growth and deplete river oxygen. “We were also a lawsuit was brought against the city because they felt that the permit or a lawsuit was brought against DEQ because environmental groups thought the permit wasn't strict enough… The administrative law judge said, DEQ knows what they're doing,” Byle said, summarizing the permit disputes and the obligation to comply.

Council moved and passed the ordinance to award the CMGC contract by a 6-0 recorded vote. Jessica Ayers moved to approve Council Bill 2025-208; Garrett West seconded. The roll call recorded yes votes from Jessica Ayers, Garrett West, Kevin Keating, Kevin Stein, John Quinn and Zach Smith.

Key contract details and timeline

- Project cost estimate (staff): $302,800,000. - CMGC preconstruction services: not-to-exceed “just under $3,000,000.” - Contractor fee (Sladen): 6.75% of cost of work (profit component quoted by proposers). - Final design target: June 2025 (staff estimate). - Construction completion required by DEQ permit: September 2028; staff said an extension beyond 2028 is possible but uncertain.

What comes next: Sladen will work through preconstruction with the design team, propose a GMP when design reaches about 90%, and return to council for a GMP amendment and construction authorization. Staff said the city is also finalizing financing and expects to complete a WIFIA loan arrangement.

(Reporting based on staff presentation and council roll call at the April 16 meeting.)