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Committee approves $3 million for Eunice wastewater overhaul after bids exceed estimates
Summary
The Joint Legislative Committee on the Water Sector approved $3,000,000 in additional state water-sector funding for Euniceto narrow a $5.56 million post-bid shortfall; local officials pledged additional local contributions and a DEQ loan is planned.
The Joint Legislative Committee on the Water Sector on Thursday approved $3,000,000 in additional state funding for the City of Eunice0 to help close a post-bid deficit on a wastewater treatment project. The committee approved the reduced award amount without objection.
City officials told the committee the project originally estimated at $18.5 million came in about $7 million over budget after bids, and subsequent value engineering reduced the prime contract but left a remaining shortfall. William Gerald, the project engineer with Martin Goodall & Associates, said, “based on the bids received we were 7,000,000 over budget.”
Why it matters: Eunice officials said the project addresses longstanding compliance issues at the city's wastewater facility and would require higher user charges and borrowing if additional state funds were not provided. Mayor Scott Fondo said the city doubled user charges to support the project and applied for a $12,000,000 DEQ loan. "The city of Eunice is going to put up an additional 1,142,000 toward the project," Gerald said, describing the local contribution and loan plan.
Committee discussion focused on how much additional state funding to authorize and the impacts on local rates and approvals. Several lawmakers pressed the city for alternatives before awarding the full requested increase; the committee ultimately approved $3,000,000 in state water-sector funds, with local officials still committed to seeking the DEQ loan and to additional local contributions.
The committee noted process constraints: if the city sought a larger state contribution later it would need to return with specifics after bidding or value-engineering steps. Heather Paul, division staff, confirmed the committee was not being asked for a local-match increase today, and that locally provided dollars beyond the approved award would be treated as match. The committee recorded the motion to approve the $3,000,000 allocation and closed discussion without objection.
Looking ahead: City leaders said approving $3,000,000 will not fully eliminate the deficit but will reduce the need for further immediate rate increases; additional financing (DEQ loan or local borrowing) remains a likely next step.
