Seward approves $50.5 million loan agreement for wastewater plant upgrades; council also OKs related change order

The Seward City Council voted June 1 to authorize a $50.5 million loan agreement with the Nebraska Department of Water, Energy, and Environment (NDWEE) to fund the city’s wastewater treatment plant improvements project and approved a $70,821.50 change order with Broken Arrow Excavating LLC for a soil surcharge and storm-sewer relocation tied to the same project.

Mike, a city staff member overseeing the project, told the council the revised construction estimate from the city’s design engineer SEH is $50,347,000; the state rounded the requested SRF loan to $50,500,000. He said the package includes a $4,000,000 contingency for inflation and items not yet designed. “Today, June 1, marks the first day. They have a brand new name. So it's Nebraska Department of Water, Energy, and Environment,” Mike said when introducing the funding paperwork. He added the city could borrow less than the full loan amount and that other sources — including a roughly $1 million congressional earmark — could cover shortfalls.

Mike told the council the revision largely reflects changes to accommodate sewage from a new dairy processing customer and additional design work. Council members pressed staff about design costs and whether prior design work would be wasted; Mike said some rework and incremental design charges are expected because tank arrangements changed and additional temporary treatment systems and metering were added. Council member Matt asked specifically about prior design charges; Mike said design-change orders have already raised the design budget and that some duplication is inevitable when expanding tank sizing ahead of time.

The council also approved a $70,821.50 change order with Broken Arrow Excavating LLC for soil surcharge work. Mike said the contractor removed buried debris, excavated an additional foot of soil and placed structural fill so the sequencing batch reactor (SBR) tank will have a stable base. The work also required rerouting an existing storm sewer exposed during excavation; the contractor completed the additional work at the negotiated price. The city will monitor the surcharged soil for six months to confirm settlement under the new embankment.

Council members asked whether Tax Increment Financing (TIF) funds could be held back to help pay project costs; staff replied the city typically awards the full TIF negotiated to a project and that holding back TIF would require a different negotiation strategy at the outset.

A resolution to enter the loan agreement was introduced as Resolution No. 2025-204 and adopted on a recorded vote; the change order was approved by separate motion. Both measures passed on recorded unanimous votes in the meeting (votes recorded as in favor by council members listed during roll call). Staff said the city hopes to have the SRF paperwork signed before July 15 to secure a 1.4% interest rate; the rate is expected to increase after that date.