Board tentatively awards wastewater plant construction; new sewer rates, bid amounts discussed

The Board of Mayor and Aldermen voted unanimously to award a construction bid for the new Springfield wastewater treatment plant and to authorize selection of engineering and administrative services required for the project. The actions followed a public bid opening and the adoption of an updated sewer rates ordinance rescinding the prior schedule.

City Manager Martin told the board the low construction bid for the plant was $67,300,000 and that, when design, engineering and other project costs are included, the city's total cost is expected to exceed $83,000,000. "So while the expense, when you add in all of the other factors that go into design and engineering and everything else, we'll be over $83,000,000 before the project is completed," City Manager Martin said.

Martin said the city is building a new plant primarily for two reasons: the existing plant is at or past its expected end of life (it was built in 1984) and it will not meet new discharge standards in the city's forthcoming permit. "We're not building a new plant because of growth," he said; "We're building a new plant primarily for two reasons. One is our plant is end of life... And secondly, our plant will not be able to meet the new discharge environmental regulations and standards that are gonna be in place for our new discharge permit."

The board approved a tentative award to Smith Contractors for the construction bid and adopted resolution items selecting construction and implementation contractors and engineering services, as required by the Tennessee Department of Environment and Conservation (TDEC) under the State Revolving Fund program that will underwrite the wastewater project. The board also adopted ordinance 25-09 rescinding ordinance 24-11 and establishing a new schedule of rates and charges for the Springfield sewer system; the ordinance passed 7-0.

Board members pressed engineers and consultants about large variances between bids. Ryan Maloney of Griggs and Maloney, who reviewed the bids, told the board subcontractor pricing and mobilization or travel costs can drive differences between low and high bids. "Subcontractor will play a large role," Maloney said when asked why bids differed by millions. He also noted higher travel and mobilization costs for out-of-area firms.

All resolutions and the rate ordinance passed unanimously. City staff said the resolutions are required for the State Revolving Fund process and that the tentative award and selections will be carried forward in contract documents and subsequent approvals.

Next steps noted by staff include finalizing contracts and continuing required reporting to TDEC; the board approved the tentative award and selections so the city can proceed with procurement and grant/loan compliance steps.