Dawsonville OKs wastewater plant contractor contingent on GEFA loan

Dawsonville — The Dawsonville City Council voted to award the Flat Creek Water Pollution Control Plant construction contract to Herring Construction Company, contingent on final execution of a Georgia Environmental Finance Authority (GEFA) loan.

City staff told the council the low bid from Herring was about $21.8 million and that the city has roughly $10.8 million available in state and local fiscal recovery funds (SLFRF) that must be spent by the end of the next fiscal year. Staff said an expected GEFA loan would be about $18.8 million, including $5 million in principal forgiveness, giving the city potential total funding of roughly $29.6 million.

The funding mix matters for utility rates. “If we can keep that project within 22,500,000, that will fall in line with the rate schedule that we discussed last year,” said Lamar, a staff member who presented the project to the council. He said staff is recommending a contingency target of $700,000 so the project aligns with a rate study the council previously approved.

Construction scheduling and next steps were explained to the council. Lamar said the contractor is holding its bid for 60 days and staff wants council approval contingent on the GEFA loan so contract execution can proceed as soon as the loan is signed. He estimated a year-and-a-half of active construction under ideal conditions and said, including likely rain days and other factors, the realistic schedule could be about two years from a September start. He also told the council that loan repayments would not begin until after construction and final GEFA closeout paperwork are completed.

Council member Caleb Phillips moved to approve the contractor contingent on the GEFA loan. The motion passed (vote count not specified in the transcript). The motion as spoken quoted a bid number that differed from the staff presentation; staff had described the low bid as about $21,797,000 while the motion referenced $21,000,007.97. The council packet and staff presentation identify the low bidder and the funding assumptions; the record shows the approval was contingent on the GEFA loan being executed before contracts are finalized.

Staff identified key next steps: finalize the GEFA loan, execute contracts (staff estimated a 4–6 week period to complete contract paperwork), schedule a preconstruction meeting, and begin shop-drawing reviews. Staff also noted fisheries and wildlife coordination and on-site construction inspection as part of project management.

Council members asked about contingencies and whether any construction savings would be passed back to the city; staff said they attempt to value-engineer projects and request contract deductions if savings arise. Staff also said the GEFA loan includes an expectation that up to $5 million would be principal forgiveness and that timing of loan documents could be imminent.

The council’s approval allows staff to move forward with contract execution once the GEFA loan is finalized; the city will return to the council with standard contract documents and any material amendments.

Ending: Staff indicated they will notify the mayor and city clerk when GEFA communications arrive and will return to the council with updates on contract execution and construction milestones.