Franklin officials present $7.75 million emergency repair to replace large-diameter Hobas sewer pipe; city weighs borrowing up to $15 million

City officials on the Board of Mayor and Aldermen’s June work session described an emergency sewer repair behind the Ewingville neighborhood, asking the board to authorize a $7,750,424 contract with Garney Construction and to approve an intent resolution that would preserve the option to reimburse costs from future water and sewer revenue debt.

The request would fund replacement of a section of large-diameter Hobas pipe that city staff said has failed repeatedly in recent years and that is currently being bypass-pumped. City Administrator Eric (staff) and Michelle (Water Management director) told aldermen the estimated price is consistent with prior large-diameter repairs and that timeliness matters because bypass-pumping and delays drive up costs.

City staff said the repair includes both the immediate emergency replacement and a companion financing consideration: an intent-to-reimburse resolution that would let the city allocate up to $15,000,000 of future debt proceeds to cover emergency repairs or related system work should the council later decide to issue revenue bonds. Staff emphasized the intent resolution does not itself issue debt or commit to a specific borrowing amount.

City Administrator Eric told the board that Garney is a crew familiar with work of this type and that testing an open rebid likely would not guarantee a lower price; staff recommended moving forward without rebidding because of time and ongoing pumping costs. Michelle said recent heavy rains prevented a full internal inspection by camera; until system flows recede they cannot confirm which sections can be lined using cured-in-place pipe (CIPP) and which require full replacement. “We don't expect the price to increase, but this is kind of a top of the line and hope we're hoping to bring it down with lining some of that pipe rather than full replacement,” Michelle said.

Aldermen pressed staff about the pattern of breaks and about the long-term approach. Alderman Caesar asked whether the failures cluster near the river; staff said many of the failing Hobas runs are near flood-prone areas where backfill washout and flood events likely contribute to repeated failures. Michelle said the utility has begun systematic inspections and will prioritize lining where feasible and replacing when structural damage or external forces make lining ineffective.

Shauna (City Attorney) said the city previously pursued litigation and reached at least one settlement related to earlier pipe failures; staff continue to evaluate recovery options but cautioned multiple parties involved and the passage of time make full recovery uncertain. Michelle said bypass pumping has prevented untreated effluent from reaching the river while crews work.

The board did not take a formal vote during the work session; staff presented the contract (City of Franklin contract 2025-0174) and the companion reimbursement intent resolution and said they expect to return to the board later this year with any required debt-authorizing resolution if funding via bonds is chosen. Staff also said the utility plans a multi-year program to inspect large-diameter Hobas pipe, prioritize CIPP lining where structurally feasible, and replace other sections over time.

If the council authorizes debt later, staff said the Hobas work would likely be financed as water and sewer system revenue debt rather than general-obligation city debt. Michelle said some funding is available in the current water management capital program but that a single repair of this size will absorb a large share and may require borrowing. She also reiterated the city has ceased specifying Hobas pipe in new construction.

City staff said they will return with more detailed cost estimates and a proposed program for lining and replacement that would prioritize locations showing longitudinal cracks and other failure modes identified in recent inspections.