Hot Springs board approves multiple change orders, discusses transformer delay at Davidson Drive wastewater project

The Hot Springs Board of Directors on June 3 approved a series of change orders and heard updates on major wastewater projects bankrolled by the 2025 wastewater bond fund, including work at the Davidson Drive wastewater treatment plant and the Gulpha (Guilpha) Wet Weather Pump Station.

City Manager Bill Burrow told the board the city currently has about $34.5 million in active projects at the Davidson Drive plant and outlined a slate of related contracts and upcoming work. Engineering project manager Todd Pillar told directors that the Lower Gulpha (Guilpha) interceptor work and other force-main and interceptor contracts remain underway and that one contractor’s negotiated change order produced a $1,281,276 cost reduction.

Why it matters: These projects are part of a previously disclosed consent administrative order and the city’s wastewater bond program; changes to scope, schedule or cost affect when the city satisfies state requirements and when the city can accept project closeout from regulators.

Board action and key approvals

- The board adopted a cost-saving change order with Coakley Cook Company Inc. for Phase 1 of the Lower Gulpha Interceptor that reduces the contractor’s price by $1,281,276 (original contract amount cited by staff: $9,496,272; revised amount recorded in staff remarks: roughly $8,000,214). Todd Pillar said the bulk of the savings came from replacing planned boring-and-casing with open-cut installation where Arkansas Department of Transportation allowed it.

- The board approved multiple other change orders tied to the bond-funded program: a $248,942 change order with Max Foote Construction Co. for additional work at the Davidson Drive plant; a Christian Engineers Inc. not-to-exceed amendment for construction administration and design changes at Davidson Drive for $414,500; a $249,294 change order with Max Foote for the Gulpha Wet Weather Pump Station; and a $151,750 not-to-exceed change order with Christian Engineers for construction administration and inspection at the Gulpha pump station. City staff said these sums will come from the 2025 board-approved wastewater bond fund and that several items include both additions and credits.

Schedule and transformer dependency

Staff emphasized that a key schedule risk remains the power transformer and associated utility work. Pillar and Burrow said the city expects to be able to operate the Gulpha pump station on temporary generator power for substantial completion, but it cannot obtain final closeout from the state until Entergy or the utility delivers and commissions the pad-mounted transformer. Burrow said a late June 2026 date has been used in agency filings as a worst-case milestone but that staff continue to press Entergy to accelerate delivery; he said earlier on the same day he had received a call suggesting a transformer might be available sooner.

Budget and use of savings

Directors asked how savings from the Coakley change order will be handled. Pillar explained the savings remain in the restricted wastewater bond fund; the money cannot be redirected outside the bond’s authorized scope but can be used on other bond-funded betterments or to cover overruns on related contracts. Pillar estimated the net effect of recently approved change orders would still leave some contingency in the bond fund once all pending items are processed.

Discussion and oversight

Directors asked about review and approval processes for change orders. Pillar described internal and external review steps: engineers evaluate proposed changes, then project management routes items to the city manager and finance for approvals. He noted staff-level change order authority for smaller items (under $60,000 or under 10%) and board review for larger or higher-percent items.

What’s next

Staff said several awarded contracts and forthcoming bid packages for force-mains, Spring Street sewer work, the interceptor and the Davidson Drive outfall/diffuser will return to the board for contract approvals and additional change orders as construction advances. City leaders said they will continue pressing Entergy on transformer timing and will request schedule adjustments from the state as needed in light of supply-chain and equipment-delivery delays.

Ending

Board votes on the change orders were unanimous. City staff said the projects remain on a multi-year schedule tied to bond fund availability and state regulatory milestones, and staff will return with further contract documents and progress updates as the work proceeds.