Commissioners told ARPA grant will largely fund industrial-park water and sewer work; change order eyed

City staff briefed the Mayor and Board of Commissioners at a study session that nearly all of the $15.8 million in ARPA funds designated for utilities will be consumed by waterline and sewer work for the industrial park, and that a $2.1 million change order for phase 2 of the waterline project will be brought forward for approval.

The update, delivered by a city staff member identified in the meeting as Murali, said the two packages under discussion amount to “about 13 millions” combined and described a forthcoming change order for $2,100,000. “So we are going to spend every dime on that project,” Murali said, adding that staff currently expect to avoid using general city funds but cannot yet rule that out entirely. He noted there was “almost $2,000,000” remaining as contingency but warned of deep sewer trenches and other unknowns that could change the final cost.

Why it matters: the industrial-park utilities are being funded primarily from ARPA allocations, and staff flagged both timing and technical risks that could require additional funding or change orders. Murali said the project schedule now shows completion by June 2026 and that the design will “loop that line so that it’s gonna be completely looped water system.”

Details provided at the session include the following: staff estimate the pair of contract packages total roughly $13 million; the city plans to present a roughly $2.1 million phase‑2 change order at an upcoming commission meeting; remaining contingency is “almost $2,000,000”; and staff said they currently do “not planning to use city funds at this time,” while acknowledging that the contingency and final bids will determine whether city funds are ultimately needed. The presenter described the sewer portion as particularly complex, with trench depths of “20 to 30 feet” and therefore greater uncertainty.

Commissioners asked clarifying questions about schedule, funding sources and easements. Staff said one remaining easement remained to be acquired but that it should not complicate the work. Staff also explained that the phase‑2 waterline segment will connect south toward existing infrastructure near the Marriott and extend “about a half mile south of market.”

Discussion vs. decisions: the session was informational; no formal motions or votes were recorded on the consent item during the study session. Staff indicated the change order for phase 2 will be presented at the next regular commission meeting for formal action.

Next steps: staff said they will return with the change order and final bid results at the next meeting and that commissioners will be asked to approve the contract action then.