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Commission rejects wastewater-treatment bids after engineers report $6 million shortfall
Summary
Engineers told the commission that lowest responsive bids for the Wastewater Treatment Plant extension exceeded available funding by roughly $6 million; the commission voted unanimously to reject the bids and directed staff to pursue additional funding or reduce project scope.
The Rio Grande City Commission voted unanimously to reject all bids for the Wastewater Treatment Plant (WWTP) Extension, TWDB project 73874, after engineers said the lowest responsive bids were several million dollars over the city's available funding.
Melvin & Hunt engineers told the commission they opened two responsive bids; the lowest was roughly $12.6 million and a second bid about $14.5 million, while the city's current funding package covered roughly $6.5 million. The engineers said the scope could be pared back by about 25 percent, bringing cost estimates closer to $9.4 million, but that would still leave a shortfall of approximately $2.9 million.
Why it matters: The expansion is intended to increase sewer capacity to serve growing areas; rejecting the bids stalls construction until the city can identify additional grant or loan funding or accept a smaller project scope.
Key points from the discussion - Timeline and permitting: The engineering team said permitting from the Texas Commission on Environmental Quality took about 18 months, longer than typical expectations, which delayed project progress and exposed the design to elevated construction costs. - Funding options: Staff said the Texas Water Development Board could consider additional funds, possibly on a loan/grant combination depending on competitive scoring; accepting a purely loan-based increase would change the city's fiscal obligations. - Scope reduction: Engineers listed specific items that could be removed to reduce cost (lift station, belt press, RAS/W pump stations, certain paving) while keeping permit compliance intact; even after reductions there remained a funding gap.
Discussion vs. decision - Discussion: Engineers explained bid openings, procurement outreach and the effects of delays from state permitting. Commissioners and staff pressed the engineers on timing, reasons for permitting delay and whether additional cost-saving alternatives existed. - Decision: The commission formally rejected the bids and directed staff to pursue additional funding opportunities and return with options (revised scope, alternate funding mixes or rebidding when funds are available).
What staff will do next - Pursue additional funding sources with TWDB and other state/federal partners and evaluate possible scope reductions that preserve permit compliance. - Prepare revised procurement documents or a rebid if supplemental funding is secured.
Ending Commissioners emphasized the urgency of the project but said accepting a bid that would overextend city finances was not an option. The rejection was unanimous; staff set follow-up tasks to return with funding scenarios and a recommended path forward.
