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Council approves $1.57 million professional-services agreement for fiber network construction; members press for cost clarity
Summary
Council approved a $1,572,216 professional-services agreement for construction management on the city’s fiber feeder/distribution backbone; council members pressed staff about monthly management fees, crew counts and potential cost variability.
The City of Waterloo voted to approve a professional-services agreement for the construction of a fiber-to-the-premise feeder, distribution and backbone network, authorizing a contract in the amount of $1,572,216 for calendar-year 2025 project management.
Council discussion: Council members pressed staff on the monthly cost and potential variability if the city accelerates construction by adding crews. A council member cited a monthly management figure of roughly $131,000 and asked whether the $51,794-per-month line-item for project management and inspections would rise if additional crews were added. Staff confirmed that accelerating the work and adding crews would likely require additional inspectors and could increase the monthly fee; such changes would return to council for approval.
Project status and budget: Waterloo Fiber general manager Eric Logie and consultants said the project is in its second year of construction. Staff reported cost savings from compressing the schedule and favorable performance by boring crews, and stated the project was “over $3,000,000 under budget” and, when including the contingency, “about $11,000,000 under the budget.” Entrust (consultant) performed an analysis that staff said showed hundreds of thousands of dollars in potential cost savings from schedule compression.
Why it matters: The professional-services agreement covers design, engineering and construction inspection work that the city says is necessary to support safe, on-time fiber construction. Council sought assurances about how variable charges would be managed if the contractor adds crews to accelerate work.
Council action: The resolution approving the professional-services agreement (vendor listed in meeting record as “Interest of Warrenville, Illinois,” amount $1,572,216) passed by roll-call vote with all present voting yes. Staff said increases tied to additional crews or schedule changes would require renegotiation and council approval.
Ending: Council members asked staff to track linear-feet production, inspector-to-crew ratios and to return with cost adjustments if the plan to accelerate operations proceeds. Staff said some acceleration could begin as early as April if staffing and weather permit.
