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Warren awards $110.3 million contract for wastewater dewatering and incineration upgrades
Summary
The Warren City Council approved a low-bid contract not to exceed $110,300,000 to modernize the city's dewatering and incineration systems; council and staff said state SRF funding is secured but one contingency item related to emissions testing will require separate approval by the state.
The Warren City Council on Sept. 23 approved a contract award for city project ITBW 15-58, dewatering and incineration improvements, to low bidder FH Paschen S. N. Nielsen and Associates LLC in an adjusted bid amount not to exceed $110,300,000.
City controller Richard Fox confirmed the city has secured SRF (State Revolving Fund) financing and that bonds for the debt service had been approved previously. "We've got the SRF funds already secured," Fox said during council discussion.
Donna Rodesky, a city staff member speaking for the water department, told the council that one pay item in the bid package was a contingency tied to ongoing pilot testing of emissions controls. "It was determined by EGLE that at the bid time this item did not qualify for funding because it was a contingency item," Rodesky said of the Michigan Department of Environment, Great Lakes and Energy review. She said the city may approach EGLE later for reimbursement if the pilot testing shows the item is needed during construction.
Council members pressed staff about budgeting for that contingency. Fox said the water department would need to account for any unreimbursed contingency cost in its budget and seek SRF reimbursement if EGLE later approves it.
The project is one of the largest public-works contracts the council has considered this year. Staff described the award as the next step after bond approvals earlier in the month and said construction will proceed under the terms of the contract once signatures are completed.
The council voted unanimously to approve the contract. The resolution authorizes the mayor and clerk to execute the agreement and directs project administration and payment under the SRF program and applicable city budgeting procedures.
Project details, bid documents and the city's public file list the contract as ITBW 15-58 and identify FH Paschen, S. N. Nielsen and Associates LLC as the low bidder. The vote authorizes the city to execute the contract and proceed with procurement, permitting and construction activities required under state SRF rules.
Funding and timing: Council and staff said SRF funds are in place and bonds were previously approved; the city will budget for any contingency costs not approved by EGLE and pursue reimbursement if allowed.
