Derby City Council on Jan. 14 authorized a $1,702,734 contract with Mies Construction for construction of a section of the North Interceptor sewer that will extend sewer service north toward Sky Ridge and Greenwood Village.

City Engineer Alex Lane told the council the approved segment runs from 60 Third Street (Patriot Avenue) north to 50 Fifth Street and includes gravity sewer and a lift-station/force-main component that will eventually tie into an existing interceptor near High Park. "When we see everything close together like that, we know we had a good set of plans and the contractors felt comfortable," Lane said of the three bids the city received.

The council’s vote authorizes the construction contract; the motion carried unanimously.

Why it matters: The project is one of three linked pieces needed to serve roughly 500 acres north of Derby, including the platted Sky Ridge area and the proposed Greenwood Village. The work will allow future development to tie into the city sewer system and includes options to serve early phases of Sky Ridge with a temporary lift station if the permanent lift station and force main are not yet completed.

Details from the presentation: Lane and other staff described three geographic segments — the near-term gravity sewer (the portion approved for construction), a middle section with a lift station, and a longer force main to Madison Avenue that connects to the existing interceptor south of High Park. The construction bid process produced three closely grouped bids; the low bidder was Mies Construction and the low bid was near the engineer’s estimate, which city staff cited as evidence the plans were well-prepared.

Financing and developer participation: The construction will be financed with general obligation (GO) bonds. Staff also described a new policy for large projects in which developments that benefit directly will sign petitions to participate in costs; Sky Ridge is expected to contribute about 6.5% of this project’s cost initially, with the area ultimately absorbing roughly 25% of the total cost as buildout occurs.

Schedule, easements and risks: Staff said construction of the approved segment should be substantially complete by the end of the year, with work starting in early spring. Remaining tasks include securing easements for other segments and completing grading necessary for the lift station; staff acknowledged some property negotiations remain and said eminent domain is a last resort. Lane said a grading contract for the district is being bid and that the grading work is a prerequisite for the lift-station work.

Council members asked about routing and how the sewer will (or will not) serve properties west of Rock Road; staff said the approved segment will serve properties east of Rock Road and that other routing and capacity issues affect how the west side can be served. Staff also noted that a temporary lift-station alternate was included in the bid package to allow early development in Sky Ridge to move forward prior to completion of the permanent lift station.

Next steps: Staff will finalize contracting with Mies Construction and proceed with preconstruction coordination. Remaining easement and grading work for the other two linked projects will continue; those segments remain dependent on property agreements and grading completion.