The Department of Public Utilities told City Council that rising costs and contractor backlogs mean it will ask council to repeal a prior $75 million authorization for four water towers and replace it with a new authorization of up to $95 million (Council discussion proposed increasing that to $100 million as a contingency).

DPU staff said the city received zero bidders on the initial solicitation and has since re‑bid the work with an anticipated bid opening on Dec. 9. Officials said national demand — including construction of data centers — has increased tank construction volume and pushed prices higher. DPU estimated the increased authorization would cause roughly a two‑month delay from the original schedule but said staff will seek to accelerate award and EPA loan nomination processes to limit schedule slippage.

The department said the project will be financed with Clean Water or other low‑interest loans (WRSLA) with repayment beginning after construction is closed out. DPU staff said the EPA is aware of schedule implications but had not issued formal enforcement notices as of the meeting.

Councilmembers asked about financing and the reason for cost increases; staff cited increased national demand, backlog and tariff/supply issues. Councilmember Martinez suggested increasing the authorization to $100 million to provide cushion; staff said the ordinance can be modified to that amount and that the actual loan would match the awarded bid.