Estacada officials press ahead to 90% design after contractor’s 60% estimate jumps to about $72 million

Estacada — City staff and contractors at an Oct. workshop presented a revised 60% construction estimate for the city’s wastewater treatment plant that, after markups, contingency and contractor fees, totals about $72 million — a major increase from the roughly $42 million figure previously cited.

The estimate emerged during a presentation by Kennedy Jenks and Slaton, the engineering and construction firms working on the project, and prompted councilors to direct staff to complete 90% design work, pursue required permitting and funding approvals and be prepared to competitively bid the project if the guaranteed maximum price (GMP) does not meet the council’s expectations.

Why it matters: The higher estimate would raise sewer rates for Estacada customers and could affect grant and loan conditions tied to state reviewers. Council members said they are concerned about affordability for residents on fixed incomes and want greater confidence in the numbers before asking voters or ratepayers to fund the work.

At the workshop, Sean Spargo, Kennedy Jenks project manager, summarized the firms’ work to date and the estimate: “We gave Slaton 60% drawings. They did a complete takeoff…64,000,000 after markups… and then on top of that, we had some contingency…and we get to a total of, 72, which is a pretty scary number.” Spargo explained that the 60% design added many detailed elements — buildings, ventilation, piping — that increase quantities and change unit-price assumptions compared with earlier (30%) estimates.

Slaton representatives said several market and scope drivers pushed the price higher. Eric Brammer, Slaton preconstruction manager, said some specialized materials and industrial concrete for hydraulic structures cost substantially more than typical building concrete: “For the hydraulic structures…you’re paying more like $280 a cubic yard,…