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Heath council approves design contract for Wells 2–4 and signals intent to repay with future bonds
Summary
Council authorized a not-to-exceed $796,500 design contract with Kimley‑Horn for Wells 2–4 and approved a resolution declaring intent to reimburse water‑system expenditures with future bond proceeds (maximum reimbursement amount shown as $70,000,000).
Heath’s City Council on Oct. 28 authorized the city manager to execute a professional services agreement with Kimley‑Horn for the design of Wells 2 through 4 as part of the city’s Water Bridge Plan and approved a related resolution preserving the option to reimburse early project costs with bond proceeds.
Brian Creed, presenting for staff, said the Kimley‑Horn agreement covers topographical and field surveys, subsurface utility engineering, geotechnical work, preliminary and final design, permitting, bidding services and construction contract administration and that “the total is not to exceed $796,500.” The schedule in staff materials projects design completion in June 2026, with staged well completions through 2028.
Mr. Creed said the firm will be paid as work is completed rather than in a single upfront payment. Council discussed the percentage that design fees represent of estimated construction costs; staff estimated the design fees at roughly 4.5% of expected construction cost before noting typical industry ranges are higher.
Separately, finance staff presented Resolution No. 251028A, described as a declaration of the city’s intent under U.S. Treasury regulations (section 1.150‑2) to reimburse certain Water Bridge Plan expenditures from future bond proceeds. Staff said the resolution does not authorize issuance of debt; it preserves the ability to pay for pre‑issuance engineering and construction from utility capital reserves and be reimbursed later when bonds are issued. The packet shows a maximum reimbursement amount of $70,000,000.
Council approved the Kimley‑Horn agreement and the reimbursement resolution. During the Kimley‑Horn vote a single council member was recorded as voting 'nay' on the motion; the resolution passed unanimously. The Water Bridge Plan remains subject to future budget, design and permitting steps; city staff said more financing detail will be presented when the city’s financial advisor presents a plan of finance.
