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Commerce council approves up to $6 million Schneider Electric contract to restore wastewater plant capacity
Summary
The council approved an energy and construction services contract with Schneider Electric with a guaranteed maximum price of $6,000,000 and an immediate procurement GMP of $2,467,164 for long‑lead mechanical equipment. The work targets aeration basins, clarifiers and dewatering systems to restore rated capacity.
City Manager Lisonbee presented a multi‑part project to restore the Commerce wastewater treatment plant to its rated capacity of 2,000,000 gallons per day. Lisonbee said decades of deferred maintenance have reduced the plant’s practical capacity to roughly 900,000–1,000,000 gpd because of failing aeration systems and other aging equipment.
The council considered a proposed energy and construction services contract with Schneider Electric designed to rehabilitate aeration basins, clarifiers and sludge‑dewatering systems. Lisonbee said the ESCO approach evaluates energy consumption and installs more efficient equipment; while the energy savings will not fully offset the capital cost, they will reduce operating costs for ratepayers. The contract before the council includes a guaranteed maximum price (GMP) of $6,000,000 and authorizes procurement GMP #1 — a $2,467,164 package to order long‑lead mechanical items immediately so equipment arrives when needed.
Lisonbee said design is not 100% complete but the contract provisions include a guaranteed maximum price that obliges the contractor to absorb overruns beyond that cap and share savings if construction comes in under GMP. The city intends to begin construction next calendar year and aims to restore full plant capacity before substantial additional local development increases flows.
The council voted to pass the resolution authorizing the Schneider Electric contract with the $6,000,000 GMP and to release procurement GMP #1 for $2,467,164. The motion carried.
Why it matters: Restoring the plant will increase available wastewater treatment capacity and reduce the risk that local development must be halted due to plant limits. The city emphasized both capacity restoration and improved energy efficiency to reduce operating costs.
What the contract covers: rehabilitation and replacement of aeration equipment, upgrades to sludge‑handling and dewatering systems, and associated electrical/controls work; procurement GMP #1 covers long‑lead mechanical equipment already sized and specified by staff.
