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Milton utility board awards $10.03 million contract to expand Sundial wastewater plant
Summary
Milton’s Sundial Utilities board approved J and P Construction’s $10,027,000 bid to expand the Sundial Wastewater Treatment Plant from roughly 250,000 to 500,000 gallons per day; staff said the project will use an SRF loan plus existing cash reserves and include a clause to comply with recent state law (HB 683).
Milton — The Sundial Utilities board, on which the Milton City Council sits as the board of directors, unanimously approved a staff recommendation to award a $10,027,000 contract to J and P Construction to expand the Sundial Wastewater Treatment Plant.
"Staff recommends a selection of J and P Construction Incorporated as the lowest and most responsible bidder and authorize staff to negotiate and execute a contract not to exceed 10,027,000," said Mr. Spears, the staff member who introduced the project and the recommended award. The bids were opened Oct. 30, staff said.
The project is designed to increase the plant’s capacity from about a quarter-million gallons per day to about a half-million gallons per day. Staff told the board it has authorization for up to a $9,000,000 State Revolving Fund (SRF) loan for the project and currently has roughly $4.1 million in combined operating capital and reserves. Staff recommended retaining $1,000,000 in reserves and using approximately $3,000,000 in cash to reduce the loan amount and monthly payments.
Joe, a city staff member who answered financing and capacity questions, said a developer waiting for capacity would likely add roughly $1,000,000 back into the Sundial fund once their project proceeds. Staff estimated the expanded plant could serve on the order of 1,000 single-family homes and expected the construction timeline to be about one year, though they said it could be shorter.
Board members pressed staff on timing and future capacity. Staff said the expansion should carry the city until a planned new plant in East Milton is built, at which point additional Sundial capacity could be piped to the new facility and Sundial retired or repurposed. Staff estimated, depending on the economy, that capacity needs after this project would not arise for about five to seven years.
The chair also flagged a recent state measure, HB 683, and noted the city attorney had recommended adding a contract clause to ensure compliance. "We'll make sure it's in there," Mr. Spears said when the chair asked about including the clause in the construction contract.
Councilman McKee moved to approve the award and Councilman Towell seconded. "Unanimously approved by all members present," the chair said after the vote, and the board closed the Sundial item and moved on to the next special meeting.
The contract award authorizes staff to negotiate and execute an agreement up to the approved amount and to pursue value-engineering savings where feasible. Staff said they will return any significant contract changes to the board for approval.
