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Frostburg reviews CSO bids, seeks grants for hydrologic study and flags potential FY27 water‑rate talks
Summary
Council heard that low bids opened for two CSO projects under engineer estimates, reviewed a hydrologic well study with $43,000 in current grant funding and an applied $49,500 Rocky Gap grant (gap ~ $72,000), and received an early warning that water rates may need increases for FY27.
City staff updated the council on three water-related items: bid openings for combined sewer overflow (CSO) projects, a proposed hydrologic study to locate new water sources, and a preliminary notice about FY27 water rates.
Bids opened for CSO projects 10b and 10c. Staff reported the presumed low bidder for 10b is Excavation Associates at $3,794,000 and for 10c Braddock Construction at $2,124,000; both numbers are slightly under engineer estimates. Staff said they will take the bids to bond counsel and to the state (MDE) for approvals before any formal acceptance and that they do not recommend accepting ad alternates now in order to preserve budget contingency.
On the hydrologic study, staff said the city has received a $43,000 grant from the Rural Maryland Council and has applied for $49,500 from Rocky Gap to cover a high-priority study; if awarded, staff recommended covering the remaining shortfall (roughly $72,000) from the Piney surcharge fund. Engineers have identified two candidate sites; staff described a decision rule based on pumping capacity: wells under roughly 75 gallons per minute would not be pursued, while wells producing 100 gpm or more would likely be sufficient, potentially eliminating the need for a second test location. Estimated drilling depth is about 400 feet; staff cautioned timing depends on contractor availability and permitting.
Staff also gave an early notice that the city has not adjusted water rates in several years and that a long-term study suggested rates would need about a 3% annual increase to keep pace with operations and treatment costs. Council directed staff to begin internal conversations with the county — a partner on some water services — and to provide additional data as rate work proceeds.
No final approvals were taken at the work session; staff outlined next steps (bond counsel review and state approvals for CSO contracts; conditional use of Piney surcharge funds if Rocky Gap grant is awarded; and internal rate modeling for FY27).
