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Council awards force‑main construction contract, approves construction management and authorizes water bond for well project

City of Oconomowoc Common Council · November 20, 2024
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Summary

Council awarded a $2.66 million low bid for the Mary Lane force main replacement, approved construction management services and authorized up to $9.03 million in water‑system revenue bonds to support a well project and reimbursements.

The Common Council approved multiple utilities actions Nov. 19, awarding the low bid for the Mary Lane force main replacement, approving construction management services for that project and authorizing water system revenue bonds to finance an ongoing well project.

For the force main replacement, staff said three bids were received and Globe Contractor was the low bidder at $2,657,508. Council approved the award and a 10% contingency ($265,751) for a total project authorization of $2,923,259.

Council also approved a construction management services agreement with Applied Technologies to provide inspection and CM services for the force main project. Applied’s base price was $87,520 plus a 10% contingency ($8,752) for a total of $96,272. During debate one alderman said the city normally separates engineering and construction management and suggested selecting the lower‑cost second‑ranked firm (Batterman); the motion passed with two no votes (Aldermen Douglas and Ellis voted Nay).

Separately, council authorized issuance and sale of up to $9,027,678 in water system revenue bonds for the city’s well project and approved signing the financial assistance agreement with the state. Staff said they secured a state low‑interest loan arrangement at approximately 2.2% for 20 years and that the bond instrument is a reimbursement bond so the city will borrow the actual amount spent as the project progresses.

What’s next: Staff will finalize contracts, execute agreements and proceed with construction and reimbursements under the bond resolution. Finance and utilities staff will manage contingencies and report progress to council.