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City outlines multi‑million plan to replace HOBAS sewer line segments; Garney change order to transfer bypass costs
Summary
Utilities staff briefed the Board on repeated HOBAS interceptor failures and proposed change orders with Garney Construction to replace irreparably cracked pipe sections on Chestnut Bend and Ewingville. Staff estimates project costs can be covered with sewer fund savings, general fund reimbursements and fund balance and aims to avoid new debt.
City utilities staff presented an update and change‑order request related to multiple failures in the HOBAS sewer interceptor system that have recurred since 2014. CCTV inspections showed longitudinal cracks, joint infiltration and significant pipe deflection (up to 18–20%) in several sections, which led staff to recommend full replacement of affected sections rather than lining.
Staff identified temporary construction easements from affected property owners and described a bypass‑pumping strategy to keep flow moving during replacement; the city plans to move costs for bypass pumping to Garney Construction via a change order transfer. Staff said Garney has agreed to credits for prior delays and will assume some bypass costs under change order arrangements.
Project funding proposed in the presentation includes shifting sewer operating budget savings ($CIPP/routine replacement) to the HOBAS work, a general‑fund transfer tied to land ownership changes for Pearl Bransford Park, and use of sewer fund balance; staff said this approach can cover an updated $7,000,000 estimate and keep the city above state‑required reserves and MTAS recommendations without issuing new debt.
Staff asked the Board to approve a change order (City Contract 2025‑0174) to formalize the additional pipe replacement and the cost transfer; additional change orders to transfer ongoing bypass pumping costs to Garney were forecast for January. Staff also said they will return with a budget amendment in December to recognize the updated expenses.
