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Council approves $6.78M water-pipeline contract and reallocates $2.8M in bond interest to CIP projects
Summary
Scottsdale Council awarded a low-bid construction contract for a zone 4 water pipeline and approved reallocating about $2.8 million in bond interest earnings to six capital projects per the Citizens Bond Oversight Council recommendation.
The Scottsdale City Council on Dec. 1 approved a construction contract and made capital budget adjustments tied to bond interest earnings.
Staff recommended adoption of Resolution No. 3,13551 to authorize Contract No. 26IFB018 with TF Contracting Services LLC for up to $6,776,999 to construct about 4,200 linear feet of 16-inch and 36-inch water pipeline in the area north of Loop 101 east of Hayden Road. City engineering staff said the project will improve water distribution to serve higher-density development in the Hayden/101 corridor. The engineer—s estimate prior to bidding was $8.6 million; the contract was awarded to the lowest responsive bidder and the item was approved by motion.
On a separate item, staff told the council the city realized roughly $2.8 million in interest earnings from a February 2023 bond issuance for 2019 bond projects. At the Citizens Bond Oversight Council—s Sept. 8 recommendation, staff proposed using those earnings to replace existing funding sources for six specific projects; the council approved the reallocation through Resolution No. 13,554. Staff and the city treasurer discussed IRS rules requiring bond proceeds be spent within three years and explained that some spending delays and a system-conversion lockout increased cash held and interest earnings.
Council members asked about project status (including police/fire training facility close-out items, parking-lot project timing, and flood-control dependencies for Pima Park) and staff agreed to provide additional status details. The council also directed the city manager to investigate a citizens petition about petition rules and provide a written response to the petitioner.
Funding sources cited during the discussion included the water enterprise fund for the pipeline contract and bond interest and general fund adjustments for the listed CIP projects.
