Council awards wastewater treatment expansion bid, seeks supplemental funds from escrow interest
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Summary
The commission approved awarding the wastewater treatment plant expansion to RP Constructors for the base bid and recommended including the alternate lift‑station work; staff said the project budget is $6.54 million and an estimated shortfall of roughly $195,000 would be covered using escrow interest with Texas Water Development Board approval.
The Rio Grande City Commission voted to award the wastewater treatment plant expansion base bid and to include an alternate for a new lift station after engineers recommended the low responsive bidder.
Mike Hernandez of Milton & Hench engineers told the commission the base bid totaled $5,289,421. He also reported an add‑alternate for a new lift station that the transcript recorded with inconsistent numeric formatting; staff characterized the alternate as a material component of the recommended scope. City staff said the project budget for construction is $6,541,953 and identified a funding gap of roughly $195,000.
Finance staff and the consultant explained the city is proposing to use accumulated escrow interest and related funds to cover the shortfall and that the Texas Water Development Board has been notified and will be asked to approve use of the funds for construction. The commission approved the recommendation and also authorized the mayor and city manager to execute documents related to the project.
Engineering staff said they will provide monthly construction updates to the commission and noted the expansion should reduce the plant—s operating percentage once complete. No contract was signed in open session; council approved moving forward with award and delegated execution authority to staff.
"We'll keep in touch," the consultant said, committing to monthly updates on project status.

