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Harriman Council pauses planned water interconnection after construction bids jump
Summary
City staff told the Harriman City Council the planned interconnection with Crab Orchard would rise from an estimated $11.3 million to roughly $19.5 million; the council approved a resolution to stop at design and return the grant to the state for redistribution.
HARRIMAN, Tenn. — City staff told the Harriman City Council on Nov. 4 that construction costs for a proposed water interconnection with nearby Crab Orchard had nearly doubled, and the council voted to modify the grant so the project will not proceed to construction this year.
Candace, the Harriman Utility Board representative, told the council that the project—which had been planned and applied for with the city's support in July 2023—was estimated at $11.3 million but bid at closer to $19.5 million because contractor availability and material costs have risen. "Instead of an $11.3 million project, it ended up probably going to be costing more like $19.5 million," she said, adding that she lacked surplus funds to cover the gap and that the higher price would make water unaffordable for the neighboring district.
The recommended action was to modify the grant contract so the city retains the design (plans and specifications) but does not enter the construction phase. Candace said the state would be able to redistribute the money this winter to other projects better positioned to spend the funds now.
Why it matters: the interconnection had been a multi‑year objective to bolster regional water resilience—Harriman staff said the neighboring Crab Orchard district faces water scarcity risk in droughts while Harriman has more plentiful supply. City officials said shelving the project preserves the design work for a future date when prices and contractor capacity improve.
Council action: the council voted on resolution R1125‑01 to authorize modifying the grant award and stopping at the design phase. Roll call votes recorded all present members voting yes.
Funding details and next steps: staff said the award structure had been about 95% grant and 5% match; Crab Orchard had provided a deposit to cover the projected local match and some preliminary engineering and legal costs. Candace said most reimbursable expenses to date have been returned by the grant program but a small amount of staff time may not be fully reimbursed. She said the project will be put on the shelf and the city will watch for a time when bid competition and material prices make construction viable again.
The council discussion included expressions of appreciation for the staff work and disappointment at the timing; there was no opposition to pausing construction. The council approved the resolution on a roll call vote. The utility board and city staff will retain the design for potential future rebidding and monitor state redistribution of funds.
