Speedway council approves engineering, contract steps and adopts sewer revenue bonds to fund wastewater projects

The Speedway Town Council on April 13 approved key steps to advance several wastewater projects, including design work, early procurement, a construction contract notice to proceed, and final authorization of revenue bonds to finance the work.

Grant Kleinhens, town manager, summarized three interrelated items: a design agreement with Wesler Engineering for rehabilitation of the flocculation and sedimentation basins at the wastewater treatment plant, a contract and a limited notice to proceed with Patterson Horth for the combined sewer overflow (CSO) tank project, and a second-reading adoption of Ordinance 1424 to issue revenue bonds.

Wesler’s scope: Kleinhens said rehabilitation is the preferred alternative to full replacement, providing an estimated additional 30–35 years of service at lower cost. Wesler quoted a total project estimate of $2,643,000; the firm’s design fee is $290,600, plus $10,000 for bid-phase assistance (a not-to-exceed design contract of $300,600). Council approved the Wesler engagement by a 5-0 vote.

Bonds and financial services: Philip Faustst told the council that prior plans to pursue subsidized SRF financing did not materialize, so the town will use open-market bonds. He recommended approving Baker Tilly’s engagement letters to prepare a parity report and provide debt issuance and continuing disclosure services for the 2026 sewer bonds; he said fees would not change from earlier agreements. The council approved the engagement letters 5-0.

Procurement and schedule: For the CSO tank project, the council approved both the construction contract with Patterson Horth and a limited notice to proceed to allow early ordering of critical materials totaling $690,000 (items listed by staff) so procurement would not delay the schedule while bond closing is finalized. The formal contract start date was listed as June 1, with substantial completion in 570 days and final completion at 600 days (roughly mid-2028). Kleinhens said the limited notice to proceed minimizes schedule risk without obligating the town for the full contract amount before bonds close. The council approved the contract and limited notice to proceed 5-0.

Ordinance adoption: On second reading the council adopted Ordinance 1424 authorizing revenue bonds for the sewer works improvement program; council voted to adopt the ordinance 5-0 and authorized the town president and staff to take actions necessary for closing.

What happens next: Staff will finalize bond closing steps, Baker Tilly will proceed with required disclosures and parity reporting, Wesler will begin design work with an anticipated kickoff in June and bids planned for summer 2027, and Patterson Horth may order critical long-lead items under the limited notice to proceed. Town staff said construction would be sequenced to accommodate cold-weather outages and regulatory permitting.

All financing and contracting actions recorded in the council meeting were approved by unanimous voice votes.