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Pataskala staff recommend Strand for wastewater expansion inspection as project and financing plan advance
Summary
City staff briefed the utilities committee on a major wastewater treatment expansion, recommended hiring Strand for construction inspection, and outlined a financing strategy that relies on EPA loan programs, a Forest Bridge TIF and potential NCAs. Committee recommended the Strand selection to council.
Chris, a Pataskala City utilities staff member, told the utilities committee that staff will recommend Strand to provide construction inspection services for the city's wastewater reclamation facility expansion and outlined the project's design, schedule and financing options.
The recommendation followed an RFP that produced four applicants; two were eliminated for lack of plant experience and two (Accenture and Strand) were interviewed. Chris said Strand's inspection team already knows the project's design documents and can reach design engineers quickly, reducing the risk of contractor "lost time" claims. A committee member moved to recommend Strand and Chris seconded; the committee recorded affirmative responses from members Pam Shire, Weggie and Kayla and forwarded the recommendation to the full council.
Why it matters: the expansion is intended to double flow capacity and comply with updated environmental requirements, enabling new development and preventing near-term capacity shortfalls. Chris briefed members on major design features intended to reduce neighborhood impacts (moving blowers indoors, directional lighting controlled by SCADA), improve treatment performance (separate anoxic/oxic channels for phosphorus and nitrogen removal), and increase biosolids handling capacity (new digesters, sludge domes and a larger clarifier).
Staff said design is at about 90% and the permit-to-install submitted to the EPA returned roughly 20 comments that staff characterized as largely editorial. The construction bid opening is scheduled for August, with construction expected to start in January and substantial completion (including landscaping) targeted by October 2029. Current engineering estimates put construction between $36 million and $51 million; staff said they expect actual bids to cluster near $43'$47 million.
On financing, Chris described a mix of sources. He said a Forest Bridge TIF already in place is estimated to generate roughly $27 million over 30 years; staff are also exploring additional NCAs to increase revenue. Chris said the EPA loan branch (referred to in the transcript as "NEFA") offers low interest rates (3.4% cited) and that a portion of loans aimed at nutrient removal may be offered at 0% interest. He cautioned that, for application qualification, the EPA evaluates repayment capacity based on sewer user fees and requires the fiscal officer's signoff on financial models. As a contingency the city would prepare an ordinance to raise sewer rates only if sewer fund debt service could not be met.
Chris summarized a 30-year financial forecast that used conservative growth and expense assumptions (not including future rate increases). That forecast shows periods of negative annual surplus for about a decade while debt payments ramp up but projects cumulative surplus by the end of the 30-year window if assumptions hold. He emphasized the city currently has very limited spare sewer capacity (roughly seven residential-equivalent connections outside already approved projects) and said the expansion is required to accept additional residential and commercial development.
Next steps: the committee's recommendation will be presented to council at the May 18 meeting. Chris said staff will finalize financials with the fiscal officer before submitting the EPA loan application (application due in September).
