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College Station council approves $28.6 million GMP to drill three production wells
Summary
Council approved a guaranteed maximum price (GMP) of $27.89 million plus contingency for drilling wells 10–12 and connecting piping, and adopted a resolution declaring intent to reimburse the expenditure with debt. Staff said the vote does not preclude future cooperative transmission negotiations with neighboring utilities.
The College Station City Council voted unanimously on March 26 to approve a guaranteed maximum price of $27,886,767 and a city contingency (total appropriation roughly $28.58 million) for construction work to drill three production wells (wells 10, 11 and 12) and build associated mechanical piping and well collection lines.
Jennifer Kane, capital projects manager, said the amendment is the fourth GMP for the multi‑package project and includes the drilling package; one final GMP for electrical and micro‑tunneling under the Little Brazos River is expected in April or early May.
Council members asked staff about site layout, groundwater‑district spacing and whether approving the wells closes the door to future cooperative arrangements with other utilities. City staff and the city manager said the well construction commitment does not categorically preclude strategic cooperation on transmission or regional solutions, but the city will be committed to drilling and paying for these wells once construction proceeds.
The council also approved a resolution declaring intent to reimburse certain project expenditures with future debt proceeds. The motion to accept the GMP and related resolution passed by unanimous vote with the mover and seconder recorded in the meeting minutes.
What happens next: Construction continues under the GMP; staff said the final package for electrical work and tunneling will come back to council for approval. The finance steps to issue debt to reimburse eligible project costs will follow municipal debt procedures and any required public notices.
