Council approves $630,209 design amendment and $2.03 million rental for temporary wastewater treatment system

The Seward City Council on the evening’s agenda approved a design services amendment and a separate rental agreement to provide temporary treatment for dairy wastewater while the city’s new wastewater treatment plant is finalized.

Greg, a city staff member who presented the Citizen Advisory Review Committee’s activity, said the economic development fund held a cash balance “at the end of that time period sat at $384,666.” He reviewed recent ledger items and noted one pending CDBG refinancing distribution for Bottle Rocket Brewing and one outstanding loan in default that staff will monitor.

Council then turned to the wastewater project. City staff and SEH consultant Colin Markson outlined Amendment No. 4, which the agenda described as an additional design‑services amendment in the amount of $630,209. Markson summarized eight scope items, including updated metering and sampling design, a chemical building and HVAC/plumbing/fire changes, raising sequencing‑batch reactor basins by four feet, additional geotechnical borings for revised building locations, and design integration of 2nd Street Lift Station work to capture mobilization savings.

On schedule, staff said they planned to submit documents to the state in June and aimed for fall bidding with construction work following; Markson said startup of related temporary systems was anticipated in 2027. Staff repeatedly emphasized the need to finalize design to secure State Revolving Fund (SRF) financing and noted earlier SRF planning figures discussed during design conversations.

Separately, the council considered a 24‑month rental agreement with Aqua Aerobic Systems Inc. to provide a temporary treatment system required by the state for dairy waste processing. The agenda listed a total of $2,026,200 for a 24‑month rental; staff said the monthly charge would be $79,800 and that the contract includes a refundable security deposit and fees for startup testing and freight. SEH and staff said they selected the rental approach to accelerate delivery and avoid the procurement and production delay that a city purchase and bid process would cause: “As soon as the rental agreement is signed, the manufacturer can start the production of that rental equipment,” Markson said.

Council members asked how the rental arrangement compared to a capital purchase; staff replied purchase would likely be harder to re‑sell later and could require borrowing, while rental lets the city “pay as we go” as dairy wastewater is processed and revenues offset monthly costs. Council also discussed the role of dairy flow and revenue in offsetting system costs.

Both items—the $630,209 Amendment No. 4 for design services and the Aqua Aerobic 24‑month rental agreement—were moved, seconded and approved by the council in unanimous votes recorded by the clerk.

Next steps: staff will finalize design elements, proceed with state submissions and move forward with rental agreement execution and site work to place the temporary system at the 2nd Street Lift Station. Funding steps remain tied to final SRF approval and bid outcomes.