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Oxford approves $23.6 million contract for new water softening plant, seeks WSRLA financing
Summary
Council voted to award Building Crafts the $23,632,340 low bid for a new water softening plant and instructed staff to pursue Ohio WSRLA financing; city staff said the project is on a tight schedule to secure funding this fiscal year.
Oxford’s city council voted Thursday to award the construction contract for a new water softening plant to Building Crafts Incorporated, accepting the low bid of $23,632,340 and moving to secure state revolving funding to cover construction and related costs.
City staff, citing delays in EPA permitting that delayed the bid opening, told council the project has been under study since 2019 and that approving a contractor now is necessary to keep the financing timeline. “We are on a tight timeline and appreciate you accommodating that,” Mr. Dbach told council during the presentation.
Matt Smith of Strand Associates, the consulting engineer on the project, summarized the bidding: “We received three bids. The lowest bid was Building Crafts at $23,632,340; PACE was the second low bid at $23,924,000, and the highest was $25,995,000.” Smith said he and staff found no irregularities in the bids and recommended awarding to the low bidder.
Smith and staff outlined the project schedule and estimated costs associated with construction oversight and loan fees. He said the city previously received a $2.4 million design loan with principal forgiveness and that construction financing will come through the Ohio Water Supply Revolving Loan Account (WSRLA). Smith listed estimated additional costs the city intends to cover: roughly $1,000,000 for construction-phase technical services, $150,000 for special inspections, a 5% contingency and an application fee estimated at $351,290, producing a total estimated loan amount of $26,372,747.
Finance Director Ryden told council that the supplemental budget ordinance to appropriate the loan proceeds and expenses will be updated at second reading to reflect the finalized application fee and related adjustments. “When we present this ordinance for second reading, there will be some changes to accommodate the application fee and the instructions that are required,” Ryden said.
Council members asked about contractor mobilization and timing. Smith said contractors typically need two to three months to mobilize and that the contract allows 28 months to reach substantial completion with final completion slated by January 2029. Staff said the state loan board (OWDA/WSRLA) is expected to consider the construction loan at the end of the month; if financing is approved, the city anticipates issuing a notice to proceed in July.
The resolution to accept the bid and authorize the city manager to enter an agreement with Building Crafts was adopted by voice vote. The council also discussed minimizing the loan amount by using available reserves where appropriate.
Next steps: staff will present a loan authorization resolution to accept WSRLA financing and a second-reading supplemental budget ordinance that will incorporate the finalized fee and appropriation amounts.
