Richmond advances wastewater treatment work and authorizes $3.33M bond process

At the March 11 council meeting, Olsson Associates reported substantive progress on the Richmond wastewater treatment plant (WWTP) contracts and recommended next steps to finance remaining work.

Project and finance details: Olsson reported Plan Set A contract amount of $8,820,304 with $2,896,786 expended to date (about 32% complete) and Plan Set B contract amount of $1,084,427 with $905,942 expended (about 84% complete). A force-main pressure test held 125 psi for two hours, which the engineer described as successful.

Financing: Jack Dillingham of Piper Jaffray told the council the resolution before them would authorize staff and advisors to proceed with the steps necessary to offer approximately $3,330,000 in combined waterworks and sewerage system revenue bonds to complete the project. The council adopted Resolution 423 authorizing that work; the motion carried unanimously.

Discussion and follow-up: Councilors asked about unit-price items and perceived charges (for example, questions were raised about erosion-control line items and whether contract credits were available). Olsson’s engineer said erosion-control measures followed a DNR‑approved plan and were billed under the contractor’s lump-sum items. Staff will continue to reconcile unit-price and lump‑sum items and return with detailed cost information. Finance staff were directed to continue work on interest-rate and offering timing, with final interest-rate details to be presented at an upcoming meeting.

Next steps: Council authorized bond‑work preparation, and staff will return with final interest-rate recommendations and associated documents for formal approval.