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Surf City faces higher engineering costs on wastewater expansion; town to consolidate water‑resiliency loan
Summary
Utilities director David Price told council the digester came in about $1M over budget and engineers estimate an additional $1.2M in engineering costs for the wastewater plant expansion; staff proposed consolidating multiple water projects under a $6.8M low‑interest loan with 25% forgiveness and asked to place BOAs on the May 6 agenda.
Utilities Director David Price reported a series of wastewater and water‑resiliency items that require budget adjustments and council direction.
Price said the digester project has run roughly $1,000,000 over original estimates despite re‑bidding three times; the town holds supplemental funds (including a $4,000,000 appropriation) but will need to move additional money into that account to align contracts with available budgets.
Separately, Price outlined a proposed contract for the phase‑2 wastewater treatment plant expansion. He said DEQ and engineering staff have identified about $1,200,000 in additional engineering costs necessary to deliver the planned upgrades (including a new scalping station and UV upgrades increasing capacity). Staff recommended placing the contract with redline changes and a companion budget ordinance amendment on the May 6 consent agenda to increase the engineering line item and make the contract match the budget.
Water resiliency: Price described a low‑interest loan the town initially received ($2.8M) that was later increased to $6.8M with a 0.01% interest rate and 25% forgiveness; staff proposed consolidating three projects—Well 6, Sub Aukris Crossing and the North Shore Pipeline—under the single loan for easier tracking and requested consensus to move that BOA to the May agenda.
Council asked clarifying questions about site access, phasing and how the expanded engineering costs would be funded. Price said the total wastewater program is about $38,000,000, with $20,000,000 from the state appropriation and the remainder to be arranged through financing and other funding strategies.
Next steps: council gave consensus to place the BOAs and contract approvals on the May 6 consent agenda; formal contract awards and budget amendments will be finalized at that meeting.
