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New Germany council authorizes updated estimate for $11.127M wastewater project, weighs CMAR delivery
Summary
The City Council voted 5-0 to authorize SEH to update the two-year-old cost estimate for a proposed $11.127 million wastewater treatment project and discussed using Construction Manager at Risk (CMAR) to control costs and schedule as the city pursues bonding and grant funding.
The New Germany City Council unanimously approved a request June 16 to have SEH update the city's wastewater treatment project cost estimate, a step consultants said is needed before moving toward funding and contractor selection. The project's current estimated total is $11.127 million; SEH advised the city the existing estimate is two years old and recommended a $2,000'$3,000 update to reflect current market conditions.
Jessica Hedin, wastewater engineer with SEH, told the council the city remains under a moratorium tied to its existing wastewater ponds, limiting growth until a replacement system is in place. Hedin recommended updating the cost estimate before advancing design and pursuing final funding commitments.
Jeanne Vogt of Ehlers reviewed the draft funding mix the city is exploring: $4,000,000 from the state bonding bill, a $2,200,000 federal grant, PSIG at $2,119,925, a WIF allocation of $1,471,726, a Green Project Reserve amount of $400,000 and an anticipated PFA loan of $1,529,457. Ehlers estimated a 20-year payment would be about $68,290 annually based on current figures.
Councilors also discussed delivery methods for the project. Hedin described Construction Manager at Risk (CMAR) as an alternative to the traditional design-bid-build approach that brings a construction manager in early to provide pricing and evaluate alternatives, which she said can reduce change orders and improve upfront coordination between design and construction. The council voted 5-0 to authorize SEH to prepare the updated estimate at an estimated city cost of $2,000'$3,000 (motion by Kevin Grove; second by Thomas Mielke).
Next steps identified on the record included pursuing congressional and bonding funds and returning to council with the updated estimate and any recommended procurement approach. The council did not adopt a procurement method at the meeting; CMAR was discussed as an option to evaluate with the updated financial information.
Funding sources and the annual payment are estimates and contingent on final awards, loan terms and market conditions; the consultants and council stated additional detailed planning and updated numbers will follow the estimate update.
