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DEQ covers $234,500 shortfall; Saltville awards Allison Gap pump station contract
Summary
After bids exceeded the town’s budget, DEQ awarded $234,500 in principal forgiveness to cover the shortfall for the Allison Gap pump station. Council approved the loan resolution and later awarded the $563,000 construction contract to T‑9 Construction.
Saltville council members moved forward this month to replace failing wastewater infrastructure after the low construction bid for the Allison Gap pump station left the project $234,500 short of available local funds.
Town Manager Cecile Rosenbaum told council that after bids were opened and the town faced a $234,500 deficit, she contacted the Department of Environmental Quality and submitted a hardship letter. "Once she submitted her letter, she has now got response back that DEQ awarded the entire 234,500.00 for the project," Rosenbaum said, adding she expected to close the project on March 24, 2026.
Engineers from The Lane Group explained the design and bidding history at a March 24 work session. Lane Group principal Les Sutherland said the project had been bid with a low bid of $563,000 and a project estimate of $684,300, leaving the $234,500 gap; DEQ agreed to provide that amount as principal forgiveness so the town will pay roughly 15% of the cost. "This project had to be closed March 31st, 2026," Sutherland said, describing the closing deadline that drove rapid follow-up work.
With the DEQ award in place, council approved a town resolution authorizing the project to proceed and later voted in the work session to award construction to T‑9 Construction for the low bid of $563,000. Rosenbaum and the engineers stressed that the two existing stations cannot be decommissioned until the new station is operational and that access improvements and staging will be needed.
Next steps include finalizing contract documents, establishing the project bank accounts at the Bank of Marion, and beginning construction mobilization. Council members asked staff to coordinate access and scheduling with public works to minimize road disruption during construction.
