South Burlington faces $16M+ shortfall on Bartlett Bay wastewater bids; council signs SRF loan to hold funding

Public works staff told the council that bids opened on January 23 returned a low construction bid of $38,550,000 compared with an engineer's estimate of $26,960,000—about $11.6 million higher than anticipated. Presenters said two additional projects tied to the original bond (Airport Parkway solids handling; Queen City Park pump station) and a modest contingency had created an all‑in funding posture that, after using reserves, left an approximate $16.4 million shortfall across the three projects.

Tom DiPietro, the city's public works director (self‑identified at the meeting), reviewed the project's climate‑friendly elements and said the design is intended to serve the next 20–30 years. He laid out two options for council: (1) reject bids and go back for value engineering and rebid—risking at least a year of delay and re‑permitting costs—or (2) hold a supplemental bond vote (staff suggested August) to cover the gap and keep the project as designed. To preserve the city's position in the Clean Water State Revolving Fund (SRF) queue, council unanimously approved staff's request to sign the $30.2 million SRF loan documents now. DiPietro said that signing preserves the state's construction allocation and staff can later seek amendments or supplemental funding to cover the remainder.

Councilors debated rate impacts and possible energy savings from the climate features; staff estimated an additional $16.4M loan amortized over 20 years would increase annual payments by roughly $1,000,000 (a one‑year ~19% jump) and produce a larger near‑term rate increase in FY28. The council directed staff to proceed with SRF paperwork, provide a more detailed spreadsheet reconciling cost lines, and return with public outreach and a timeline for a potential bond vote.