Water plant costs rise as City delays

The City’s plans to build a new water treatment plant are getting more expensive as delays mount, and the price tag now has reached $18 million to $20 million, City Administrator Simon Dwyer told the City Council.

Mr. Dwyer, who recently took office, researched ways to kickstart the project, which stalled last year after bids for the plant came in $2 million higher than the $13.5 million the City budgeted.

The lowest bidder now says the plans would cost $18 million to $20 million if the plant is rebid, due to rising labor and materials costs, Mr. Dwyer said.

The Council rejected the bids in November and has been trying to find ways to bridge the funding gap or cut the plant’s cost.

At the June 10 Council meeting, Mr. Dwyer reviewed possible solutions for Councilmembers Ronnie Cowart, Thea Sullivan and Terri Wipperman, who took office last month.

The Council had discussed bidding the project out piecemeal to cut the general contractor’s fee. Mr. Dwyer pointed out that state regulators could nix the project if the bidders deviate from the plans they approved last year.

“If the plans are not strictly followed, [the Texas Commission on Environmental Quality] may not approve the plant and allow it to open,” he said.

Although the proceeds from the City’s sale of $13.5 million in revenue bond is earning interest as it sits in the bank, the costs for the plant will continue to rise unless the Council takes action, he said.

Solutions include applying for USDA grants, loans for small, low-income cities, and selling multi-year water contracts to the City’s largest water consumers.

Mayor Rue Rogers suggested scheduling a town hall meeting with citizens to discuss options.