Council ponders water treatment plant funding as deadline looms

The city was racing to find solutions to a $2-million-dollar shortfall for the planned water treatment plant ahead of a Nov. 23 deadline for accepting a bid. Four Texas-based general contractors submitted bids to build Olney’s new water treatment plant at base bids ranging from $21.36 million to $15.35 million – above the $13.5 million the City raised for the project.

The sealed bids were opened on Tuesday, Oct. 24 at City Hall by the City’s engineering firm, Corlett Probst & Boyd.

The Council appointed a special committee to explore ways to bridge the funding gap between the approximately $14.4 million in revenue bonds and their accumulated interest, and the $16 million price tag for the new water plant and engineering fees.

The City had 30 days to accept or reject bids.

Mayor Rue Rogers said the Council was “in a tight spot try- ing to discern and make the best decision for the City.”

“We all felt convinced that we needed to do something, and on the other side is how do we pay for it because everything has come in more expensive than our revenue bond and the money we have in the bank,” he said at the Nov. 13 meeting. “We implemented a surcharge, property taxes and different things and so we don’t want to put another burden on the citizens but we also want them to understand that we have to do something.”

The mayor met with silence when he asked for input from members of the public who attended the meeting, and said he would have a special committee meet to discuss options before the “drop dead date” for accepting a bid. He set a special Council meeting for Monday, Sept. 20.

The Council discussed cutting options from the plans, such as the paved parking lot and insulation for some pipes.

Councilmember Harrison Wellman suggested the City could try to “do some of the work on our own.”

Mayor Pro Tem Tom Parker acknowledged that the City needs a new plant but said “I’m a no” unless the City can cut its already tight budget to afford more debt.

“I know we need to do it it’s hard for me to justify the extra $2 million,” Councilmember Wellman said.

Mayor Rogers pointed out that the City has some money in reserves that could be applied to the shortfall.

“I know we don’t want to touch that because … it’s there for a rainy day,” he said. “I can go back and forth … but if we don’t do something there’s a potential for a problem.”

Councilmember Chuck Stennett agreed with the Mayor, saying “You said it pretty blunt: we’ve got to do it, just how?”