Sunday, May 19, 2024
Courtesy Google Maps
Improvements needed at the city of Gatesville's Stillhouse Wastewater Treatment Plant will cost significantly more than expected, and city leaders are hoping the state steps up and pays a substantial portion of the costs based on services they receive at state prisons in the area.
During the July 11 meeting of the Gatesville City Council, City Manager Scott Albert said the city received three bids for work at the plant, ranging from $13.9 million to $17.8 million. Walker Partners of Waco, acting as the city's engineer, recommended the city accept the middle bid for the project, which is $14,443,000, from Matous Construction.
A memo to the council stated, "Although JM Pipeline was the lowest bid, Walker Partners (WP) will recommend that the city select Matous Construction because they were the highest ranked bidder based on WP evaluations using the selection criteria and ranking assessment."
The council could take action on the bid at its Aug. 22 meeting, the memo stated.
"Obviously this project is significantly more than what we were expecting," Albert said.
In addition to the $14.4 million in construction costs, there will also be engineering costs of $1.98 million, bringing the total anticipated costs to $16,425,606.
The city has funds of $7,723,107 from the Texas Water Development Board (TWDB) earmarked for the project.
A memo to the council noted that city representatives talked with TWDB officials "to determine potential additional funding sources through TWDB." These funds could become available in the summer of 2024 or December 2024.
Albert said city staff are recommending the project be divided into two phases and will meet with the Texas Commission on Environmental Quality (TCEQ) to determine if this is a viable approach.
"We will identify what we can do for $8 million (in the first phase)," Albert said. "Phase 2 depends on the prison system - the state coming forward and paying their share of the cost.
"Once we've identified what can be cut, we'll set up a meeting with TCEQ and make sure they agree."
Mayor Pro Tem Meredith Rainer asked, "is there a backup plan if the state doesn't come through?"
Albert said, "there are a lot of irons in the fire" (related to city capital improvement projects) and added "I'm not comfortable with what phase 2 will look like - $7 million is a lot. You could fund it if you are willing to increase your rates. That's an option. We could look at funding the debt ourselves."
"I hope the state steps up," Rainer said.
"They've gone years - decades - without addressing issues," Albert said. "I don't think we should make a knee jerk reaction on the second phase. We need to stand our ground and expect the state to pay their share. In my mind, plan B - the residents picking up the cost - doesn't exist."
Councilman Greg Casey asked, "Are we biting off more than we can chew?" on the various capital improvement projects.
"I'm pretty comfortable with the CIP (capital improvement projects) outside the wastewater treatment plant," Albert said. "We've got to do something about Stillhouse and we'll figure it out, but we also need to do something about water production."
During a presentation to the council on June 20, Mike Clough with Walker Partners said the Stillhouse plant is "reaching the end of its useful life." He added that work at the plant, when completed, should meet the city's needs for at least 20 years.
