ATWATER -- A new wastewater treatment plant -- necessary to bring Atwater into compliance with state and federal regulations -- may soon begin rising south of Atwater. And it will be cheaper than predicted.
On Monday night, Atwater's City Council awarded the construction contract for its new wastewater treatment plant, which will give the project its final go-ahead.
"The action before you will start the process of relocating the wastewater treatment plant," said Joe Hollstein, the city's engineer, as he stood before the council Monday night.
The contract that was unanimously passed by the council went to the lowest bid -- $41 million -- which was nearly $30 million below the estimated construction cost for the project.
The low bidder, Overaa & Co. of Richmond, which is currently constructing Merced's wastewater treatment plant, says they can break ground as soon as Feb. 8. The company estimates the project will take two years.
The bids ranged in value from a low of just more than $41 million to a high of $55 million. The original engineering cost estimate was $69 million.
While the major parts of the project were passed unanimously, several consulting groups involved in the project did not pass muster.
Since they didn't go through a competitive bid process or the city's finance and audit committee, several council members said they could not vote on continuing contracts with the consultants until they had been given more information.
"I have to question the validity of this report," said Jeff Rivero of the claims that the consultants recommended for hire were the most cost-effective. "We're talking about $10 million dollars."
A special meeting to decide on whether or not to hire the consulting firms recommended -- who worked on the project's earlier phase -- will be held Jan. 29 at 6 p.m.
The bond paying for the project was recently issued.
Morgan Stanley, with a 5.1 percent interest, was the creditor chosen in the city's bond sale. The city was given an A rating by the bond rating agencies but then raised its credit rating to AAA after paying for insurance. The first bond of $45 million is one in a series that will be used to pay for the project.
But the real cost of the whole project, including building costs and debt service, will be much higher. In the end, the whole project, including debt service, will cost the city $152 million to $175 million, said Assistant City Manager Stan Feathers. But he added that number is a conservative estimate and could change.
The city's old wastewater treatment plant needed to be replaced after new stringent permitting requirements came online in 2007, said Robert Whitley, an environmental engineer consulting for the city on compliance issues.
State regulators have given the city until May 18, 2010 to come into compliance. But, added Whitely, since ground-breaking is near, regulators could grant the city an extension to 2013 when the new plant will be completed.
Reporter Jonah Owen Lamb can be reached at (209) 385-2484 or jlamb@mercedsun-star.com.
E-Mail
Print
