Water project hits funding roadblock

Split the project in two or keep going in the hopes of more funding?

This was the decision facing the Sundance City Council last week on hearing that its current water project is likely to cost more than double the original estimate.

The intent of the 3rd Street Waterline and Cleveland Street project is to repair a major water leak through which the city estimates it is losing 50,000 gallons of water per day, and to relocate service taps located on an old, four-inch galvanized waterline.

To complete this work, the city was awarded just over $1.3 million through American Rescue Plan Act (ARPA) funding designated for local government projects.

However, Public Works Director Mac Erickson explained that the project has grown over time. It now, for example, includes a fix for the failing bridge, for which the council was twice unable to secure funding through a popular WYDOT program.

By the time of the recent 60% design meeting, the engineer’s estimate had reached $2.9 million, Erickson said.

The city now has two options, Erickson explained: either the project can be divided, using the current funding to complete the first phase, or the council can seek more money to cover the full cost.

Making the decision more difficult is the deadline associated with ARPA funding: the money must be fully committed by October 31.

The project is progressing well on the city’s end, Erickson said. Comments on the design have already been received from the Wyoming Department of Environmental Quality.

However, it will be tough to cut the project back, he said.

Erickson mentioned that there is supposedly a lot of ARPA money being turned back to the state, which may mean the city is eligible to ask for more later this summer. The funding would come through the Wyoming Water Commission rather than the State Loans and Investments Board, he said, but part of the project is a transmission line, which would enable it to qualify.

Mayor Paul Brooks commented that his preference would be to complete the project all at once because that would save hundreds of thousands of dollars in mobilization costs.

Scott Lee of Trihydro, city engineers, urged the council to make a quick decision, as things are already running down to the wire in terms of the time needed to complete the design, obtain approval, advertise and bid it out.

“It’s decision time, for sure,” he said.

The mayor, however, felt there was no decision needed.

“I think we need to be prepared to go two ways,” he said.

In other words, he suggested that the city continue to pursue the project as though full funding will be available by the time of breaking ground.

If this proves to be the case, the full project can go ahead, he said.

If not, the $1.3 million can be used to complete the first phase.

Lee agreed that this could be done. The project will be broken into two and contractors will be asked to bid on two alternates; meanwhile, the city will begin exploring the possibilities to complete the needed funding.