BPW Awards Bid for Phase I of Sixth St. Sewer Project; Plans to Move Forward with Phase II

At the recommendation of the Sixth Street Sewer Improvement Phase I project manager, Kent Prior with HDR, the BPW voted unanimously in favor of awarding the construction bid for the project to contractor Van Kirk Sand & Gravel, Inc., during the board’s July 13 meeting.
The Sutton-based contracting company submitted the lowest bid for the project at $880,000. The engineer’s estimated cost for the project was $1,626,300.

Prior told the board that the bid came in remarkably low and that favors future Auburn BPW projects, including phase II of the project.
Phase I will expand from the new wastewater treatment plant to Sixth and ‘N’ streets. Phase II will continue from that point to 14th and ‘Q’ streets.
Prior told the board that after the Phase I bid, the BPW has about $2.1 million to spend on Phase II and possibly other projects such as improving lift stations.
The board of public works received a USDA loan of $6.5 million at an interest rate of four percent to be paid over 20 years, plus an additional $2.05 million grant with a required additional $1 million from the BPW for the new wastewater treatment plant and Sixth Street sewer projects.
The wastewater treatment bid also came in lower than anticipated at a little more than $5 million, which that did not include engineering costs, which cost a little more an $1 million. The BPW had a balance of about $3.2 million following the expense of the treatment plant.
Prior said the BPW’s remaining budget to work with is a little more than $2.1 million that can be used towards the completion of Phase II, which is estimated to cost between $1 million to $1.5 million.
Prior also reminded the board that the grant money the BPW received must be used towards the wastewater system.
Also discussed at the meeting, but no formal action was taken, was a short discussion between board members and representatives from Auburn’s Community Redevelopment Authority committee. CRA members Terri Bishop and Darrell Kruse said they attended the meeting because someone had brought it to attention that the BPW would not accept any money from the CRA and the two were interested in finding out if that was the case or not.
Earlier this year, the CRA voted to approve allocating at least $60,000 to the BPW to use on the Northwest Sewer Main Project. The money is Tax Increment Financing revenue and according to a letter from the CRA’s attorney, Marcus Abbott with GilmoreBelle of Lincoln, the CRA is legally eligible to offer the money to the BPW.
Members of the BPW assured Bishop and Kruse that Monday was the first the group had heard or discussed receiving any money from the CRA.
“This is the first time we’ve heard of this issue,” BPW Chairman Richard Schneider said.
BPW member Mark Kubik added, “There is very little chance the board would reject any money given to us.”
Schneider added that in order to receive any money, the BPW would need to find out from its attorney whether accepting the money would be legal.
BPW General Manager David Hunter, Jr., said the Northwest Sewer Main Project has been scrapped and the BPW’s plans for phase II of the Sixth Street Sewer Improvement project will address the needs in the city’s northwest corner, including updating lines and get residents on the city’s sewer system.
Auburn Mayor Bob Engles, who is not a member of the CRA, the board that the money being offered by the CRA should be used for other city projects such as making improvements to buildings downtown and revitalizing Courthouse Avenue.