MORGANTOWN, W.Va. — Morgantown City Council has advanced the process to approve capital improvements at the Cheat Lake Waste Water Treatment Plant.
Council agreed to consider a project ordinance and a bond ordinance for first reading at its regular meeting next week. Bonds would be issued in two series. The Series A bonds would not surpass $50 million and the Series B bonds not to exceed $5 million. The project is estimated to cost $36,695,529, but the actual cost will not be known until it goes out for bid next month.
The project will receive $6.75 million from the American Rescue Plan through an Economic Enhancement Grant from the West Virginia Water Development Authority. The grant requires that the project be under contract by Dec. 31. That is the case for dozens of proposed projects across the state, putting contractors in high demand.
“There are a lot of projects being bid right now. Through August, September, and October, I believe there are about 50 water and sewer projects opening bids around the state.” Steptoe & Johnson bond counsel Tom Aman said. ““Hopefully, you guys are favorably positioned in a way to get a good bid for the project.”
To trim project costs, MUB has accumulated about $4 million in property, labor, and equipment costs.
The project will include a rate increase for customers using the Cheat Lake facility of 91 percent, but not to exceed 100 percent. MUB General Manager Mike McNulty explained to councilors that the customers of 38 other utilities in the state would still be paying more than these customers.
“Right now a customer is paying about $35.59 for 3,400 gallons, which is the average that is used by the West Virginia Infrastructure and Jobs Development Council,” McNulty said. “You would be looking at a new rate of about $67.97, or about $68.”
Aman said the increased bond request is to account for any contingency if bids come in drastically over the cost estimate. The volume of work out for bid at the current time does increase the concern for officials that bids could come in over the estimate.
“We don’t know whether that (contingency) would come in the form of a grant or loan or what the mix would be, so that’s why we’re building in plenty of cushion for any funding sources to cover a potential bid overrun.”
The project is designed for three-to-five percent population growth, and officials are confident that it is building for the future. When asked about the need for the expansion and upgrade, McNulty said the future could now be for one of the top growth areas in the county.”
“Especially for housing in the county, we may see more growth,” McNulty said. “What we’re seeing right now—housing developments and proposed housing developments with large numbers.”