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11/14/2018 07:00 AMWhen news broke early this fall that the first construction bids for the Mulberry Point, Tuttles Point, and Long Cove water main project varied significantly from what the town had anticipated the project, the town opted to go out to bid again. New bids for the project came in on Nov. 9 and while officials say the numbers are more consistent, the bids still leave the town with a significant funding shortage for the project.
The residents of Mulberry Point, Tuttles Point, and Long Cove have been waiting a long time for clean water, having battled contaminated undrinkable water for decades. The hope was the water main project, which was approved in 2017, would be underway by now, but the first set of construction bids to come back this summer would have raised the median household assessment in the service area from $12,000 to about $27,000.
Another issue with the initial bids was the spread—estimates ranged from $4 million to $7 million for a project originally estimated to cost $3.4 million. Due to the range, First Selectman Matt Hoey previously said the town opted to reject all bids and go back out to market.
The new bids came in on Nov. 9. There were four new bids and, while the bids were more consistent, Hoey said the bids still vastly exceeded the initial estimated cost.
“They are ranging in price from $4,894,710 to $5,784,200,” he said. “These numbers are largely in line with the second-highest bidder from the last time around. However, these numbers are much closer together, so we are hoping this is a more accurate estimate.”
The Money Plan
Hoey said the town plans to award a new bid in the coming days and will then look to the State Bond Commission to see if there are monies to be found to help offset the cost increase of the project.
Back when the first bids came in over the estimated cost, Hoey partnered with State Representative Sean Scanlon (D-98) to acquire some state funds. The town was awarded $450,000 in one bond commission with the opportunity to come back for more once the project had firmer numbers. Hoey said the goal is to get on the next bond agenda.
“If form holds true, there will be one [a bond commission meeting] in early- to mid-December,” he said.
A History of the Project
The water main extension project was approved at referendum on May 31, 2017, with an expected costs of $3.4 million, garnering 1,004 “Yes” votes to 122 “No” votes. Prior to the referendum, the town announced that, of the 145 homes in the area that could be served by the water main, 83 percent of residents signed formal commitment letters to connect with the main, well exceeding the necessary commitment level and pushing the project forward.
Residents in the service area will pay all expenses for the project, including initial soft costs. In January, the town signed a service agreement with the Connecticut Water Company (CWC) that outlined the financial rate of contribution from CWC. The rate of contribution from CWC is dependent upon the percentage of the 145 homeowners in the area who commit to the project. With an 83 percent commitment rate demonstrated by residents who sent the water company signed commitment letters and financial deposits, CWC will contribute $1.5 million.
At the time, the total estimated project budget was roughly $3.4 million, so after the CWC contribution, homeowners who are direct beneficiaries of the water main extension expected pay the remaining $1.9 million project costs.
The town had hired engineering and construction management team Wright-Pierce, acquired state permits, and then put the project out to bid for a contractor in early summer.