Commission approves $5.45 million increase for Tensaw regional water project; JLCB review required

The Water Sector Commission on April 16 approved a $5,446,000 increase in ARPA water‑sector funding for the Tensaw Water Distribution Association, a regional consolidation project that staff and applicants say is intended to stabilize a neighboring system in dire condition.

Mike Thompson, who introduced himself as "Mike Thompson, President of Tensile Water Distributions," said the association has worked to lower the cost after an earlier funding request prompted staff review. "We didn't want to saddle any of the Tensile Waters customers with any debt," Thompson said, adding the association agreed to contribute $100,000 in local funds and that the group undertook value‑engineering that reduced the request by about $1,000,044.

Sam Gossett of Pan American Engineers described engineering and scope adjustments that removed duplication (for example, fewer clarifiers and chlorinators) and helped lower the bid price. Commissioners pressed presenters on whether an updated rate study would be required and how any new debt service would affect customer rates. Sam Gossett said the association has requested a rate study and that the typical turnaround is roughly six months; staff said recipients receive a rate‑study template they may use to model the impacts and that the program monitors a 1.15 sustainability factor.

Senator Bass said he would "move favorable" on the request after commissioners and staff confirmed the association had increased its local match and pursued cost reductions. Chairman Zirang noted the commission must still send the award package to the Joint Legislative Committee on the Budget (JLCB) for final approval.

The commission adopted the motion by unanimous consent. Staff noted the award will appear before JLCB for review and that the program will continue to monitor rate‑study updates and project closeout materials.

Next steps: the commission-approved increase will proceed to JLCB for final action; staff will include the project's rate‑study information and the association's pledged local match in the closeout and monitoring packages.