Council approves $2.82 million award to replace low-lying lift station after financial review

The Waupaca Common Council voted to award the construction contract for the Bob (Bulby) lift station replacement to Advanced Construction after staff and financial advisors reviewed a sole bid that exceeded the original construction budget.

Interim City Administrator and Public Works Director Justin Barren told the council that McMahon Associates designed the prepackaged lift station and that the city ordered a backup generator early because of 12-month-plus lead times. Bids opened May 21; Advanced Construction submitted the only bid at about $2,822,721.50, approximately $500,000 over the budgeted construction amount, Barren said.

Barren outlined the funding approach: comparing budgeted items, shifting appropriate water-related costs to the water fund, and using sewer revenue bonds along with available cash reserves to cover the overage. He said the city’s sewer fund showed a healthy days-on-hand figure (about 500 days) and debt-service coverage ratios above advisory thresholds, and that Baird reviewed the numbers and was comfortable with using reserves for a one-time capital expense.

Council members asked why more bidders did not participate and whether the station could be moved out of the wetland-adjacent low area. Barren said several contractors pulled plans but the wetland proximity discouraged many; Advanced Construction performed site work before bidding and provided a confident, informed bid. He added the station is sited near the low point of the sewer system because gravity mains require the lift station to be at the low end of the line.

Public works staff described the existing pump station as aged, with a backup generator from 1974 and pumps replaced about 25 years ago; the wet well fills quickly and pumps run almost continuously, producing operational concerns and a long-identified capital need.

The council approved the motion to award the contract in a roll-call vote with eight ayes. Barren said staff will track financials through the budget season and may use a reimbursement resolution to allocate capital costs to future borrowings if appropriate.