Waterworks swaps contractor

A change in contractor based on issues with the bid from the original proposal for a waterworks project was approved during Tuesday’s Creston Water Works meeting.

The waterworks’ water main improvement project saw the change. The project is split into four divisions, with a different contractor for each division.

Division 4 saw an issue with the contractor. C & J Conservation, who was originally the contractor awarded the division, had their bid rejected. This was based on issues spotted by the waterworks’ attorneys.

According to General Manager Steve Guthrie, C & J attempted to bond the project through a subcontractor rather than themselves as a general contractor. Because this subcontractor did not make a bid on the project, this becomes a problem.

“Our bonding attorney said that’s not something you mess around with, to reject the bid and award the next lowest bidder,” Guthrie said.

Crain Construction from Clarinda will now handle Division 4, with a cost of $448,570, an additional $50,000 from C & J’s original bid.

C & J will still take part in the water main project, as they were awarded Division 2 in their initial proposal. Crain also handles Division 3 of the project.

Creston Water Works also approved action to enter into a water revenue loan and disbursement agreement. Water revenue bonds will be issued at some point in the future.

The proposal to enter the agreement was approved during a previous meeting, with the borrowed money through bonds not to exceed $6.25 million. These funds will be used to for waterworks projects in the foreseeable future.

“I don’t foresee us using that much, but it’s an amount not to exceed, not what we’re actually going to borrow,” Guthrie said. “Right now, everything looks like it’s going to be for loan forgiveness of $5.3 million for the construction loan. We have to issue revenue bonds just slightly over so our bases are covered.”

In other waterworks news...

Water rates could increase as Creston Water Works looks for additional ways to fund their projects. The waterworks recently committed to an annually scheduled 4% increase for a total of 12% increase from 2025 to 2027 to rates back in March. The first 4% raise has already been made. However, it could get higher.

A few options were proposed but not approved during Tuesday’s meeting. Additional years could be applied to the rate increases, or the 8% raise still remaining in the schedule could be applied sooner and as a total package. A decision will be made during August’s meeting.