The recession has caused bids for many projects to come in much lower than expected. The New York Times (Companies Pretty Up Prices to Win Stimulus Projects) reports construction companies, hungry for work in the dismal economy, have slashed their prices. Bids are coming in 15 to 25 percent lower than expected.
The relocation of the Main Street Sewage Treatment Plant and the construction of the new plant in Cantonment was estimated to cost $303 million. If the bids are just 10 percent lower than expected, that’s a $30 million savings.
We have heard that the bids have in fact been much lower than estimated. If so, should the City of Pensacola still pay ECUA $19.5 million to help with the project? Why should City utility customers pay twice – as ratepayers and taxpayers?
The City funds are to come from the CRA. If ECUA releases the City from the obligation since it doesn’t really need the funds, then CRA is in much better shape to handle CMP bonds and will have money for CRA operations.