Bid opening for city water system Nov. 6; sub heading: Second Water Rate Increase Nov. 1
 | Author:
Linda Kent, MT43 News Staff Reporter
MT43 News Correspondent |
Second Water Rate Increase Nov. 1
Bids for the replacement of Townsend’s water tower and improvements to the city’s water system will be opened on Wednesday, Nov. 6. Bidding opened in late September, with the original opening date of Oct. 16 pushed back twice at the bidders’ request.
With an estimated price tag of $17 million for the installation of a 1 million gallon water tank near the Broadwater County fairgrounds, the connection of the new tank to the current system, and work to repair or replace some existing hydrants and valves in the community, the project will primarily be financed by an expected $14 million, 20-year bond to be issued once the successful bid is accepted.
Townsend water system users will see the second of three, $23.49, rate increases, needed to repay the bonds, on their Nov. 1 city utility bill. The first increase took place Sept. 1, with a final increase set to happen Jan. 1, 2025. The amount of the final bid could impact the final rate increase, depending on whether that bid comes in above or below the estimate.
Delays in receiving final approval of the project by Montana’s Department of Environmental Quality (DEQ), pushed back the timeline for the city to let bids by several months. A delay to the timing of the bid opening could mean that starting work on the project may not happen this calendar year.
The project is intended to bring the city’s water system into compliance with DEQ standards, ensure enough water is available to support fire suppression needs in the community, and address low water pressure issues on the south side of town.
