Date
Tuesday, July 29, 2025
Time
8:45 AM - 9:15 AM
Location Name
Room 301A
Name
A Decade of Decisions - Water Resource Recovery on the Cumberland Plateau
Track
Water Resource Recovery
Description
In October of 2013, the Town of Monterey was issued a Consent Order from the Tennessee Department of Environment and Conservation (TDEC) due to excessive overflows within the sewer collection system. The Town opted to engage James C. Hailey & Company (JCH) to assist in devising a plan to remedy deficiencies in the sewer system. Initially, JCH coordinated to perform both gravity sewer line rehabilitation and sewer pump station and force main replacement. These projects were successful in reducing overflows and ensuring more flow was transferred to the wastewater plant for treatment. As the reduction in overflow events continued, it was apparent that Monterey’s existing treatment plant could not effectively treat the wastewater to the parameters set by TDEC. As such, JCH proposed a state-of-the-art Water Resource Recovery Facility (WRRF) to ensure compliance with Monterey’s discharge permit was achieved.
JCH championed for Monterey to receive as much grant funding and the lowest interest rates possible. As a result, the Town received over $5,000,000 in grants from USDA, and an interest rate on the associated loan of 1.75% for 40 years, ensuring value for rate payers. Without the extensive grant funding, Monterey’s customers would see much larger increases in user fees over the life of the treatment plant than are necessary. JCH prides itself on successful coordination with funding agencies to provide effective solutions to rural communities.
In addition to assistance with funding, JCH aided the Town in negotiations with its largest water and sewer user. The mammoth industry commands approximately 40% of the Town’s drinking water capacity and nearly 60% of the Town’s wastewater capacity. As such, it was important to receive “buy-in” from the industry to ensure the viability of the WRRF project. JCH authored an agreement between the Town and the industry, and following nearly four (4) years of consultation, the parties executed an agreement ensuring the industry would pay more equitable user fees, and maintain a presence within the water and sewer system for an extended period.
The project was bid during the first half of 2021 and awarded to W&O Construction out of Livingston, TN. Post-COVID backlogs on electrical equipment pushed the project completion date to July of 2024. JCH worked with both the Contractor and Town to ensure that W&O was not penalized for extended lead times that were outside their control. The Town was agreeable to extend the contract for W&O Construction, allowing for successful completion without the stress associated with anticipated liquidated damages.
The post construction budget for this project was estimated at just under $12,000,000, with the final construction cost amounting to $11,863,065.73. In addition, the budget for engineering and inspection was $1,100,000, but was performed for $1,065,696. The total project cost came in $171,238.27 under budget. Design, bidding, and construction activities were all completed in approximately four (4) calendar years, which was the timetable for this particular project. All parties were satisfied with the final product, which will serve the Town for years to come.