25 Aug Postponing WTP4

A growing coalition of Austin-area environmental groups believes the City should postpone construction of Water Treatment Plant #4.

The project began construction some months ago and will require several years to complete. According to one coalition spokesman, there are numerous examples in business and municipal history of entities quitting large construction projects after a project is deemed unwise. Downtown Austin's infamous Intel building comes to mind, as does the recent postponement of a nearby coal plant's expansion due to water shortage fears among governmental leaders.

Coalition leader Bill Bunch says roughly $150M of a $508M budget has been spent on the project so far. Note that much of that money has been spent on land acquisition. "Actual construction is less than 15 percent completed," he says, adding that the City's construction contracts specifically allow for termination at will, and payment only for work done and reasonable demobilization costs.

The coalition is asking people to contact Mayor Leffingwell and request City Council put WTP4's construction on hold for 90 days. This period would give the City Auditor, City Manager, and other local leaders time to review a cost of postponement study, secure outside bids for mothballing the plant, and make more informed decisions about the true costs of postponing the build. The coalition includes Austin Sierra Club, Save Our Springs Alliance, Environment Texas, Clean Water Action, Responsible Water Austin, and Stop the Shaft.

The Coalition states:

Benefits of Postponing
> City to save over $14 million per year (on interest, operation & maintenance)
> City to maintain "option" value – to adopt better, less expensive technology/design in the future
> City to gain time for complete audit & water planning process

Costs of Postponing
> Tie down and demobilization costs (industry standard = 5 to 10% of project cost)
> Some added costs to preserve project

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To learn more about the Coalition's position, read here.
To visit the Coalition's website, click here.

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