While construction cost increases have impacted projects on a nationwide scale, water-related projects in the City of Mesa have been hit particularly hard.
A forecast last year projected the Central Mesa Reuse Pipeline would cost $72M. An update presented to the Mesa City Council at a recent study session now puts the cost at $183M. The project is especially important to the City’s water use plans, as it will offset the city’s losses from recent cuts in its Colorado River supply allotment once it becomes operational.
A planned expansion of the Signal Butte Water Treatment Plant has increased in cost from $98M last year to a current estimate of $201M.
The East Mesa Water Interconnect, which will establish a pipeline between water treatment plants for capacity sharing, has gone from $82M up to $290M.
When Council members asked what was driving the increases, Mesa Water Director Chris Hassert blamed a combination of materials and labor costs as well as “scope creep.” He suggested costs could be reduced if the scope of the projects were revised.
The interconnect project is still in the planning stages and could be revised downward, Hassert said, but the other two already have established timelines. The reuse pipeline is scheduled to begin operations in 2025, and the Signal Butte plant expansion is planned to come online in 2026.
The updated project costs are to be included in a new Capital Improvement Plan in the spring. According to staff, project funding will be through a pledge obligation mechanism that requires approval by Council and not a special bond election. (Source)