The Levelland City Council has received two proposed bids for the City’s wastewater treatment plant with both bids exceeding the projected $20.4 million cost by at least $6 million.
During Monday’s regular meeting, Parkhill engineers spoke to council in regards to the proposed bids received and the cost associated with the overall project.
Parkhill Engineer, Daniel Albus was in attendance and has been over the entirety of the project as well as Parkhill’s Director of Treatment, Brian Stephens who addressed the Council.
Stephens began his presentation with a timeline of events up until Monday’s meeting. He highlighted that the contract executed between the two groups (City of Levelland and Parkhill) took place Nov. 21, 2022.
The project schedule was discussed with a “deliverables” table which covered the amount of time spent in several areas. The study and report phase spanned 194 days, the preliminary design phase spanned 300 days, the final design phase spanned 500 days, and the bidding phase spanned 60 days for a total of 1,054 days.
Stephens thanked city staff for their aid in helping the deliverables be completed seven months ahead of the contracted schedule.
Permitting with TCEQ (Texas Commission on Environmental Quality) had been an issue due to the time needed due to limited staff in their office, according to Stephens.
Stephens added that there was constant contact every week taking place with TCEQ for several of the permits Parkhill was needing for various projects.
Parkhill advertised the project on Civcast.com which is anational website in Jan. 2025. Stephens said that a project of this size needed state and national recognition.
There were 216 plan holders who downloaded and reviewed the plans. Of those 216, 28 were general contractors.
Stephens highlighted the team’s disappointment when they received only two proposed bids on bid day, March 13.
“There was a third bidder that promised to bid this job. We pushed the job back a week so he would have a chance to bid for the job and did not show up on bid day,” explained Stephens. “It was really frustrating for us.”
The two proposed bids were from MH Civil Constructions located in Amarillo and Brown McKee Contractors located in Lubbock.
The proposed bid for MH Civil Construction totaled $26,265,000 and the proposed bid for Brown McKee Contractors totaled $32,818,965.
In November 2022, the OPC (Opinion of Construction) cost was $16 million. In January 2025, the OPC cost had risen to $20.4 million. By March 2025, the OPC cost had risen to $24.1 million.
Prior to the bid day (March 13) the bidding phase was a 60day window. Stephens stated that Albus spent that time contacting the 216 plan holders to coordinate potential pricing and adjusting the estimate of the project.
Councilman Bill Powell asked for clarification of the 60-day designated window. Stephens stated that the designated 60-day window from when Parkhill advertises the project to when the bids are opening.
Mayor Breann Buxkemper asked Stephens if Parkhill communicated with the City of Levelland that the prices could be considerably higher.
Stephens stated that there was communication in January about the $4 million increase within the 60-day period.
Councilman Michael Stueart stated he believed the project would sit at the $20.4 million mark. Stephens agreed and reiterated his disappointment in the limited interest of the project despite it being a “great” project.
Powell asked why there was little interest in the project.
Stephens explained that they called several general contractors from the Dallas area with responses being too busy or the project was not big enough to travel to Levelland for it.
“I was surprised by that,” said Stephens. “To have 216 folks look at it including 28 general contractors and have two show up on bid day.”
Both Buxkemper and Stueart stated the project is big for Levelland. Additionally, Stueart highlighted the $10 million increase from 2022 to March 2025 stating, “I don’t know how we missed that.”
“I don’t know how we missed $10 million from the time we first talked about this in 2022 to $26 million,” stated Stueart. “That is $6 million over what we expected, and we can’t pull that out of our pocket.”
Buxkemper alluded to a “passionate” phone call prior to the meeting which included Stephens and additional Parkhill staff.
“I appreciate you coming back out here to speak with us, but I have spent a lot of my weekend on this and involved some other people who are smarter at building things than I am,” said Buxkemper. “I am going to be honest with you and to the citizens of Levelland, we are backed into a comer. Our sewer plant needed to be replaced years ago. We have to build a new one.
“In my opinion we can’t rebid this. We have been put in this comer, and we have a $6 million problem. It was just dumped on our lap and we are the ones that have to figure out how to pay for it.”
Speaking on an itemized list that was provided in the presentation for the project, Buxkemper explained that what is listed is needed and there is not much room for cost savings if that was the route chosen moving forward.
“We are the ones ultimately responsible for this and it looks like we didn’t do our jobs,” stated Buxkemper. “We did our jobs.”
Powell asked Stephens what he would do if he was in their position. Following the question, Stephens presented possible options.
Stephens pointed toward a slowing economy and suggested contractors may reconsider if the bidding process was redone.
Stueart posed the question of the current plant’s longevity to last through another bidding process. The councilman also added that he did not agree with the claim of the project being seven months ahead of schedule.
“I want an answer to that,” said Stueart. “I don’t want to keep pushing this off and saying well let’s look at our options. Why did we miss that?”
Buxkemper also asked if there were enough eyes on the project to which Stephens replied that there were roughly 40 people working on the project.
“I am 100% proud of the plans and specifications of this project. This is going to be a great project...” said Stephens. “What I cannot control is what is happening in the market, I don’t control market conditions, and I can’t make a contractor bid a project.”
Buxkemper asked if it is the job of Parkhill to monitor the market and what the costs are going to be as she stated it is not the job of the City.
“Our job is to use the best knowledge that we have of the market,” said Stephens. “That is why we increased the price by $4 million in January because we knew it was going up. We knew it was not going to be the original amount. Did I think it was going to be where it landed, absolutely not.”
Stephens mentioned that a 10% to 15% swing is typical with competition from bids on a project. He added that the lack of competitive bids did not help.
Buxkemper asked if Stephens had seen a swing this big in other projects. Stephens stated he had seen similar swings in project pricing in the last two to three years.
Stephens explained that the numbers prior to bid day are not concrete numbers and could be different once the bid is submitted.
Councilwoman Jaime McCabb explained that she understood Parkhill does not set pricing, but the large increase from the span of January to March was hard to grasp. Additionally, she stated the increase in the project price requires more than a simple “sorry” to the citizens of Levelland.
Stueart added that Parkhill is responsible for many projects and should have had a better understanding of how the markets were trending within the past months.
Stephens added that during the bidding time, contractors will often play games with one another when it comes to pricing or who is going to bid.
Councilman Max Ledesma responded by stating that it felt like the contractors worked together to see how much money the groups could get from the project.
“This is what that tells me with the project increasing in that short of time,” stated Ledesma.
Buxkemper noted the $2.9 million in engineering fees, sharing her desire for some monetary concession in the expected engineering fees of the project.
Powell asked for a start date explaining he is tired of seeing the cost continue to increase for the project.
Stephens stated the contractors who submitted bids must hold their bid amount until May 15. He added that the Council can award a bid for the project any time prior, but the deadline is May 15.
City Manager James Fisher explained that he has shared his aggravation and frustration as he had asked about the project on a monthly basis since assuming the role of city manager in 2024.
Fisher stated that an OPC of $24 million slipped somehow at the time of the bid process opening.
“The mayor and I asked Parkhill leadership to stand up and be accounted,” said Fisher. “I don’t see them here. This doesn’t seem like that this is a concern with Parkhill.
“If you would have told us this in the January of 2025, you need to be cautious because the numbers are going up, I would have not recommended to this Council to go forward with a $6 million water meter proj ect.”
Fisher added that he is now tasked with finding the money while current projects must be pushed back.
“This is the construction dollars that is $26 million and then yours (Parkhill) is on top of that. “We are paying you for not doing your jobs. This City is the one who lias to answer to the citizens. We are the ones that have to go out there and we cannot say it is a horrible situation, or it is a bad thing. Those are not answers. You guys fell asleep at the switch and there is no other way around this.”
Fisherreferenced the mayor’s comment of pointing fingers of blame not being the answer. Additionally, he added that it now becomes his responsibility to find options for the Council to consider.
“I’ve already told the council that we’re going to have to recommend moving forward with this. We don’t have any other option,” explained Fisher. “If we reject it then we have to go through this whole process all over again and may get zero bidders or we will have people look at these numbers say the new benchmark is $26 million and let’s go from there.”
Fisher stated that the Council is going to weigh their few options until the April 28 meeting and continue to work with the City’s financial advisor to find a comparable solution.
“We are in a comer and Parkhill failed the City of Levelland in my opinion,” stated Fisher. “We are the ones that are going to have to figure this out and take it on the chin for our community.”
The conversation of Parkhill assuming any financial responsibility was revisited following Powell posing the question.
Stephens began his reply by revisiting the long history of Parkhill working with Levelland. He would then explain that there was no intention of Parkhill not wanting to communicate with the City regarding the project and thought there was constant communication.
Powell then reiterated the question.
Stephens explained that the remaining bills needing to be paid are constmction related items as the engineering fees have already been paid.
“I told Mr. Fisher that typically we carry a 15% profit on the numbers to the tune of $175,000,” said Stephens. “We will reduce our contract for that amount and cost for the remainder of the project. You are important to us and we are not trying to make money on you guys in addition to this thing.”
Powell stated he did not mind Parkhill making money. However, the councilman did point out the disparity of $175,000 compared to the $6 million the City now has to find if they choose to award the bid.
City Attorney Slater Elza and Fisher both explained that awarding the bid should take place first before going through each line item for the project.
Fisher added that the lowest bid (MH Civil Constmction) has been very responsive and communicated with the city manager and is willing to work with the City and go through with the project.
“I have gone through this (project item list) numerous times, and I don’t find areas that if they are cut they will make a significant difference,” said Fisher. “That is what is frustrating.”