This construction modification directly supports the City of Savannah's unprecedented industrial development, residential growth, and permitting limits on groundwater withdrawals. Demand for water from the I&D Water Treatment Facility has significantly increased in recent years and is expected to continue rising. The City’s ability to remain the primary drinking water supplier to the growing Savannah region depends on the I&D Water Treatment Facility, which was originally constructed in 1946. To ensure a reliable water supply, maintain regulatory requirements, and meet future water demands, the I&D Water Treatment Facility is undergoing the most significant upgrade and modernization project in its history. This project is primarily funded through the Georgia Environmental Finance Authority (GEFA) and complies with potential future federal funding requirements. 

Phase 1A for Immediate Improvements is currently under construction, and includes expanded chemical storage and feed systems, SCADA and electrical upgrades, and the replacement of aging infrastructure at the I&D Water Treatment Facility and intake pump station. Phase 1B, approved Feb. 2026, authorized Hussey Gay Bell to perform additional engineering design services to advance future improvements. Phase 1C construction will include replacement of a critical section of raw water pipeline, construction of a new elevated storage tank in the distribution system, installation of a dissolved oxygen mitigation system, sedimentation basin structural rehabilitation, filter control automation, and completion of the alum sludge pond dredging project. 

Garney Companies, Inc. was previously selected through a competitive procurement process to provide pre-construction services and construction services for Phase 1A. Throughout the process, Garney has worked closely with City staff and the design engineering firm, Hussey Gay Bell, to develop the Phase 1C GMP and construction plan. Garney has also demonstrated a strong commitment to the City's Disadvantaged Business Enterprise (DBE) program, by partnering with local and regional firms, and intends to expand that participation during Phase 1C construction. 

Initial Contract Amount (Pre-Construction) - $700,000 

Contract Modification No. 1 (GMP #1) - $69,919,146 

Contract Modification No. 2 (GMP #2) - $65,526,494

Approval of this second contract modification will allow construction of the critical infrastructure improvements to proceed on schedule. Upon approval, the total value of the Garney Companies, Inc. contract, inclusive of Modification No. 2, is $136,145,640. We will continue to provide City Council with regular updates as the project advances through construction and future design efforts. 

Recommend approval of Contract Modification No. 2 for construction services to Garney Companies, Inc. for the I&D Water Systems Improvements Project at the Phase 1C Guaranteed Maximum Price (GMP) of $65,526,494. 

Approval