The Denison City Council approved construction services contract for various water line replacements with Atkins Brothers Equipment Co. during a meeting Tuesday.

The segments of water line set to be replaced include portions of water lines along Layne Drive, East Bond Street, East Hull Street, East Monterey Street and East Heron Street/East Acheson Road. The segments were selected because they are most in need of attention and require the most resources to maintain.

Denison Public Works Director Bobby Atteberry said all of the lines are located in the east side of the city.

“My water team tells me that this is going to solve a lot of problems for them,” Atteberry said. “These are leaks that they have to repair on an ongoing basis. The total is 6,800 linear feet of water lines that will be replaced so it’s not a small job.”

The Public Works Department received and opened bids on Dec. 19. Of the 10 bids received, Atteberry said Atkins Brothers Equipment Co. submitted the lowest and best bid.

“I’m familiar with this contractor,” Atteberry said. “They are out of Midlothian, Texas. I’ve known them for a long time. They’re a good contractor. Our engineer checked them out and checked their references. We feel very confident that they can do the project.”

Atteberry went on to explain the capital improvement plan budgeted $1.4 million for this project. With Atkins Brothers Equipment Co.’s bid coming in at $900,000 Atteberry is able to apply the leftover funds to another project.

“The bonus to this is that leaves us with about $400,000 in the CIP that was unspoken for,” Atteberry said. “I’m going to be able to use that money to get a wastewater master plan started right away, which is something that hasn’t been updated since 1980.”

Additionally, funds will be allocated to updating the water master plan that was last updated in 2013. Atteberry estimates the construction to begin in early spring. The project is set to span approximately a year from start to finish.

The wastewater and water master plans are both set to be completed by the end of the year.

The council also adopted a resolution directing the publication of notice of intention to issue combination tax and revenue certificates of obligation to provide funds for waterworks and sewer system improvements.

The notice will be published January 21 and January 28 to communicate intent to issue bond totaling no more than $7.5 million for several projects. The funding would be used for NTRA elevated tank, water lines, Paw Paw UV and clarifier, Iron Ore Creek trunk sewer, TCEQ SSO projects and wastewater master plan.

The city is in its fourth year of water and sewer rate increases that were implemented in 2014. The raised by the increases will pay for the bonds being issued. The council will have two meetings to consider the issuance but no public hearings.