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City awards $20.87 million contract for wastewater plant overhaul
Summary
Vermillion accepted a low bid from PKG Contracting to replace aging pretreatment systems, funded by an SRF loan and an EDA grant; council approved the award unanimously.
The Vermillion City Council on Aug. 4 voted to award the wastewater treatment facility improvements contract to PKG Contracting of Fargo, N.D., for $20,869,000, Mayor and council members said during the meeting at City Hall.
The council approved the award after a bid opening that collected four bids; Banner Associates, the project engineer, reviewed the submissions and recommended PKG as the low, responsive bidder. The project has funding lined up from a $21,960,000 State Revolving Fund (SRF) loan and a $5,000,000 Economic Development Administration (EDA) grant, city staff said.
The work focuses on replacing the plant's pretreatment systems and other corroded equipment installed when the facility went into service in 1984. Shane (Light & Power) explained the pretreatment area is a highly corrosive environment and much of the existing equipment is 40 years old. The project is scheduled for final completion in October 2027.
The council was told design work began after Banner Associates’ engineering agreement in July 2023 and that plans were reviewed by the South Dakota Department of Agriculture and Natural Resources. A required rate resolution to support SRF loan repayment will be presented to council at the Aug. 18 meeting before funds are used.
Councilor Hellwig moved to accept PKG’s bid and Councilor Cheeseman seconded. The motion passed on a voice vote with all members present saying “aye.”
