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Yankton commission authorizes roughly $45.93 million guaranteed maximum price for wastewater plant upgrades
Summary
The Yankton City Commission on Sept. 23 approved a contract amendment authorizing a guaranteed maximum price of $45,929,602 (plus a $1,102,200 owner's contingency) for wastewater treatment plant improvements and allowed staff to begin ordering long-lead equipment; the project will be funded in part with ARPA and may use SRF loans if needed.
The Yankton City Commission approved a contract amendment on Sept. 23 authorizing the city manager to execute a Sea Mar contract amendment that sets a guaranteed maximum price (GMP) of $45,929,602 and an owner's contingency of $1,102,200 for improvements to the wastewater treatment plant, bringing the contract authorization to about $47 million.
City staff said the project uses a design-build (Seymour) delivery method and that funding for the work includes American Rescue Plan Act (ARPA) allocations; staff also indicated the State Revolving Fund (SRF) loan would be available if additional financing is required. At the meeting, the commission voted to authorize the amendment so staff can place orders for long-lead equipment, citing rapidly rising prices for specialized components such as aerated granular sludge systems.
Kyle, a city staff presenter, told the commission, “So right now we have that guaranteed maximum price at roughly 45,000,000, 929,000,” and explained that several contingencies were built into the GMP. When asked whether the GMP would prevent every possible change order, Kyle said, “I will never guarantee that,” and explained that the contract includes a $1,102,200 owner contingency and a risk registry to address likely unknowns (for example, a high water table). He said the project team would return to the commission if an unexpected, major condition required additional funds beyond the contingency.
Staff described the project as roughly a three-year effort and said equipment ordering needs to start soon so that ARPA spending deadlines can be met; the presenter said the goal was to have the contractor on site in October and to sequence work so the plant remains operational, using bypasses and limited bypass pumping rather than shutting down service.
At the meeting staff introduced members of the team, including Tanner Hansen (wastewater plant superintendent), Todd Mergen (HDR, construction manager), and Tim Vandersand (John T. Jones, project manager), who were present to answer technical and sequencing questions. Commissioners pressed staff on schedule and funding; staff replied that they had discussed contingency and funding options with the state's funding agency and that SRF loans would be considered if necessary as the project progresses.
The commission approved the memorandum authorizing the city manager to execute the contract amendment on a roll-call vote; the motion carried and staff may proceed with equipment procurement and project mobilization.
Next steps: staff will finalize the contract amendment paperwork, order long-lead equipment, and move into early construction and procurement phases with the aim of keeping the plant operational during the multi-year upgrade.
