SOUTH SIOUX CITY, Neb. (KCAU) – The South Sioux City City Council has approved the issuance of a combined electric, water and sewer revenue bond to pay for the construction of a new wastewater treatment plant.
The bonds total roughly $38.5M, but that’s $5.5M more than what engineers projected the cost would be.
Last month, the South Sioux City City Council unanimously approved a $39.2 million contract with a Fargo, North Dakota company to build the new water treatment plant. The facility is to be built near Tyson Foods and along the Missouri River.
The price tag, discovered when bids for the project were opened in February, is considerably more than what the city’s consultant, HDR said the project would cost.
The information included in the bid packet shows an original cost of $32.9 million. The bid accepted by the city of South Sioux City tops $39.7 million. That’s about an 18 percent increase. The price hike produced little to no comment at Monday night’s council meeting.
Mayor Rod Koch said that taxpayers shouldn’t expect to see a massive difference when the project is complete.
“We have customers outside of our regular rate payers. The way we think it’s going to shake out it shouldn’t be too bad for anybody. The rates will be higher but with this economy everything is a little high right now so I think it’s all going to fit together. There’s more income coming in for everybody so at the end of the day I don’t think anybody will see that much of a difference,” Koch said.
Additionally, the mayor says the city has acquired low interest loans and grants to help pay for the project. That includes a $12.2 million dollar federal grant awarded to the city last summer.
The mayor said the city was advised to continue with construction as the price of materials isn’t expected to go down. Hoch says he still sees South Sioux City as a player in a larger metropolitan waste water treatment plan.
“We’ll still be part of a tri, a double, of a city wide a total metropolitan solution. This is just the first step. We were actually the first one’s to take the first step and do something,” added Koch.
The city originally expected to begin construction early this summer. There is no word if that’s still the plan