More WWTF bids tabled

As the cost of business continues to rise across the county, the cost of the city’s wastewater treatment plant renovations continue to do the same.
Such was the case again at the Oct. 5 meeting of the Custer City Council, when the council unanimously voted to table a pair of bids on the plant, this time for the facility’s new effluent force main and transfer force main and lift station construction, also know as Phase 3A and Phase 3B of the project.
Trent Bruce of DGR Engineering, the company helping guide the city through the plant renovations, was present at the meeting via videoconferencing, and told the council that while there were three bids for the transfer force main and four for the affluent force main, all of the bids came in over the estimated costs of the projects. He said DGR and KLJ Engineering, another firm assisting on the project, have spent the last couple of weeks asking contractors and suppliers why bids are so high.
“To be frank, it’s just a really harsh construction time right now with the projects and bidding environments,” Bruce said. “While we didn’t realize as much savings as we were hoping, we did get more competition on these bids.”
For the effluent force main, Quinn Construction of Rapid City was the low bidder, with a bid of $4,299,541.15. The engineer’s estimate was $3.07 million, meaning the low bid was 40 percent above the estimate. For the transfer force main and life station construction, RCS Construction of Rapid City was low bidder with a bid of $2.5 million, which was 30 percent above the engineer’s estimate of $1.95 million.
Bruce said he recommend the city council table the bids to allow more time for DGR to work with contractors to further reduce the prices, which he said DGR is already in the process of doing.
“Rather than award it at this price and work through change orders, we would like to negotiate with the lowest bidders to see if we can’t find more savings in the items we are planning to work with in the affluent force main and transfer force main,” Bruce said. “That’s where we are at today.”
The council agreed to table the bids, with the council’s next meeting Oct. 19 the likely landing point for an update on and possible approval of bids.
“We certainly appreciate all your efforts to work this project to get the best price we can,” alderwoman Jeannie Fischer said.
The council also heard from Phil Abernathy and Tanya Olson of the Custer Area Economic Development Corporation (CAEDC), who came to the council to request $10,000 in funding from the city to help fund a part-time director for the CAEDC.
The two said unlike most communities in South Dakota and every other community in the Black Hills, Custer does not have a paid economic development director, which they said puts the community at a disadvantage to other communities in regards to economic development. Because of the lack of director, they said, Custer is missing out on potential grants for housing, development and community quality of life.
“We are missing out on opportunities to bring new businesses to the community and we are coming up short in providing resources to existing businesses,” CAEDC board members wrote in a letter to the council.
Abernathy told the council that because the CAEDC board is all volunteers, they do not have enough time to dedicate to the CAEDC to compete with other communities on a lot of fronts. Abernathy said they envisioned their director as a part-time person, perhaps who is retired and has time to dedicate to the pursuits of the CAEDC.
“Do you understand we have already finalized the budget for next year?” Fischer asked the two, referring to the recent passage of the 2023 budget for the city.
Abernathy said they did understand that, but hoped for a special reallocation of funds to help CAEDC. Olson said CAEDC felt this request was outside the box of a normal budget request for the city.
Alderman Todd Pechota asked if CAEDC planned to approach any other entities for funding, with Abernathy saying that is the case, including Custer County, which he approached for $10,000 in funding at the county commission’s Oct. 5 meeting.
If CAEDC was to receive the $20,000 requested from the two entities, Abernathy said, it could then likely pursue matching funds for another $10,000 or $20,000 to help pay for the director.
Olson said when the Custer Area Chamber of Commerce’s funding formula was altered a few  years ago, part of the intent for doing so was being able to provide money for a CAEDC director.
“I don’t know what happened to that portion,” she said.
Ultimately, Olson said, CAEDC would like to get a longer-term commitment from the city where helping fund the director position is part of the city’s annual budget.
City finance officer Laurie Woodward said if the city were to give the money as requested, it would need to do so through a budget supplement.
“I would be willing to have the conversation and make sure it comes up in the funding cycle,” Fischer said. “I just don’t know how we do it now. I wish we would have had this conversation in July.”
Pechota said he would like to see if the county is going to allocate funds to support the position before the city does so, and if the position is funded, part of the person’s duties is to make the funding request on an annual basis. The council ultimately tabled the request to wait to see if the county planned to help fund the position.
In other news from the Oct. 5 meeting, the council:
• Heard from Dana Foreman of KLJ Engineering, who said “substantial completion” has been reached on phase one and two of the Harbach Park project. The state wants final paperwork done for the project by early November so that it can be submitted to the federal government for grant purposes.
• Voted to take over maintenance of Sidney Park Road from Hwy. 16 to Park Avenue, which was previously being maintained by Custer County despite being within city limits.
• Approved reappointing Jerad Tennyson to a new five-year term on the Custer County Planning Commission, as well as a pay increase from $50 per meeting to $100 per meeting for planning commission members.