SIOUX CITY -- The Sioux City Council will be asked Monday to approve a nearly $38 million consulting services agreement with a Minneapolis environmental engineering firm for the wastewater treatment plant facility plan improvements project.
If the council votes in favor of the resolution, Hazen and Sawyer P.C. will provide design, site survey and geotechnical investigation, construction administration and observation, as well as post construction services for the project in an amount not to exceed $37,822,334. The council could also opt to deny the agreement and require the city to seek services from another firm, according to city documents.
In May, in spite of objections from the business community, the council approved the third and final reading of a residential, commercial and industrial sewer rate hike to help fund a projected $470 million rebuild of the city's aging wastewater treatment plant, which is between 50 and 60 years old.
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The plant, 3100 S. Lewis Blvd., is slated to be rebuilt in phases.
"The (wastewater treatment plant) facility plan improvements are intended to be implemented across two phases, with a potential third future growth-driven phase, and this scope includes preliminary engineering services for the first two phases and detailed design, construction administration, and post-construction assistance for the phase 1 (wastewater treatment plant) facility plan improvements," the city documents stated.
The plant, 3100 S. Lewis Blvd., poses significant safety issues for city staff and has a history of compliance issues with the state. In January of 2022, the Iowa DNR filed suit against the city over alleged repeated environmental violations at the plant, which dated back to March 2012. The city faces fines adding up to millions of dollars.
Last April, the council green-lighted a $617,700 consulting services agreement with Hazen and Sawyer to develop a comprehensive facility plan, which will guide the city's wastewater treatment services for the next two decades.
"The city intends to implement improvements at the (wastewater treatment plant) to address safety and odors, repair deficiencies, enhance reliability, and expand capacity," the documents stated.
Phase 1 of the project features a number of improvements, according to the documents, including primary clarifier replacement, aeration tank rehabilitation and process improvements, new primary sludge and primary effluent pumping stations and plant-wide odor control. Demolition of unused plant structures and buildings is also included in the first phase.
The city is paying for the wastewater treatment plant project with a combination of funding, including the rate increase and American Rescue Plan Act dollars. The city received $40.6 million from ARPA, a COVID relief package signed by President Biden in March 2021.
Industries saw a 5% sewer rate increase effective July 1. A 25% increase goes into effect on Jan. 1, 2024. Rates are slated to jump 20% in FY 2025 and 2026, while in FY 2027 the increase will be 8.5%. Residential and commercial ratepayers saw an annual rate increase of 20% in the current fiscal year, which began July 1. Rates for those particular customers will increase 10% in FY 2025 and 3% in fiscal years 2026 and 2027.