April 15, 2024

City Council Approves Largest Bid Award for Water Reclamation Project

The City's Wastewater Treatment Plant The City's Wastewater Treatment Plant (City FIle Photo/Shoemaker)


RAPID CITY, SD—At its meeting Monday night (April 15), the Rapid City Council approved a bid award to PKG Contracting, Inc. of Fargo, ND for the City’s Water Reclamation Facility South Plant Improvements Project.  The bid award of $172.3 million is the highest single bid ever awarded in the City’s history.

            The $207 million project will construct new treatment facilities and processes at the South Side Drive campus east of Rapid City, along with construction of an additional aeration basin, two additional secondary clarifiers, a dewatering building, a pumping building and all associated equipment.  Various portions of the existing facility will also be renovated and modified as part of the improved treatment train.

         In April 2022, the City of Rapid City was awarded a $101.5 million Clean Water State Revolving Fund loan and a $43.5 million American Rescue Plan Act (ARPA) grant by the South Dakota Department of Agriculture and Natural Resources and the Board of Water and Natural Resources.  The loan/grant package was the biggest awards received by the City of Rapid City and were part of more than $183.9 million in grants and loans being distributed by the state in April 2022 for drinking water and wastewater projects in western South Dakota.

         An additional $35 million loan to support the project was secured last month from the Board of Water and Natural Resources and additional efforts are underway to secure the remaining financing needed for the $207 million project.

         Phase one of the project began in 2022 and is scheduled to be completed this summer.  With Council approval of tonight’s bid award agenda item, phase two of construction on the project would be scheduled from this Spring to the Winter of 2028.

        The bid award is the largest ever approved by the Council.  In November 2019, M.A. Mortenson Company of Minneapolis, MN was awarded the major work for The Monument’s Summit Arena.  The arena project included the highest-valued permit ever issued by the City at $111.5 million.


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