Simplified: Expanding the water reclamation plant is going to cost about $56 million than originally planned when the project was first announced in 2018.
Why it matters
- The expansion to the treatment plant will allow the city to keep up with a growing population both in Sioux Falls and the region, said Mark Cotter, director of public works.
- The project will expand the treatment center's capacity by 50 percent, from 20 million gallons per day to 30 million.
- In the four years since the initial project plan, costs have gone up substantially, Cotter said.
- That's due largely to: supply chain issues, increased material and labor costs, and inflation. Even since the last time the City Council was updated in January, there was another 5 percent cost escalation, he added.
"The escalation in price is largely contained in ARPA ( the American Rescue Plan Act, i.e. federal COVID-19 relief) funds," Cotter said.
Where will the extra money come from?
As Cotter said, most of it comes from federal relief funds.
- $6.8 million comes from the ARPA funds the city received.
- The city is also eligible for another $5 million grant from the state.
- And the largest expected chunk of changes comes from a statewide, lawmaker-approved fund for water projects. The fund in total is $600 million, and Sioux Falls is hoping to get $36.9 million, Cotter said.
The new budget for the project is $215 million, up about 35 percent from the initial proposed cost of $159 million.
The remaining $7.3 million cost increase not covered by ARPA funds will fall to the city.
What happens next?
A groundbreaking event for the treatment plant expansion is planned for May 3, Cotter said.
The event will also include public tours of the facility.