City hopeful to award sewer plant bid in January

     The City of Monticello is confident that they’ll be able to award the bid for the new wastewater treatment facility (sewer plant) project at its first meeting of 2024 on Wednesday, Jan. 3.

   During the Dec. 18 Monticello City Council meeting, the council voted to table further consideration of the bids and awarding a contract.

   It’s been over a month since bids were revealed. The city received four bids for the project, ranging from $25,449,000 down to $23,448,000. Bill Bruce Builders, Inc. out of Eldridge was the lowest bidder. The original project estimate was $17.5 million.

   “We’re making progress,” noted City Administrator Russ Farnum.

   He shared that the USDA at the state level met on Dec. 12 and approved the underwriting for additional financing to carry out the project.

   In addition, Bill Bruce Builders also approved a 30-day extension on their bid, without amending their price.

   “We’re just waiting on the federal USDA to approve the underwriting and authorize going forward with the project and we’ll be ready to go,” said Farnum.

   In addition, city staff have been working with local banks to increase the interim finance amount.

   “This looks very positive as well,” added Farnum. “So hopefully we’ll catch a little less interest if we approve it at the Jan. 3 meeting.”

   With that, the council voted to once again postpone/table any action associated with the wastewater treatment facility.

   Also related to the project, the council approved setting a public hearing for Jan. 3 at 6 p.m. to enter into a Sewer Revenue Loan Agreement due to bids coming in above what was budgeted.

   While USDA-RD (Rural Development) preliminarily approved additional funding, more steps need to be taken, which is why another public hearing is needed.

   The council originally approved borrowing up to $21 million for the project. This public hearing and subsequent action on Jan. 3 would authorize another $2.5 million to construct the sewer plant.