Despite cost rise, council OKs plan

A budgeted $21.742 million expansion of the Kalispell Wastewater Treatment Plant has a tentative green light.

However, the overall price is larger than city officials had originally anticipated.

The Kalispell City Council voted 5-2 on Monday to award a $18.25 million contract to COP Construction LLC of Billings to expand Kalispell's sewage plant by 2009, with pieces in place for upgrades.

That contract formally begins after the Montana Department of Environmental Quality approves it, which city officials expect will happen soon.

Construction is expected to begin in early summer.

Right now, the plant is able to treat 3.1 millions of sewage a day. It currently is treating almost 3 million gallons daily.

That volume is expected to grow as thousands more homes are built in and near Kalispell.

COP Construction's contract calls for it to add buildings and equipment so the plant can handle 5.5 million gallons a day by late 2008 or early 2009.

When the upgraded plant reaches 80 percent of its capacity - 4.4 million gallons - the city plans to begin to increase its capacity to 7.5 million gallons, said Jim Hansz, city Public Works director.

This expansion has been on the drawing board for a few years with an original budget of $12 million.

But construction costs have increased significantly during those years, city officials said.

City engineering firm Morrison-Maierle estimated the cost would be $15.593 million when the project was put out for bids. But the four bidders came with estimates exceeding $18 million with COP Construction submitting the low bid of $18.25 million. The city staff and Morrison-Maierle think the four bids reflected reality because the estimates were close together.

The project's costs break down as follows:

. $18.25 million for construction.

. $2.55 million for engineering.

. $912,500 for a contingency fund to take care of unexpected expenses.

. $30,000 for a bond counsel.

Council members Bob Hafferman and Tim Kluesner opposed awarding the COP Construction contract Monday, hoping to delay the vote until May 7. They said they wanted more detailed information about the cost increases so the public would also better know why the price went up.

"I expect to get phone calls and a lot of street stops with questions on this project," Hafferman said.

Council members Kari Gabriel and Randy Kenyon were absent Monday.

The city staff said the higher cost should not translate to higher sewer fees, saying that Kalispell has built up a reserve from its sewage-impact fees and other sources during the past few years.

"By doing [preparation for the 7.5 million-gallon plant] now, instead of in 2015, we're probably saving money," said council member Hank Olson.

A May 7 public hearing is scheduled to discuss the city's budget amendment needed to cover the cost increase.