ELY – Bids for the multi-million-dollar wastewater treatment facility project for the city of Ely came in under estimates “by a considerable margin” last week, and city council members here approved the low bid for the upgrade Tuesday night.
Construction will start next spring, according to Clerk-Treasurer Harold Langowski.
“We had very good news,” he said, in reporting on the project bids.
The Ely Utility Commission recommended awarding the bid to Rice Lake Construction Group for $6,656,000. The project was estimated to cost as much as $9.5 million by the project engineer.
Langowski said the city of Ely’s wastewater treatment plant must be in compliance with new federal mercury discharge rules by March 2023.
Two other companies also bid on the project. Magney Construction Co., of Chanhassen, submitted a base bid of $7,320955, and Lakehead Constructors, Inc., of Superior, Wis., submitted a base bid of $8,206,355.
Council member Albert Forsman said, “We were very fortunate to have three very competitive bids that all came in under budget. It was refreshing to see that this time. Fortunately, the contractors were hungry on this one and sharpened their pencils.”
Langowski noted that funding for the project will mostly be provided through the Minnesota Public Facilities Authority’s Clean Water Revolving Fund, established under the federal Clean Water Act and state law to make funds available for point source and nonpoint source water pollution control projects.
“A point source implementation grant will help us reach our mercury discharge limit,” Langowski said.
In the original application for $9.5 million, as much as 83 percent of that was eligible for the grant, according to Langowski.
“Obviously, with our bid coming in well under that, the grant will be recalculated, but it will still be a significant portion of this project,” he said.
The city is also applying for Community Development Block Grant funding for the waste water facility project. That federal HUD funding requires State Historic Preservation Office approval, Langowski said.
“We are also going to submit (a funding request) to Iron Range Resources and Rehabilitation once we get our total project costs put together,” he said.
Part of the state PFA funding will also involve a low-interest loan to the city.
“We retired some debt service for the existing plant in 2020, and we will be taking on this debt, which is good timing,” Langowski said.
He noted that city water customers will not see additional rate increases to specifically pay for this mandated facility upgrade.
The council also approved the EUC recommendation to pay AE2S (Advanced Engineering and Environmental Services) $19,331.55 for the engineering and bid work on the project.
Twin Metals support
Mayor Roger Skraba looked to clarify his position with the council in sending letters on the city’s behalf in seeking support of the Twin Metals Minnesota sulfide mining project proposal.
“I don’t know where my role is in asking for permission from the council. I feel comfortable in asking you,” he said. “I want to send a letter to Elon Musk inviting him to our community. Look what we have here, and if you are interested in helping us. You are going to need some batteries here in the near future, and we have some minerals for your batteries.”
Council member Jerome Debeltz suggested developing a form letter for all the city council members to sign and send out.
Council member Heidi Omerza, with support from Angela Campbell, made the motion to support Skraba’s letter-writing campaign. The council unanimously approved.
Other business
In other business, the council:
• Hired Zachary Ward for the Ely Police Department patrolman position, pending background and psychological checks.
• Hired firefighter Brian Trout to the Ely Fire Department. The council also approved the resignation of firefighter Kael Richards, who is moving out of the city.
• Approved a contract with Premier Pyrotechnics for $15,000 for the 2022 Fourth of July fireworks display.
• Rejected an amendment request for the U.S. Forest Service Ely Airport lease adding a clause ensuring adequate COVID-19 safety protocols, and will address any changes and amendments when the lease is renewed.
• Scheduled a city zoning map ordinance public hearing for 5:15 p.m. on Tuesday, Nov 15.