The Storm Lake City Council has rejected all bids for the Wastewater Treatment Plant Blower Replacement Project, citing a significant funding shortfall. The decision came during the council’s regular monthly meeting Monday evening.
The city had secured a $300,000 Energy Efficiency and Conservation Block Grant from the Iowa Economic Development Authority, but the lowest bid came in at over $1.17 million—nearly half a million dollars above the engineer’s estimate.
Assistant City Manager David Derragon presented the options to the council.
Council members expressed concern about returning the grant and delaying needed upgrades.
Councilmember Maggie Martinez voiced frustration.
Project Engineer Tom Graff of ISG, Inc. explained the cost spike.
Outdated project timelines and Build America requirements have also contributed to the rise in cost, said Graff.
Derragon recommended rejecting the bids.
The council ultimately supported postponing the project and pursuing a future bond that could include broader nutrient reduction upgrades.
