Working to update their facility, South Davis Sewer District recently received a new $87 million bid for their current project – approximately $17 million more than they had initially expected.

“This is not surprising, although we were hopeful that maybe we had done a better job estimating,” sewer district general manager Matt Myer said.

Bids for the project were first made in fall of 2023, according to Myer. During this time, the sewer district received estimates ranging from $66 million up to $120 million. The entity believed that the lowest bids more closely resembled actual costs, though Myer says they didn’t have a “great feel” for the electrical design budget.

On May 30, the sewer district opened bids – prequalifying construction companies for estimates. The lowest projected cost was $87 million, while the highest was $101 million.

“Inflation is really hitting construction hard,” Myer said. “We’ve seen other wastewater treatment plants along the Wasatch Front. They’ve had between 15-20% cost increases and sometimes more than that between estimating like we saw, estimating what was going to happen and then finally getting a hard bid on what the project is going to cost.”

South Davis Sewer District plans to continue paying for the projects by issuing bonds and raising rates. According to Myer, charges for residents will go from well under the state average to somewhere near the average sewer rates for the Wasatch Front.

Many elements motivating the completion of the $87 million project are new state and federal mandates, according to a presentation given by the sewer district. For example, Ammonia limits have decreased from 9 mg/L to 6 mg/L – forcing the facility to add a “Moving Bed Biofilm Reactor” by 2026.

“The life cycle clock starts over for some of the new features we’re adding, so we’ll be renewing and replacing the public’s infrastructure,” Myer said. “That’s the silver lining, that we’re getting new stuff that will last, you know, hopefully another 60 years, but it’s still frustrating because we really like being able to provide low-cost service to the public.”

To maintain affordability for residents, the sewer district may enact new billing strategies for the future. According to Myer, no rate changes were made between the years 1988 to 2018. Myer says that following construction, increases are expected to slow down, but that the sewer district plans to better keep pace with inflation in the future.

“We’ve heard feedback from the public that they would have preferred more gradual increases,” Myer said. “We’re going to try and implement more gradual increases once the construction’s over going forward.”

As rates change, the sewer district is promoting alternative billing methods for residents. Those who find a monthly charge more manageable than a bi-annual one are provided that option. According to the sewer district’s site, bills can be paid using a check, by signing an ACH form or, for a service charge, by paying online with a credit or debit card.

The sewer district’s next board of trustees meeting will occur on July 18 at 5 p.m.