A group of local officials tour the Duck River dam in September 2012, shortly after excavation work had begun.

Bids have officially been returned, and the engineers behind the Duck River Dam have made an initial recommendation as to which firm should handle phase II of the City of Cullman’s massive secondary water source project.

Engineer of record CH2M Hill formally recommended the city utilities board approve ASI Constructors, Inc. as the engineer for phase 2 of the project, which will encompass construction of the dam and spillway. The Colorado-based company had the low, responsible bid of $51.79 million.

“Talking with our experts, we feel very comfortable and recommend we move forward with ASI,” Tom Harwell, with CH2M Hill, said. “We feel they’re well-qualified to do this project.”

In the company’s bid package, ASI noted they have previously built dams of a similar nature and comparable size to the Duck River project.

A total of three bids were returned, with Thalle Construction filing a $54.5 million bid and phase 1 contractor Brasfield and Gorrie filing a $69 million bid.

The low bid of $51 million was in line with what engineers had projected and estimated, though the board had hoped this phase of the project might come in lower.

The total cost of the dam project is estimated at approximately $110 million, which is up approximately $40 million from initial estimates due to some unforeseen geological concerns at the site and higher-than-expected flood standards. Along with the increased price tag, local water rates will also be going up to cover the debt service for the project.

“Of course we were hoping for something slightly lower, but what came in is a good and reasonable bid,” utilities board chairman Dr. Wayne Fuller said. “We’re comfortable with the bid and it’s on budget.”

Though CH2M Hill has given the bid its seal of approval, the utilities board plans to spend the weekend reviewing the full proposal at length. A special called board meeting is set for Tuesday to potentially approve the bid.

 Officials hope to have a formal notice-to-proceed by May 23. The tight timeline is needed to stay within the permit’s requirements to finish the dam by November 2016.

The board recently hired underwriting firms Piper Jaffray and Raymond James to manage bond funding for phase 2. Minnesota-based Piper Jaffray will serve as lead underwriter, with the project being managed from regional southern offices. Raymond James is a Florida-based firm. The selections were made on the recommendation of the board’s financial advisor.

The dam project will create a 640-acre lake with a 32-million-gallon-per-day capacity in northeast Cullman County, which will work in conjunction with the area’s current sole major water source Lake Catoma. The design will be a hybrid, with roller-compacted concrete in the center and earthen wings.

The Duck River project has been in the works for more than a decade, after being permitted by the U.S. Army Corps. of Engineers than subsequently delayed by environmental challenges that have since been resolved.

Trent Moore can be reached by e-mail at trentm@cullmantimes.com, or by telephone at 734-2131, ext. 134.