It’s official: The Cullman Utilities Board has approved ASI Constructors, Inc. as the engineer for phase II of the Duck River Dam project, which will encompass construction of the dam and spillway. The Colorado-based company had the low, responsible bid of $51.79 million.

The bid is in line with engineer of record CH2M Hill’s final estimate, and came in approximately $3 million below the total anticipated for construction.

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.

The utilities board formally approved the bid at a Tuesday meeting, with anticipation of a June 2 notice to proceed with work. The tight timeline is needed to stay within the permit’s requirements to finish the dam by November 2016.

ASI plans to use major out of state sub-contractors they’re familiar with for much of the project, but officials noted phase II should still create several local labor and sub-contractor jobs. The board also noted dozens of employees would be relocating to Cullman for the duration of the project, which should generate additional sales tax and lodging revenue.

Sub-contractors on ASI’s short list include L.I. Smith and Associates surveying from Tennessee, National Quarry Services drilling and blasting from North Carolina, Layne Christensen Company drilling and grouting from Texas, Colorado Engineering & Instrumentation from Colorado and BECC geotechnical testing from Birmingham, Alabama.

A total of three bids were returned to the board for the project, with Thalle Construction filing a $54.5 million bid and phase I contractor Brasfield and Gorrie filing a $69 million bid.

Though the low bid of $51.79 million was in line with what engineers had projected, the board had hoped this phase of the project might come in even 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.

Officials plan to delay the next bond issue and use existing funds as long as possible, to keep the rate close to current levels for at least another year.

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.