The second phase of construction on Cullman’s Duck River Dam reservoir is underway, and officials say the work should create close to 50 new jobs in the area over the next 1-2 years.

Officials with ASI Constructors, Inc. are in Cullman and already ramping up hiring in anticipation of an accelerated work schedule to meet the tight time constraints required to fill the dam by the permit deadline of November 2016.

The Colorado-based company had the low, responsible bid of $51.79 million. ASI has built more than 100 dams, several of which had a similar design to Duck River.

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.

ASI has already hired local and regional sub-contractors such as Conn Surveying, Blocker Company, Inc., Cullman Quick Copy, Inc., DCA Ready Mix USA, Madison Materials and K&M Electrical Contractors.

ASI President John Bower said the company has already hired a handful of managerial positions, with 22 additional positions currently listed. By the time the project is at full speed, Bower said there could be as many as 50 jobs created locally.

“In the experiences we’ve had, revenue paid to contractors is recycled several times back into a community, through payroll and local spending,” he said. “From our staff, we just want to say the City of Cullman has been a great client in helping us get established here very quickly.”

Along with the obvious addition of jobs, city council and utilities board member Garlan Gudger, Jr. noted the project will also stimulate everything from tax revenue through on-site needs such as utilities and fuel.

“It’ll mean an astounding amount of impact on this community,” he said. “It’s one of the biggest projects this community has ever had.”

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 water 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 II. 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.