Construction of a water treatment plant in Woodbury will cost about $60 million less than expected. The Woodbury City Council has approved a $149.8 million contract with Market & Johnson, a construction contractor based in Eau Claire, Wisconsin, to build the plant that will treat city water for per- and polyfluoroalkyl substances (PFAS).
The city had estimated the cost would be about $210 million. “It was a very pleasant surprise to see the bids come in,” City Administrator Clint Gridley said at the Sept. 25 council meeting.
Mary Anne Burt agreed. “That is great news,” she said, adding her appreciation of the work by city staff and consultants on the project. “At this point we are moving forward, and it’s exciting.”
Construction of the plant is a significant portion of the overall water treatment system. The other major part is infrastructure including 17 miles of pipelines to carry water from the city’s wells to the plant for treatment and then to homes and businesses. With the lower cost of the plant, the total project cost is now estimated to be $325-350 million, Woodbury Assistant Public Works Director Jim Westerman said in an interview this week. It’s the largest infrastructure project in city history.
Most of the $149.8 million plant construction will be paid for out of a State of Minnesota and 3M Settlement Fund. 3M originally developed and manufactured the PFAS that have caused the Minnesota Department of Health to issue PFAS health advisories for nine of the city’s 20 wells. Water from those wells is being treated at temporary facilities. After the state sued, 3M agreed to create the $850 million settlement fund.
About $11 million of expenses for the plant are not covered by the settlement fund. That includes a garage for city equipment as well as the city’s cost share for operations and maintenance. The city’s recently built production well also was ineligible since there isn’t enough data yet to show if PFAS contamination is an issue. Westerman said if the data shows that to be the case, the city will seek compensation from the fund for the cost of building the well. The city would need to use its reserves or sell bonds to finance the amount not paid by the fund,
Westerman said the project design staff and city staff worked hard to ensure the city received more than one bid for the plant construction to create competition. In the end, two bids were submitted, which he called a success considering the limited pool of qualified contractors. The assistant public works director said bids can come in lower than expected for a number of reasons including timing and changing economic conditions like easing inflation and falling interest rates. He said Market & Johnson “really wanted the project” to increase its business in Minnesota, adding that the firm comes highly recommended.
Westerman said Woodbury has become a national leader in addressing PFAS contamination and a lot of communities are watching its progress. “This will be one of the largest PFAS treatment plants in North America,” he said. “It’s not the first, but it’s one of the first, and there are a lot of eyes on this project.”
A groundbreaking for the water treatment plant is set for Nov. 7. The city is planning on the treatment system to be operational in 2028.
