Billings advances West End Reservoir with $19.3m earthwork contract and plans $40m bond sale

Billings advances West End Reservoir with $19.3m earthwork contract and plans $40m bond saleThe Montana municipality has approved a major change order for its new water treatment plant and reservoir project while setting parameters for a summer revenue bond issuance to complete the construction.

City Council approved a $19.3 million change order with Dick Anderson Construction for major earthwork on the West End Reservoir Project.

The earthwork package, subcontracted to Martin Construction, pushes the total guaranteed maximum price for the project to date to $44.7 million.

To finance the remaining construction, the city authorized the public sale of up to $40 million in Water System Revenue Bonds expected in summer 2026.

The council also adopted a reimbursement resolution for up to $12.5 million in forthcoming storm sewer bonds to alleviate flooding.

The City of Billings, Montana, is pushing forward with a critical expansion of its municipal water system, approving a nearly $19.4 million earthwork contract and laying the financial groundwork for a $40 million bond issuance to fund the remainder of its West End Reservoir and Water Treatment Plant project. During the April 13 city council meeting, officials approved Change Order No. 8 to the general contractor/construction manager (GC/CM) agreement with Dick Anderson Construction. The $19,379,564 change order covers major earthwork, including the excavation of reservoir bottoms to remove overburden and shale, and the construction of embankments for two reservoir cells. Martin Construction, which submitted the lowest of eight public bids, will perform the earthwork as a subcontractor. The approval brings the total guaranteed maximum price of the GC/CM contract to $44.7 million. According to staff reports, initiating the earthwork package immediately is necessary ahead of evaluating a forthcoming 60% guaranteed maximum price for the remainder of the plant's concrete structures, interior pipelines, and cut-off walls. The West End Water Treatment Plant is targeted for completion in early 2027, with the reservoir cells expected to be finished by mid-2028. To finance the final stages of the project, the council also adopted a resolution authorizing the public sale of up to $40 million in Water System Revenue Bonds. The city previously issued a $70 million bond series in 2023 but has exhausted those proceeds alongside cash collected from utility rates. The upcoming bond sale, scheduled for competitive bid in late July or early August 2026, will carry a maximum average interest rate of 5.15% and a maturity term of up to 31 years. Alongside the drinking water improvements, the council also adopted a reimbursement resolution for up to $12.5 million in forthcoming storm sewer bonds. The bonds, expected to be issued in summer 2026, will finance multiple drainage and detention projects—including the $4 million Rimrock Road Storm project and the $3.2 million Grand Avenue Crossing & Arnold Drain Regional Detention facility—designed to alleviate surcharge and flooding across the city. In a separate action, the council awarded a $942,748 contract to SKM Turnkey Construction to replace deteriorating carbon steel air scour piping with stainless steel across 12 filters at the city's existing water treatment plant.