BLACK HAWK — A long-running water pressure problem in Black Hawk is getting a multimillion-dollar solution.

At its regular meeting on Wednesday, June 10, 2026, the Black Hawk City Council unanimously approved a $2,355,920 contract with Western States Reclamation to build the Bobtail Surge Tank. Council also approved a $90,000 change order with JVA Inc. for construction administration on the project.

The new tank is meant to smooth out pressure spikes in the city’s water distribution system, especially for Main Street users.

Brad Dallam, Water Resources Engineer, said the project grew out of several years of work on the city’s water system.

“About three years ago, we started investigating a problem where we have great fluctuating pressure within our distribution system,” Dallam said.

He said those fluctuations have created issues for casinos and the distillery.

“What we’re building is a 50,000-gallon tank next to the Bobtail Pump Station that will feed all the casinos on Main Street,” Dallam said.

The idea is to give users direct tank pressure instead of sending water through pressure-reducing valves (PRV).

“The PRVs are what's causing the pressure fluctuation,” Dallam said. “So this is a big improvement to our system.”

The City opened bids for the project on May 27. Western States Reclamation submitted the lowest bid at $2,355,920. Dietzler Construction Inc. bid $2,632,200, and Glacier Construction Inc. bid $3,828,270.

City staff recommended Western States for the job. The company is already familiar to the City through its work on the detention pond project behind Public Works.

Dallam said Western States built that detention pond and “did an excellent job.” He said JVA has also done good work for the city through its role on the Hidden Valley treatment plant.

“I think we're positioned well to succeed,” Dallam said. 

With the current drought conditions in Colorado, I asked City Manager Lance Hillis if the city will be using more water. He said no; they will only be repositioning the water source to stabilize pressure, not increase it.

Then the council also unanimously approved Resolution 35-2026, moving forward with a land exchange agreement with Jacobs Entertainment. The agreement is key to the tank project because the City does not currently own the land on which the tank will be located.

City Attorney Corey Hoffmann said the City needs three things from Jacobs: the property for the tank, two water line easements, and temporary construction easements.

One water line easement will run from the surge tank to the pump station. Another will run from the surge tank to Bobtail, where there is already an existing water line.

In exchange, the City will convey open space property on the hillside below The Nest Luxury Domes to Jacobs Entertainment. The City will keep an easement on that property for railroad or recreational trail purposes.

Hoffmann said the agreement was still in draft form at the time of the meeting, but the main terms had been worked out with Jacobs earlier that morning. The language was still being finalized for the temporary construction easements.

“We don't like to bring agreements forward that are not already finally completed,” Hoffmann said.

He said the City was asking for approval because of the timing, the construction season, and the need to keep the project moving. Council approved the agreement, subject to final approval by the city manager and city attorney. The land exchange is expected to close on or before June 30.

Council also approved Resolution 36-2026, renewing a three-year service agreement with Great Plains Communications for internet access at City-owned buildings.

The rest of the meeting was brief. Steve Martinez, Public Works Supervisor, served as the official bell ringer.

During the mayor's and aldermen's comments, Mayor David Spellman gave Public Works a nod for the flowers now brightening the town.

“Public Works has done a fantastic job getting the flowers out now, so that all looks really good,” Spellman said. “Black Hawk looks spiffy and festive right now.”

The city’s cleanup day is scheduled for June 18.

The meeting ended with an executive session to discuss negotiation strategy regarding property in the HARD District, other City-owned property, and the City's potential acquisition of additional property.

The next regular meeting of the Black Hawk City Council is scheduled for Wednesday, June 24, 2026, at 3 p.m. at 211 Church Street in Black Hawk.