Work may be resuming later this month on the $17.9 million FEMA project targeted at reducing flooding on the west and south sides of the lake.
Construction began last November, before Thanksgiving, but has been halted since mid-December, due to the holidays.
"They're waiting to see what the weather is like," City Manager Jim Patrick said, noting work may resume after Jan. 15.
Due to its size, the project has been broken into five phases, which include sewer and force main along the south, west and north sides of the lake; construction of new lift stations; remodeling of existing stations and wastewater treatment plant improvements.
Bid for the first and second phases, which include construction of sewer and force main installation along C65 from the treatment plant, south of the Keller property and north to Inlet Creek and along Marina Road, north on Highway 110 and north along Abner Bell near Hope Evangelical Free Church, have been awarded.
Storm Lake City Council members are expected to approve a contract for the second phase during a Jan. 7 meeting, as well as setting a public hearing for the fifth phase.
Bids are expected by the end of next week for the third phase, Patrick said, with the process for the fourth phase beginning shortly afterwards.
FEMA and Iowa Homeland Security awarded the $15 million grant to the City of Storm Lake in February, which partially funds design, bidding, land acquisition and construction.
While FEMA funds $13.4 million and Iowa Homeland Security $1.8 million, Storm Lake is responsible for the remaining $2.7 million, funded through sewer revenue bonds.
Once the project is completed in 2014, it will be one of the five largest undertaken by the State of Iowa.