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CONSTRUCTION EVERYWHERE

By:  Dennis Healy, CEO

For the first time the in 31 years the Lincoln Pipestone Rural Water System has major construction projects underway across the entire System, from Montevideo to the Iowa border and everywhere in between.  This is the largest expansion ever undertaken by LPRW, and it became possible because a water source became available in the south part of the System and federal funding was available for a project of this size.

Several Project contracts were awarded in 2009 that were completed or started, and several additional contracts will be awarded in 2010:

• Acquisition of a 1.2 million gallon per day permanent water supply from Osceola County Rural Water System that will allow us meet our immediate water needs in the south part of the System. Water will be available in mid-2010.

• 27 miles of 12" main line pipe was completed in Nobles County in 2009.

• Construction was started in 2009 on a new 1 million gallon water tower east of Rushmore, and it should be completed in October 2010.

• Metering and pumping facilities were bid in early 2010, and they are scheduled for completion June 2010.

• Larger diameter pipeline in Nobles and Jackson Counties was bid in early 2010, and the contract is scheduled to be completed in late fall of 2010.

• The Phase 1 North Expansion contract in Yellow Medicine and Lac qui Parle Counties was bid in early 2010, and it is scheduled for completion in late fall of 2010.

• Bids will be let in May 2010 for a pump station and maintenance building in Nobles County, and pipeline and hookups in Nobles and Jackson Counties. Internal expansion and various other expansion bids will be advertised later in 2010, and all contracts should be completed in late 2011 or early 2012.

The total cost of these Projects is $30.5 million including over 30% grant financing with the remainder financed with a 40-year USDA Rural Development loan.  The loan will be paid by new hookups that currently cost $15,000.  Approximately 800 new hookups are expected, and several new community hookups are currently being discussed.

Another major project in the early stages of development is a new well field in eastern Yellow Medicine County.  Preliminary drilling and testing was completed in 2009, and a full-scale pump test will be conducted in the summer of 2010.  This new water source plays a critical role in the future development of the east and north parts of the System, and it will address a major water supply concern for LPRW.

2010 promises to be an extremely busy year for LPRW staff as hundreds of miles of pipe are installed, and major facilities are added to the System.  These improvements will add to our customer base, and make the entire System stronger and more stable.