Committee pulls plug on city's water proposal

Knox Rural Water Project will not be pursuing a proposal to purchase drinking water from the City of Hartington.

Cedar-Knox’s advisory committee recommended on April 11 to the Lewis & Clark Natural Resources Board of Directors to continue working toward finalizing a contract with the City of Yankton, S.D., to hook the rural water system on to the municipal water system with its treatment plant.

In a follow-up interview, Annette Sudbeck, the district’s general manager, noted the Lewis & Clark NRD board will consider ratifying the committee’s recommendation during its next regular meeting, which is set for 7 p.m., April 18, at the district office in Hartington.

“We haven’t entered the contract yet (with Yankton),” Sudbeck said. “We don’t have that to approve.”

The committee made that choice after reviewing the preliminary estimated construction-only costs of Cedar-Knox connecting to Hartington – about $17 million – versus hooking on to Yankton – about $12 million.

“It came in quite a bit higher to connect to Hartington than to connect to Yankton,” Sudbeck said. “It didn’t include the additional engineering costs, or the oversight engineering that goes along with any project.”

She said the preliminary estimated construction-only costs made for the best comparison on which one for the committee to consider going with its recommendation, as the total estimated price of the Yankton proposal is known – about $28 million – but is unknown for the Hartington proposal.

“We broke out Yankton construction (costs) and Hartington construction (costs) because that’s the meat and potatoes of what you’ve got to look at,” Sudbeck said.

In a follow-up interview, Scott Fiedler, Cedar-Knox’s project manager, explained the difference between the preliminary estimated construction-only costs for Hartington versus Yankton.

“Most of it is going to be related to the distance,” Fiedler said. “Going that much farther (to Hartington versus Yankton), I think it was going to require two extra booster pump stations. With a booster pump, it’s always best to have a tank there to supply that pump, so you have the added cost of a tank in with it.

“We’ve only got to go roughly five miles for the Yankton pipe versus 20 from Hartington to get tied into the system,” he said. “We’d be boring under the (Missouri River) and tying into Yankton’s system, and then it’s just roughly five miles to where we’d tie into the system at.”

Cedar-Knox serves more than 900 rural connections – about 7,000 people – across parts of northern Cedar and Knox counties, including several sanitary improvement districts, recreational areas and businesses along Lewis and Clark Lake and the Missouri River, along with the communities of Crofton, Fordyce, St. Helena and Obert.

The rural water project, which is overseen by the Lewis & Clark NRD, currently pulls water from the river in the Devils Nest region of Knox County. Silt and the rural water system’s age – it dates back to the early 1980s – have become major issues, however, and Cedar-Knox needs to find another water source sooner than later.

“Ultimately, this water has to end up in Devils Nest,” Fiedler said, adding with Yankton, “We’re kind of right in the middle of the (rural water) system right there, so half of it can go back to the east and half can go back to the west.”

During the advisory committee’s meeting on April 11, Fiedler noted Cedar-Knox has been searching for a secure, alternative drinking water source for several years.

“Our number one priority has always been our customers – trying to provide as good a product as we’ve had or better and trying to keep it at basically the lowest cost as possible,” Fiedler said.

“To help with that cost, our focus has always been kind of towards the center of our system,” he said. “Recently, we’ve had Hartington approach us with a proposal to get water from the city.”

Hartington Mayor Mark Becker made a case to the advisory committee during its meeting for Cedar-Knox to consider connecting to that city’s water system.

He said he received clarification from the state of Nebraska about the use of $7 million in American Rescue Plan Act funds for the rural water project.

“Since the last time I’ve been here, some things have changed,” Becker said. “It was pretty set in stone that the ARPA funds were only available if the water project was done with the Yankton option.”

He contacted Gov. Jim Pillen’s office, and was then put in contact with Steve McNulty, Nebraska Department of Environment and Energy environmental supervisor for the State Revolving Fund Section, who said the funds could be used for infrastructure if Cedar-Knox decided to change its water source.

“At this point, they can be used for infrastructure and you can choose your groundwater source,” Becker said. “With those funds being (available) to complete your infrastructure part, your groundwater choice can come later.”

He mentioned the $10 million Cedar-Knox received in March thanks to the efforts of U.S. Sen. Deb Fischer (R-Neb.) to have funding included in a federal package for the rural water project, such as for completing essential distribution system upgrades.

“With those two things that happened – with the Hartington option, I’ll call it – you could have a debt-free situation without having to borrow any money to complete the project,” Becker said. “The thing that we’ve always kind of proposed is a system that if you’ve got good quality water, why would you want to go ahead and treat it?”

He cited the Wau-Col Regional Water System as an example. Since its completion in 2012, this system provides high quality water to the villages of Belden, Magnet and McLean, as well as several rural residents.

“In your best interests, you’d want to sell more water and not limit it, because once you get your infrastructure paid for, the more you sell, the more you can make,” Becker said.

Currently, the state of Nebraska mandates that nitrate levels cannot exceed 10 parts per million.

Becker previously has noted Hartington’s drinking water is nowhere near that level.

“I understand research and things like that, but we are way below the standards,” Becker said. “We can supply you good, clean water.”

He was asked about the hardness of Hartington’s water supply.

“I don’t have that information with me,” Becker said, noting he could obtain that information for the advisory committee. “There is some hardness to it.”

He was asked about the length of a potential contract if Cedar-Knox considered pursuing the Hartington option.

“We’re looking at a 10-year guarantee, for now,” Becker said. “We’re open to negotiation on rate and term. We want you to be aware that there is an option here. That’s all we’re doing. We’re putting our cards on the table.”

Ultimately, Cedar-Knox looked at Hartington’s hand and decided to recommend to the Lewis & Clark NRD board to continue dealing with what Yankton has to offer the rural water project.