Attachment A For Local Governments Requesting a 2014 Capital Appropriation

I. Project Basics

1) Name of the local government or political subdivision that is submitting the request: Lewis & Clark Joint Powers Board

2) Project title: Minnesota Phases of the Lewis & Clark Regional Water System

3) Project priority number (if the applicant is submitting multiple requests): NA

4) Project location (please list town(s)/city(ies) and county(ies): Rock and Nobles counties. Benefits Rock County Rural Water District (RCRWD), Luverne, Lincoln Pipestone RWS (LPRWS) and Worthington.

5) Ownership and Operation:

• Who will own the facility: Lewis & Clark Joint Powers Board

• Who will operate the facility: Lewis & Clark Joint Powers Board

• Names of any private entities that will occupy/use any portion of the building: NA 6) Project contact person (name, phone number and email address): Troy Larson, 605-368-2400,

tlarson@lcrws.org and Lennis “Red” Arndt, 507-920-9771, arndt48red@iw.net

II. Project Description

7) Description and Rationale: Provide a brief project description and rationale (one page maximum).

This request is for $69,180,00 in state bond funding in 2014 to construct the MN phases of the Lewis & Clark Regional Water System (L&C). The project starts at the MN/IA border south of Luverne and heads north to Luverne. It then heads east to Worthington (see attachment #1). This will provide critically needed drinking water to the four MN members of L&C – RCRWD, Luverne, LPRWS and Worthington. This includes close to 57 miles of pipeline that ranges in diameter from 6 inches to 30 inches, five meter/re-pumping stations, pumps and two above ground storage reservoirs. It also includes engineering and legal services, as well as easement acquisition from Luverne to Worthington (easements are already acquired from the Iowa border to Luverne).

Unlike most of the State, southwest MN suffers from a lack of available water even under normal moisture conditions. Prior to gaining State approval for participation in L&C, MN DNR and local entities spent a considerable amount of time and money to conduct a series of well drillings using a grid pattern in an effort to locate water. Those drilling efforts were unsuccessful. Although exacerbated by the drought, it is important to stress the critical shortage of water is definitely a long-term problem for the area. L&C is the most reliable, dependable, viable and economically feasible source of water for the four MN members.

When completed L&C will be a wholesale provider of water to its 20 member cities and rural water systems in southwest MN, northwest IA and southeast SD (see attachment #2). The project was

400 Centennial Building • 658 Cedar Street • St. Paul, Minnesota 55155

Voice: (651) 201-8000 • Fax: (651) 296-8685 • TTY: 1-800-627-3529

An Equal Opportunity Employer Page 419

Local Government Capital Budget Requests

Page 2

incorporated in 1990 and authorized by Congress in 2000. Generally speaking, 80% of the funding is provided by the federal government, 10% from the three states and 10% from the 20 local members. The three states and 20 members have pre-paid 100% of their non-federal cost share – almost $154 million. Of this amount, the State of MN paid $5,449,000 and the four MN members paid a combined $9,198,000. By comparison as of 9/30/13 the federal government has contributed $212 million, which is roughly 50% of its cost share.

Using a series of wells adjacent to the Missouri River and a water treatment plant near Vermillion, SD, L&C began delivering critically needed water to 11 of the 20 members in July 2012. The pre-payment funds from the three states and 20 members have all been used, so the schedule to connect the remaining nine members, including the four in MN, is entirely dependent upon future federal funding levels. Unfortunately, the last four years funding has been woefully inadequate, not even covering the annual inflationary increase on the remaining federal cost share. To complete the entire system in all three states, the remaining federal cost share as of 9/30/10 was $194.3 million, but that number increased to $201.3 million as of 9/30/12. This $7 million increase in two years shows how federal funding is not even keeping up with inflation, despite strong bi-partisan support from the tri-state congressional delegation.

L&C is one of six Bureau of Reclamation (BoR) rural water projects. The President only proposed $22 million in BoR’s Rural Water Program for FY14, which is a decrease of $29 million from FY13. By contrast, the remaining federal cost share for the six BoR rural water projects is a combined $1.2 billion.

The project is currently on the path to infinity. As things stand, there are no prospects for L&C to ever be completed, leaving the MN members high and dry. The drought last summer highlighted how critically important it is for the MN members to access more water. Not having access to water has forced ethanol plants and dairies to be turned away. The JBS pork processing facility in Worthington has wanted to expand their operation for over ten years but cannot because the City simply does not have enough water. Even with the rains this spring, Worthington is still under a watering ban. The delay has also forced the members to incur or soon incur $17.5 million in unplanned infrastructure expenses, which has hit the Minnesota members particularly hard (see attachment #3).

Governor Dayton held a conference call with Senators Klobuchar and Franken and Rep. Walz on April 1, 2013 to discuss how to keep construction on L&C moving forward. During the call the Governor suggested the possibility of additional State funding in order to help connect the MN members. No amounts were discussed on that call. Follow-up discussions between the Governor and officials from Luverne and Worthington confirmed his support for providing additional State funding in order to connect the MN members. Even though the State has already pre-paid its share of the project, this request for additional funding is the direct result of the federal government not honoring its commitment to the project and the Governor’s support for additional State funding.

Based on follow-up discussions with State officials, they suggested we submit a “starting point request” for the full amount needed to connect the MN members. We modified that to only include the amount we can obligate in the first two years. The attached information outlines how the connections could be phased depending on the amount of funding the Governor wants to include in his bonding request and how much the Legislature ultimately approves.

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Local Government Capital Budget Requests

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The “Lewis & Clark Joint Powers Board” is a MN based public entity comprised of RCRWD, Luverne, LPRWS and Worthington. It is this entity that would own any infrastructure constructed with State bond funds. All construction using bond funds would be for infrastructure within the State boundaries.

8) Square Footage: For new construction projects, identify the new square footage planned. For remodeling, renovation or expansion projects, identify the total square footage of current facilities, the square footage to be renovated, and/or the new square footage to be added. NA

III. Project Financing

The following table describing the total amount of financial resources needed and the proposed uses of funds must be submitted for each project.

• Enter amounts in thousands ($100,000 should be entered as $100).

• Enter the amount of state funding requested on the line “State GO Bonds Requested”.

• Uses of Funds must show how all funding sources will be used, not just the state funding requested.

Sources of Funds total must equal Uses of Funds total.

In most cases, the state share should not exceed 50% of the total project cost.

9) Do the project cost estimates below include inflation (see question 10 below)? ___ Yes _X_ No

Sources of Funds Dollars in Thousands

Prior Years

For 2014

For 2016

For 2018 Total

State GO Bonds Requested $69,180 1,384 $70,564 Funds Already Committed

State Funds City Funds County Funds Other Local Government Funds Federal Funds Non-Governmental Funds

Pending Contributions City Funds County Funds Other Local Government Funds Federal Funds Non-Governmental Funds l

TOTAL* $3,283** $73,847

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Local Government Capital Budget Requests

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Uses of Funds Dollars in Thousands

Prior Years

For 2014

For 2016

For 2018 Total

Land Acquisition $702 $2,064 $2,766 Predesign (required for projects over $1.5 M) $317 $317 Design (including construction administration) $739 $4,404 $5,143 Project Management $1,206 $376 $1,582 Construction $1,525 $61,506 $1,008 $64,039 Furniture/Fixtures/Equipment Relocation (not bond-eligible) TOTAL* $3,283 $69,180 $1,384 $73,847 *Totals must be the same.

**This represents the amount of money already spent for engineering and easement acquisition on Phase 1, which runs just over 21 miles from the IA border to Luverne. It also includes the 427’ of pipe we already have installed in MN, as well as a change order that has been approved for another two miles of pipe in Minnesota that is expected to be constructed by the end of 2013. However, we have no way of tracking the sources for the Funds Already Committed in prior years column. All funds we receive are put into the same account and spent for expenses. When we pay an invoice we don’t take a certain amount from each funding source. Much like pouring three buckets of water into a tub and then drawing out a cup of water – you cannot tell from which buckets the cup of water came. The closest you could get to an estimate is using the formula in the first footnote of 80% federal, 10% states and 10% local members. However, you’d have to adjust for the fact the states and local members have prepaid 100% of their cost share whereas the federal government has only paid about 51%. Based on the advice of MN Management & Budget officials, we are just including the total amount spent to date on easements and engineering fees for work in Minnesota as any attempt to break down those sources would be based purely on a guess.

IV. Other Project Information

10) Project schedule. Identify the date (month/year) when construction crews are expected to first arrive on site, and the date (month/year) when construction will be completed with a certificate of occupancy.

• Anticipated Start Date: October 2014

• Anticipated Occupancy date: Estimated dates when the MN members would begin receiving water:

o Luverne – December 2015

o Rock County RWD (second connection) – November 2016

o Lincoln Pipestone RWS – November 2016

o Worthington – October 2017

(For facilities projects, this information will also be used to calculate an inflation cost, using the Building Projects Inflation Schedule posted on the Minnesota Management and Budget website.

11) Predesign. For projects with a total construction cost of $1.5 million or more:

Has a project predesign been completed? _X_ Yes ___ No

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Local Government Capital Budget Requests

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If so, has the predesign been submitted to the Commissioner of Administration? ___Yes _X_ No

12) State operating subsidies. Identify any new or additional state operating dollars that will be requested for this project. (Specify the amount and year, if applicable). NA

13) Sustainable building guidelines. Discuss how the project meets or exceeds the Minnesota Sustainable Building Guidelines established under Minnesota Statutes, section 16B.325, which may be found at http://www.msbg.umn.edu/. These are now mandatory for all new buildings or major renovations receiving state bond funding. NA. No buildings are being constructed other than five small meter/re-pumping stations.

14) Sustainable building designs. Explain the extent to which the project will use sustainable building designs, if applicable. NA

15) Resolution of support and priority designation. Has the governing body of the applicant passed a resolution of support (which indicates the project’s priority number if the applicant is submitting multiple requests)? _X_ Yes ___ No

If so, please attach the signed resolution. If not, please indicate when the resolution will be coming (and forward the resolution to MMB when available):

Five resolutions are attached – one from the Lewis & Clark Joint Powers Board and the others from Luverne, Worthington, Lincoln Pipestone RWS and Rock County RWD. In regard to the Lincoln Pipestone RWS, attachment #8 shows how the impacts of L&C will be felt in a far bigger area than just Rock and Nobles counties due to Lincoln Pipestone RWS’s large service territory.

Page 423

-I_?, Dated: C( j O 2013.

RESOLUTION

LEWIS & CLARK JOINT POWERS BOARD

LEWIS & CLARK REGIONAL WATER SYSTEM

WHEREAS, the Minnesota local government units that are participating in the Lewis &

Clark Regional Water System include the City of Luverne, the City of Worthington Public

Utilities, Lincoln Pipestone Rural Water System and Rock County Rural Water District; and

WHEREAS, these four Minnesota local government units established the Lewis & Clark

'

Joint Powers Board pursuant to Minn. Stat. § 471.59 to coordinate efforts relating to

development of the Lewis & Clark Regional Water System in Minnesota; and

WHEREAS, the Joint Powers Board has submitted a request to Minnesota Management

and Budget and will be seeking support from the Minnesota Legislature for an appropriation of

state general obligation bond proceeds to construct a water pipeline and associated pumping and

reservoir facilities.

NOW, THEREFORE, BE IT:

RESOLVED, that the Lewis & Clark Joint Powers Board formally supports a 2014

request for state general obligation bond proceeds, authorizes the transmission of all necessary

and relevant infonnation to Minnesota Management and Budget and requests that area legislators

introduce legislation requesting stale funding for the Lewis & Clark Regional Wate1 Syslem

project.

Certified as approved by unanimous vote of the Lewis & Clark Joint Powers Board by:

Page 424

�YtJkr' /0

RESOLUTION

OF THE

CITY OF WORTHINGTON PUBLIC UTILITIES

WHEREAS, the City of Worthington Public Utilities has been a long-term participant in the

Lewis & Clark Regional Water System project and is one of the local government unit members of

the Minnesota Lewis & Clark Joint Powers Board; and

WHEREAS, the Lewis & Clark water project has faced considerable delays due to

inadequate federal funding; and

WHEREAS, the City of Worthington Public Utilities supports efforts to spur development

of the Lewis & Clark Regional Water System in Minnesota; and

WHEREAS, local resources alone cannot support a significant extension of the Lewis &

Clark Regional Water System into Minnesota; and

WHEREAS, additional funding from the State of Minnesota can contribute to the timely

development of water system components which will extend service into the state; and

WHEREAS, the Lewis & Clark Joint Powers Board has submitted a formal request to

Minnesota Management and Budget and intends to seek the support of area legislators fol' a specific

legislative request.

NOW, THEREFORE, BE IT:

RESOLVED that the City of Worthington Public Utilities formally supports and endorses

the effort of the Joint Powers Board to secure state funding to facilitate construction of Lewis &

Clark Regional Water System components within the State of Minnesota.

CITY OF WORTHINGTON PUBLIC UTILITIES

Secretary

Dated: , 2013.

Page 425

RESOLUTION 50-13

A RESOLUTION SUPPORTING AND ENDORSING THE EFFORT OF THE JOINT POWERS

BOARD TO SECURE STATE FUNDING TO FACILITATE CONSTRUCTION OF LEWIS &

CLARK REGIONAL WATER SYSTEM COMPONENTS WITHIN THE STATE OF

MINNESOTA

WHEREAS, the City of Luverne has been a long-term participant in the Lewis & Clark

Regional Water System project and is one of our local government unit members of the Minnesota

Lewis & Clark Joint Powers Board; and

WHEREAS, the Lewis & Clark water project has faced considerable delays due to

inadequate federal funding; and

WHEREAS, the City of Luverne supports efforts to spur development of the Lewis &

Clark Regional Water System in Minnesota; and

WHEREAS, local resources alone cannot support a significant extension of the Lewis &

Clark Regional Water System into Minnesota; and

WHEREAS, additional funding from the State of Minnesota can contribute to the timely

development of water system components which will extend service into the state; and

WHEREAS, the Lewis & Clark Joint Powers Board has submitted a formal request to

Minnesota Management and Budget and intends to seek the support of area legislators for a specific

legislative request.

Page 426

NOW, THEREFORE, BE IT RESOLVED, that the City of Luverne formally supports and

endorses the effort of the Joint Powers Board to secure state funding to facilitate constr uction of

Lewis & Clark Regional Water System components within the State of Minnesota.

ADOPTED BY THE CITY COUNCIL OF THE CITY OF LUVERNE, MINNESOTA this

8th day of October, 2013.

Patrick T. Baustian, Mayor

Page 427

Dated: . 20

LINCOLN PIPESTONE RURAL R SYSTEM

13.

RESOLUTION

OF THE

LINCOLN PIPESTONE RURAL WATER SYSTEM

WHEREAS, the Lincoln Pipestone Rural Water System has been a long-term participant in

the Lewis & Clark Regional Water System project and is one of our local government unit members

of the Minnesota Lewis & Clark Joint Powers Board; and

WHEREAS, the Lewis & Clark water project has faced considerable delays due to

inadequate federal funding; and

WHEREAS, the Lincoln Pipestone Rural Water System supports efforts to spur

development of the Lewis & Clark Regional Water System in Minnesota; and

WHEREAS, local resources alone cannot support a significant extension of the Lewis &

Clark Regional Water System into Minnesota; and

WHEREAS, additional funding from the State of Minnesota can contribute to the timely

development of water system components which will extend service into the state; and

WHEREAS, the Lewis & Clark Joint Powers Board has submitted a formal request to

Minnesota Management and Budget and intends to seek the support of area legislators for a specific

legislative request.

NOW, THEREFORE, BE IT:

RESOLVED, that the Lincoln Pipestone Rural Water System formally supports and

endorses the effort of the Joint Powers Board to secure state funding to facilitate construction of

Lewis & Clark Regional Water System components within the State of Minnesota.

Page 428

f)Secret

YJ- J <ary

I

RESOLUTION

OF THE

ROCK COUNTY RURAL WATER DISTRICT

WHEREAS, the Rock County Rural Water District has been a long-term participant in the

Lewis & Clark Regional Water System project and is one of our local government unit members of

the Minnesota Lewis & Clark Joint Powers Board; and

WHEREAS, the Lewis & Clark water project has faced considerable delays due to

inadequate federal funding; and

WHEREAS, the Rock County Rural Water District supports efforts to spur development of

the Lewis & Clark Regional Water System in Minnesota; and

WHEREAS, local resources alone cannot support a significant extension of the Lewis &

Clark Regional Water System into Minnesota; and

WHEREAS, additional funding from the State of Minnesota can contribute to the timely

development of water system components which will extend service into the state; and

WHEREAS, the Lewis & Clark Joint Powers Board has submitted a formal request to

Minnesota Management and Budget and intends to seek the support of area legislators for a specific

legislative request.

NOW, THEREFORE, BE IT:

RESOLVED, that the Rock County Rural Water District formally supports and endorses the

effort of the Joint Powers Board to secure state funding to facilitate construction of Lewis & Clark

Regional Water System components within the State of Minnesota.

ROCK COUNTY RURAL WATER DISTRICT

Dated: 0 - , 2013.

Page 429

Wor ton

Attachment #1 – Minnesota Phases of the Lewis & Clark Regional Water System

Luverne Phase 3Phase 1

*$20.2 Million 2014

Rock County RW *$19.5 MillionLincoln-Pipestone RW 2016

Worthithingngton

Phase 2 *$30.9 Million

2015

Rock County RW Minnesota

Iowa Existing L&C Pipeline Phase 1 Pipeline Route (Includes Phase 2 Easement Acquisition) Phase 2 Pipeline Route (Includes Phase 3 Easement Acquisition) Phase 3 Pipeline Route

Future Sibley, IA Service Line (not included)

Meter Building (some Include booster pumping) Sibley, IA Storage Reservoir Main Line Booster Pump Station

*Estimated cost for the various phases includes indexing for inflation to the midpoint of the construction period. Page 430

–

–

–

Worthington

Luverne

MCW C (2)

Minnesota South Dakota

Iowa

Lincoln-Pipestone RW S

Sibley Rock Rapids (2)

Sioux Falls

Harrisburg

Sioux Center

Sheldon

Hull

RCRW (2)

RCRW (1)

Centerville

SLRWS

Beresford

LCRWS &Sioux

Falls

MCWC (1)

Madison

Tea

Parker

Water Treatment Plant Phase 2

Mulberry Point Well Field (12 Wells)

Lennox

Attachment #2 - Lewis & Clark Regional Water System Construction Progress as of October 2013

Operational 134.7 miles

Construction Complete 1.1 miles

Under Construction 0.0 miles

85th Street Tower

Tea Reservoirs & Pump Station

Planned to Bid – 37.6 miles

Rock County Reservoir M

M

M

Rock Rapids (1)

Member Receiving L&C Water in 2012 or 2013

MCW C (3)

M Meter Building Page 431

-----------------

Attachment #3

MEMO TO: Governor Dayton and Minnesota Legislature FROM: Troy Larson, Executive Director DATE: October 16, 2013 RE: Additional Infrastructure Costs Due to Project Delays

Due to the delay in receiving federal funding to complete the Lewis & Clark Regional Water System (L&C), the local members have been forced to spend millions of dollars and soon will spend millions more on unplanned infrastructure expenses. These expenditures, on top of what they already spent as their share of L&C, will address their short-term water needs but do not eliminate the need for L&C water. They would not have been needed if these members had access to L&C water. As noted below, the four Minnesota members have incurred the majority of these unplanned expenses. This list of unplanned and unneeded expenses will continue to grow among the nine members (five in Iowa, four in Minnesota and one in South Dakota) who are not receiving water.

ACTUAL & ESTIMATED EXPENSES TO DATE:

Minnesota:

$6,000,000 Lincoln-Pipestone RWS. Infrastructure to secure an interim water supply. $1,750,000 Rock County RWD. System maintenance and upgrades, including two more wells. $2,350,000 Luverne. Water reclaim system, new well and additional infrastructure to secure short-term water for the first isobuteral ethanol plant in the region. Includes an estimated $1.7M for construction in 2014 for the ethanol plant.

$160,000 Worthington. Infrastructure for a connection to Lincoln Pipestone RWS.

Iowa: $2,450,000 Sioux Center. Includes $400,000 already spent for a new deep well in order to provide more water to Hull in the short-term, as well as exploratory drilling for additional wells. The remaining $2.05M is the estimated cost for two more wells, water plant expansion and new filters. This construction will take place over a two to five year period, starting in 2014. $4,300,000 Hull. Connection with neighboring rural water system. Construction in 2014.

$520,000 Sheldon. Dig another deep well (poor water quality). Construction in 2014.

$8,960,000 Amount already spent $8,570,000 Amount to be spent soon

$17,530,000 Total cost of the delay to date

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DOI USBR - R01AC60001 ATTACHMENT #4 Lewis and Clark Regional Water System DUNS - 87-954-3031

Local and State Match EIN - 36-3755632

Total Match Capacity Fees Total Capacity Region as of 9/30/12 For FY2013 Fees as of 9/30/13 Beresford $ 2,252,225.28 $ - $ 2,252,225.28 Centerville $ 420,343.28 $ - $ 420,343.28 Harrisburg $ 1,528,944.24 $ - $ 1,528,944.24 Hull $ 735,111.98 $ - $ 735,111.98 Lennox $ 921,248.21 $ - $ 921,248.21 Lincoln Co RW $ 3,693,688.08 $ - $ 3,693,688.08 Lincoln-Pipestone RW $ 2,839,133.33 $ - $ 2,839,133.33 Luverne $ 1,945,955.60 $ - $ 1,945,955.60 Madison $ 1,961,932.28 $ - $ 1,961,932.28 Minnehaha CWC $ 4,432,386.83 $ - $ 4,432,386.83 Parker $ 681,604.63 $ 106,330.00 $ 787,934.63 Rock Co RW $ 584,791.78 $ - $ 584,791.78 Rock Rapids $ 1,022,267.00 $ - $ 1,022,267.00 Sheldon $ 2,559,634.10 $ - $ 2,559,634.10 Sibley $ 1,277,299.55 $ - $ 1,277,299.55 Sioux Center $ 1,177,520.98 $ - $ 1,177,520.98 Sioux Falls $ 74,027,860.30 $ - $ 74,027,860.30 South Lincoln RWS $ 606,499.92 $ - $ 606,499.92 Tea $ 2,888,860.92 $ - $ 2,888,860.92 Worthington $ 3,828,517.70 $ - $ 3,828,517.70

Total Local $ 109,385,825.99 $ 106,330.00 $ 109,492,155.99

State of SD $ 31,875,000.00 $ - $ 31,875,000.00

State of IA $ 7,015,417.00 $ - $ 7,015,417.00

State of MN $ 5,448,515.00 $ - $ 5,448,515.00

Total State $ 44,338,932.00 $ - $ 44,338,932.00

Total Local/State $ 153,724,757.99 $ 106,330.00 $ 153,831,087.99

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ATTACHMENT #5 Lewis and Clark Regional Water System 1/3/2014

Bureau of Reclamation - Federal Funding Actual Amount Amount ARRA Reprogrammed Actual Amount Reclamation Interest Against Federal

Fiscal Year Administration House Senate Approved Funds Funds Received Costs Earnings Funding Ceiling FY2001 $ 1,600,000 1,400,000 $ 108,472 $ $ 143 1,508,615 $ FY2002 $ 2,000,000 1,681,000 $ 142,178 $ $ 9,910 1,833,088 $ FY2003 2,000,000 $ 7,000,000 $ 7,000,000 $ $ 7,000,000 5,672,000 $ 123,702 $ $ 9,885 5,805,587 $ FY2004 $ - -$ 20,000,000 $ $ 17,000,000 15,083,000 $ 184,992 $ $ 16,918 15,284,910 $ FY2005 $ 17,500,000 17,500,000 $ 20,000,000 $ * $ 18,750,000 ** 11,947,000 $ 192,515 $ $ 153,842 12,293,357 $ FY2006 $ 15,000,000 15,000,000 $ 20,000,000 $ $ 17,500,000 17,090,000 $ 249,763 $ $ 248,189 17,587,952 $ FY2007 $ 21,000,000 22,000,000 $ 23,500,000 $ $ 21,000,000 20,706,000 $ 294,453 $ $ 87,390 21,087,843 $ FY2008 $ 15,000,000 22,300,000 $ 28,000,000 $ $ 26,568,000 26,250,000 $ 277,730 $ $ 113,202 26,640,932 $ FY2009 -$ 25,000,000 $ 30,000,000 $ $ 27,000,000 $ 56,500,000 82,940,925 $ 317,148 $ $ 36,647 83,294,720 $ FY2010 2,000,000 $ 6,000,000 $ 16,000,000 $ $ 10,000,000 3,000,000 $ 1,500,000 $ 14,198,000 $ 364,018 $ $ - 14,562,018 $ FY2011 2,000,000 $ 5,000,000 $ 10,000,000 $ $ 1,996,000 -$ 306,000 $ 2,041,000 $ 315,033 $ $ - 2,356,033 $ FY2012 $ 493,000 $ - -$ $ 5,487,000 $ - -$ 5,346,000 $ 244,373 $ $ - 5,590,373 $ FY2013 $ 4,500,000 $ - -$ $ 4,500,000 $ - -$ 4,119,000 $ $ - 4,119,000 $ FY2014 Totals $ 79,493,000 $ 119,800,000 $ 174,500,000 $ 160,401,000 $ 59,500,000 1,806,000 $ 208,473,925 $ 2,814,377 $

$ $

-676,126

-$ 211,964,428 $ ***

Paid to Date: $ 211.9 M

Remaining Ceiling: $ 201.3 M ****

* The Senate recommendation was $20 million, although a bill wasn't passed.

** $4.483 million was later reprogrammed to Mid-Dakota RWS.

*** Underfinancing and rescission, which sometimes is subtracted from the amount Congress approves, does not count against the federal funding ceiling.

**** As of 9/30/12 - Does not include the FY13 Federal funding and FY13 indexin

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1/3/2014 ATTACHMENT #5

Difference Between Amt

Approved & Rec'd $ 200,000 $ 319,000 $ 1,328,000 $ 1,917,000 $ 6,803,000 $ 410,000 $ 294,000 $ 318,000 $ 559,075 $ 302,000 $ 261,000 $ 141,000 $ 381,000

#VALUE! #VALUE!

Lewis and Clark Regional Water System

2 Page 435

Attachment #6 - Minnesota Phases of the Lewis & Clark Regional Water System Current Budget Opinion of Probable Costs Remaining

Project Component

Phase 1 Projects Main Pipeline - 21st Street to 71st Street Main Pipeline - 70th Avenue to Luverne SL Luverne Service Line Land/Easement Acquisition for Phase 2 Meter Bldg 3B (Luverne) SCADA-Meter Bldg (Luverne) Phase 1 (Subtotal)

Phase 2 Projects Main Pipeline - Luverne to RCRW-e Main Pipeline - RCRW-e to LPRWS RCRW-e Service Line LPRWS Service Line Land/Easement Acquisition for Phase 3 Rock County Reservoir Meter Bldgs (Pump, RCRW-e, LPRWS) SCADA-Meter Bldg (RCRW-e, LPRWS), Pump, Tank Phase 2 (Subtotal)

Phase 3 Projects Main Pipeline - LPRWS to Sibley Turnout Main Pipeline - Sibley Turnout to Worthington Nobles County Reservoir Meter Bldg (Worthington) SCADA-Meter Bldg (Worthington), 1 Tank Phase 3 (Subtotal)

Totals

Not

es

$ $ $ $

2 $ $ $

$ $ $ $ $ $

3 $ 3 $

$

$ 4 $

$ $ $ $

$

Construction Cost

5,130,299 7,644,824 2,033,549

-566,532

40,878 15,416,081

6,441,598 $ 10,137,355 $

981,871 $ 685,496 $

- $ 3,064,192 $ 2,089,638 $

187,931 $ 23,588,083 $

4,975,203 $ 6,938,002 $ 2,206,420 $

722,013 $ 93,966 $

14,935,604 $

53,939,768 $

Contingencies (5%)

Budget Opinion of Probable Cost - October 2013

$ 256,515 $ 5,386,814 $ 382,241 $ 8,027,065 $ 101,677 $ 2,135,227 $ - $ -$ 28,327 $ 594,858 $ 2,044 $ 42,922 $ 770,804 $ 16,186,885

322,080 $ 6,763,678 506,868 $ 10,644,223

49,094 $ 1,030,965 34,275 $ 719,771

- $ -153,210 $ 3,217,402 104,482 $ 2,194,120

9,397 $ 197,328 1,179,404 $ 24,767,487

248,760 $ 5,223,963 346,900 $ 7,284,902 110,321 $ 2,316,741

36,101 $ 758,114 4,698 $ 98,664

746,780 $ 15,682,384

2,696,988 $ 56,636,756

Total Construction Cost

Legal, Admin & BOR

$ 128,257 $ $ 191,121 $ $ 50,839 $ $ 182,463 $ $ 16,996 $ $ 1,288 $ $ 570,964 $

$ 96,624 $ $ 152,060 $ $ 14,728 $ $ 10,282 $ $ 178,698 $ $ 91,926 $ $ 62,689 $ $ 5,920 $ $ 612,928 $

$ 74,628 $ $ 104,070 $ $ 66,193 $ $ 21,660 $ $ 2,960 $ $ 269,511 $

$ 1,453,402 $

Engineering

282,166 420,465 111,845 273,695

67,984 4,292

1,160,448

354,288 557,555

54,003 37,702

297,830 306,419 250,757

19,733 1,878,286

273,636 381,590 220,642

86,642 9,866

972,376

4,011,110

Land & Easement

1Costs

Other Costs - October 2013

$ -$ -$ -$ 1,126,495 $ -$ -$ 1,126,495

$ -$ -$ -$ -$ 833,892 $ -$ -$ -$ 833,892

$ -$ -$ -$ -$ -$ -

$ 1,960,387

Total Other Costs

$ 410,424 $ 611,586 $ 162,684 $ 1,582,653 $ 84,980 $ 5,580 $ 2,857,906

$ 450,912 $ $ 709,615 $ $ 68,731 $ $ 47,985 $ $ 1,310,420 $ $ 398,345 $ $ 313,446 $ $ 25,653 $ $ 3,325,106 $

$ 348,264 $ $ 485,660 $ $ 286,835 $ $ 108,302 $ $ 12,826 $ $ 1,241,887 $

$ 7,424,899 $

Total Opinion of Probable Cost -October 2013

$ 5,797,238 $ 8,638,651 $ 2,297,910 $ 1,582,653 $ 679,838 $ 48,501 $ 19,044,791

7,214,590 11,353,838

1,099,696 767,756

1,310,420 3,615,747 2,507,566

222,980 28,092,593

5,572,227 7,770,562 2,603,575

866,416 111,490

16,924,271

64,061,655

Midpoint of Const Period

May-15 May-15 May-15 Dec-14 Aug-15 Aug-15

Mar-16 Mar-16 Mar-16 Mar-16 Jun-15 Dec-15 Apr-16 Apr-16

Feb-17 Feb-17 Jan-17 Jul-17 Jul-17

Index from Appendix 2,

Exhibit 3 5(4/2/13)

State of MN

6.99% 6.99% 6.99% 5.12% 8.13% 8.13%

10.98% $ 10.98% $ 10.98% $ 10.98% $

7.37% $ 9.67% $

11.42% $ 11.42% $

16.00% $ 16.00% $ 15.49% $ 18.56% $ 18.56% $

Probable Cost -Midpoint of Construction

Total Opinion of

$ 6,156,292 $ 9,173,690 $ 2,440,233 $ 1,651,300 $ 729,636 $ 52,054 $ 20,203,206

7,947,149 12,506,689

1,211,357 845,713

1,396,524 3,935,870 2,773,131

246,595 $ 30,863,028

6,415,666 8,946,752 2,984,486 1,019,576

131,199 $ 19,497,678

$ 70,563,912

Legend & Notes: 1. Easement widths for future projects has been narrowed to reduce the impact of high land prices based on direction from the Construction Committee (5/24/12). 2. Luverne's meter will be on City property. 3. These projects would likely be in the same contract, but could be split depending on timing. 4. The last few miles of pipeline into Worthington needs to be surveyed and mapped to account for a re-route based on new highway construction. 5. The L&C estimate is indexed to October 2013 based on the BOR construction cost trends methodology. An adjustment (divide by 1.0075) is required to use the State of Minnesota

inflation schedule which are based on July 2013 and the L&C numbers are indexed to October 2013.

Contingency = 5%

Index for October 2012 2.142155228 Insert current or desired year index number here Index for October 2012 2.080364616 FYI - historical information Index for October 2011 2.017555928 FYI - historical information Index for October 2010 1.931240952 Don't change this cell - it's used to index the Tea PS generators Index for January 2011 1.950469440 Don't change this cell - it's used to update the land cost hidden column

C:\Users\fisaw01\Desktop\Lewis & Clark\Attachment #6 - Cost Estimate(12-13-13).xlsx Page 1 of 3 Page 436

Attachment #6 - Minnesota Phases of the Lewis & Clark Regional Water System Current Budget Opinion of Probable Costs Remaining

Project Component

Not

es

Budget Opinion of Probable Cost - October 2013 Other Costs - October 2013 Total Opinion of Probable Cost -October 2013

Construction Cost

Contingencies (5%)

Total Construction Cost

Legal, Admin & BOR

Engineering Land &

Easement 1Costs

Total Other Costs

Midpoint of Const Period

State of MN Index from Appendix 2,

Exhibit 3 (4/2/13) 5

Total Opinion of Probable Cost -

Midpoint of Construction

Index for October 2011

SCADA w/o pumps w/ pumps

Oct-11 $ 38,500 $ 50,000 2.017555928

$ $

1993$ 19,082 24,782

19082.495 24782.46

Component Engineering %

Pipeline (Agency Review level) 5.5% Pipeline (Prelimary P&P's done) 7% Pipeline (MN-4) - need some surveys 8% Pipeline (Madsion) - some prelim work done 9% Pipeline (Start new) 10% Reservoirs 10% SCADA 10% Meter Bldgs 12% Wells, WTP 12%

Plan Development &

Land

Agency Review Bidding Const

Phase Total

0.00% 0.50% 0.25% 4.75% 5.50% 1.50% 0.50% 0.25% 4.75% 7.00% 2.50% 0.50% 0.25% 4.75% 8.00% 3.50% 0.50% 0.25% 4.75% 9.00% 4.50% 0.50% 0.25% 4.75% 10.00% 4.50% 0.50% 0.25% 4.75% 10.00% 4.50% 0.50% 0.25% 4.75% 10.00% 5.50% 0.50% 0.25% 5.75% 12.00% 5.50% 0.50% 0.25% 5.75% 12.00%

C:\Users\fisaw01\Desktop\Lewis & Clark\Attachment #6 - Cost Estimate(12-13-13).xlsx Page 2 of 3 Page 437

Attachment #7 - Minnesota Phases of the Lewis & Clark Regional Water System Projected Schedule (Subject to Available Funding)

Design Through Construction Period

Fall 2015

Project o n d j f

FY 2014 m a m j j a s o n d j f

FY 2015 m a m j j a s o n d j f

FY 2016 m a m j j a s o n d j f

FY 2017 m a m j j a s

FY 2018 o n d j f m

Phase 1 Projects Main Pipeline Luverne Service Line

Luverne Land/Easement Acquisition for Phase 2 Fall 2016 Meter/SCADA - Luverne RCRW - east

LPRWS Phase 2 Projects

Main Pipeline RCRW-e Service Line LPRWS Service Line Fall 2017 Land/Easement Acquisition for Phase 3 Worthington Rock County Reservoir Meter/SCADA - Pump, RCRW-e, LPRWS, Tank

Phase 3 Projects Main Pipeline Nobles County Reservoir Meter/SCADA - Worthington

Design Phase Agency Review Construction Phase Project Close-out

Design & Land Acquisition Bid Phase Typical Adverse Weather

Page 438

Attachment #7 - Minnesota Phases of the Lewis & Clark Regional Water System Projected Schedule (Subject to Available Funding)

Design Through Construction Period

Fall 2015

Project o n d j f

FY 2014 m a m j j a s o n d j f

FY 2015 m a m j j a s o n d j f

FY 2016 m a m j j a s o n d j f

FY 2017 m a m j j a s

FY 2018 o n d j f m

Phase 1 Projects Main Pipeline Luverne Service Line

Luverne Land/Easement Acquisition for Phase 2 Fall 2016 Meter/SCADA - Luverne RCRW - east

LPRWS Phase 2 Projects

Main Pipeline RCRW-e Service Line LPRWS Service Line Fall 2017 Land/Easement Acquisition for Phase 3 Worthington Rock County Reservoir Meter/SCADA - Pump, RCRW-e, LPRWS, Tank

Phase 3 Projects Main Pipeline Nobles County Reservoir Meter/SCADA - Worthington

Design Phase Agency Review Construction Phase Project Close-out

Design & Land Acquisition Bid Phase Typical Adverse Weather

Page 439