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Murray County approves joint powers agreement with Red Rock Rural Water for multi-county pipeline
Summary
Murray County commissioners voted to adopt a joint powers agreement with Red Rock Rural Water that clears funding and responsibilities for a multi-county pipeline and treatment-plant project, backed mainly by USDA loans and state bonding; the county’s contingent bond responsibility under state law was noted.
Murray County commissioners on a unanimous voice vote adopted a joint powers agreement with Red Rock Rural Water to support construction of a pipeline and a water treatment plant that will serve parts of nine counties.
A Red Rock representative told the board the financing package includes a USDA loan of $8,071,000 and a grant line item of $1,000,842, alongside state bonding funds and local contributions. The presenter said additional grant and bonding amounts were planned for the water treatment plant portion of the project, with a total project figure discussed in the packet of roughly $16 million when all sources are combined.
The presenter said federal money from USDA must be spent first on pipeline construction and described remaining work as a multi-phase effort: a treatment plant south of Delray already is in place but is not yet connected; phase 1 will serve nearby lanes and phase 2 will extend pipeline north to lakeshore areas and tie back to the existing system.
Commissioners pressed for timing and permitting details; the presenter said SHPO clearance and rural development approvals remain before some bids can move forward. The presenter also noted county exposure under Minnesota Statute 116A.24, subd. 3: if Red Rock defaults on general-obligation bonds, counties that receive service would be responsible for bond payments in proportion to property area served.
After brief questions about construction sequencing and a review of bidder and procurement roles, a commissioner moved to adopt the agreement; the motion passed by voice vote and the board authorized follow-up loan resolutions to be prepared for Murray County and Red Rock.
The county will receive a loan-resolution draft from bond counsel once all nine counties sign the JPA; staff said the packet includes a project map and projected bid dates, but stressed those dates are estimates.
The agreement places Murray County as the lead county for project administration in Murray County’s service area; next steps include finalizing archaeological (SHPO) steps and proceeding to bid steps when clearances are complete.
