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NEW ULM – An $889,673 low bid for the New Ulm lead service line replacement project was awarded to Castrejon during the Public Utilities Commission meeting Tuesday evening.
This round of replacements aims to target 73 service lines. April or May of 2027 are the anticipated start dates, depending on weather conditions. Replacements need to be completed by Sept. 24.
The project stems from Minnesota's goal to have all lead and certain galvanized steel service lines located and replaced by June 30, 2033. The federal government has all replacements set to be required by 2037.
Funding for the project comes from the Drinking Water Revolving Fund (DWRF) created by the Minnesota Public Utilities Authority.
The DWRF granted New Ulm Public Utilities up to $1,000,000 for their project.
Along with having the lowest bid, Castrejon was chosen for their experience with replacement projects.
Based out of St. Paul, Castrejon has completed 1,100 replacements in the St. Paul area.
One of the holdups with the replacement process in St. Paul was getting access agreements signed.
Homeowners are required to sign access agreements prior to the replacement process of lead service lines.
Castrejon expressed that they are more than willing to help out and explain the agreements to ensure that the replacement project continues on schedule. During their time working in St. Paul, they assisted by going door to door getting agreements signed.
Vice President Brett Fleck Mary Ellen Schanus asked if lead piping leaks that occur during the service line replacement would be prioritized.
Utilities Director Brett Fleck said that they are working from a prioritization list that has already been set, so they would not get bumped up on the list.
"There is something like 280 or 290 that we're aware of," Fleck said. "This funding is for the first 73."
Fleck added that there will be multiple cycles of replacement, so every service line needing replacement will be addressed.
As of 2026, New Ulm Public Utilities has identified 263 galvanized steel service lines and 21 lead lines. There are 2,087 unknown lines remaining.
Customers have received and will continue receiving notices regarding the status of their service lines.
The next cycle will be in a year to a year and a half.
Review of the Preliminary 2027 Public Utilities budget will take place Tuesday, Nov. 24, in the Public Utilities Administration Building at 1 p.m.