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Randall Community Water District is transforming water service with innovative self-construction and strategic leasing - CoBank Site
Randall Community Water District is transforming water service with innovative self-construction and strategic leasing
South Dakota-based Randall Community Water District is revolutionizing its approach to water system development, utilizing a unique blend of in-house construction and strategic leasing to maintain and build its own underground water pipelines.
Through this innovative approach, RCWD is now undergoing a major $115 million project – installing 70 miles of 30-inch pipeline and adding 8 million gallons of treatment capacity for the city of Mitchell – paving the way for other water systems.
RCWD is a rural water district serving six counties in South Dakota – approximately 3,100 customers and 15 bulk customers, with the capability to provide 12 million gallons of water per day. Its mission is to provide high-quality service at the lowest possible cost to its customers. And one of the ways it can achieve low rates without cutting corners is through its unique approach to construction.
CoBank helped us assess options, which led us to leasing – an option we didn’t even know was possible.
“Instead of driving around all day looking for leaks, we started installing our own pipeline. We also hire and train our own crew for the installation, which allows us to efficiently manage and execute large-scale projects,” said Scott Pick, general manager of RCWD.
This shift has allowed RCWD to maintain the best level of service while keeping costs manageable for customers. However, one of the key factors of a self-construction model is reliable equipment.
RCWD evaluated different options to finance the plows, excavators and bulldozers needed to fix and install underground pipes. Renting was too expensive, more suitable for short-term needs because of its higher per-day costs. And purchasing new machinery had its own challenges – especially with upfront expenses and inevitable depreciation. That’s when RCWD landed on leasing, immediately drawn to flexibility, access to updated equipment and most importantly, the cost savings it offered.
“CoBank helped us assess options, which led us to leasing – an option we didn’t even know was possible. They offered us the most competitive rates and now most of our fleet is leased through CoBank,” Pick said.
Financial stability has been instrumental in supporting RCWD’s pipeline expansion project for the city of Mitchell. Funded in part by a $22.5 million dollar grant, the project will enhance the district’s capacity to deliver water while supporting regional growth. The self-construction approach also allows RCWD to complete the project in an estimated two and a half years – an ambitious timeline made possible by reliable, leased equipment.
“Our partnership with CoBank goes beyond financing,” said Pick. "CoBank is always there to find a solution – listening to our needs and then finding a way to make it happen. CoBank’s support has reinforced our commitment to innovation and efficiency. And most importantly, it has benefited our customers with some of the lowest rates in the state. That support and commitment matters,” Pick said.
