Water pressure and capacity are expected to improve after a planned 3.5 million gallon water reservoir is built along Elk Vale Road just south of Interstate 90.

The project, estimated to cost about $5.9 million, includes both a new reservoir and improvements to an existing water storage reservoir.

The partially buried concrete reservoir will be the "hub" of the city's water system for the entire northeast side of town, according to public works director Robert Ellis. It will improve water pressure for existing homeowners, businesses and firefighting efforts on the north side, and will also increase water capacity to serve ongoing developments such as Cabela's and Rushmore Crossing.

The project also includes upgrades to an existing reservoir at Signal Hill in central Rapid City that will allow water to flow freely between it and the Elk Vale reservoir, allowing both sites to draw on the other when extra capacity is needed at a particular site. Ellis said the upgrades also create some redundancy in the system, which would be beneficial if one reservoir or the other needs to be taken off-line for maintenance.

The Rapid City council awarded the project to Massachusetts-based Natgun Corp. for the low bid of $5.931 million. The engineer's estimate for the project was slightly more than $5.01 million.

To compensate for the shortfall, the city is delaying a water, sewer and street project on Silver Street west of Interstate 190. The project was scheduled to be designed this year and built in 2009, but Ellis said it was unlikely the project could have been started this year because of a large number of projects already ongoing this year.

Moving it a few months into the future allows the city to make the Elk Vale/Signal Hill project "cash flow," Ellis said, and would free up at least $1.5 million this year. The Silver Street project, estimated to cost about $2.7 million, will be designed next year and built in 2010.

Delaying the project doesn't sit well with Alderman Sam Kooiker, who said the delay essentially means the city is focusing on new development at the expense of fixing older infrastructure. Kooiker said he is "disappointed" with the choice to delay the Silver Street project and implied if a project on West Boulevard were delayed, a lot of people would complain.

"Silver Street has been waiting a long time to get this taken care of, and here we are delaying it - for a very good project - but we're delaying redevelopment of our community for a new development. This is a crazy way to do business," Kooiker said.

Ellis said the Elk Vale reservoir will serve plenty of existing customers on the northeast side and that the city is spending millions on North Rapid projects this year, including one on Anamosa Street designed to increase water pressure.

But Kooiker said one reason more money is being spent in North Rapid "is because for many, many, many previous years, North Rapid was completely and absolutely neglected in terms of infrastructure improvements."

Alderman Ron Kroeger, whose Ward 4 covers much of North Rapid, took umbrage at Kooiker's statement.

"I don't believe that's the case, as a representative from that ward. There's been a lot of work that's been done up in that area," Kroeger said. "In actuality, this is only going to delay the Silver Street project for approximately three months."

The Elk Vale/Signal Hill project is expected to start in August, and the estimated completion date is October 2009.

Contact Scott Aust at 394-8415 or scott.aust@rapidcityjournal.com