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Placer Sentinel

PCWA and South Placer Municipal Utility District Partner on $2.4 Million Pipeline Project in Newcastle

Sep 19, 2025 10:39AM ● By Placer County Water Agency News Release

Placer County Water Agency and South Placer Municipal Utility District are partnering to replace aging water and sewer mains along Old State Highway in Newcastle, coordinating trenching and paving to reduce neighborhood disruptions and save costs. Photo courtesy of Placer County Water Agency (PCWA) 


AUBURN, CA (MPG) - The Placer County Water Agency (PCWA) Board of Directors approved a $2.4 million construction contract for the Old State Highway Pipeline Replacement Project, a joint  effort with the South Placer Municipal Utility District (SPMUD), before traveling to Truckee for its annual East Slope board meeting. 

Hosted by the Northstar Community Services District, the East Slope meeting brought together six local utility districts in the North Lake Tahoe area to share updates and discuss strategic goals for 2026. 

Before heading to Truckee earlier that day, the Placer County Water Agency Board awarded the Old State Highway Pipeline Replacement Project contract to Monzingo Construction, Inc. for work in the Newcastle community along Old State Highway and Buena Vista Avenue. The project will replace aging water and sewer mains, and coordinate trenching and paving to minimize repeated disruptions for residents along this key corridor between Taylor Road and Interstate 80.

Although the water and sewer mains will be installed separately, in phases, the agencies have coordinated trenching to occur in tandem and paving only once, reducing disruption and saving costs for both agencies. “These kinds of partnerships are made possible through regular coordination and meetings with our fellow utilities and local planners,” said Robert Dugan, Chair of the Placer County Water Agency Board of Directors. “By working together early and often, we’re able to reduce impacts on residents and ensure that infrastructure improvements are delivered as efficiently and responsibly as possible.”

The scope of work includes installation of 1,654 linear feet of new 8-inch water main, 1,700 linear feet of new 6-inch sewer mains, replacement of 22 water services and 17 sewer laterals, installation of five new fire hydrants and 33,871 square feet of asphalt pavement overlay. Construction is expected to begin in October 2025 and be completed by November 2026. SPMUD will reimburse Placer County Water Agency for its share of the paving costs, similar to the cost-sharing approach used in the recent Rocklin project. 

“We appreciate the opportunity to collaborate with Placer County Water Agency on this project,” said Eric Nielsen, SPMUD General Manager. “Our agencies share many of the same customers, and when we can coordinate efforts like this, especially around trenching and paving, we reduce disruption for residents and deliver a better final product.” 

In other business, the Board authorized its clerk to file a Notice of Completion for the $1.5 million Shady Glen Consolidation Project by Lorang Brothers Construction, Inc. Fully funded by the State Water Resources Control Board’s highly successful Expedited Drinking Water Grant Program, the project included the installation of about 1,700 feet of treated water pipeline to connect residents of Shady Glen Estates with the Agency’s new Colfax Water Treatment Plant and is part of Placer County Water Agency's broader effort to consolidate smaller, independent water systems into its larger network. 

The Board also awarded a nearly $916,000 contract to Clyde G. Steagall, Inc. for improvements to the Foothill and Oak Terrace Pump Stations. An important link to the Ophir Water Treatment Plant, this is the last major improvement project required to convey 10 million gallons daily from Ophir to the lower portion of Placer County Water Agency's water system. These improvements are expected to be completed by December 2026  and will be funded through expansion fees from developer-paid water connection charges, not rates. The Ophir Project is expected to be completed in 2030. 

During the East Slope meeting, the board heard reports from its host, Northstar Community Services District, in addition to Tahoe City Public Utility District, Sierra Lakes County Water District, North Tahoe Public Utility District, Olympic Valley Public Service District and Truckee Donner Public Utility District. 

Local utility districts continue to address issues such as copper and lead levels, upgrading water meters, fighting algae blooms and replacing water mains, as well as fire safety and forest management. Placer County Water Agency assists in these efforts through its Financial Assistance Program for local water purveyors, supporting initiatives that help ensure safe and reliable water service throughout Placer County.