Utilities Inc. has awarded contracts for extending water and sewer lines to the proposed federal detention center totaling almost $9 million, the company's Regional Vice-President Paul Burris announced Wednesday.

Utilities Inc. received permission from the Public Utilities Commission last month to expand its service territory to include the 120-acre site on East Mesquite Avenue.

Two Pahrump contractors received work to install the lines, while H&M Pipe and Supply of Pahrump will supply the pipes, valves and hydrants.

Floyd's Construction will install the 24,000 linear feet of water lines, a 1.5 million gallon water storage tank and a booster station. Wulfenstein Construction will do the paving and roadwork, Burris said.

A Las Vegas company, Spirit Construction, was hired to install the 29,000 linear feet of sewer main, 3,000 linear feet of sewer force mains and two lift stations, Burris said.

Utilities Inc. only awaits encroachment and dust control permits from Nye County, Burris said. "We filed for them, we should have them in a week," he said.

Burris said work is expected to begin after Thanksgiving. The contractors are under a deadline to finish the project by May 28, 2010, or be subject to penalties, he said. CCA hopes to have the detention center substantially complete by next summer.

Nigro Development, developer of property on the northeast corner of Highway 160 and Mesquite Avenue where a new 300,000-square-foot shopping center is planned, including a new 175,000-square-foot Walmart store, is contributing to the cost of the infrastructure being paid by Corrections Corporation of America.

"We are very excited about this opportunity. This construction project not only benefits the detention center and Nigro Development LLC, but will bring water and wastewater service to currently undeveloped commercial properties," Burris said in a prepared statement.

Brad Jones, Nigro Development project manager, wouldn't disclose the amount his company is contributing. But he said the installation of utilities will definitely speed up the new Pahrump Walmart project.

"I think the detention center project definitely helps the Walmart parcel for sure," Jones said.

Burris said water lines on Highway 160 at Larkspur Street, north of Home Depot, will be extended up Highway 160 to Mesquite Avenue then right to the detention center. There will also be water lines extended west down Mesquite Avenue to Blagg Road to loop the system.

The sewer lines on Blagg Road just south of Mesquite Avenue will be extended east on Mesquite Avenue to the detention center. A sewer line will also be extended down Highway 160 from Mesquite Avenue to the Adkisson Street, site of the new Walmart store, Burris said.

Utilities Inc. plans to file for a rate increase with the PUC in December. The company has to wait for three years to apply for each rate increase.

In the application with the PUC to annex the detention center into their service area, Utilities Inc. said they will pay $2.1 million for construction of facilities: the new water storage tank, replacing a lift station and replacing a sewer main downstream of the lift station.

Utilities Inc. will charge CCA a sewer rate of $16.54 per bed for each of the 1,072 beds in the facility, generating $212,770 annually for the utility. CCA is expected to use 40.7 million gallons per year of water, which is expected to generate $75,895 annually, according to the PUC application.

When asked if the detention center extension will reduce any rate increase, Burris said, "It will have an impact on it, because those revenues will most likely be included in the revenues, the structure for setting the rates. It will minimize it. Anything CCA pays for is not going into the rates."

Louise Grant, spokesman for CCA, said in a prepared statement: "CCA is pleased that the successful bidders for this large initiative include two Pahrump contractors, Floyd's Construction and Wulfenstein Construction. In addition, the contractors have commitments to buy all piping from the local vendor, H&M Supply, and all aggregate and asphalt will be supplied locally."

She added, "A project of this magnitude will benefit the entire community."