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Board commits $1.282 million additional C&D funds to Hurricane City drinking-water portion amid rising costs
Summary
Hurricane City requested an additional $1,282,000 from the Conservation & Development Fund to cover higher-than-expected material, labor and well-related costs for a combined pressurized-irrigation and drinking-water project; the board approved the request and set bonded terms.
The Utah Board of Water Resources approved a staff recommendation to commit an additional $1,282,000 from the Conservation & Development (C&D) Fund to Hurricane City to finish the drinking-water portion of a combined pressurized-irrigation and drinking-water project.
Ethan Stayner presented the request and explained that the total project cost is about $37.8 million for combined pressurized irrigation and drinking water components. Staff said that after the board’s earlier March commitment, the City Water 1 Fund used for the prior commitment is no longer available and the requested additional funds must come from the C&D fund, which carries interest.
Stayner said material and labor costs have increased since the original authorization and that a couple of well items were not included in the initial estimate. The drinking-water portion of the project totals about $9.277 million; the board had previously committed $6.603 million toward that portion and the applicant had provided roughly 15% ($1.4 million), leaving $1.282 million requested to complete the drinking-water scope.
Hurricane City representatives explained they had delayed some contract awards until well capacity was known from a test well; after drilling the production well they planned to build a booster station and a sand separation tank and anticipated awarding the drilling contract imminently. The city said the expanded pressurized-irrigation system should reduce drinking-water use by roughly 800 acre-feet and that installing secondary meters on about 1,460 connections (using ARPA funds) could cut secondary use by about 400 acre-feet.
Staff recommended, and the board approved, committing the additional $1,282,000 from the C&D fund as bonded indebtedness at 3.33% interest over 25 years with annual payments of approximately $81,000 including reserves; the motion passed unanimously.
Ending: City officials thanked the board and said they planned to proceed with well drilling and related procurement; staff said the additional funds complete the board’s intended share of the drinking-water scope.
