Mountain Regional proposes $42 million Signal Hill treatment upgrade; district aims to use WIFIA loan to spread cost

Mountain Regional Water presented a proposed upgrade to its Signal Hill Treatment Plant to the Summit County Council on June 11, describing work to increase treatment capacity and protect water quality as the district prepares for future demand.

The district’s plan packages construction elements and reuse of existing structures to limit cost. District staff said the estimated construction cost is about $35 million and total project costs (including design, fees and contingencies) are roughly $42.3 million.

Why it matters: The Signal Hill plant supplies culinary water into Summit County’s system and is central to the district’s ability to use its allocation from the Weber River. Mountain Regional officials said the project will support peak summer demand and provide source development that could serve the district for 25–30 years.

Project scope and design choices

• Capacity increase: The plant will be reconfigured to move from about 2.6 million gallons per day (MGD) to 5.4 MGD of treatment capacity, the district said. Mountain Regional officials described the change as critical to meeting projected peak summer demands.

• Treatment approach: The district proposed moving to a direct filtration concept that removes the need for new sedimentation structures; officials said direct filtration and reuse of an existing basin for solids handling would avoid an estimated $9 million in additional new construction.

• Major elements: Planned work includes replacing membrane filtration skids (to double skid capacity), adding two granular‑activated‑carbon polishing vessels, constructing a new chemical/containment building, increasing solids handling capacity and doing civil/site work to improve access and sewer connections.

Financing plan

• Federal loan program: Mountain Regional seeks to use the EPA’s WIFIA (Water Infrastructure Finance and Innovation Act) loan program for the bulk of financing. Staff described WIFIA as providing longer amortization (up to 35 years), delayed payments (no required principal payments until after project completion and options for interest‑only periods) and a one‑time rate reset before funds are drawn.

• Grants and district funds: The district reported a $2 million award from the state Division of Drinking Water (a forgivable loan/grant from the meeting discussion), roughly $2.3 million of impact fees to be used and about $3.1 million in district capital reserves available toward the project. District staff also noted they had already incurred design and study costs.

• Timeline and rate impacts: The district seeks design completion and bid readiness by the end of the next year, with construction in 2027–2028 and substantial completion expected in late 2028. Because WIFIA allows deferral of principal payments, the district said it could hold customer rate increases to a modest level (staff gave a planning range of roughly 3–5% per year initially, with potential for higher increases when debt service begins) and use interest‑only or capitalized interest in early years to limit near‑term rate pressure.

Council response and next steps

Council members asked technical questions about acre‑feet and year‑round capacity; staff said the increased throughput equates to a significant expansion of treated water and will better position the district to meet summer irrigation demands.

District officials said they will return to council with a parameters resolution for WIFIA financing and an updated impact‑fee facilities plan this summer. If the council approves financing parameters, the district expects to close on WIFIA this fall and draw funds in 2027 as major construction begins.

Quote

"The WIFIA loan has really made this project feasible to meet the demands of the district now and build for the future," Mountain Regional CFO Steve Anderson said.

Ending

Mountain Regional seeks council approval of financing parameters in coming weeks; the council heard the presentation and asked staff to return with a parameters resolution and a revised impact‑fee plan later this summer.