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Board hears progress and challenges on wells, tank and failing pipelines; Dixie Springs well could change rates for that area
Summary
Staff updated the board on Goulds Wash and Sky Ranch wells, a planned 2,000,000-gallon Sky Ranch tank, Phase 2 piping funding uncertainty, and repeated pipeline failures and repair costs concentrated in older development areas including Dixie Springs.
Staff told the Hurricane City Water Board that contracts and easements are moving for several well and tank projects but that funding and bonding remain uncertain for a Phase 2 piping project.
Staff reported the Goulds Wash contractors have not received a notice to proceed while they assemble bonds and submittals. City staff said the Sky Ranch project required a land swap and easement adjustments; those items were placed on an upcoming city council agenda for approval.
On the Sky Ranch 2,000,000-gallon tank, staff said pre-construction meetings have occurred and that the project is advancing through procurement and permitting steps; a start date was not specified in the meeting.
Board members raised the cost and schedule pressures on a multi-phase transmission and distribution program. One staff summary listed large repair bills and repeated failures in older pipeline phases: roughly $250,000 spent on repairs and materials two years ago, about $1.2 million last year, and cumulative repair spending of more than $2.5 million since 2006 for the affected sections. Board members said those expenditures are short-term fixes and that the long-term replacement price estimates are significantly higher.
Members and staff discussed Dixie Springs: when the city’s Dixie Springs well comes online, staff said the city would supply that area’s water instead of purchasing all of it from the district; board members said that change would justify a later rate adjustment for Dixie Springs customers because the city’s cost structure would shift.
The board discussed borrowing options and emphasized that lenders and state programs look for evidence the city is meeting its own revenue and reserve requirements before making low-interest loans; members said higher, stable rates improve the city’s position for financing major projects.
Ending: Staff will continue to pursue bonding and easement confirmations, update the council on land-swap language, and report construction start dates and cost estimates when they are available.
