Price City leaders discuss study to pare $42 million water-treatment plan; public hearings set on rates and spring-line work

Price City officials on an item of the council agenda discussed commissioning a supplemental engineering study to seek lower-cost alternatives to a $42,000,000 water-treatment plant design and outlined plans for a phased spring-line replacement and related rate changes.

The study under discussion would cost about $21,000 and would be paid from remaining planning funds previously budgeted for earlier design work, officials said. "We have a $42,000,000 design right now that we've paid," the council member leading the update said. The study would evaluate phasing, seasonal operation and possible shared facilities with a neighboring system to reduce upfront costs.

Why it matters: council members said the scale and timing of the treatment-plant project and spring-line work will affect whether the city can secure grant and loan funding and how much the utility rates must rise. Officials said the city must present a design and cost estimate to funding agencies to qualify for certain state and federal programs.

Discussion and details Officials described two related strands of work: a spring-line replacement estimated initially at $12,000,000 plus an added $2,000,000 allowance to cover potential federal requirements if federal funds are used, and a separate water-treatment plant design currently estimated at $42,000,000. The council member said the spring-line estimate covers three initial segments of thin-wall pipe and that other pipe on the system is cast iron and likely could be deferred.

The supplemental study would be run alongside a separate regional-utility study already under way. The council member said consultant Chris Perry, who led the first study, and engineering firm Hazen Sawyer are positioned to do a priority study that could identify opportunities to reduce the initial price tag by phasing work and by using lower-cost treatment options in the near term. "Can we do something less?" the council member asked when outlining phased options.

Funding and approvals Council members discussed multiple funding sources that have been used or could be used for the planning work, including money from the Division of Drinking Water and a CIB match. The council member summarized prior planning funds as: $100,000 from the Division of Drinking Water, $40,000 in local cash and a $140,000 match from the CIB, for a budgeted total of about $280,000 for planning and preliminary work.

Officials warned that accepting federal dollars can add requirements and extend the timeline — citing Davis-Bacon wage rules and additional environmental reviews — and described exploring whether the Drinking Water Board could provide state-only funds as an alternative. "Ask for federal — it's just the requirements pile on," a council member said when explaining why the city might prefer state funding.

Rates, hearings and outreach City staff said two public hearings will be held on the ninth: one on proposed water-rate changes and one on the spring-line project. Staff outlined an approach that would lower the base allotment from 10,000 gallons to 7,000 gallons and raise rates; council members said that, depending on usage, the modeled increase would raise the average customer's bill by roughly $15 (an approximate 40% change in the modeled scenarios presented to council). One staff member asked the council to plan public outreach and hearings and to be ready to explain why the increases are needed.

Operational impacts and outages At the start of the discussion, a utilities staff member reported an active outage affecting areas west of Mount Harmon and said crews were working to deliver parts and that water service likely would be restored after midnight or the following morning. "The water is out from either everything west of Mount Harmon … Probably back on till after midnight or maybe in the morning," the staff member said. The council discussed temporary water deliveries using local tanker capacity (estimates discussed ranged from about 5,000 to 10,000 gallons per tanker) and using mutual-aid resources.

Other program updates Council members also noted an ongoing five-year lead-and-copper inventory required by program rules, and that the city is pursuing grants tied to water loss reduction and to transmission and treatment planning.

What the council directed and what remains Council members expressed support for proceeding with a supplemental $21,000 study using remaining planning funds while the regional study continues, but the transcript does not record a formal motion or roll-call vote authorizing the work. Staff indicated that, because the amount is under $100,000, administrative approval is an option instead of returning to the Drinking Water Board for an additional funding request. Formal project approvals, loan applications and rate ordinances were discussed as future steps to be scheduled and advertised as required.

The council also asked staff to ensure clear public notices and two public hearings and to provide an updated schedule and model so council members can explain proposed rate changes to residents.