City warns of major costs to replace aging Sand Hollow/Dixie Springs transmission lines; grant funding and match discussed

Water-utility staff described ongoing, recurring failures on an 18-inch HDPE transmission line between Dixie Springs and the city booster and tank that serves the Sand Hollow area. Staff said the line has experienced multiple leaks, requiring “Band-Aid” repairs that totaled roughly $230,000 in one recent year and that replacing the entire HDPE transmission segment would be a major project.

Staff said an approximate cost to replace the full HDPE transmission route up to the tank had been estimated near $23 million (staff described an earlier estimate of about $23.5 million) and said impact fees would not be eligible to pay for the entirety of the work. The department indicated it is preparing more refined cost estimates, potential loan options and phasing strategies.

Separately staff reported work on Sky Ranch (tank) and related projects tied to a Division of Drinking Water grant. Staff said the city expects to close on the grant and that the required local match (staff cited arranging about $1.2 million in match funds in one discussion) was being arranged. The transcript also noted other water projects (San Alta Road, Dixie Springs well) in varying procurement stages; staff said Glenn is the lead staff and will provide numbers and bid timelines.

Staff asked for council’s patience while those multi-million-dollar water replacement options, grant terms and match mechanics are finalized; no formal vote was recorded on the transcript segment.