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Grantsville OKs interlocal with Desert Edge, adopts $500 SR‑138 connection fee to reimburse waterline upgrade
Summary
Grantsville approved an interlocal agreement to reimburse up to 50% of a proposed SR‑138 waterline upgrade—roughly $1.4 million total—with a $500 per-connection fee to reimburse the Desert Edge PID; staff said the city’s share is about $733,000 and the fee is expected to apply to roughly 1,400 connections.
Grantsville City Council voted Dec. 4 to enter an interlocal agreement with Desert Edge Public Infrastructure Districts and to add a $500 connection fee for a proposed enlargement of a water main on State Route 138.
Spencer Conley of LGI Homes told the council the current bid for the waterline upgrade is about $1.4 million and that the developer-led PID will construct the line. Under the interlocal agreement and the city’s prior development agreement, Grantsville will reimburse up to 50% of the cost to the PID—about $733,000 if the bid holds—by collecting $500 per connection and forwarding those proceeds to the PID until the 50% cap is reached. “The PID would get reimbursed up to 50% of the actual cost of the line,” one city attorney summarized during the meeting.
Council members pressed for clarity on how many connections would be charged and whether Desert Edge residents would also pay the fee. Staff and the developer described an estimated reimbursable base of roughly 1,400 connections (staff and developer used figures in the 1,400–1,468 range in the discussion); LGI said its own subdivision would account for about 700 units. Council members asked for explicit contract language ensuring that collections stop after the city’s 50% obligation is met; the city attorney said the interlocal language limits reimbursement to 50% and the city will stop forwarding fees once the cap has been reached. “Once that 50% is met, the city will simply stop,” the city attorney said in reply.
Council approved the interlocal resolution (Resolution 2024-92) and then approved an ordinance amending the fee schedule (Ordinance 2024-39) to add the $500 connection fee to be collected for new SR‑138 connections and forwarded to the PID for reimbursement. The council also briefly discussed alternative approaches—charging only the incremental cost of upsizing the pipe from 8 to 12 inches—but said the development agreement already obligates the city to the 50% reimbursement method.
Next steps: staff indicated a PID attorney may be asked to review the final contract language before implementation and that city staff will monitor collections and stop transfers once the reimbursement cap is reached.
