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Gunnison council hears public hearing as water project estimate rises to $6.9 million
Summary
At a public hearing the council was briefed on a revised estimate for a water‑supply project — up from $6.7 million to $6.9 million — intended to fund a new well and about eight miles of transmission and distribution line; staff said $5.5 million previously received covers well drilling and related items and the city is seeking Community Impact Board support.
Gunnison — City staff told the council at a public hearing that the estimated cost for a proposed water‑supply project has increased from $6,700,000 to $6,900,000, with the additional funds intended to cover a backup generator, bonding and legal costs.
"And so that moved the estimate to 6,900,000.0," said Kelly (staff member) while presenting the scope, which she described as drilling a new well west of Gunnison and installing about eight miles of transmission and distribution line to tie into the Gunnison city tank.
The project team said $5,500,000 previously provided by the Division of Facilities Construction Management is earmarked for the drilling, power‑line extension and some pipe; the council was told that the new request to the Community Impact Board (CIB) would cover the remainder of distribution and transmission piping, equipment and a well building. Staff described the city's funding ask as an 80% grant and 20% loan split under CIB rules.
Gabe Bang of the R6 Regional Council reported regional support: "They did vote in favor of supporting this project," he said, and added that a regional document was transmitted to CIB for review. Bang said one board member asked whether state contributions should play a larger role because of the nearby corrections facility; staff did not commit to a change in state share during the meeting.
Council members discussed the project’s impacts on utility rates. One staff estimate discussed during the meeting suggested loan terms under certain scenarios could add roughly $25 per month to a household utility bill; staff characterized that projection as dependent on loan/grant mix and final project costs.
The council closed the CIB public hearing after public comment and staff presentation and directed staff to continue preparations for the CIB application and any required documentation updates for the CIB funding meeting.
What's next: Staff said updated minutes and application materials would be submitted to CIB in advance of the funding meeting; no final CIB decision was made at the council session.
