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Council weighs major water projects and approves $830,490 change order to finish BLM South test well
Summary
Cedar City discussed a proposed $17M chlorine-disinfection project, Cedar Canyon Springs treatment, Martin’s Flat and Rush Lake wells, and radio-read meters; council approved a change order of $830,490 for KP Ventures to finish the BLM South test well and reallocated funds from previously-budgeted projects.
Cedar City staff and council spent the largest portion of the meeting on the city’s water capital priorities, reviewing state-ordered disinfection requirements, source development and funding options.
City staff told the council the Utah Division of Drinking Water has required systemwide chlorine disinfection; staff proposed keeping a $17 million placeholder for the full project in the tentative budget while negotiating a six‑month re-evaluation period with the state and building a temporary chlorination station (estimated about $100,000) at the Cross Hollow tank to meet short-term compliance.
The council also discussed Cedar Canyon Springs, which the Division of Drinking Water has identified as under the direct influence of surface water. Staff said $2.2 million is currently budgeted for the springs and an additional roughly $2 million would likely be needed to build a treatment facility.
Council reviewed several source‑expansion options. Martin’s Flat has $1.95 million already budgeted and staff proposed an additional $1 million step to finish deeper test drilling; a completed production well would still require finishing costs (pump house, pipeline). Separately, KP Ventures proposed moving from an underperforming BLM North test site to mobilize and complete the BLM South production well. KP Ventures’ proposal of $830,490 to finish and test‑pump the BLM South site was approved by the council on a motion that explicitly reallocates previously authorized funds (Quechapa South cathodic protection and a backup generator for Quechapa wells) to finish the well.
The council emphasized finishing wells and testing true yields before committing to long pipeline projects. Several members advocated using available cash (including a $4 million line item held from prior planning) for near-term projects but debated whether to preserve that cash to contract with a private owner (Rush Lake Ranches/Wayne LeBaron) who offered seasonal pumping capacity. Council discussion focused on whether a minimum yield (several members suggested 1,000–1,500 gallons per minute as a practical floor) should be required in any purchase/contract before committing funds to a private well.
Council and staff also discussed a citywide radio-read water-meter program (estimated $1.6M total; staff currently working to reduce cost to the $1.0–1.1M range after reallocations) and the need for updated tiered rate structures to support long-term capital financing. Staff will return with revised budget options and the council asked for precise bids and tradeoffs before final bond decisions. The council’s vote to approve KP Ventures’ change order was unanimous.
The council did not adopt a single package of bond decisions at this meeting but directed staff to leave the tentative budget items in place while providing refined options in the next meeting. No pipeline construction decisions were made; councilors repeatedly emphasized wanting proven water yields before approving major pipeline investments.
