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Levan residents and council spar over lawsuit with Chicken Creek Irrigation Company
Summary
Residents and irrigators pressed the council to negotiate rather than continue costly litigation over a longstanding electricity-subsidy dispute with Chicken Creek Irrigation Company; councilors said the town filed suit to stop an estimated $28,000 annual subsidy and resolve decades-old disagreements.
Levan Mayor Tyler Shepherd and council members defended a town lawsuit against Chicken Creek Irrigation Company on Thursday as residents and irrigators questioned the legal costs and urged negotiation.
The dispute centers on a 1985 agreement governing electricity charges for the irrigation company. Council members said a 2022 rate study showed the town had been subsidizing the irrigation company by about $28,000 a year, effectively raising rates for other residents. The town ended the subsidy in December 2021 and filed suit in July 2025 to seek a definitive resolution, council members said.
Resident Clayton Sperry, representing irrigators concerned about assessment costs, asked why direct negotiations had not been pursued and criticized the mounting legal bills. Several audience members interrupted the discussion, prompting reminders about public comment procedures. "We are paying legal fees on both sides," Sperry said as he pressed the council to consider mediation.
Council members Rachel Goates and Jerry Spencer outlined the town's position and said previous attempts to resolve the issue had failed, leaving litigation as the remaining option to clarify obligations and stop the subsidy. Mayor Shepherd declared a conflict of interest in the discussion because he is president of an irrigation company and abstained from a separate lease vote for a farm parcel.
Public comment reflected deep division. Christie Mangelson raised concerns about the timing of CIB project deadlines relative to town procedures and cited civil-notice practices around agricultural leases; other residents reiterated frustration about legal expenses and called for direct negotiation rather than continued litigation.
The council said the lawsuit is in the discovery phase, with information gathering and witness lists underway, and did not announce a near-term settlement or mediation. No formal direction to pursue mediation was recorded at the meeting.
The council took no vote to change litigation strategy at the April 9 meeting; discussion and public comment concluded before adjournment.
