Minutes of The Special Price City Council Meeting

City Hall: Price, Utah

December 14, 1999, 5:00 p.m.

Present:

Mayor Lou Colosimo

Councilmembers: Vern Jones, Community Administrator

Roy A. Nikas Joanne Lessar, City Recorder

Joe L. Piccolo Pat Larsen, Finance Director

Stephen L. Denison Nick Sampinos, City Attorney

Richard Tatton Gary Sonntag, PWD/City Engineer

Excused: Councilmember Betty P. Wheeler

Others Present:

Quinn Healy Craig Johansen Dale Mathis

Glen Wells Keith Grogan John Serfustini

1. PRICE/WELLINGTON CONTROL BOARD - Piping of Irrigation System

The Price/Wellington Control Board met with the City Council to discuss the proposal to place irrigation water from the canals into pipes. The greatest benefit to pipe the irrigation system is that there would not be any water lost in the ground. Councilmember Nikas stated that the engineer’s estimate of this project is approximately $10.5 million. If the project is approved and ends up running significantly over, what kind of guarantee do we have of the dollar figures involved? Are there options that would reduce the amount of money that needs to be borrowed? Craig Johansen stated that the current estimate of $10.5 million was prepared 2 years ago. At that time, it was reviewed by the Bureau of Reclamation and the Water Resource Board and accepted. However, the longer the project is delayed, the more things will change. Pipe prices rose 36% between the months of May and August of this year. Prices usually go back down in the winter, but it is uncertain what level it will reduce. Mr. Johansen felt that if the cost of the project increases, the Water Resource Board would probably provide the additional funding at the same interest rate as the original loan. It would be paid back on a 30 year basis proportionately by those canal companies involved.

Councilmember Piccolo discussed the storm water situation within Price City limits. The City will have to either install a separate line or cement the ditches to control storm water. This could cost Price City another 3/4 of a million dollars. As the water pressure will be different, it will cost the City additional funds to readjust their sprinkling systems. The Council’s concern is what it will cost the City to pay back the loan for this project and where the money will come from. The City operates on a very tight budget and they don’t want to raise rates where there will not be a direct benefit to the citizens. The City does not want to commit to something that they don’t know what the total costs will be. As far as a secondary water system, projections are that it will not be needed until the year 2020.

Councilmember Piccolo disclosed that he owns property that fronts the canal on 4^th North. Depending on the alignment of the piping system, Councilmember Nikas also disclosed that he is a 1/6 owner of property that could be affected.

Councilmember Nikas asked if the project could be scaled back and what would be the least amount of money that would need to be borrowed to still have a viable project and not jeopardize the salinity? Mr. Johansen stated that the project has been reviewed at different angles and it still ends up the same. An amount of $3.9 million would still have to be borrowed. Depending on the irrigation companies that become involved, Mr. Johansen stated that there might be some laterals that could be rearranged.

Councilmember Nikas brought up the fact that Price City budgets $50,000 every year to

purchase water shares. If Price City saves water through evaporation, seepage, etc., some of the funds needed to pay back the loan for this project could be offset by not having to purchase additional water shares. We will not have to buy as many shares to offset the shortage. Mayor Colosimo thanked the control board for attending this meeting. As soon as the Council makes a decision whether they will participate in the project, they will contact the board.

Meeting adjourned at 6:04 p.m.