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Front Page » December 30, 2003 » Local News » PRWID Decides to Purchase Property
Published 3,950 days ago

PRWID Decides to Purchase Property


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By RICHARD SHAW
Staff reporter


Phil Palmer, PRWID

The Price River Water Improvement District has decided to buy part of the property that was the Willow Creek mine complex in Price Canyon.

At the Dec. 16 public meeting, the board approved the purchase of 130 acres of property located from the School House Canyon area to the water plant for $32,500.

"I am pleased with how this will work for us," indicated PRWID manager Phil Palmer at the meeting.

"This is great property to have for extra settlement ponds to back up the sludge plant at our present facility. There are also some buildings on the property which could be used for extra chemical storage as well," continued Palmer.

The proposal to the owners of the property was approved, contingent on review by PRWID's legal counsel, Nick Sampinos.

The board also approved the issuance and confirmation of the sale of bonds totaling $1.3 million for the upgrade of water line in Carbonville and Wellington.

The project, which will begin later this winter, will replace lines in all and part of five small water company systems, with the intention of bringing them up to state standards so the companies can be absorbed into the PRWID system. The move, as has been requested by the small water companies, will take place sometime next year.

Earlier in the fall, the project was originally bid out with PRWID officials expecting costs to be around $900,000 even though the engineers estimate was a bit over that.

However, when the proposals came in, the bids were considerably higher than expected. Therefore, a new financing option had to be found since the original plan would not provide adequate money for the engineering, construction and reserve on the project.

PRWID approached the state board of drinking water about the extra money and was able to work out the details for more money, but it will change what residents of those areas will pay for the upgrade.

"We were able to get some concessions, but some of it also remained the same," explained assistant PRWID manager Jeff Richens. "We were able to get the state to allow a 20 percent forgiveness for the entire amount, so that part is like a grant. We were also able to finance the remainder over 25 years, which is a plus for keeping the monthly payment for residents down. It appears the cost per month will be about $20."

New customers who hook on to the lines after the system is installed will have to satisfy the standard impact fee and pay $20 per month, which will then be applied toward the principal, explained Richens.

The extra payments will shorten the life of the district's rather than reduce monthly fees for PRWID customers.

"One of the best things that happened with the state is that if there is any money left after we are done with the project they will take that money back at the same 80-20 rate, and not apply it all to the forgiveness portion," explained Richens.

The bonds, which have a 1.27 percentage rate, will close on Dec. 30, according to the water improvement district.

The PRWID staff gave the board an update on the sewer projects that are currently underway.

Palmer told the PRWID board that the Carbonville and the majority of the Wellington projects are completed and local residents are already hooking up to the systems.

The Utah Highway 10 project involving the replacement of an old lift station is moving along well, too.

"We were worried that the extra cost we incurred in Carbonville would put us in the red," commented Palmer, referring to a mud and road cave in problem that occurred in the fall and cost a great deal of money to circumvent.

"But the project on Highway 10 is going much easier than expected and will cost less. I think that will come close to evening things out," pointed out the PRWID manager.

In addition, the snowstorm may have created problems that will delay PRWID's plans to rotomill the road where the mud problems occurred, pointed out Palmer.

People have been complaining about the dust in the area, but the road is currently mud and ice.

In conclusion, the water improvement district manager and staff members informed the board that the final plans for the repainting of the water tanks on Four Mile Hill and in Kenilworth would be ready by the end of the year.

Advertising will soon be done to find a contractor to complete the tank improvement job.

The bids may be ready for the board to open at the second meeting in January, explained the PRWID manager and staff members.


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