DDW-2024-009009

195 North 1950 West • Salt Lake City, UT
Mailing Address: P.O. Box 144830 • Salt Lake City, UT 84114-4830
Telephone [phone] • Fax [phone] • T.D.D. [phone]
www.deq.utah.gov
Printed on 100% recycled paper
State of Utah

Drinking Water Board
Kristi Bell, Chair
Eric Franson, P.E., Vice-Chair
Dawn Ramsey
Justin Maughan
Corinna Harris
Jeff Coombs
Shazelle Terry
Blake Tullis, Ph.D.
Kimberly D. Shelley
Nathan Lunstad
Executive Secretary

SPENCER J. COX
Governor

DEIDRE HENDERSON
Lieutenant Governor
Department of
Environmental Quality

Kimberly D. Shelley
Executive Director

DIVISION OF DRINKING WATER
Nathan Lunstad
Director

The Honorable Jean Krause, Mayor [e-mail]
Virgin Town
114 Mill Street
Virgin, Utah 84779

Subject: Extension; Virgin Town, System #27020, Loan #3F1909

Dear Mayor Jean Krause and Town Council:

On May 16, 2023, the Drinking Water Board (hereinafter called the "Board") authorized a
construction loan of $3,070,489 with $930,489 in principal forgiveness, for a net repayable
amount of $2,140,000 for 40 years at 0% interest to Virgin Town (hereinafter called the
"Recipient") to build a new 500,000-gallon storage tank and install new distribution waterlines
throughout the water system (hereinafter called the "Project").

As the construction on this Project has progressed, Virgin has encountered significant delays with
the project. The Bureau of Land Management right-of-way that was granted as part of this project
required the access of the road to be in a specific location. The amount of access granted was not
wide enough and had to be re-designed. This road still has not been built and the geotechnical
engineer who is to design the water tank still has limited access to the site. This has delayed the
completion of the design stage of the water tank.

On June 25, 2024, the Drinking Water Board authorized an extension of the loan that was
authorized on May 16, 2023 for one year. This will extend the term of time to complete the
obligations of the project to June 25, 2025. The financial assistance is subject to the same
conditions and requirements as stated in the authorization letter dated May 31, 2023 to
Virgin Town.

July 16, 2024
Virgin Town, Mayor Krause

Page 2

If you have any questions, please contact Allyson Spevak at [phone] or me at (801) 674-
2563.

Sincerely,

DRINKING WATER BOARD

Michael J. Grange, P.E.
Assistant Executive Secretary

MJG/as/lr

Enclosures

cc: William Prater, Esq., William L. Prater, LLC, PO Box 71368, SLC, UT 84171, [e-mail]
Krystal Percival, Virgin Town, [e-mail]
Rod Mills, Galloway, [e-mail]
Boyd Preece, Galloway, [e-mail]
Paul Wright, District Engineer, DEQ, [e-mail]
DDW Finance

July 16, 2024