DDW-2024-014750

Drinking Water
Board Packet

December 26, 2024
Agenda
State of Utah
SPENCER J. COX Governor
DEIDRE HENDERSON Lieutenant Governor
1.Call to Order
Department of Environmental Quality
Kimberly D. Shelley Executive Director
DIVISION OF DRINKING WATER Nathan Lunstad, Ph.D., P.E. Director
DRINKING WATER BOARD
SUPPLEMENTAL MEETING
December 26, 9:30 AM Via Zoom Webinar
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 Ph.D. Executive Secretary
2.Roll Call – Nathan Lunstad
3.Disclosure for Conflict of Interest
4.DWSRF Project DiscussionA.Introduction – Michael Grange
B.Federal Programi. Pine Valley Mountain Farms Water Co. – Kjori Shelley
C.State Programi.Antimony Town – Michael Grange
5.Public Comment Period
6. Open Board Discussion
7.Next Board Meeting
Date: January 7, 2025
Time: 1:00 PM Place: Multi-Agency State Office Building 195 N 1950 W SLC, UT 84116
8. Adjurn
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
Agenda Item
4(A)
DRINKING WATER BOARD ARPA ASSISTANCE REALLOCATION INTRODUCTION December 26, 2024
BACKGROUND:
The Drinking Water Board received a $50,000,000 allocation from the State’s American Rescue Plan Act appropriation. This money was divided into two separate funds,
$46,500,000 for a Rural System Construction Fund and $3,500,000 for a Lead-Free Schools Initiative. Federal requirements dictate that all ARPA funds must be obligated by December 31, 2024. By federal definition, “obligated” means the State must have fully executed agreements with each system awarded ARPA funds.
As of mid-November 2024, the Lead-Free Schools Initiative had an unobligated balance of $1,390,694. On about December 6, 2024, the Governor’s Office authorized the Division of Drinking Water to reallocate unused ARPA funds from the Lead-Free Schools Initiative to the Rural Project Construction Fund. Staff spent considerable time over the past two weeks identifying potential projects for the ARPA funding and working to secure executed
construction agreements. As of December 23, 2024, $563,144 of the reallocated ARPA funds had been obligated to small, rural projects previously authorized by the Drinking Water Board.
The obligated ARPA funds to date are as follows:
Junction Town $120,000 Myton City $163,000
Hildale City $278,050
Wales Town $3,094
The available reallocated balance is currently $827,550. Today staff is presenting two projects for the Board’s consideration for the remaining reallocated ARPA funds:
Antimony Town $140,000
Pine Valley Mountain Farms Water Co. $687,550
Th Thee AnAntimonytimony p proje roject is ct is a a n neeww requerequest st ffor or authorizaauthorization. The tion. The PiPine ne ValValley ley Mtn F Mtn Farmarm s WWaatteerr CCo. pro. projojeecctt wwaass pprreeviviousouslly a y auutthorhoriizzeed by t d by thehe BBoaoarrd, butd, but tthehe aauutthorhoriizzeed prd proojjeecctt scope hscope has changed as changed rresul esulting ting i inn an an in incr crease ease iinn pproj roject ect co cosst.
Are there any questions regarding the ARPA funds or the process staff used to identify
projects?
Agenda Item
4(B)(i)

Pine Valley Mountain Farms Water Company Presented to the Drinking Water Board December 26, 2024 DRINKING WATER BOARD BOARD PACKET FOR CONSTRUCTION ASSISTANCE APPLICANT’S REQUEST:
On August 31, 2022, the Drinking Water Board authorized a $630,015 construction loan with 100% principal forgiveness to Pine Valley Mountain Farms Water Company to refurbish a 32-year-old water tank, replace leaky transmission and distribution lines, install an emergency backup solar pump on two wells, and purchase and install 75 electronic water meters.
This project scored 47.2 points on the Project Priority List. Since the original authorization, the water system has identified other distribution pipelines that have reached the end of their useful and need to be replaced. The total estimated project
cost is now $1,587,544. Pine Valley Mountain Farms will contribute $69,985 and is requesting the remaining $1,517,559 from the Drinking Water Board. STAFF COMMENTS:
The local MAGI for Pine Valley Mountain Farms is $53,300, which is 115% of the State MAGI. The current average water bill is $92.51/ERC, which is 2.08% of the local MAGI. The estimated after project water bill at full loan would be $164.40/ERC or 4.03% of the local MAGI. Based on the average monthly water bill, Pine Valley Mountain Farms
qualifies as a disadvantaged community and may be considered for additional subsidy and
therefore qualifies for ARPA funding.
Option Loan / Grant Subsidy Loan Term Interest Rate Water Bill % Local MAGI
1 100/0 0 $1,517,559 30 yrs 0% $164.40 4.03%
2 0/100 $1,367,559 $150,000 30yrs 0% $90.88 2.23%

STAFF RECOMMENDATION:
This request for additional financial assistance was not received in time for consideration by the Financial Assistance Committee, therefore, staff recommends the Drinking Water Board authorize a construction loan of $1,517,559 with
$1,367,559 in subsidy including $687,550 from the reallocated ARPA funds and $680,009 in principal forgiveness, with a repayable loan amount of $150,000 at 0% interest for 30 years to Pine Valley Mountain Farms Water Company. Pine Valley Mountain Farms does not have any IPS points.

Pine Valley Mountain Farms Water Company August 31, 2022 Page 2
APPLICANT’S LOCATION: Pine Valley Mountain Farms Water Company is located in Washington County
approximately 21 miles north-northwest of St George. MAP OF APPLICANT’S LOCATION:

PROJECT DESCRIPTION:
This application is for 4 improvement projects: 1) 32-year-old water tank needs full refurbish, including replacement of roof support beams, full sandblast and repaint;
2) install new water lines to replace old water lines that have reached the end of their
useful life; 3) Emergency backup solar pump system to be installed in two wells; 4) purchase and installation of 75 electronic water meters to replace manual read meters installed in 1995.
Pine Valley Mountain Farms Service Area
Pine Valley Mountain Farms Water Company August 31, 2022 Page 3
POPULATION GROWTH: Pine Valley Mountain Farms conducted an in-house study of population and over the last 10 years and stated their population has decreased from 200 to between 140-150. Their
connections have remained at 62 over that time period as well.
Year Population Connections
2020 144 62
2030 144 62
2040 144 62

COST ESTIMATE: Legal/Bonding/Admin $10,000 Engineering – Planning/Design $100,000
Engineering - CMS $60,000 Construction - $1,288,000 Contingency (~10%) $129,544
Total $1,587,544 COST ALLOCATION:
Funding Source Cost Sharing Percent of Project DWB Grant $680,009 42.8% ARPA Grant $687,550 43.3% DWB Loan (0%, 30 yrs) $150,000 9.4%
Local Contribution $69,985 4.4%
Total $1,587,544 100%
IMPLEMENTATION SCHEDULE: DWB Funding Authorization: Dec 2024
Complete Design Jan 2025
DDW Plan Approval: Feb 2025 Advertise for Bids: Mar 2025 Bid Opening: Mar 2025 Loan Closing: Apr 2025
Begin Construction: Apr 2025
Complete Construction: Oct 2025

Pine Valley Mountain Farms Water Company August 31, 2022 Page 4
CONTACT INFORMATION: APPLICANT: Pine Valley Mountain Farms Water Company
100 East Wells Fargo Road Brookside, UT 84782 801-556-6402 [e-mail]
PRESIDING OFFICIAL & CONTACT PERSON: Joni Flint, Board President Brookside, UT 84782
[e-mail] TREASURER/RECORDER: Robert Hawley 435-773-2661 [e-mail]
CONSULTING ENGINEER: Glen Carnahan Alpha Engineering 43 South 100 East Ste 100
St. George, UT 84770
435-628-6500 [e-mail]
BOND ATTORNEY: Bill Prater

DRINKING WATER BOARD FINANCIAL ASSISTANCE EVALUATION
SYSTEM NAME:Pine Valley Mountain Farms Water Company FUNDING SOURCE:Federal SRF
COUNTY:Washington
PROJECT DESCRIPTION:

10 % Loan & 90 % P.F.
ESTIMATED POPULATION:144 NO. OF CONNECTIONS:62 * SYSTEM RATING:APPROVED
CURRENT AVG WATER BILL:$92.51 *PROJECT TOTAL:$1,587,544
CURRENT % OF AGI:2.27%FINANCIAL PTS:45 LOAN AMOUNT:$150,000
ESTIMATED MEDIAN AGI:$49,000 PRINC. FORGIVE.:$1,367,559
STATE AGI:$56,000 TOTAL REQUEST:$1,517,559
SYSTEM % OF STATE AGI:88%
@ ZERO % @ RBI EQUIVALENT @ CALCULATED
RATE MKT RATE ANNUAL PAYMENT INTEREST RATE
0%4.57%#REF!**0.00%
SYSTEM
ASSUMED LENGTH OF DEBT, YRS:30 30 30 30
ASSUMED NET EFFECTIVE INT. RATE:0.00%4.57%#REF!0.00%
REQUIRED NEW DEBT SERVICE:$5,000.00 $9,284.72 #REF!$5,000.00
*PARTIAL COVERAGE (15%):$0.00 $0.00 #REF!$0.00
*DEBT SERVICE RESERVE (10%):$500.00 $928.47 #REF!$500.00
$88.71 $164.73 #REF!$88.71

O & M + FUNDED DEPRECIATION:$42,331.00 $42,331.00 $42,331.00 $42,331.00
OTHER DEBT + COVERAGE:$16,750.00 $16,750.00 $16,750.00 $16,750.00
REPLACEMENT RESERVE ACCOUNT:$3,036.55 $3,250.79 #REF!$3,036.55
ANNUAL EXPENSES PER CONNECTION:$1,001.90 $1,005.35 #REF!$1,001.90
$67,617.55 $72,544.97 #REF! $67,617.55
TAX REVENUE:$0.00 $0.00 $0.00
RESIDENCE
MONTHLY NEEDED WATER BILL:$90.88 $97.51 #REF!$90.88
% OF ADJUSTED GROSS INCOME:2.23% 2.39% #REF!2.23%

$0
Tank refurbishment, water line replacement, meters
$0.00
ANNUAL NEW DEBT PER CONNECTION:
TOTAL SYSTEM EXPENSES
Agenda Item
4(C)(i)

Antimony Town Presented to the Drinking Water Board December 26, 2024
DRINKING WATER BOARD BOARD PACKET FOR CONSTRUCTION ASSISTANCE PRESENTED TO THE DRINKING WATER BOARD
APPLICANT’S REQUEST:
Antimony Town is requesting financial assistance to complete an ongoing infrastructure improvement project. The Town drilled a new well to meet source capacity issues the original project was funded through the Community Impact Fund Board (CIB). The well
is contaminated with high arsenic levels and the Town is requesting financial assistance from the Drinking Water Board to build a treatment plant to remove the arsenic, install the necessary pipeline for the treatment facility as well as required appurtenances and valves. Total Cost of this project phase is estimated at $140,000.
This project scored 13.9 points on the Project Priority List.
Total project cost to date is $2,500,000 and the estimated cost for this project phase is $140,000, bringing the total estimated project cost to $2,640,000. The Town was authorized a $2,000,000 grant and a $500,000 loan from CIB. The Town is requesting the
remaining amount of $140,000 from the Drinking Water Board.
STAFF COMMENTS:
The local MAGI for Antimony Town has not been reported by the Tax Commission. Staff recommends the Board consider the MAGI for Junction, the closest town to Antimony and one with similar demographics, as an acceptable alternative. Junction Town’s MAGI is $37,000, which is 66.1% of the State MAGI. The current average water bill is $23.46/ERC, which is 0.76% of the local MAGI. The estimated after project water bill at full loan and
including the $500,000 loan from CIB is estimated to be $50.50/ERC or 1.64% of the local MAGI. Based on the suggested local MAGI, Antimony Town qualifies as a disadvantaged community and is eligible for ARPA assistance
Option Loan /
Grant
ARPA
Grant *Loan Term
Interest
Rate
Water
Bill
% Local
MAGI
Base 100/0 $0 $640,000 20 yrs 2.0% $50.59 1.64%
2 78/22 $140,000 $500,000 20 yrs 2.0% $45.64 1.48%
* Includes the $500,000 loan from CIB.
Antimony Town December 26, 2024 Page 2
STAFF RECOMMENDATION: ARPA obligation deadlines did not allow this project to go before the Financial Assistance Committee for review. Staff recommends the Drinking Water Board authorize an ARPA Grant of $140,000 to Antimony Town. APPLICANT’S LOCATION:
Antimony Town is located in Garfield County approximately 14 miles east of Circleville. MAP OF APPLICANT’S LOCATION:
PROJECT DESCRIPTION:
This project involves the construction of an arsenic removal facility with associated pipeline, valves and appurtenances.
Antimony Town December 26, 2024 Page 3
POPULATION GROWTH: Year Population Connections
2024 152 140
2030 161 146
2040 174 160 COST ESTIMATE: Legal/Bonding/Admin $0
Engineering - Design $10,000
Engineering - CMS $0 Construction - $130,000 1% Loan Origination Fee $0 Total $140,000 COST ALLOCATION:
Funding Source Cost Sharing Percent of Project DWB Loan (ARPA Grant) $140,000 100% Local Contribution $0 0% Total $140,000 100%
IMPLEMENTATION SCHEDULE:
DWB Funding Authorization: December 2024 Complete Design Complete DDW Plan Approval: Complete
Advertise for Bids: Complete
Bid Opening: Complete Loan Closing: December 2024 Begin Construction: Ongoing Complete Construction: July 2025

Antimony Town December 26, 2024 Page 4
CONTACT INFORMATION:
APPLICANT: Antimony Town 120 N Main St. Antimony, UT 84712 Telephone: [phone] Email: [e-mail]
PRESIDING OFFICIAL & CONTACT PERSON: Kasey King, Mayor 120 N Main St. Antimony, UT 84712
Telephone: [phone] Email: [e-mail] TREASURER/RECORDER: Paige Hoye 120 N Main St.
Antimony, UT 84712 Telephone: [phone] Email: [e-mail]

CONSULTING ENGINEER: Kelly Chappell Ensign Engineering 225 N 100 E Richfield, UT 84701
Telephone: [phone]
Email: [e-mail] CITY ATTORNEY: Richard Chamberlain Chamberlain Associates
225 N 100 E
Richfield, UT 84701 Telephone: [phone] Email:
DRINKING WATER BOARD FINANCIAL ASSISTANCE EVALUATION
SYSTEM NAME:Antimony Town FUNDING SOURCE:Federal SRF
COUNTY:Garfield
PROJECT DESCRIPTION:

78 % Loan & 22 % P.F.
ESTIMATED POPULATION:119 NO. OF CONNECTIONS:180 * SYSTEM RATING:APPROVED
CURRENT AVG WATER BILL:$23.46 *PROJECT TOTAL:$2,640,000
CURRENT % OF AGI:0.76%FINANCIAL PTS:38 LOAN AMOUNT:$500,000
ESTIMATED MEDIAN AGI:$37,000 PRINC. FORGIVE.:$140,000
STATE AGI:$56,000 TOTAL REQUEST:$640,000
SYSTEM % OF STATE AGI:66%
@ ZERO % @ RBI EQUIVALENT @ CALCULATED
RATE MKT RATE ANNUAL PAYMENT INTEREST RATE
0%3.01%#REF!**2.00%
SYSTEM
ASSUMED LENGTH OF DEBT, YRS:20 20 20 20
ASSUMED NET EFFECTIVE INT. RATE:0.00%3.01%#REF!2.00%
REQUIRED NEW DEBT SERVICE:$25,000.00 $33,638.93 #REF!$30,578.36
*PARTIAL COVERAGE (15%):$0.00 $5,045.84 #REF!$4,586.75
*DEBT SERVICE RESERVE (10%):$2,500.00 $3,363.89 #REF!$3,057.84
$152.78 $233.60 #REF!$212.35

O & M + FUNDED DEPRECIATION:$13,034.00 $13,034.00 $13,034.00 $13,034.00
OTHER DEBT + COVERAGE:$47,316.25 $47,316.25 $47,316.25 $47,316.25
REPLACEMENT RESERVE ACCOUNT:$3,794.35 $0.00 #REF!$0.00
ANNUAL EXPENSES PER CONNECTION:$356.36 $335.28 #REF!$335.28
$91,644.60 $102,398.92 #REF! $98,573.20
TAX REVENUE:$0.00 $0.00 $0.00
RESIDENCE
MONTHLY NEEDED WATER BILL:$42.43 $47.41 #REF!$45.64
% OF ADJUSTED GROSS INCOME:1.38% 1.54% #REF!1.48%

$0
arsenic treatment, new pipeline, valves
$0.00
ANNUAL NEW DEBT PER CONNECTION:
TOTAL SYSTEM EXPENSES