Changing deadline forces Granite Falls to rethink grant use

A newly introduced deadline and rising costs have forced a rescope for the Town of Granite Falls, which now has until June 30 next year to use $1.125 million in grant funding or risk losing it, putting an improvement to water reliability during high-volume periods on hold until more funding can be secured.

The town received the $1.125 million State Capital and Infrastructure Fund (SCIF) grant in June 2023 to fund an Advanced Metering Infrastructure (AMI) system across the town and the installation of a Granada Farms waterline connection.

The money sat in accounts alongside a town match of $45,000 in local funds, collecting $154,800 in interest over three years.

Town officials said the original grant in June 2023 didn’t include a timeline, but the state established a June 30, 2029, deadline the following year. The deadline shifted again this year. A July 2026 change in state law means the funds must be expended before June 30, 2027, or the money would revert to the state.

Town Manager Daniel Cobb explained that other projects became priorities over time and the town wanted to wait until a new public utilities director could provide input following the departure of former director Randy Smith in February 2026, pushing the AMI meter system and Granada Farms further down the road.

Although the town could technically contact the local legislator and request a technical correction to extend the deadline, Granite Falls opted to tighten the scope.

On Sept. 28, the town council held a special meeting to respond to the changed timeline, ultimately deciding to focus the $1,324,800 in available funds on the AMI meter system.

An AMI system is a two-way communication system that collects metering information, city-provided water in this instance, through a remote data collector without the need to physically check each meter.

An AMI meter costs $560 a piece, installed, and there are approximately 2,900 meters across Granite Falls. Of those, the town is starting with the 2,750 residential meters, putting the cost at $1.54 million. Three data collectors will add another $195,000 to the total.

Currently, city employees read meters over the span of a week, and it takes a team of six utilities employees, five electric employees, five street employees, and three inmates — or about $27,250 in labor hours each month.

The new AMI system will require one full-time employee.

“For residents, the system will provide more frequent information about water usage, allowing the town to monitor for significant changes in usage that could indicate leaks or other issues,” said town officials. “This will help facilitate water conservation and allow potential problems to be identified more quickly.”

During the special meeting Public Utilities Director Eric Williams, who took the role in August, told the council that approximately 12% of water use goes undetected each month through leaks and old, slow meters.

In total, the AMI project is estimated to cost approximately $2.5 million — more than 2.5 times the estimated cost of $950,000 discussed at the June 19, 2023, town council meeting, according to the official meeting minutes.

The town will dedicate all of the accumulated interest toward the AMI system project as well as the initial grant.

“The full grant award will be utilized to implement the AMI system to the fullest extent possible, including the installation of the system and covering a portion of the new meters,” said town officials. “We plan to budget for the remaining meters over the next few years.”

GRANADA FARMS

Town officials decided to put the Granada Farms project on the back burner, planning to pursue future grant options for the approximate $400,000 to $600,000 project.

The main concern with the Granada Farms connection stems from permitting, which Granite Falls estimated would take six months or longer, and that’s before construction even begins.

According to the town, residents won’t see any day-to-day effects on their water use. Williams said that during periods of high demand, such as a water main break or fire flow event, residents could see reduced water pressure.

The connection would create a redundant water supply through the county water system to “improve reliability and provide an additional water supply option during emergency situations.”

“The Granada Farms waterline interconnection project remains a priority for the town,” Williams said. “However, the project did not align with the tight timeline required for the available funding. The town moved forward with the project that best fit the funding requirements and timeline.”