After 10 years of often frustrating negotiation, officials appear to agree finally on terms to privatize the federally owned town of Dutch John near Flaming Gorge Dam.
Thursday, Daggett County officials told a hearing of the House Resources Subcommittee on Water and Power that they would agree to a few final terms sought by the U.S. Bureau of Reclamation.That appears finally to clear all opposition to a bill to turn over the town, population 175 (originally built to house workers who constructed the dam), to Daggett County and private ownership.
All of the recent hang-ups have been over how much the federal government should provide to tiny Daggett County in eastern Utah in transition payments to take over maintenance of the town.
The federal government has been spending $900,000 a year to provide services such as water, firefighting, electricity and snow removal in the town. Most of its residents now are Forest Service and reclamation employees who have their offices there.
Daggett County, with only 700 residents, worried that taking over the costs of serving Dutch John could bankrupt it.
So it asked the federal government to pay $300,000 a year for 15 years to ensure it can cover such costs as it tries to develop a new tax base in the town by allowing private homes, businesses and maybe a small resort on Flaming Gorge Reservoir.
As Daggett County Commissioner Sharon Walters said in written testimony she submitted, "Privatization could bring new jobs for our kids and an economic boost to Daggett County. Privatization could also bankrupt the county."
In previous years, the county had sought as much as $800,000 a year in transition payments. The requests was dropped to $300,000 when the county determined it could provide services for that amount. That is less than half what the federal government now spends.
Earlier this year, the Clinton administration said it was willing to pay the $300,000 a year for only five years, which left Daggett County 10 years and $3 million short of its request.
But electric utilities that have funded Dutch John maintenance through fees for power generated at Flaming Gorge Dam noted the arrangement would save the federal government money in the long run, and they urged the Bureau of Reclamation to accept Daggett's terms.
Thursday, BuRec Commissioner Eluid Martinez raised no more objections to payments over 15 years.
But he raised two other minor objections to a bill on the trade, which was pushed in the House by Rep. Chris Cannon, R-Utah.
Martinez did not want the federal government to pay for any enhancements at Dutch John's airport and asked that at least 15 percent of money from the sale of existing homes and facilities in Dutch John go to the federal government, instead of being entirely funneled into Daggett County coffers.
Daggett County commissioners said they would agree to the Bureau's terms.
Walters pointed out in testimony that the 700 residents of her county provide services such as trash, search and rescue and police protection for 2.5 million visitors to Flaming Gorge each year. That is 3,500 visitors for each resident.
"More than 70 percent of our total county budget goes to assisting or responding to non-county visitors," she said. "If the privatization imposes any additional financial burden on Daggett County, we simply cannot accept the responsibility."