Staff presented a major update on the Upper Main Canal rebuild, the district's most critical infrastructure project. New cost estimates from construction contractors suggest a tunnel replacement for the upper reach (LaGrange headworks to Upper Dawson) could cost as little as ~$70 million — potentially on par with a canal rebuild — rather than the $140 million originally estimated. This wide cost spread ($70M–$140M) has prompted staff to pause the canal-rebuild direction and conduct additional due diligence on tunnel feasibility, including field reconnaissance, survey work, and a refined "Class 4" cost estimate. Construction is targeted to begin around 2030, with a 3–4 year build timeline. The board also expressed interest in seeing the annualized budget impact of each option (including long-term O&M savings for a tunnel) rather than just gross cost, which staff committed to providing.
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