Sandy wants out of the Salt Lake county Water Conservancy District. but consultants' reports show the consevancy district would be hurt by such a move.

The conservancy district board Thursday gave the city one more month to show that both entities could benefit by letting Sandy out, "but negotiations are off until we have a proposal on the table," said Gerald K. Maloney, conservancy district board chairman.

Letters from the district's financial and legal consultants indicate the district would have problems getting bonds in the future if Sandy is let out of the district.

"Bonding has been related to the district's ability to execute water sales contracts," said Kirchner Moore and Co.'s Scott Robertson, who wrote one of the letters. "If a utility is allowed to leave the district, there would be a problem when you try to bond in the future."

Revenues from Sandy are helping pay #33 million in outstanding bonds plus another #30 million in debt for the district's share of the Jordan Aqueduct. Robertson said the bond insurance company used by the district would not insure future bonds if Sandy is allowed to pull out.

Sandy City Administrator Byron Jorgenson, who represents Sandy on the conservancy district board, informed the conservancy district board in January that Sandy wanted out of the district so it could join the Metropolitan Water District of Salt Lake.

Sandy water is currently treated in an Metropolitan Water District treatment plant, conveyed through the county dirstrict's sustem and sold, in part, back to Sandy. Jorgenson said Sandy's water prices would be better by switching from the county district to the Metropolitan Water District.

Jorgenson said he didn't think the letters from bond and legal counsel had bad advice, but he said the city is starting to formulate a proposal he believes the bard will feel good about - a proposal that could benefit both sides by letting Sandy out.

The board gave Jorgenson limited access to conservancy district staff resour ces and said Sandy's request could be put on next month's agenda, if a formal propoal is ready.