BEAUFORT, S.C. () — Beaufort County and the Town of Hilton Head Island are close to an agreement on the 278 Corridor project, but another issue lurks below the surface.

“We’re joint owners of this 24 inch drinking water transmission pipeline, it’s buried under the Intracoastal Waterway, buried under Mackey Creek,” said Pete Nardi, General Manager of Hilton Head Island Public Service District (PSD).

The PSD provides about 20% of the drinking water to its more than 2,200 customers on the island.

The pipeline that runs parallel to the 278 bridge is only 20 years into its 99 year life span. Now, that pipeline has to be moved to make way for the new 278 corridor.

“We’ve got preliminary estimates that the pipeline relocation alone could be in the neighborhood of 15 to $20 million,” said Nardi.

Nardi is talking about the project budget the Town and beaufort county has set aside.

The State Utility Relocation Act provides for four and a half percent of the money in the project budget must be set aside for “utility updates or movement” for the pipeline.

But when the recent Beaufort County penny sales tax referendum didn’t pass, the project costs got cutback. So the four and a half percent is no longer enough to pay for the pipeline relocation and does not include “soft costs” like right of way and environmental mitigation

The utility says it doesn’t want that cost to fall back on its customers.

“It’s so critical that our funds that that are that our bills pay for to keep the system up and running and to go really toward water distribution, water treatment, producing water,” explains Nardi. “and then it shouldn’t have to be impacted by something like a transportation project “

Beaufort County has already pledged $6.5 million toward the pipeline and Nardi says the Town of HIlton Head Island has been responsive to the problem.

PSD board members say all parties must come up with better solutions than raising customer’s water bill.

“We don’t want to have to see our ratepayers bear a burden for a transportation project,” says Jerry Cutrer, Hilton Head PSD vice chairman. “Our customer base makes up about 60% of the island’s population. The bridge project would  support 100% of the population.”

To complicate the issue, the pipeline project has to be finished before the bridge project starts. To make sure no one’s water supply is cut off.

Hilton Head PSD can’t start the engineering or even determine exactly where the pipeline could move until the bridge engineering project is approved and finalized.

At a recent meeting, Hilton Head Island Marc Orlando said he is drafting edits for the joint resolution to address concerns connected to funding the PSD’s portion of the project.

The Town and County must come up with their final plan by March 20.