–May 31, 2018
by Mike Haga
The Board of Directors of Round Mountain Water and Sanitation District (RMWSD) held a Special Session to review and discuss which of the two remaining options (the Flow Based system or the EQR system) will be the most equitable in terms of billing for both residents and commercial business owners in view of the necessity to raise enough revenue to pay for the six million dollar cost to construct a new state-mandated waste water lagoon to replace the existing lagoon which is presently running at overcapacity.
RMWSD Manager George Medaris emphasized how critical it is that the Board make a final decision as the State could mandate the system be shut down (doubtful) or the State could mandate Round Mountain begin shedding existing users or declare a building moratorium in the RMWSD. Any one of these State mandates could not only bring growth to a standstill but ultimately cause both Westcliffe and Silver Cliff to become ghost towns.
Mr. Medaris discussed the pros and cons of the Flow Based system, stating; “The Flow Based system” works best for a system that is used year-round by both residential users and Commercial establishments, and we don’t have that here.” Medaris went on to talk about how many businesses here are seasonal and shut down for the winter months along with many residents who spend the summer months here then winterize their homes by shutting off their utilities during the winter months. Mr. Medaris stated that adoption of the Flow Based system won’t work here due to extreme fluctuations in supply and demand for RMWSD services and the inability to service the debt.
Mr. Medaris then proceeded to discuss to the EQR (Equivalent Residential Unit) structure. He stated, as he has during the many board meetings to date, “Round Mountain Water and Sewer District adopted the EQR system in 1975 when RMWSD was set up, and that somewhere along the way the EQR went by the wayside resulting in the current financial and operational crisis RMWSD is facing.” Medaris further stated, “A rate structure is just that. It makes all the pieces work. Now RMWSD must balance everything. Those who create the most demand should pay for it.” Unfortunately, apartment complexes, RV parks, laundromats and schools, create the most demand for both water and sewer and should pay more than users in single family residences.
Many commercial business owners were once again present during the Special meeting and voiced concerns over rate increases if the EQR system is adopted by the Board. Medaris and other board members agreed that the impact of rate increases would hit business owners the hardest but see no alternatives since RMWSD must build a new lagoon to handle the ever-increasing waste water created by users. To help mitigate rising costs, water rates will not immediately increase.
It was also pointed out that there are currently 250 vacant lots in the RMWSD. Sixteen of these vacant lots have water taps installed. If a vacant lot has a water tap currently installed the owner of that lot (or lots) will be charged monthly rates. Both businesses and residences that are closed during the winter months will be charged monthly as well, as long as they are hooked onto the system.
Medaris then discussed potential loan grant application to the USDA which may pay for the professional study mandated by the State and help with the cost of updating all district maps showing the current location of all water and sewer lines, valves, taps, etc. The maps the District relies on are woefully outdated.
The Johnson Ranch, which RMWSD purchased for one million dollars for its water rights is now dried up and can be listed for sale as dryland which will help repay remaining debt. Of the $1 million purchase price, $500,000 is still owing. The yearly payment is $60,000 until the balance is paid in full. 61/2-acre feet per year of water derived from the Johnson Ranch is held in Lake DeWeese and can be drawn on if needed by RMWSD. The Smith well, discussed in our prior articles, is 40 years old not 100. The well is connected to cast iron pipes. The oldest section of the pipe is 150 years old. It is the well casing that has deteriorated resulting in decreased water flow from the well through the cast iron pipes to the two water tanks located outside Silver Cliff that provide water, along with the Gallery well, to both towns. The cost to redrill the Smith well is estimated at between $300,000 to $500,000. Medaris clarified after the meeting that, “The well must be redrilled to improve the flow of water into the well casing. The disinfection system will need to be upgraded with the construction of a chlorine contact chamber of sufficient size to meet the current contact time requirements. Generally, the contact chamber is constructed of water piping of much larger size than what is required for distribution of the water into the system. It may be possible to combine the chlorine contact piping with replacement of some of the existing cast iron piping, but that will have to be determined during design.”
Peggy Quint made a motion to formally adopt the EQR system which was seconded, and the Board unanimously agreed. The Board then directed Mr.Medaris to draft a resolution for the EQR system which will be formally adopted by the Board at the next Board meeting in June. June billings billed in July will reflect the necessary rate increases.
The meeting was adjourned at 6:29 p.m.
Reporters note: Mr. Medaris clarified post-meeting that “The EQR table will remain as it is until we can hire a third-party firm to review the current table. The district is reviewing our assessments of individual properties when requested by the property owners, some changes are being made on these individual properties with better information. Otherwise, the system is the same as
originally proposed.”
In that original proposal, the rates were as follows;
1. The base rate for a single-family home will be $22 per month
2. The base rate for the EQR (waste water/sewer) will be $28.69 for a single-family home.
These rates are based on 5,000 gallon-usage monthly–rates increase with the EQR rising on a sliding scale based on classification. For instance, an RV park with 28 units will have the base rate charge for the first unit then a 0.8 charge for each of the remaining 27 units.