ROUND MOUNTAIN WATER AND
SANITATION DISTRICT
Regular Board Meeting
—June 7, 2018
by Mike Haga
The meeting was called to order at at 5:15 p.m. Roll call and the Pledge of Allegiance proceeded.
Before reporting on the Board meeting, it is important to note two major inaccuracies on page 2 of the June 7th edition of the Wet Mountain Tribune titled “Round Mtn. expected to adopt new rates tonight.”
1. The first inaccuracy reported in the Tribune article is: “….the board voted unanimously to institute the Equivalent Rate structure (EQR) that District Manager, George Medaris originally introduced.” George Medaris did not originally introduce the EQR.
The EQR is an integral part of the original 1975 by-laws of RMWSD. The current financial problems of RMWSD stem, in part, from the prior board’s non-adherence to the original by-laws. This non-adherence caused longstanding inaccuracies in billing resulting in the serious financial issues the current board is forced to address.
2. Only the sewer flow rate is being implemented pursuant to the EQR. In essence, the EQR base sewer rate is $28.69 per month for a single-family home, plus $3.40 per 1,000 gallons used up to 5,000 monthly cap for sewer use. Commercial users have the same base rate and use rate but no sewer cap. (Comment: the purpose of the sewer cap is to not charge sewer rates on lawn or garden irrigation, national and state average in-home use is 5,000 gallons per month. None of the monthly base rates include any usage as part of the fee.) The difference between commercial and residential rates is simple. If a commercial user of both water and sewer has, for example, several units, that user is charged the base rate for the first unit then (on a sliding scale based on the type of business for every other unit.) For example, an RV park is charged the base rate of $28.69 for the first unit then 0.8 of the $28.69 for each additional unit (space) in the RV park plus regular usage rates. The current water base rate of $22 plus $2.60 per 1,000 gallons is not being changed to an EQR system at this time to help users adapt to the increased waste water rates mandated to pay for the cost of the State mandated new wastewater treatment plant.
The Board voted unanimously to approve Resolution 2018-12 immediately implementing the EQR for wastewater only. Current water rates are not changing. Mr. Medaris is doing his best to be equitable right now, though water rates will be revisited at some point in the future. The new rates will be reflected in the June billing which users will receive in July.
There was a discussion regarding the organization of the current board. A motion was made to leave the Board as is which was unanimously approved.
The current budget for water revenues only is $311,050. Current water expenses are $400,920, causing a current deficit of $89,870. The district will adjust its budgeted expenditures to offset the differences.
The Board will contract a rate study for wastewater sooner than planned. The rate study cost for both the water and sewer rate study may be in the range of $15,000 to $25,000.
The Board is applying for the USDA loan/grant of $6,000,000 to build the new wastewater plant. If approved, $1,200,000 will be a grant and the remaining $4,800.000 will be in the form of a 40-year low interest loan.
The USDA may pay for the Rate Study.
During construction of the wastewater plant, USDA rules require an engineer to be on site. RMWSD is required to pay the engineer a per diem. The overall cost of hiring the engineer will be reduced as the engineer can live in the “house” currently on the property at 59920 Hwy. 69. The property which was the old saw mill was purchased for the necessary land required for groundwater monitoring wells and the new wastewater plant leach fields.
A discussion ensued regarding the call for voluntary reduction of water use. Dave Schneider stated the voluntary request seems to be working as the water tanks are recovering after being almost empty due to unprecedented demand for water. Currently, the Town of Silver Cliff will water parks on odd numbered days, Westcliffe will water parks on even numbered days. Residents of each town are being asked to do the same. If your house is an odd number, water on odd numbered days and if your house has an even number water only on even numbered days. If demand outstrips supply, mandatory water restrictions could be implemented.
The meeting was adjourned at 7:15 p.m.
Reporters note: No doubt, there will be outrage when RMWSD customers receive their June billings in July. Just keep in mind, the current board did not create the current problem. The prior board, through negligence and mismanagement caused the current crisis. Your anger should be directed at that board.
It is amazing just how fragile the RMWSD infrastructure truly is. If, say, the Smith well were to fail before it is redrilled, a true crisis will result. The current system is old. Past repairs were substandard using improper pipe. There are many meter sizes currently installed. Some residences have 1” meters. Residences should be on 5/8” to 3/4” meters only. Many meters are corroded and not working properly. Contractors and property owners are, at times, negligent causing damage to water pipes. As an example, the Bank was without water June 11th, due to water line damage caused to a stand pipe just above the observatory resulting in a 900 gallon per day leak. The repair is expensive.