City Scolds Water Board on County Water Sales

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City scolds water board on county water sales Page 2 of 2 Ortegon replied that if the city could handle its own sewer billing for less than the $270,000 a year the water board charged, it was welcome to try. She also tallied up the free water the board provides to the Historic Arkansas Riverwalk of Pueblo and other purposes, putting the value at close to $1 million. "We also give you benefits," she said. Water board member Mike Stillman cautioned council that neither the city or the board could control the future growth of Pueblo West. Stillman said the metropolitan district would purchase water from other sources for its growth, which would be a disservice to city ratepayers who could benefit from selling water to Pueblo West. "(Pueblo West) will grow with us or without us," he insisted. Occhiato disagreed, saying several times, "He who controls the water, controls the growth." Schilling echoed that, arguing that by providing cheap water to county residents, the water board was tipping the scale of growth against Pueblo residents. "The more they spend their money out in the county, the more it hurts us," he said. The board- requested ordinance that council earlier rejected would have allowed the water board to sell treated water to non -city customers without the requirement that those customers annex into the city in the future. It also allowed the board to sell between 2 million and 4 million gallons of treated water to Pueblo West as an emergency supply. Pueblo West would have been required to pay the water board at least $230,000 a year to guarantee the use of that water and $1.2 million a year for the actual use of 2 million gallons and double that for 4 million gallons. -- In addition, Pueblo West would have paid between $1.4 million and $2.8 million in one-time connection fees. Board member Kevin McCarthy said those revenues would be a benefit to city ratepayers by helping keep the water board's rates among the lowest in the state. "We honestly thought we had a win -win agreement here," he told council. Councilman Pat Avalos disputed the rate claim, however. He noted that city residents are getting their new water bills and are seeing a 2.5 percent rate increase this year. Avalos said that if the board sells water to non -city residents, the board should keep their in -city rates steady or lower them. Water board members said that isn't realistic given the fact the board is paying for a $54 million expansion of its treatment plant. Board member Jim Gardner defended that expansion, which will provide an additional 21 million gallons of treated water per day. Gardner said that currently city residents come very close to using the plant's maximum capacity on hot summer days. Occhiato didn't let up in his complaints, however. He said city ratepayers were paying for a plant expansion and other services while the water board sold water to non -city residents, such as the city of Aurora. McCarthy countered that as part of further negotiations the city and water board staff could go over the details of all the fees the board charges the city and city residents. Ortegon brought the discussion back to the sharp point of the board's lawsuit. She reminded council that the city charter calls for the water board to be a separate body from council. "The forefathers made it clear, we are two separate entities," she said. "Let's keep them separate." The offer the water board put on the table was not much different than one it made in November - it would waive for two years the fee it charges the city to send out and collect monthly sewer fees. The offer would save the city $540,000. The city indicated last year that offer was not enough and countered that the water board should add a 25 percent surcharge to non - city water sales. There was no discussion of either proposal Monday night. ©1996 -2000 The pueblo Chieftain Online http://www.chieftain.com/print/tuesday/news/articles/nil.htm 02/05/2002