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May 1, 2007

Back in August 2006, this newsletter reported that the Board of Directors had adopted a policy requiring developments needing four or more taps to provide water as a condition of tap availability. Included in that letter was the following paragraph:

             The Board recognizes that it may eventually become necessary to apply this policy to all taps. For the time being, it only affects major subdivisions, which are the most likely to place sudden demands on the water supply and delivery capacity.”

             After working with this policy for the past ten months, the Board has determined that it has not fulfilled its intended purpose, which is to protect the rights of existing shareholders in accordance with Association Bylaws, specifically Article III, Section 3, which states


“All application of membership shall be passed on by the Board of Directors. Said application shall be addressed to the Board of Directors of said Association accompanied by a check for the membership fee and said Directors shall have authority to grant or deny such application in accordance with its judgement and determination as to whether the supply of water and the capacity of the system is adequate to serve said applicant in addition to supplying the needs of the existing members of said Association. Said Board shall have the authority to impose conditions upon which an application may be granted.”


             The problem with requiring water only from major subdivisions became apparent in the proliferation of minor (three-lot) subdivisions. There is obviously the same impact on our water supply caused by a twelve-lot subdivision as by four three-lot subdivisions placed next to each other. The four minor subdivisions are actually more likely to occur because of the relaxed requirements applied by Delta County as well as the absence of our requirement to provide water.

             Therefore, the Board of Directors has adopted a new policy which requires one acre-foot of water to be provided to the Association for each new tap granted. This policy is stated in a resolution adopted at the April 2007 board meeting. The water is to be provided in the form of stock in one of the following ditch and reservoir companies:


     •       Surface Creek Ditch and Reservoir Company. This stock yields eleven acre-feet per share.

     •       Leon Lake Ditch and Reservoir Company. This stock yields .40 acre-feet per share.

     •      Cedar Mesa Ditch and Reservoir Company. This stock yields 2.24 acre-feet per share.

     •      Park Reservoir Company. This stock yields 1.60 acre-feet per share.

     •      Alfalfa Ditch Company. This is a flow decree, and would be evaluated as a special case.

     •      While there may be other acceptable water sources, each would have to be considered by the Board on a case-by-case basis.

            In formulating this policy, other options were discussed, such as implementing a “water surcharge” in addition to the normal new tap fee. Or, increasing the tap fee to improve our ability to purchase water. The trouble with both those approaches is that they assume we can predict the price and availability of water into the future. We are not confident we can do so.

            We would like know how you feel about this new policy. Drop us an email, or a note with your payment. Polite phone calls are also welcome.


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