$3.5 million water project for Absarokee

Kicking the can down the road is no longer an option, the Absarokee Water & Sewer District Board of Directors decided during its Feb. 9 meeting.
The board unanimously decided to address leaking water mains with a $3.5 million project that could take place in 2018 and could raise the base water rate from the current $34 per month to about $51.77 by the time the project is concluded, according to board director Roger Nummerdor.
A serious effort must be taken to address the 70 percent leaks that have plagued the community water system for years, the directors concluded after an hour of discussion that included a conference call with Great West Engineering consultant Collette Anderson.
Anderson presented draft results from a preliminary engineering report on the water system during an earlier Jan. 20 public hearing. The report is needed to qualify for government grants and loans, and Anderson needed the board’s decision on what options to take to finalize the report.

Costly project
The board unanimously decided to address distribution problems now, including leaking pipes and insufficient fire flows, and to go with Phases 1-3 as presented in the report. That would leave supply and storage issues for a later time. The total cost of the three phases is estimated to be as high as $3.5 million, depending upon what funding sources are utilized.
The district, for example, could qualify for a $450,000 Community Development Block Grant from the U.S. Department of Housing and Urban Development – free money with no strings attached – if enough people fill out an income survey distributed by the district, Nummerdor said.
“We have about 180 results so far and need about 65 to 68 more,” he said. “So far, the results indicate we would qualify for the CDBG grant.”
Phases 1-3 call for replacing old and undersized steel water mains with 6-inch or larger PVC pipes on Montana Avenue, Grove Street, Weast Avenue, Lehner Avenue, School Street, Davidson Avenue, Yerger Street, Allison Drive, Brunckhorst Lane and Church Street.
“I thought we should plan big,” board president Mike Reynolds said. “It’s better to bunch them altogether, and if we don’t get all the funding in place, we can phase it back.”
Construction could take place as early as 2018. To satisfy funding sources, the base water rate would need to increase from the current $34 per month to about $51.77 by the time the project is concluded, Nummerdor said.
The water board can raise the rate without a public vote. The board said it will not raise the rate this year but hasn’t decided how the rate will be raised after that – it could be done incrementally, Nummerdor said.
“The public has told us this is something we need to do, but just don’t hit us all at once with a big rate increase,” Reynolds said.
Under state law, the board can raise the base rate by 5 percent each year without holding a public hearing to take input, but a 5 percent per year increase probably will not bring the rate up to the amount needed, Nummerdor said.

Hardship assistance
Recognizing the hardship a rate increase will bring, the board is looking at ways to set up a fund to help water customers, in a similar way to Montana’s Low Income Energy Assistance Program.
“The idea originated with board member Alan Rohde,” Reynolds said. “It’s a great idea – I love it.”
“The community here is very supportive of people who are down on their luck,” Nummerdor said. “I’m sure there are people and groups here who are willing to help.”
The board discussed potential future costs if they delay the needed infrastructure improvements by choosing a smaller project. Each time they initiate a new project, they could face a $9,000 grant writer bill for a Treasure State Endowment Program grant and a $3,000 grant writer bill for a Montana Department of Natural Resources and Conservation grant.
There also could be higher interest rates, energy costs and material costs, Nummerdor said. On top of that, the district will likely need to implement Phase 4 distribution projects and a costly water tank option by 2030 to meet increasing water needs, he said.
“We also don’t want the town tore up year after year for several years,” Reynolds said.

Leaking service lines
Nummerdor noted that it’s possible much of the water system’s leaks are caused by service lines connecting a water main to a home or business. When leaking service lines are discovered, it will be the responsibility of individual owners to fix them.
“We could give them 30 to 60 days to fix them, in summertime,” he said. “We wouldn’t just shut off the water.”
Reynolds said Steve Skuhra, the water district manager, is looking at ways to test service lines and possibly split the cost with the district.
Nummerdor said it’s unfortunate that water rates need to increase, but most people he’s spoken with recognize the problem and want to get it fixed.
“When I moved here several years ago, I was used to being on well water, and when I heard my bill was going to be $17 a month, I thought it was outrageous,” he said. “Then I learned about the water system and it made more sense.”
Nummerdor said people have come up to him and asked why the water board didn’t take care of its growing problems long ago.
“We need to catch up now,” he said.
For more information, visit online at www.absarokeewater.com.