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Friday, July 15, 2011

SV Not buying Brooke may have been mistake

GUEST COMMENTARY

By Gary Coon
Star Valley Town Councilor

Today most communities are struggling to find ways to control costs. Star Valley is no exception. Although it may appear we are doing better than some communities, it is only because we have not entered into the actual cost phase of some of these expensive services such as providing potable water, wastewater management, flood control, etc. The time is fast approaching when it will be mandatory to address these related issues.

In today's economic climate, there are more people focusing on finding money to pay their utility bill than those educating themselves on what determines the cost of those services. Inevitably, the costs will be paid by us, so it is imperative that, as a town, we make decisions that will minimize how much of our paycheck goes toward providing these vital services.

During these types of discusions, it seems water usually becomes the main topic.

Remember we were incorporated because of groundwater being threatened. Then along came the Blue Ridge issue. Also in the last year or so Payson has offered an IGA (intergovernmental agreement) allowing Star Valley an opportunity to purchase three wells for $100,000 with a few strings attached.

Since Blue Ridge is too costly, our focus has switched to groundwater as our water source. This creates another group of problems. Brooke Utilities has exclusive rights to deliver water to much of Star Valley so do we acquire Brooke Utilities? Do we purchase wells or do we drill? Where do we drill? These are just a few of the many questions.

The Town Council decided not to purchase Brooke Utilities which in hindsight may have been a mistake. Whether we pursue surface water or groundwater, without rights to deliver water our hands are tied.

The Arizona Corporation Commission (ACC) issues permits and regulates public service companies such as utilities. The state-issued permit is called a Certificate of Convenience and Necessity (CC&N). Once this permit is issued, that company has monopoly rights to the territory under which it can operate. So, for Star Valley to provide water to residents within Brooke Utilities CC&N, purchasing Brooke would be the necessary first step. Only if a decision were made to purchase Brooke, would it make sense to purchase or drill wells. Excessive costs are prevented by accomplishing goals through an organized step by step process and understanding what the end result will be before pursuing a project.

When considering the PW-1 and PW-2 wells that Payson is offering for sale that are landlocked by the Forest Service on the north side and private land on the south side, along with the CC&N issue, it would not be in Star Valley's best interest to purchase these wells.

A logical reason for Payson being so interested in selling these wells to Star Valley would be that if Star Valley owned and operated the PW-1 and PW-2 wells, which are in close proximity to the Tower Well, it would be nearly impossible to prove which well would be blamed if Star Valley's water resourses were depleted.

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