A look at the art of water board governance from The Greeley Tribune #ColoradoRiver

Here’s an in-depth look at the Greeley Water and Sewer Board from Sherrie Peif writing for The Greeley Tribune. Click through to read the whole article and for the sidebar with the details about the current board along with some historic notes:

Most anyone who works closely with the water industry agrees the commodity is taken for granted by consumers, except for in a couple of instances.

“When water doesn’t come out of the faucet,” said Harold Evans with a laugh. “And when they get their bill.”

Evans, the chairman of the Greeley Water and Sewer Board, said it is unlikely that most know where their water comes from or how it gets to their faucets.

It is a complicated process involving more than a dozen lakes, ponds, rivers and reservoirs across Colorado. And in Greeley, seven men oversee it all.

It is so complicated, in fact, that fellow board member Robert Ruyle said it takes several years on the board before a member really understands it.

“Water board members serve 10-15 years before they really know what to do,” Ruyle said. “Even if they come to the board with water experience. Our system is unique, and it takes a while to understand it.”

It is also why, Evans said, the water board needs the absolute power it currently enjoys.

“The primary reason for establishing it this way was to provide for long-term needs in a non-political way,” Evans said.

Not everyone agrees, however, including a former top Greeley official who may take a proposal to the voters to put the power back into the hands of the Greeley City Council.

Many argue the Greeley water board has too much power, and its authority to set rates, development fees and the cost to bring raw water to a new development are all too high and there is no one that can reverse its decisions.

Members of the water board say what most don’t realize is how far ahead of the game Greeley is compared to other communities and water districts in northern Colorado.

And that — they say — is because of the way the Greeley Home Rule Charter is set up, giving board members the power to set rates and fees, acquire water and manage the system that cleans and transports it.

“When you think about what you pay for a cup of coffee, we supply a gallon of safe drinking water for four-tenths of one penny,” Evans said.

Board members all believe they are assuring many more generations to come plenty of the precious resource.

But has the original intention of Greeley’s forefathers outlived its usefulness?

Should voters change the way water has been managed for nearly six decades?

It all depends on who you ask.

WHICH WAY DID IT GO?

From as far away as Lake Granby on the Western Slope, into the Colorado-Big Thompson system, and eventually the South Platte River; or from as far away as Cameron Pass and the Poudre River, spring snow melt from the mountains flows through 500 miles of pipeline into two water treatment plants and into homes and business in Greeley.

It didn’t take long after Greeley was founded in 1869 for its forefathers to realize they needed to secure the rights to the water coming out of the mountains.

W.D. Farr, known to many as Mr. Water, and former Greeley Tribune publisher Charles Hansen are credited for bringing water from the Colorado River across the Continental Divide and to the Front Range. The Greeley water system is among the most elaborate and most rich in the nation, everyone close to the situation says.

Many say that’s thanks to the authority granted the Greeley Water Board when it was formed in the 1958 charter to manage the system.

Norman Dean, who was a member of the charter committee and one of those responsible for the Water Board’s authority, said it was a battle over who to put in charge.

“It was a very contentious subject,” Dean said. “Some guys wanted it to be a department of the city.”

But in the end, a University of Northern Colorado professor convinced the majority, including Dean, that it needed to be separate.

“Water and sewer generates a lot of money,” Dean said. “He did not want it to flow into the general fund for city council to use it as they wanted.”

Technically, it is a department of the city, but it is run by the water board.

The other option, said Leonard Wiest, former Greeley city manager who is now a consultant, would be to make the board an advisory board. Let them continue to do what they do, but leave the final decision to the Greeley City Council.

“We get a chance to vote on the city council,” Wiest said. “If we don’t like what they do, we can vote them out. The only thing the council can do right now to the water board is cut the budget. But they never do that either.”

The seven members of the water board are appointed by city council to serve a five-year term and cannot be recalled by voters. At the end of that term, they must be reappointed to serve again. However, no one can recall a time when the council did not reappoint someone.

“If at anytime they came to one of us and said, ‘We don’t think you’re doing your job,’ we would step down,” Evans said. “We may make decisions that some may not like, but we have to do what is best for the whole big picture.”

Additionally, there are no limits to the number of terms a water board member can serve. New members are recommended to the city council by the current board, leaving some to refer to it as a “good ol’ boys club.”

Many members have served for decades. Dean, who served 15 years on the board from 1989-1994, said that, too, was thought out by the charter committee.

“It seemed a shame to put term limits on them,” Dean said. “They finally get to understand it all and then they have to leave the board.”

The board controls a $26 million budget. Although city council ultimately has to approve any loans the water board requests, the water board has the authority to borrow money and sell bonds without going to voters, Wiest said.

“It’s taxation without representation,” Wiest said. “The water and sewer board is entirely independent. They do whatever they want.”

The board is responsible for setting water and sewer rates, plant investment fees (which are fees paid by a developer when a new home or business is constructed) and cash-in-lieu charges to get water to a new development.

Council can raise the rates and fees, but has no authority to lower the rates below a minimum formula set by the charter, which includes things such as depreciation and maintenance.

City Manager Roy Otto equates it to buying a car. You have to pay a minimum amount for a basic car, but all the bells and whistles are additional. If the water and sewer board wanted to raise the rates above what the formula says is needed to pay the bills, council could deny that.

“I have never since I’ve been city manager had a disagreement over the budget,” Otto said of the recommended budget versus what the council wants. “We all understand the importance of our rate structure. We have a sound system, I would put our system up against any in the area because the charter language considers depreciation and maintenance.”

Developers, however, have recently threatened to stop building in Greeley because development fees, especially for water and sewer, are too high, they say.

Many developers in the area have asked Wiest to lead an effort to ask voters to amend the Home Rule Charter in November, to make it an advisory board.

Wiest isn’t sure yet if he will, but he’s leaning toward leading the effort.

WHO PAYS THE WAY FOR GROWTH?

Greeley City Council has long charged its staff with the directive that growth pays its own way. In other words, fees should be charged to handle improvements or expansions when new developments come in.

Water and sewer is no different. New developments require the developer to supply the water rights to service the area, and new residential and commercial development must pay plant investment fees to help with maintenance and expansion to the system when it is needed because of growth.

However, the fees set by the water board are the source of disagreement.

At several recent meetings held by the city to discuss increased development fees that go in effect March 1, real estate brokers and contractors expressed concern that development was about to stop in Greeley because they can’t afford to build here compared to other communities. In particular, many believe the water and sewer fees charged against developers are too excessive.

Their contention is the increased fees drive up the cost of new homes in an area continuing to battle with poverty.

A recent attempt to lower those fees failed on a 4-3 city council vote. The argument against lowering the fees is that it puts the burden of paying for growth in the water system on the current users.

“It’s a philosophical belief,” Evans said. “Because on the other hand, you can say new development benefits everyone.”

Wiest said the water and sewer board are more concerned about someone who may move here in 50 years than they are those who live here now.

“The growth factor flies in our face,” Wiest said. “The person who moves here in 50 years will still have to bring their own water. But we are spending hundreds of thousands of dollars for water for the future.”

WHAT THE FUTURE HOLDS

Water board members say they are only trying to continue the logic of Farr, which has made Greeley the envy of many in Colorado for its long-term planning and vision in acquiring water rights.

“When you think about the previous boards and what they’ve done, we have the chance to stand on the shoulders of giants,” Evans said.

He added the land around northern Colorado is drying up, and people need to remember where they live.

“We are an arid landscape, but we want to look like the Midwest,” Evans said. “We have had water restrictions in place since 1905 for a reason.”

Ruyle agreed, adding it is getting more and more difficult every day to acquire water.

“It is a challenge to be able to acquire enough raw water to supply new growth for the city,” Ruyle said. “It is a limited resource in the area we live.”

In fact, 80 percent to 85 percent of the water used in Colorado is still used for agricultural purposes. That is a real challenge, both men said, because changing water use from ag to domestic in water court is a complicated process.

So what happens when Greeley’s economy moves away from agriculture? Evans asked.

“It is predicted we will have more than double our population by 2050,” Evans said. “Where is the water going to come from? What is it going to look like in 2050? Who knows? We’ll figure it out, but it’s going to look different.

“But we are fortunate to have the system we have. It allows us to do things others can’t do. When 2100 rolls around, I hope people look back on us and say, ‘Those guys in 2015 did a great job for us.’ ”

More Greeley coverage here.