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WORLAND – A proposal by the South Worland Water Users Corporation to join the Washakie Rural Improvement and Service District was met with a vote to approve by the county commission on Tuesday, although the measure was left open Tuesday morning dependent on the City of Worland withdrawing a public complaint.

During Tuesday night’s city council meeting, the council moved to withdraw the complaint contingent upon the two water entities approving an agreement protecting the city’s 21 customers. Washakie Rural and South Worland Water Users will meet today about the agreement.

Last month, a measure that would expand the district to include current members of the South Worland Water Users Corporation was the topic of a public hearing. After a 30-day comment period (no objections were received by the county), the Washakie County Commission voted on Tuesday to allow the measure to go to public vote of both entities in November, but would only sign the resolution if the city agrees to drop a grievance made by Worland Mayor Jim Gill. The resolution must be signed by July 19 to get on the Nov. 6 ballot.

A petition to join the Washakie Rural system was certified by the county clerk’s office on April 27, with more than 80 percent of voting members of the South Worland users joining the petition.

The commission stressed that upon the legal counsel of County Attorney John Worrall, the matter was still dependent on the City of Worland withdrawing Mayor Gill’s formal complaint, made in June.

“If the city does not withdraw their complaint, then the measure will not go to a vote,” advised Commissioner Aaron Anderson, in front of a large group of South Worland water users and residents.

The only grievance came from Mayor Gill, who filed a formal protest with the county clerk’s office and commented at the public hearing in June, that the restructuring was “very complex” and worried that the city would lose revenue and current users (21 taps used by South Worland belong to the city, but are not part of the proposal), arguing that 160 clients would be lost.

“I find it disconcerting as mayor that South Worland alleges that the water [in question] is not Worland’s,” said Gill in June. “We want to come to a solution on this but it’s been pretty frustrating. Not much communication with the city.”

On Tuesday, South Worland Water Users President Peggy Truman stated that the group is happy to be at this point in the process and will be glad to join Washakie Rural.

CITY COUNCIL ACTION

The Worland City Council Tuesday night approved an agreement with Washakie Rural Improvement and Service District and South Worland Water Users. They also approved a motion to authorize Mayor Gill to sign a letter withdrawing the formal complaint, contingent upon Washakie Rural and South Worland approving the same agreement. Council member Mike Neufer, a Washakie Rural employee, abstained from both votes.

Both entities, it was announced, were to meet today regarding the agreement.

City Attorney Kent Richins said he worked on the agreement with attorneys from Washakie Rural and South Worland Water Users. The agreement in essence states that the city would allow for the enlargement to be placed on the November ballot. Both South Worland Water Users and Washakie Rural would have to approve the enlargement by a majority for the enlargement to pass.

The agreement states that the 21 city customers would continue to be customers of the city and the city would continue to serve South Worland with potable water until the election.

Richins said a new agreement may have to be worked out following the results of the election.

Also included in the agreement is a rate reduction on the base from industrial to out-of-city rates for the two master meters and residents charge out-of-city residential rate rather than industrial rate. He said this would be a savings to South Worland of $16,000 annually, which means a loss of revenue of $16,000 to the city. Richins noted, however, without the agreement, the city could lose all of the customers at a loss of $60,000.

South Worland Manager Sharon Smith said, “We’ve been getting water from the city for some time. We’re very happy to see the base rate dropped. That will be a significant savings.”

She noted that when it became clear to obtain funding to upgrade their lines they needed to form or be part of a district the board so they “chose to align with Washakie Rural because their people are the same as our people, a rural community of water users. It made good sense to enlarge Washakie Rural.”

Monte Hardnen, a South Worland Water User customer and city of Worland resident on Country Drive wanted to know if his line would be upgrade as part of the eventual upgrade of South Worland.

He noted he pays the city the usage fee for his water because he is in the city limits, but also pays South Worland a maintenance and replacement fee.

Smith and Richins said some of those issues would have to be solved after the election.

Mike Donnell of Donnell & Allred Engineering Services said when Country Heights subdivision was annexed into the city South Worland Water Users voted not to give up the water line. Smith said that was because they could not afford to lose the customers in that subdivision.

SOUTH WORLAND WATER USERS

In 2015, the South Worland users requested a planning study, which, after some delay, revealed over $1.4 million in needed improvements. At that point, users decided to petition the county commission to join the Washakie Rural system, with improvements paid for by low interest loans and grants from the Wyoming Water Development Commission (WWDC), Wyoming State Lands and Investment board, and United States Department of Agriculture Loans.

In the study, with a final report issued in late 2017 by James Gores and Associates to the WWDC,

“The South Worland Water Users Corporation (SWWU) was formed in 1971. The original corporate charter from 1971 defined the groups role as follows: ‘…to acquire water rights, drill wells and to build and acquire a pipe line system and other facilities and to operate them for the purpose of furnishing to the members of the corporation water for commercial, industrial, and agricultural use, and for domestic use.’ Since then, the corporation has grown to serve 173 residential accounts from Country Drive to Lane 14 at the north end of the Worland Municipal Airport. A distance of three miles as the crow flies. The SWWU has now operated successfully for the past 46 years usually with a small financial margin.”

The plan further states, “The SWWU has operated successfully for 46 years, and is now experiencing the strain of aging infrastructure. From 2013 to 2015, large leaks in the system were discovered. Due to the area’s permeable soils, the leaks did not present themselves on the ground as would normally be expected. It was only through forensic accounting the problems were identified; when accounts receivable for SWWU members did not match accounts payable to the City of Worland, it was evident a problem existed. This created significant lag time between when the leaks began and when they were finally repaired; thus exacerbating the costs to the SWWU. In 2015, the SWWU approached the Wyoming Water Development, Commission (WWDC) for funding assistance for a Level I Water Master Plan. As part of the requirements for funding the water master plan, the WWDC required the corporation begin preparations to become a legal entity; a water district, improvement and service district, etc. Formation of any type of district would allow the group to legally provide for a mill levy through the Washakie County Treasurer’s Office for loan repayment of future funded construction projects through various available funding sources.”

In looking at formation of district it was determined that 21 accounts were contained within the Worland city limits but currently served by the SWWU. It is estimated these customers represent a little over 12 percent of the SWWU’s current revenue and expenses streams, according to the plan.

According to the master plan, “The South Worland Water Users Corporation (SWWU) purchases water from the City of Worland. The City of Worland obtains water from two high volume artesian wells drilled into the Madison Formation approximately 20 miles to the northeast. These two wells are estimated to be some of the top producing wells in the nation. The abundant supply is adequate for all future forecast needs. The SWWU has no water rights of its own.”

According to the plan, “SWWU faces four main challenges: 1. keeping the system’s finances in a self-supporting status; 2. having the ability to quickly identify water losses; 3. maintaining a sound water distribution system, and; 4. merging with another, more robust water district [Washakie Rural].”

“To meet those challenges the following recommended improvements are aimed at achieving the following goals: 1. Meter Replacement Program – Phase I, II, & III 2. Mechanical Joint Replacement 3. Install 3rd Supply Connection Point 4. Replace 4-inch HDPE [high density poly ethylene] at McSparran Draw 5. Service Replacement Program – Phase I, II, & III 6. Fire Hydrant Installation.”