| Attorney Kate Moore Represents Homeowners in Water Law Issue |
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From Clatskanie Chief Newspaper on June 9, 2010
Clatskanie Council Adopts Budget, 7.5% Water Increase;
Struggles with Haven Acres Water Issue
by Deborah Steele Hazen
Clatskanie’s city council approved a 7.5 percent water rate increase, and a series of resolutions related to the adoption of the 2011-12 budget at its meeting June 2.
While the budget, adopted at the meeting, was originally built on the assumption of a five percent water rate increase on Sept. 1, and a five percent sewer rate increase Jan. 1, the council decided to adopt a 7.5 percent increase beginning in September to get closer to the water fund being self-sustaining, and less dependent on transfers from the general fund.
“The 7.5 percent increase will help close the gap of covering for inflation plus lessen the reliance on the timber infrastructure fund for current and future water system infrastructure projects,” stated City Manager Greg Hinkelman in a memorandum to the council, which has discussed the need for gradual annual increases in water and sewer rates.
The 7.5 water rate increase effective Sept. 1 is expected to bring in approximately $21,500 more during the 2010-11 fiscal year.
The change from the 5 to 7.5 percent water rate increase, changed the total city budget number from the originally proposed $8,359,437 with a five percent water increase in September to $8,366,637, increasing the contingency by $7,200.
Currently, in-city water customers pay $20.25 for a base charge plus $1.35 per 100 cubic feet of water. The increase approved by the council last week raises the base rate to $21.77, plus $1.45 per hundred cubic feet of water.
Public works director Dave True estimated the increase would total about $3 per month for the average water user.
Water customers who live outside the city limits pay double the amount, so their base charge will go up to $43.54 per month, plus $2.90 per hundred cubic feet for all water used.
Councilor Ron Puzey, who was presiding at the meeting in the absence of Mayor Diane Pohl, cast the sole no vote against the water rate increase, stating that “it’s not that I don’t think we need the rates. But when I look at the amount we’ll take in from September to December, they don’t equal what we’ve spent on legal fees to get out of working on water lines.”
Puzey was referring to the Haven Acres water line situation.
The Haven Acres water system was installed about 40 years ago by the private developers of the housing subdivision. The city has supplied water to the pumphouse and installed water meters at the houses, but has stated that it is not responsible for the water lines between the pumphouse and the homeowners.
Gary Leinonen, the last of the original developers, has been maintaining the line for years, but gave notice this spring that he is no longer able to do so.
In the two months preceding June 1, the city repaired the water line nine times and also repaired a motor. The city has billed Leinonen for those repairs. “The system’s shot,” True told the council at last week’s meeting.
The city also sent letters to Leinonen, with copies to the 18 affected homeowners, that after June 1 it would no longer repair the line.
Subsequently, representatives of the city met with a majority of the homeowners, and suggested that the group form a local improvement district (LID) to finance the replacement of the line. Once the line is brought up to standard, the city would accept and maintain it.
The homeowners have thus far declined that suggestion. Sixteen of the 18 are now represented by an attorney, Kate L. Moore, of the Portland firm of Dunn Carney Allen Higgins & Tongue LLP.
The city has hired Laura A. Schroeder of Schroeder Law Offices, P.C. in Portland to represent its interests regarding the Haven Acres water system.
In a letter dated May 24 to the Haven Acres water users and their attorneys, Schroeder acknowledged that “some of you are reluctant to form an LID upon the Haven Acres Water System. Given this reluctance, we have recommended to the City that it consider a cost share with the individual water users on the Haven Acres Water System to replace the private deteriorating system.
“In this vein, the City Public Works Director has estimated the cost of such a system to be approximately $204,000. Of this sum, approximately $54,000 of the work could be contributed by the City. Thus, the remaining sum of $150,000 would need to be funded by the homeowners.
“The City has estimated that if each homeowner were to contribute $8,333 for the capital improvement that sufficient funds could be raised to meet the $150,000 cost contribution from Haven Acres residents necessary to build the new water system. This is significantly less than the cost of drilling individual wells, particularly considering that the City can then agree to bring the completed City system into its facilities inventory which would provide future security, assure water quality and quantity, and provide ongoing means of management, maintenance and repair.
“The City is willing to work with the Haven Acres Water System users to establish a legally enforceable payment mechanism if any homeowner is unable to pay the entire sum. This mechanism may be able to provide for an installment plan with interest to be paid back over time.
“At this time, the City would like to gauge your interest in pursuing a new City system built with financial contribution from the Haven Acres Water System Users.”
The city council met in executive session June 8 in response to a letter from Moore asking several questions.
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