Water and sewer rates in Pueblo West could increase 20, 48% in order to meet its needs

Sep. 28—If Pueblo West is to keep up with its growth, water and sewer rate increases are a must, a consultant told the Pueblo West Metro District Board on Sept. 27.

"The current state of water resources owned versus demand is you have enough for a few hundred new homes to connect, but not too much more than that," Jason Mumm, FCS Group principal for the consulting firm's Colorado office said. "We recommend a new water resource fee."

The water resource fee of $35,290 would be charged to new residential customers who want to connect to both water and sewer service. Extra funds would enable the district to purchase more water shares to keep up with demand.

Currently, new construction permits are about $20,000 for water and sewer or $11,000 for water only, said Jim Blasing, director of utilities for Pueblo West. Board Vice President Matt Smith said the $35,290 price tag seemed high when compared with communities in the area.

"It is a lot more than what you are seeing around here. Pueblo West is new compared to communities in this area like Pueblo and Canon City," which have historic Arkansas River water rights, Mumm explained.

Melanie Hobart, project manager for FCS Group, shared with the board three scenarios for water fees to help the district realize growth. That growth would call for a $15 million water treatment plant expansion in 2027.

If the district wants new growth to pay for itself, it could enact the $35,290 water resource fee and charge existing customers a 4.6% annual increase. If new growth is charged just 50% of the water resource fee, existing customers would be charged 8.3% more annually.

Smith said he would prefer to see a medium between the first two choices.

In the third water scenario, without a water resource fee, there would be a 20% increase in all water bills next year and 10% annually from 2023 onward. Sewer rate scenarios included one the consultants recommended where customers would see a 20.3% increase in 2022, a 6.5% increase from 2023 to 2027 and a 3.25% increase the following four years.

The second sewer option, which would prevent the district from going into debt, would call for a 48% bill increase for customers in 2022 and a 23.5% increase in 2023.

Pueblo West resident Joe Mahaney suggested the district prioritize a capital improvement project that would enable the use of treated wastewater for non-potable uses like parks. He also suggested higher water rates for users who consume more than 9,000 gallons a month.

Residents will have a chance to weigh in on the proposed rate increases the district settles on at a public meeting set for 5 p.m. Nov. 8 at Fire Station 3, 729 E. Gold Drive.

In other business, the board tabled an agreement with a broadband company working to build a new state-of-the-art fiber-optic network that could soon change the community's spotty and slow internet service.

The district's growing population and a merger between RTC Broadband and ITC Broadband Holdings, LLC, has made it financially feasible for the project to move forward. The board tabled a memorandum of understanding with RTC until its Oct. 11 meeting because of language that would prevent the board from entering an exclusive agreement with any other internet providers.

"I don't think it is in our purview to tell other providers not to build networks here. We don't have any oversight over that," said Doug Proal, board president.

The district's legal counsel Harley Gifford said the board only can deal with easements when it comes to utility expansion. The agreement would call for a monthly $300 application fee for bulk right-of-way permits.

Costs of staff time for processing, inspecting and closing permits would not be fully recouped with the monthly fee, but "due to the scale and benefits of this project to the community, it is a deemed a good trade," according to a staff report by Tyler Purvis, economic development specialist.

"We've been working for three to four years to try to get this off the ground and we have asked Pueblo West for zero capital," said David Shipley, general manager of RTC Broadband which serves the Rye area. "We are close to getting this off and running."

Smith said broadband service is "definitely needed in Pueblo West."

RTC promises "incredibly fast symmetrical internet speeds up to 2 gigabits that may be increased over time at no cost to the district or its taxpayers," according to the memorandum of understanding. A fiber phone service with up to 17 custom calling features, unlimited domestic long-distance service and a low price point will be the second goal of the company.

The board also heard updates on several projects from Acting District Manager Brian Caserta.

Caserta said as the result of a July 24 flash flood, 17 assessments of flood-damaged properties have been conducted on the north side of Pueblo West where a storm dumped 5.5 inches of rain in less than two hours causing flooding in the north Platteville area.

Those assessments have been forwarded to Pueblo County's emergency management office. The county staff will then seek help from the state to cover repair costs.

"The state has already made an indication that regular storm damage does not have priority. They are giving priority to flood damage as a direct result of burns scars such as what happened in Glenwood Canyon," Caserta said, urging Pueblo West flood victims to be patient.

Caserta also updated the board on progress of the new Fire Station 2 construction project. He said staff recently recommended changes to architectural plans, plus soil and septic tests have been conducted.

In connection with a new aquatics center, a design team is working on a plan with an architect. The Planned Unit Development process has started through Pueblo County for rezoning of the property to allow for the aquatic center use.

The proposed site is along East Spaulding Avenue near the intersection with Purcell Boulevard where the district owns 21 lots totaling 89 acres. The committee also expects to know the price of the facility by mid-November.

Chieftain reporter Tracy Harmon covers business news. She can be reached by email at tharmon@chieftain.com or via Twitter at twitter.com/tracywumps.