Ashley Valley Water and Sewer Improvement District shared a letter last week with its customers aiming to answer questions about the new policy requiring new connections to dedicate water shares to the District. The letter explains that the primary source of water that could be converted is held by shareholders in the irrigation companies that draw from Ashley Creek but about half of the irrigation companies modified their by-laws to say that any shares dedicated to the District for culinary water are stripped of their voting rights and several also increased assessment fees. The District considers this unfair and as a result decided that they will not accept shares that result in existing customers paying higher rates so that future development can occur. The letter states: “This has placed a severe hardship on shareholders who want a new culinary connection. The District is taking the blame for quote ‘killing development’ in the area, when just the opposite is true. The irrigation companies amended their by-laws stripping the District of voting rights all other shareholders enjoy. In doing so these companies have stopped development because the District refuses to accept their shares given the unfair treatment that would follow.” The letter also clarifies that the reason the District just doesn’t go buy more water is that there are no more large blocks of unused water left in the valley. The letter also states that the water rights in the Green River “would take decades and tens of millions to develop with a low probability of being delivered each year. The District has exhausted its supply today and the only way to increase its customer base is if those who want a connection bring their water with them.” The letter ends by inviting their customers to provide them with input on these matters.
Ashley Valley Water and Sewer Improvement District
609 W. Main, P.O. Box 967 Vernal Utah 84078
435-789-9400~Fax 435-789-5754
29 July 2024
Dear AVWSID Customer,
Ashley Valley Water and Sewer Improvement District appreciates having you as a customer. We recently adopted a policy requiring new connections to dedicate water shares to the District. This has created questions that we want to answer.
When AVWSID was created in the 1980’s it was given a certain amount of water rights as part of a settlement agreement with Vernal. Since that time the District has continued to pursue additional water, with the most recent acquisition being in 2014 when the last block of Red Fleet water became available. As the valley has grown, the District has provided water connections using the water rights it owns.
It was always understood that at some point the water held by the District would be exhausted. Once exhausted the only way to continue to provide service is to require new connections to dedicate water to the District. A recent engineering study affirmed that the water the District owns is now all committed to existing or pending connections. By law the District cannot allow more connections than it has the water rights to serve.
Because of this the District recently adopted a new policy that all new development will need to dedicate sufficient water rights/shares to the District to meet the needs of the development before they can obtain new connections. This policy protects existing customers while assuring it has sufficient water for new connections. The requirement to dedicate water to a District to obtain service is not new or uncommon as the majority of the state has had similar dedication requirements for decades.
The primary source of water that can be converted to culinary use is held by shareholders in the irrigation companies that draw from Ashley Creek. To get a new connection the applicant will need to turn into the District enough water rights to meet the needs of the new development. The Irrigation Companies on Ashley Creek have voiced concerns that this policy will, over time, result in the District holding a majority position in their companies. While possible, the District’s current holdings in these companies is less than 5% of all shares and a majority position based on current growth would not occur for over 80 years.
In response to our policy, roughly half of the irrigation companies modified their by-laws to say that any shares dedicated to the District for culinary water will be stripped of their voting rights. Further, several of the Companies have openly indicated an intent to increase the assessment on shares dedicated to the District anywhere from five (5) to eight (8) times the assessment of a normal irrigation share. If a normal assessment on a share is $100.00 these companies will charge the District $800.00, without any justification. This will result in increased rates for every District customer, which we feel is unfair. The power to assess the District anything an irrigation company wants combined with stripping the District of the power to vote against the unfair treatment is unacceptable, and the District has passed a policy that it will not accept the shares of these Companies until the District is treated the same as other shareholders.
We will not agree to accept shares that will result in our existing customers paying higher rates so that future development can occur. Our first duty is to our existing customers and we are doing everything we can to protect you. We are happy to provide service to any person who can provide us with shares that do not have these restrictions.
This has placed a severe hardship on shareholders who want a new culinary connection. The District is taking the blame for quote “killing development” in the area, when just the opposite is true. The irrigation companies amended their by-laws stripping the District of voting rights all other shareholders enjoy. In doing so these companies have stopped development because the District refuses to accept their shares given the unfair treatment that would follow.
Finally, some have asked why we don’t just go and buy more water. There are no more large blocks of unused water left in the valley, and we have spent extensive time looking. Some point to the Green River but these water rights would take decades and tens of millions to develop, with a low probability of being delivered each year. The District has exhausted its supply today and the only way to increase its customer base is if those who want a connection bring their water with them.
Water rights are a complex issue, and the district board and staff feel strongly that you, our customers, should have a say in issues that may have a direct impact on your future water bills. As such, we’d like to get your input and feelings on the matter.
You can reach the district at receptionsist@avwsid.com, by calling 435-789-9400, or by visiting us in person at 609 West Main, Vernal. Thank you for taking the time to read this letter.
Sincerely,
Board of Trustees
Boyd Workman-Chairman
Brownie Tomlinson-Vice Chairman
Dean Baker
Max Haslem
David Hatch
District Manager Ryan Goodrich
