Spring Creek Association seeks water customer input

SPRING CREEK — Residents with water service concerns can give their input to the Spring Creek Association Board of Directors on Wednesday, following an independent study released this month showing local control over the water company may not help high water rates and aging infrastructure.

Hansford Economic Consulting released a 26-page report on Monday that discusses the steps for a potential acquisition of Great Basin Water Co., projected water rate estimates, effects on property values and water supply and system capacity.

Using information provided by Great Basin Water Co. and the SCA, the group stated, "there does not appear to be much benefit in attempting to bring the Spring Creek water and wastewater systems under local control."

Water resources may not hinder HOA development, but the "financial feasibility" of water system infrastructure upgrades could be a "limiting factor."

Hansford also concluded the water rates "are unlikely to be affecting household decisions to purchase homes in Spring Creek."

"This analysis concludes that [water rates] are not contributing in any significant way to any property value decline that may be experienced."

Jessie Bahr, the SCA president and general manager, said the association's board of directors made water rates a high priority in developing its strategic plan and agreed to commission the water analysis study "to understand the facts, statistics and feasibility analysis to gain local control of SCA's water and wastewater systems."

"This study reviews the facts and numbers so the residents can see what is needed to take that next step if that is the direction they believe is right for our community," she said.

"We wanted to focus on the potential cost, governance, effects on water rates, ability to serve projected growth, hurdles to new development and effect on property values."

The board of directors will convene at 5:30 p.m. Wednesday at the Fairway Community Center. The presentation will be livestreamed on Facebook Live.

Questions and comments can be emailed to .

Homeowners outcry

The invitation for public comment comes as homeowners association members voice frustrations with water rates as they desire to maintain green lawns and landscapes, the association said in a statement to customers released on Friday.

A survey sent by the SCA to residents for its strategic planning development showed 58.6% stated long-term availability of water was "very important" and ranked high among other area concerns.

Residents listed high water rates, the expense of upgrading the water infrastructure, "untrustworthy meter readings and poor customer service" from Great Basin Water Co., and other concerns about the utility.

Others wondered how long the "antiquated system," which was installed in the early 1970s, could last.

"There is better technology out there that eliminates the use for chemicals in our water that will still provide clean, safe drinking water for our community," one property owner wrote in the survey.

Some residents stated their "unhappiness" with the Public Utilities Commission of Nevada, which cites a statute to prohibit residents from drilling wells on their land if the property is required to be serviced.

They also wondered why the association allowed water rights to be sold to an entity outside the area.

"It is important to note that the SCA never owned the water rights in our area," the association said. Original Spring Creek developers MCO Properties Inc. "sold them off."

Survey respondents also gave their support to the SCA to pursue changes through the Nevada Legislature to reduce water rates, even approving an increase in monthly dues to finance the process.

"While many respondents expressed frustration with the high and increasing water rates [along with] the resulting degradation of the landscape in Spring Creek, many cautioned against costly litigation that may result from pursing legislative changes, with 27.1% saying no and 72.9% saying yes, knowing those funds would come from assessments or increased assessment to pursue this kind of action," the association said.

History of water issues

For decades, Great Basin Water Co. and Spring Creek Association property owners have gone back and forth over multiple issues, including incorrect water billing, erroneous meter reads and more.

Notably, GBWC was ordered by the Public Utilities Commission of Nevada in 2017 to refund its customers after denying the utility's claim that it resolved meter reading errors and billing issues "consistent with its tariff."

Spring Creek Association has also requested a seat at the table to hear IRP rate cases conducted by the PUCN each time a case is filed, submitting comments and questions in an effort to "keep fighting the rates and keep them down," Bahr said.

"For years, the SCA has heard complaints about the water rates in our area," she said. "We have actively worked with the Public Utilities Commission of Nevada about concerns ranging from high bills to advocating for fair rates. We have held several meetings over the years to allow the community to address their frustrations with the PUCN and water company."

Last year, the water utility announced a bug in its software that resulted in billing issues for the Spring Creek Association, which was sent in a complaint to the PUCN to determine if all or a portion was to be paid.

Bahr said the organization's legal counsel has not received a response from the PUCN as of this month.

Unhappiness with water utility service goes back even further in Spring Creek's five-decade history.

According to Elko Daily Free Press files, the former Spring Creek Utilities serviced approximately 800 property owners in 1985 when it filed for a rate increase with the then-named Nevada Public Service Commission, the first increase since 1974.

Customers then were paying an average of $11.24 and with increases the average rate would have climbed to $27.06.

The , dated Nov. 11, 1985, also quoted former Spring Creek Utilities General Manager Gene Taylor, who listed problems such as complaints about an "inadequate" water system for the service area and breaking water mains.

Taylor pointed to a jump in operating expenses, particularly a 400% increase in electricity used to run the water pumps as a reason for the hike. Sewer rates were not included in the rate hike request.

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