Further discussion on water options

by Cindy Glasson and Mark Dykes

The Hot Springs County Commissioners heard the results of the Big Horn Regional Southern Supply Level II Study on Tuesday afternoon which presented some interesting numbers should the town and county switch from surface based water to a well.

DOWL and WESTON completed the study, looking at two possible well options, Buffalo Creek Well #2 and the Lysite Mountain Well.

In the beginning, there is no doubt the project would be costly, but in the long run, would end up saving residents on their water bill.

Jeff Rosenlund with DOWL said the company would suggest the Lysite Well.

“The USDA is confident we would get a grant for the project at 67 percent,” Rosenlund said. “There are other grant monies out there that could take that number even higher, reducing the cost further. Higher water usage would actually take costs down and if the town would eliminate the water treatment plant they would be eliminating those costs.”

Rosenlund broke down the costs for the well and the pipeline, showing the well construction would be $1.5 million, pipeline from Lysite to Lucerne would be $26.7 million and then pipe from Lucerne to Thermopolis would be $6.6 million.

There would be 23 miles of pipeline between the well and Thermopolis.

Going with the Lysite Well would mean costs like treatment, distribution and replacement funding for a water treatment plant would be gone.

The commissioners agreed that if water costs were lower, citizens would use more, watering lawns and such, making the water even cheaper, benefitting both the town and the county.

Rosenlund added that the water would not need treatment and would be coming into town at a higher pressure, too. Drilling could feasibly start the summer of 2019.

He pointed out the treatment plant is going to either need major upgrades or build a completely new one and grant monies for those projects is questionable.

Town council discussion

During the Tuesday night meeting of the Thermopolis Town Council, there was again some lengthy discussion regarding the possibility of drilling a well to provide groundwater for the town and outlying districts.

At their Aug. 7 meeting, council heard from Hot Springs County Rural Water Joint Powers Board (HSCRWJPB) representatives Tom Ryan and Phil Scheel. At that meeting, numbers were presented regarding the cost to town residents and the possibility of a rate increase. However, last night’s meeting showed a radically different picture, with rates actually going down.

Information was presented by Neil Miller in a more condensed form than the multiple-page Level 2 study that had been done concerning the possibility of a well. The options studied include a well on Buffalo Creek and at Lysite Mountain, though the latter has been the subject of further study due to the estimated 3,000 gallons per minute rate and its lack of impact on the Big Spring.

In his presentation, Miller stated there was some concern that the monthly cost per tap would be around $37 or $38, significantly higher than the $18 the town currently charges. However, he said, that did not include taps in town and only included those that are outside Thermopolis. The real cost, according to the information he presented, would actually be $5 per tap, with a cost of water at $1.50 per 1,000 gallons. The report notes that the current costs for town water include $4 per 1,000 gallons. According to the report, the data used included 1,208 taps in town and 420 outlying district taps.

The report also notes that the proposed town water bill using the water provided through the HSCRWJPB would be $22 per tap - $5 for HSCRWJPB and $17 for the town – and $3 per gallon, split between the two entities.

Other data presented shows that the total water fund for the town is $807,192. Of that, $9,930 is sourcing, $446,864 is treatment, $109,934 is distribution, $105,141 is accounting and $135, 323 is replacement funds.

Sample water bills are also included, with monthly usage rates of 1,000 gallons, 5,000 gallons, 12,000 gallons, 18,000 gallons and 60,000 gallons. The samples take into account current rates of: $22 per tap, $4 per 1,000 gallons and a 12,000 gallon per day average; using HSCRWJPB with a cost of $22 per tap and $3 per 1,000 gallons and a 12,000 gallon per day average; and HSCRWJPB with a $21 per tap cost, $2.50 per 1,000 gallons and a 18,000 gallon per day average.

Based on monthly water use, 1,000 gallons would see $22 under the current rates and the HSCRWJPB rate of $3 per 1,000, but $21 under the $2.50 per 1,000 gallons rate. On the other end of the scale, a 60,000 gallon monthly use would see a bill of $258 at the current rate, $199 at the HSCRWJPB $3 per 1,000 gallons rate and $168.50 at the HSCRWJPB $2.50 rate.

It should be noted that the 18,000 per day average does take into account larger users such as schools and cemeteries. Funding sources were also discussed, with new information available. At the previous meeting, it was stated that a USDA loan could help with 67 percent of the project, but at the meeting last night the possibility of having it 82 percent paid for through loans through the USDA and Wyoming Water Development Commission was presented.

Lorraine Werner, the community programs director with rural development through the Wyoming state office of the USDA, explained there would be complete underwriting of the project prior, and the biggest issue is sustainability as the USDA would not provide funding for something that looks like it would go belly up. The project would be available for up to 45 percent funding from the USDA based on poverty levels, she said, but it doesn’t mean it would get the full 45 percent.

Rosenlund said it would be good to have an answer as to whether the town is on board, as the application deadline to the WWDC is Sept. 1. Rosenlund also pointed out that plans to replace the water plant could be up to $12 million, though the point was also raised that cost will not be spent all at once but rather over a period of years. Mayor Mike Mortimore said another advantage is that they wouldn’t have to rush the project.

It was noted during the meeting that there seems to be a lot of pressure for a decision, when the council only recently received information regarding the lower rates to customers. Mortimore also was concerned about the town signing off at the given rate, but then the HSCRWJPB being able to do whatever it wants.

There has also been talk of sinking another well at Buffalo Creek for redundancy, though Rosenlund said it would just be for back up in case of an emergency.

As in previous meetings, Mortimore pointed out the well is not needed as there are no issues with the water in town and the points of delivery to outlying districts. At the same time, he noted he did see where it could save money.

Matt Brown said he couldn’t believe the debate on the well has resurfaced after 14 years. He pointed out when in the process 14 years back the oil companies were not notified of the project. He explained oil companies use the water to push the oil where they want it to go, and putting a well in could impact that. He also pointed out that a well has a finite water supply – though some might think it would run forever- and could possibly dry up landowner springs in the area. Other landowners expressed concern of dried up springs and the possibility the well would have to be shut off it that happened.

Mortimore said he didn’t want to move forward with the project unless they had all their ducks in a row

Council member Bill Malloy said he didn’t see any benefit to the well and would not be convinced otherwise. He made a motion, which died for lack of a second, that the town council simply forget about it. Council member Dusty Lewis said it was good to have so many people at the table to discuss the project and provide so much information.

In other water news, council approved a motion to extend the water line replacement project for a reasonable amount of time chosen by the town engineer. Danny May with Wilson Brothers noted the previous deadline is approaching quickly, and there were some tough milestones, particularly with a lot of unknown issues encountered in Hot Springs State Park setting them back. Additional crews were brought in to keep the overall project on track and address a line break on Canyon Hills.