By VERNON ROBISON
Moapa Valley Progress
The Moapa Valley Water District Board of Trustees voted unanimously last week to increase the district’s “payment in lieu of dedication” fee from $2,500 to $3,150.
The fee applies to developers of new parcels who do not already own water resources that can be dedicated to the district for use in their developments. Thus, in the absence of dedicated water rights, the developer has the option to make “payment in lieu of dedication” and use water which the district has already acquired, and is holding in reserve, in its portfolio. The fee is meant to recompense the district for its expenses in the acquisition of the water rights.
In the meeting held on Thursday, August 9, MVWD General Manager Joe Davis explained that over the past three years, the board has increased water user rates by 8 percent per year. But the “payment in lieu of dedication” fee had remained the same throughout.
“I think it kind of slipped through the cracks when we did the rate increases,” Davis said. “If the idea of ‘growth pays for growth’ is valid, then this fee is lagging.”
Raising the fee to the recommended $3,150 would bring it back in line with the 8 percent annual increases that had occured in water rates in recent years, Davis said.
“As developers come in, our resources are finite, so they should pay their fair share too,” Davis said.
When the “payment in lieu of dedication” was first established in 2005, it was based on the valuation of a preferred share of Muddy Valley Irrigation Company water at that time: around $7,500.
But in 2015, after more than seven years of stagnant growth in the community, the MVWD board voted to reduce the fee to $2,500 in hopes of encouraging growth.
This valuation was based more specifically on the cost to permit, drill and develop the Arrow Canyon #2 well, the district’s primary water resource.
Over the past two years, MVWD staff has identified that Arrow Canyon 2, which was originally put into operation back in 1994, is now reaching the end of its life span. The staff has consulted with engineering firms on the estimated cost to replace existing infrastructure, specifically emphasizing a new well at Arrow Canyon. The cost for developing the new well alone has been estimated at $3.2 million and is expected to be needed within the next 2-3 years.
The fee increase was approved unanimously by the board with little discussion.
In another agenda item, the board accepted a bid for $72,756 for a pump replacement project at its Baldwin Springs facility in the Warm Springs area.
The project would pressurize the water line between the district’s production facility at Baldwin Springs and the Moapa Tank reservoir.
Davis explained that the district had received two competing bids for the project. The higher bid came from Layne Construction at $122,291. The lower bidder was Nickerson Company, Inc in the amount being recommended.
Davis said that he had sent the bid to the district’s engineering firm for analysis which found that it met all the requirements for the project.
The board approved the contract with a unanimous vote.
