By VERNON ROBISON
Moapa Valley Progress
The Moapa Valley Water District (MVWD) board of directors, during a meeting held June 13, rolled back a policy passed in April that would have brought a sunset to a special class of customers referred to as “banked meters.”
The April policy had set a date of December 31, 2019 deadline by which all “banked meters” had to either be installed and put into service. Any left on the books after that would be purchased back by the district at the original purchase price.
Only a little over 30 “banked meters” are still outstanding on the MVWD books as of the June 13 meeting. There were service connections purchased before the district’s 1995 policy requiring all meters to be installed immediately after purchase. The meters give their owners a legal option to be served MVWD water resources on demand at any time.
A large group of “banked meter” owners turned out to the June 13 meeting to protest the April policy.
Many of these had purchased meters decades ago in private party transactions with their original purchasers. When the transaction took place, these meters were purchased at the going rate, which was usually about twice that of what the original purchase price from the district had been.
With the April policy only offering the original purchase price of $1500 as compensation for the meters, this group of customers was facing the prospect of losing their asset at a sharp loss. They felt that the district’s policy of calling back the meters should at least offer the current going market rate for them.
Other customers in attendance were the original purchasers of the meters who had paid the $1500. After holding the asset for more than twenty years, they felt that the appreciation of the property over two decades should be reflected in receiving the current market rate for the meters.
Board members said that the April policy had already addressed the needs of both of these groups of customers. In the policy, the board had allowed time for “banked meter” owners to sell their meters to willing buyers at the current market price. Furthermore, the district staff had been instructed to set up a process where the district could act as broker for the “banked meters.” District management had set procedure to cease from selling new meters, instead arranging transactions for “banked meters” to be sold to new service customers. District staff had also begun assembling a list of willing “banked meter” sellers and noting the customer’s asking price for each meter. Then they would link buyers to those meters as they approached the district for new service.
At the June 13 meeting, board members admitted the weakness in the April policy was a tight timeframe of only six months. But they expressed openness to extend that timeframe far past the December 31 date. Some even were willing to extend the deadline indefinitely until all the “banked meters” had found a buyer.
A smaller group of customers were not interested in selling their meters at all. These customers anticipated a point in the future when they would want to install their “banked meter”. They wanted to continue to hold the meters until that indefinite date in the future.
But district officials explained that there were pressures mounting that made that option impossible. MVWD General manager Joe Davis explained that in September of 2018, the Nevada State Engineer had released a draft ruling that completely changed the landscape and tightened down on water resources throughout the region.
“Everyone from Apex to Coyote Springs to Moapa Valley and more were put into a single super-basin called the Lower White River Flow System,” Davis said. “We were told that the super basin is overallocated. There is not enough water to go around. So there is a good chance that they will curtail everyone.”
Despite that, the Coyote Springs developer is looking to start building a major new community, Davis explained.
“We are fighting for our lives here,” Davis said. “It is a community issue. Our community already exists. We have been here longer than Las Vegas. We should have a right to that water. But the fact is, when (the State Engineer’s office) is looking at what we have, and how many meters we have to serve, we have to show a need for all of these meters.”
Davis explained that if the MVWD water portfolio is curtailed, the districty would still be required to service those “banked meters” immediately at the will of the owners.
“Now it could be a situation where we are short on water because we have been curtailed, but I still am required to fit you in,” Davis told the “banked meter” owners. “If that happens, everyone else in the community has to take a haircut on water resources.”
After some discussion, board members decided to continue in the same direction as the April policy but with some key changes to assist “banked meter” owners.
Board member Ryan Wheeler made a motion that the district continue the practice of facilitating sales of “banked meters” before any new MVWD meters are sold. The district would create a list of “banked meters” whose owners have contacted district staff and given an offer price for their meters. When new customers come to the district for a meter, they would be directed to those meters. This practice would continue until the extended date of June 30, 2020. At that point, if “banked meters” have still not been sold or installed, the district would purchase back the meters at the current market rate for the meters at that time.
The board accepted the motion with a unanimous vote.
