Document text
Vote to dissolve Charlotte Ann Water District coming By Tony Boom Updated: Nov 07, 2022 10:54 AM A A A vote to dissolve the Charlotte Ann Water District between Medford and Phoenix will be placed before district residents May 6. Looming costs for a highway project that would result in large increases to customers to cover bonding were a major factor in the decision. The city of Phoenix likely would provide water service if the measure is approved. The city is looking at annexing the area in accordance with regional planning, and a vote to annex may come at the same time. “At the time we had to make a decision, we were still revenue-negative. We couldn’t tell how or when our income would come back online to make a financial decision,” said Kelli Salnardi, chair of the water district’s board of directors. The district is now revenue-positive, but impacts from the Almeda Fire still affect revenue, she said. District officials had hoped to place the measure on the Nov. 8 ballot, but the death of a board member left them without a quorum to approve the action in time. Besides the Oregon Department of Transportation Highway 99 project costs, potential annexation of most of the water district area into Phoenix is facing the residents. Because of that, the city of Phoenix and Medford Water Commission, which provides all services for the system and billing, are working collaboratively on a dissolution agreement with the district. Plans call for annexation votes at the same time as the dissolution vote, said City Manager Eric Swanson. Both residents in the area and residents of the city would need to approve annexation. “The intention of Oregon land-use planning is to move areas that are urbanized into cities, but that takes a vote of the affected residents,” said Swanson. “It’s really up to the citizens to decide what is in their best interest.” Annexation would not only bring water services but also city police protection and fire protection from Jackson County Fire District 5, said Swanson. Development of other amenities not common in unincorporated areas, such as parks, also could occur. “We anticipate the city will take over and coordinate and pay, but the dissolution agreement would capture resources moving forward so the city feels confident,” said Phoenix Community and Economic Development Director Joe Slaughter. After the Almeda Fire, the state approved $5 million for Phoenix to facilitate takeover of the water district. Most of that would be used to construct a reservoir to ensure capacity to serve the district. Approval has been given by the Phoenix City Council and Jackson County Board of Commissioners to bring the Charlotte Ann area into the city’s urban growth boundary, a necessary step before annexation could be approved. Final acknowledgment is awaiting completion of a public comment period before the Oregon Department of Land Conservation and Development. “It’s a good coalition in terms of the situation. It’s very dynamic and interconnected, so it’s a lot of coordination,” said Brad Taylor, Medford Water Commission general manger. “These agreements would be set in motion for one entity to take over the responsibilities of the district, but each would have new responsibilities.” When he worked for the Eugene Water and Electric Board, Taylor was involved in several water district dissolutions. Those were more straightforward than the Charlotte Ann action because the Eugene board simply took over operations and administration of the districts, he said. If the district is dissolved, Medford Water Commission would retain 13 customers who would fall outside of Phoenix’s jurisdictional area, Taylor said. Charlotte Ann Water District has just a little below 200 metered hookups currently, said Salnardi. Estimates of district population range from 2,000 to 3,000 residents. Many live in manufactured home parks that have one meter that serves multiple customers. In one park there are 240 units, while another has 190. “If the voters and customers decide not to allow us to dissolve, then we are faced with more choices,” said Salnardi. That could include issuing a bond for the highway work or reaching agreement with the city of Phoenix or Medford Water Commission to pay for the project, with the district paying back over time. Flyers will be sent out to voters in January, March, April and just before the election to inform residents about the ballot measure, said Salnardi. The board will consider raising rates now so increases anticipated, should Phoenix take over, don’t produce sticker shock said Salnardi. Bills could go as high as $100 if the measure is not approved and a bond is issued for the highway work. ODOT plans to widen and improve the Highway 99 corridor from Coleman Creek to South Stage Road. The district would need to pay for relocating its lines in the road right of way as ODOT makes changes, including improvements to the stormwater drain system. Cost of the work to the district is estimated at $3 million on the low end, said Salnardi. The district already paid $150,000 for line relocation related to the reconstruction of the Coleman Creek Bridge, but it was reimbursed $90,000. For the larger project, reimbursement would come to only about $125,000. A 55-year-old district pump station also needs evaluation despite recent work. Retention of the station would be desirable to provide redundancy in the system in addition to a reservoir, said Taylor. “All three of us are really working hand in hand very nicely to get this done with the least impact on our customers,” said Salnardi. She praised Medford Water Commission’s work after the fire to provide testing and restoration of hookups to provide safe water for customers. A district board meeting is scheduled for Nov. 8, and the public can participate via Zoom. Links for the session can be obtained by contacting Salnardi at [email protected] or the district’s attorney, Rob Stone, at [email protected]. Reach Ashland freelance writer Tony Boom at [email protected].