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Privatization discussed for SL mineral water

by Herald Staff WriterJoe Utter
| November 14, 2013 5:00 AM

SOAP LAKE - The City of Soap Lake has provided its unique mineral water to local businesses and residents for the last 50 years. With little profit and a failing system, privatization might be the only option to save the mineral water service.

Dick Garnett, co-owner of The Inn At Soap Lake, recently proposed taking over the mineral water system, either improving the existing system or building a separate system to pump the water directly to the Main Avenue business.

An increase in mineral water rates in October forced Garnett to close the inn during the winter months when tourism in the town is low, as he was not able to afford the $820-per-month mineral water bill. This is the second winter in a row Garnett has closed shop.

"It's putting us out of business," he said. "What took 12, 13 years to build up is gone now. We've always loved living here and enjoyed doing business here. If you can keep those lines intact and come up with a reasonable rate, we'd like that."

The City Council recently discussed a temporary 50 percent reduction for the mineral water through the winter months, giving the city and Garnett time to negotiate privatization. The decreased rates would be in place until March. The council will vote on the reduced rates at the Nov. 20 meeting.

"It's not going to happen overnight," Mayor Raymond Gravelle said. "It will be a process. This is our effort to buy some time to get a permanent solution."

Garnett said installing a new pump system would cost about $33,000 and a deal would need to be reached before April when mineral water service will be disrupted for sewer repairs and improvements to downtown streets and sidewalks. If a new system is installed, Garnett, and possibly other business owners, would be required to lease water rights from the city. If the two sides decide to use the existing system, a water district or association will need to be formed.

City Attorney Katherine Kenison said privatization is a "viable option" but more research would need to be done before any decision is made.

The city has struggled to find funds to pay for repairs to the aging system, already short about $12,000 in the mineral water system fund. Gravelle said the system costs the city about $10,000 each year to operate and even with the rate increase, the city would only bring in about $17,000 in revenue.

Just three businesses were using the mineral water system and the only private residence using the water had the system shut off when the rates were increased.

In May, the city held a workshop to find possible solutions for the mineral water system if, and when, it stopped working again. Alternatives included building a public pool filled with the mineral water or using a truck to transport water to hotels and homes.