HIGHLAND — The Highland Water Co. will dissolve and evolve into the Highland City Water Department following a 473-445 vote by members of the private water company which has provided the city's culinary and irrigation water since its incorporation 20 years ago.
The company's assets — including $3.2 million in cash, four employees, the water system infrastructure, three storage tanks and five deep wells — will become part of the city where all but 15 members of the water company currently reside.
The company's Board of Directors and city leaders have broadly supported the city's acquisition of the water system — which leaders have called a "merger" in discussions and legal documents.
Councilwoman Kathryn Schramm has been the most outspoken opponent to the move. She was joined by a vocal number of residents at a Wednesday meeting to discuss the plan. They restated their belief that it was a poor move by the company, one they believe could end up costing residents dearly in terms of increased water rates.
Mark Thompson and others on the water board said it was time for the water company to take advantage of the water rights protections afforded to municipalities and not available to private water companies.
Thompson shared a letter from the state engineer that noted the company's water rights were coming up against a 50-year deadline that may have prevented further extensions.
Thompson said the water rights are valuable and need to be protected and the best protection comes at the latest time of filing.
Many in the audience disagreed and said the city shouldn't be put in charge of something the water company has managed just fine over the past 47 years.
Former mayor and current board member James Hewlett said he didn't understand why people doubted the city's ability to take good care of the company water and assets. He noted that $1.9 million of $3.2 million that will be turned over to the city is already committed to water system projects.
"This is not a horrible decision here," Hewlett said.
Highland currently has 11,000 residents and expects to add three times that number before the city is built out. With water an ever more precious commodity, it's imperative that it be protected, said city officials.
City Councilman Brian Brunson told the audience the City Council has spent hours studying the proposal and asking the same questions they asked.
"What would be the selfish motive for the nine of the 10 of us who are for it to do this? Are you willing to risk your water rights to see if you're right?" he said.
Resident Ron Christensen, a civil water engineer, called the dissolution of the company a drastic measure to take to solve the water rights problem.
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