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South Willard Water - Update

Saturday, April 26, 2014 - 9:30am
Dakota Tuck

With its scenic view of the mountains, South Willard is one of those towns that entices you to want to live there. Many of the citizens have lived there for decades, if not generations. Recently, issues with their longtime volunteer, non-profit water board has caused feelings of contention for some of the nearly 600 residents living there. Much of the concern comes from a new set of bylaws and articles of incorporation.  A few of the shareholders agreed to be interviewed, but prefer to remain anonymous to avoid contention.

When speaking with shareholders of the water company, one of the concerns is that the old set of bylaws was just a few pages long, while the proposed articles boast a whopping 48 pages. That is quite a mouthful and residents fear that there are items hidden in the pages that do not bode well for the town. One citizen expressed concern that South Willard is moving to incorporate with the town of Willard In addition to that, they are afraid that the changes in bylaws will allow for more growth by developers that will impact the amount of water used when well levels have dropped substantially in the last few years.

            One of resident Don Vissar’s concerns is that the proposed bylaws might allow a loan to be taken out  or that  shares could be sold with just the authorization of the board president instead of by a 2/3 vote by the shareholders.  Resident Keith Heil said the only thing to quote him on is that the new Water Board President, Jayson Harmes, “inherited a mess.” It was also expressed that Mr. Harmes should be given a chance to see how he will handle the situation he walked into.

            One of the shareholders was willing to share the proposed bylaws stating the concerns that others had already expressed that there would now be a “class” difference for shareholders. In fact, the bylaws state that the proposed water rates have four classes with each addressing different issues from single household user to a large developer. President Jayson Harmes expressed that his goal is to provide the best possible water at the best price. He also addressed the concern about the different classes and wanted to reassure the shareholders that the changes taking place in the bylaws is to protect the town from a large developer coming in and buying shares , allowing one person to have a majority vote. One of the changes in the bylaw is that a developer may buy shares but they are non-voting until the home is sold to an individual.  Harmes stated that the change is due to prevent litigation by a developer.  The original bylaw did not offer that protection even though it was the original intent. He went on to say that the shareholders decide as it is their company; and if they have concerns, they need to be involved and come to the meetings.

            One person mentioned that the shareholders would be more informed if the board would send out the minutes of the monthly meeting with the water bill.  That way the shareholders can address their concerns more often than just the annual meeting. It was also expressed that many of the issues that are increasing the bylaws are addressed in the ACT and do not need to be included in the bylaws. One thing is clear, many wish they would keep the original bylaws with perhaps just a few small changes to protect them from large developers. Hope was also expressed that Harmes would be able to address the concerns of the citizens and work with them to preserve the original intent of the water company.

            Update: South Willard Water Company

               On April 24th the South Willard Water Company voted on the proposed Articles of Incorporation and the proposed Bylaws. The proposed Articles and Bylaws were discussed. Don Vissar brought up that his main concern was the wording that allows the board to take out new loans without bringing it before the shareholders.  Jason Harames, president, responded that someone has to sign for the loans and tried to reassure shareholders that it would be brought before them and said that they would “just have to trust him”.  This comment caused a lot of heated replies.  Some shareholders expressed that it would be better to pass the Articles and Bylaws to avoid the possibility of being annexed with Willard and deal with the loan issue by having a future amendment.

               On a good note the water company reported that they were able to pay off three loans that were taken out in 1998-99 early and this would save the company over $86,000 over the term of the loan. The company also reported that they are looking at different ways to save the company money including solar power and using PLC equipment to fill the reservoirs at night when power rates are cheaper.  Harames encouraged the shareholders to share ideas and encouraged involvement.

               The time came for a vote and it was incredibly close- the articles and bylaws did not pass by only a vote or two. South Willard Water Company requires a simple majority of 2/3rds. Shareholders voted for a recount but the results were the same.  Concern over annexation caused Harames to call for the current bylaws and articles to be suspended to protect them from annexation. The water company now faces the task of re-working the articles and bylaws so that they will pass.

               A vote was also taken to elect two board members. Danny Wilson and Ron Orton were elected.