The County PSD’s, both Mt. Zion and Pleasant Hill, along with the Town of Grantsville and County Commissioner Craig Arthur met on Tuesday, November 26th, 2024 to continue their discussion on the O&M Agreement.
According to Ari White, Mt. Zion PSD Board president, The PSC requires two changes and suggested a third to the O&M agreement. The suggestion and one of the changes will not have a significant impact. One was a clarification to financial duties and the other a pro forma rental agreement on equipment for sewer use.
The other change was significant. The O&M agreement called for the end of water purchases by the two PSDs and was predicated on the understanding that plant operation would be a common expense of the three entities. The PSC said that an O&M cannot end a tariff and that water use must continue to be billed to the two PSDs. This significantly changes the financial impact of the O&M.
While financial numbers are to be reviewed by the three entities to determine if there actually is a need to rush from O&M to consolidation, the consensus is that we have to move for full consolidation ASAP to realize these financial benefits.
While the Town of Grantsville customers received the news that the 60% rate increase would continue, the fiscal impact on Mt. Zion and Pleasant Hill customers will not currently change. The greater impact on the consolidation will come when the three entities combine staff.
Commissioner Craig Arthur told Ridgeview News, that the Tuesday night meeting “was a productive meeting and each water entity is tasked with what needs done to bring to the next meeting.”
