Editorial: A sale could be the best thing for former Juniper Utility

Published 12:00 am Sunday, July 27, 2014

The best thing to happen to the former Juniper Utility water system would be for Bend to sell it or lease it.

Bend took over the utility in 2002 after customers complained it was failing. The city doesn’t want it now. The city says the utility area needs $14 million in improvements, and all Bend homeowners would have to subsidize that cost.

Ask homeowners served by the former Juniper Utility water system what they think about the city’s plans and they are likely to sigh or groan.

They don’t like the added expense on their bills of $26.06 a month for 30 years or a one-time payment of $5,143 in 2015. They also don’t like that the city would require residents to use water to irrigate that is up to drinking water standards.

But then there is Avion Water Company and Roats Water System. They want to buy or lease it. They have been waiting for conditions to be right and the legal issues surrounding the city’s condemnation of the utility to settle.

The two small utilities have both experience and solid track records. City staff say they wouldn’t support a sale if they weren’t confident in who was going to take it over. And they are confident.

A sale or lease arrangement could give almost everybody what they want. The city would get out. The utilities would expand their customer bases. And the utilities would not require homeowners to make as many changes as the city would. Homeowners could save some money.

There aren’t many win-win-wins in government. This could be one.

The city hopes that it could structure the deal in a way that it would never be compelled to take the utility back, again. It’s a good idea. But if the deal goes through and years from now Bend residents are getting inadequate water service, it’s hard to imagine that the city would not step in again.

Marketplace