Mid-Dakota Board Votes to Place Moratorium on New Hookups

 The December meeting of the Mid-Dakota Rural Water System Board of Directors was held on Tuesday afternoon the 12^th at the Miller office.  After thorough discussion, the Board voted to suspend indefinitely any new hookups to the water system or put another way, place a “moratorium” on new hook-ups. 

In the summer of 2006, there were 45 days exceeding 7.2 Million Gallons per Day (MGD) and 26 days over 8 MGD making large demands on Mid-Dakota’s 9 MGD water treatment plant.  July 17, 2006 was the peak day and the system produced 8.858 MGD using 98% of the system’s maximum capacity.

Before Mid-Dakota can consider taking on any new customers, a way must be found to increase the plant’s capacity and to deliver the increased capacity through its transmission and distribution system.  The cost for doing this work is estimated at approximately $15 Million for the most immediate needs.  The cost of financing the expansion along with the current federal debt for the original project could prove burdensome for Mid-Dakota’s existing customers and the water company is carefully weighing its options and considering the impacts of all financing alternatives.  Until a feasible financing package can be identified and implemented and the new construction is completed, it is believed the moratorium will stay in place.  This will mean that any new homes or businesses in the Mid-Dakota area will need to find alternate sources of water until the moratorium is lifted.  Interested persons will still have the option of making application and getting on a list for future construction if and when the moratorium is lifted.  The cost for the applicant will be a non-refundable charge of $100.00 which would later be applied towards their other normal and customary sign-up fees.

This moratorium will also apply to hookups which have been deleted or idled.  Until the moratorium is lifted, these hookups will remain without Mid-Dakota service.  Mid-Dakota will not allow transfer of existing hookups or capacity to new locations.  Mid-Dakota’s Policy Bulletin 305 “Future Housing Developments”, allowing developers to purchase capacity by paying a portion of the costs to build the project to get service to their development location, will be suspended indefinitely. 

The Board has agreed to continue with water applications that have been made up to December 12, 2006.  General Manager Kurt Pfeifle stated, “Nobody at Mid-Dakota, staff or directors, enjoys placing a moratorium on hook-ups – it’s counterintuitive to how we normally view our jobs.  I know our staff, our board and consultants will work diligently to find a solution – but for now we’d be remiss if we did not take these difficult and arduous steps.”