March 27, 1979
During the past year the Directors of the Deer Lake Property Owners Association has faced considerable obstacles in initiating and funding the $4.8 million sewer project. The property owners have relied heavily on the Stevens County P. U.D. for formation of the Deer Lake sewer district as per original petition which you had approved in the fall of 1977.
At the December meeting of the Stevens County P.U.D., they voted to turn down our application and petition for a sewer district, under the premise that we cannot secure enough grant monies to fund the project so that the property owners share does not exceed the $1,3 million restriction placed in the original petition. The problem is very simple. The Department of Ecology (D.O.E.) has committed to the Deer Lake project, 40 of the Design Phase Two, Total cost projected is $340,000. Theyhave also committed to Phase Three - construction of money of approximately $2 million. This commitment was secured only through very persistent and diligent work of your DLPOA Directors. Farmers Home Administration cannot consider any application for grant funds until we have completed Design Phase Two. This fact alone prompted the P. U.D, to deny our petition.
This dilemma now needs your careful consideration as to what you would like the Directors of DLPOA to do. The only other alternative to the formation of a sewer district by the P. U.D. is to form a sewer district of our own. This is called a Municipal Sewer District and is formed so that the Commissioners of the District can assess the property around Deer Lake to complete the Design Phase Two. The property owners share of Design Phase Two is approximately $152,000 according to the Project Engineer, William J. Shoemaker. See Cost Summary, enclosure number 1.
If we look further at this alternative solution, we need to explain fully to you, as a property owner, the steps necessary to take and the advantages and disadvantages that your Directors can see with the alternative. We as Directors of DLPOA will not act affirmatively on the sewer project without further approval from the majority of property owners within the boundaries of the proposed sewer district. If you choose not to approve the formation of a municipal sewer district, then we can foresee, at this time, no possible success of a sewer system around the lake which if not started now, will in all probability forfeit all committed funds for design or construction from the D.O.E.
If you choose that we try to form the municipal sewer district, assess the property sufficient to complete the Design Phase Two, and then call for construction bids. At which time we will know the actual project cost. We can then apply to Farmers Home Administration for funds, hopefully for $1.6 million or more.
If approved, we then have some very important choices to make . . . (1) Either build and operate the system ourselves or (2) turn it back to Stevens County PUD., who had indicated they would be willing to assume the system, assess the property owners as per our original proposal, build the system and provide future maintenance and operation, and (3) if No. 2 choice is made, we would then dissolve the municipal district.
As you can probably see, the municipal sewer district is a vehicle by which you as property owners, are assessed, the property value, sufficient to raise the $152,000 or whatever, to complete the unfunded D.O.E. portion that is needed for Design Phase Two. We cannot proceed without first completing the design phase and getting our actual costs, by advertising for bids, then secure federal funding to complete the project. If we cannot secure federal funding, the project is stalemated until funding can be found or arranged in some manner, or if ever, which does not seem probable at this time.
In January of 1979, we contacted Mr. Dick Schroeder, attorney, to assist us in the process of forming a municipal sewer district. To begin with his costs involved will be approximately $1,000. which the DLPOA treasury could pay if the concensus is go:
Step 1: Petition to Stevens County Commissioners to form district - 25 of registered voters within district needed to sign.
Step 2: Submit petition to County Commissioners and to County Auditor which has 10 days to validate signatures.
Step 3: County Auditor returns to County Commissioners to determine if sewer district needs to be formed (it has to be a necessity).
Step 4: If approved, County Commissioners call for an election after weekly notice for four weeks is Published. Election matters to be decided are: (1) Do you favor a sewer district? YES or NO (simple majority for approval); (2) Special levy for necessary funds to cover preliminary costs of setting us district, not to exceed $1.251/$1,000 of property value. (60% approval needed}; (3) Elect three commissioners who are registered voters within the district. (We have secured approval of two at this time.)
Step 5: Within 60 days, need to have elected commissioners to give notice of hearing to determining boundaries.
Step 6: Need comprehensive plan (Facility Plan, Phase 1).
Step 7: Submit to voters at a special or general election a proposition of general indebtedness to complete Phase Two. (See enclosure number 2 as example.)
At this point there has been considerable discussion at DLPOA Board Meetings that the three commissioners elected would have a blank check to complete the project at property owners expense. (In truth, they are limited in taxation to only what the majority of the voters in the district decide.) Point two since the voters in the voting district approximate 160, that live around the lake will control the project. In fact only 25% are needed for signatures petition to form district, or a mere 40 voters - 20 families - 60 of those voting to pass levy, which will affect 700 property owners. Many DLPOA directors felt this was too much control for a small percent of property owners to have. However, this is the nature of a Municipal District. Who the three commissioners are and what their qualifications are, were also topics of discussion. However we do have two board members who have agreed to run as commissioners and who have been totally involved in the process for the past two years or longer.
Let's talk a little bit about the assessments and how it affects the property owners. Since it is an assessment that improves the property, all property owners are assessed, even those that might otherwise have had tax free privileges, much like a paving project, etc. The assessment is determined on value of each piece of property Those properties that are presently improved will pay more than those that are unimproved for Phase Two. This we will discuss a little later and show you how this may be equalized. The assessment would probably be payable in the next fiscal year, although loans or bonds may be necessary to secure longer term payments. (This possibility is unresearched at this time.)
The big risk that seems ominous is - What if we cannot secure federal funding to complete the project and the project stops right there-? Granted, we have completed a necessary design phase, which can be updated and used at any time in the future, as it would be all engineered to call for bids. But what if it never, never goes. Do we lose the money we have been assessed? This is the question that weighs heavily on the Directors of DLPOA. We could lose and not have completed sewer system - we may not think this will ever happen but it is possible - the federal government may totally restrict future funding such as this. However, ecology and environmental protection is and seems to deserve a lot of attention all over the country whether it's clean air, clean water, etc.
Another point of discussion is what happens if we do get a sewer system, similar to Liberty Lake, which by the way is how they also got their project going. Do we then see a building explosion around the lake and encourage more problems because of it? How can we, as property owners, control future growth around the lake? Already there is projected at Mountain Shadows development the construction of approximately 100 homes with potential of 400 more homes. What do we do with all the people, all the boaters, all the road traffic, etc. ?
It is evident that irregardless of what happens on the sewer system, DLPOA or someone will be faced with these questions and the need for solutions. It is also evident that there is pollution going on right now on Deer Lake. Many cabins are dumping raw sewage into the lake. Many other so-called approved systems are overflowing into the lake It would then appear that Deer Lake may become polluted and contaminated. And there is yet to be an instance where water so polluted has been rehabilitated and purified so it is drinkable again. We certainly need to take action. Consequently we need your approval or disapproval and we need it NOW. We must receive your reply no later than April 21 1979. If the majority say "Let's build a sewer system", then it would seem that the elected commissioners would take that step, by approval of the registered voters, to complete the Design Phase Two and then either have the P.U.D. or ourselves build the system. However, if the majority do not say to build it, and instead turn it down, then we will stop right there and everyone will have had their say.
PLEASE RETURN ENCLOSED PREPAID POSTCARD WITH YOUR DECISION ... YES OR NO . . . AND YOUR NAME, ADDRESS AND SIGNATURE. THANK YOU.
DEER LAKE PROPERTY OWNERS ASSOCIATION BOARD OF DIRECTORS