Amendment 58 could smooth RFL's troubled waters

By Stephen Clearheart Johnson
North Forty News

A ripple in the waters of Red Feather Storage and Irrigation Inc. has caused a wave of confusion and suspicion among nearby property owners asked to sign covenants forever linking their properties to the future of the company.

Tight-lipped company spokesmen were reluctant to talk about the new covenants, but board member David Frydenhall did characterize the new covenants as a "long-term vision."

This uniquely Western story involves historic water rights, premier trout fishing, golf courses, real estate sales and an increasingly polluted water table threatening the long-term viability of the community. The village of Red Feather Lakes does not have a community water or sewer treatment system, although the outlying developments do.

The geology of the area provides only shallow wells, vulnerable to surface water influence and to the large number of septic systems installed in a small area.

The primary source of water for these wells comes from water stored in the lakes managed by RFS&I. Ed Schemm of the Larimer County Department of Health and Environment said, "The lakes are probably what is keeping the wells in water. If the water went elsewhere, it is my guess that the wells would dry up."

The future of this supply is in doubt. If municipalities on the plains continue to purchase senior water rights for their drinking water supplies, it is possible that RFS&I might not be able to store as much water as in the past. This would reduce flushing and recharge of private wells, exacerbating the pollution problem. A drop in water levels could severely impact the fishing ambiance in the eight private lakes and the nearby public Dowdy, West and Parvin lakes.

Amendment 58 on the November ballot could provide a viable solution to the dilemmas facing the community. The amendment proposes to collect more Colorado severance taxes on oil and gas and use 5 percent of the proceeds to "fund community drinking water and wastewater treatment grants."

The RFL Planning Advisory Committee has named the water issue a high priority. July PAC minutes state, "In order to preserve these water rights and the identity of Red Feather, the PAC needs to work closely with the Red Feather Lakes Storage and Irrigation to use some of the water for domestic use in order to protect this water from exposure and to make the water more secure."

The PAC and other community leaders have also looked into the possibility of forming a special public improvement district to finance the construction of a water and sewer treatment system through property taxes.

The upfront costs are formidable, including the cost of creating a legal entity. (Red Feather Lakes is not an incorporated town.) Currently local and state funds appear limited to no more than $40,000. Federal grants may be available.

The PAC is still working on determining which roads are public. Such roads would be needed before water and sewer pipes can be installed.

Gene Barker, a member of the PAC and a director for 35 years of the RFS&I, doubted that local residents would support a tax district. "The majority of people in Red Feather Lakes want to keep it the way it is," he said.

The extent of current groundwater pollution is apparently not severe. "What data we have doesn't show a big problem," Schemm said.

He advises property owners to have their water tested annually. The county health department charges a $20 fee for such a test. But, Schemm noted, the standard test looks only for bacterial contamination. There are additional tests for surface water influence, which can include nitrates, parasites and biological contaminants.

Next year Colorado will impose higher standards on public water sources that are subject to surface water contamination. These standards will apply to commercial outlets such as restaurants and lodges. These property owners will face increased costs for filtration and treatment. Schemm noted, for example, that the public library in Red Feather Lakes would need to upgrade to meet the new standards.

These water issues recently surfaced after the mailing of covenant documents to some area landowners. When one area property owner received the documents in the mail, but got no adequate explanation from company officers, he asked the North Forty News to look into the matter. The document cover letter said little more than "...the following documents need to be completed in order to process your Covenant Membership." The letter directs property owners to sign the covenants and return them with a copy of their deed.

The covenants would give the property rights to pass on the fishing membership (valued at $1,600) to future buyers, and offers the possibility of water and sewer service to the property. In turn, the property would be committed to paying the allocated costs of such service, potentially the shared cost of maintenance of ditches and dams, perhaps even the cost of acquiring additional water rights.

Barker assured the North Forty News that operating costs would not be passed on to these covenant members. He explained that this program began slowly several years ago as a potential means to strategically position the company to become the provider if a water and sewer district were formed.

He added that since the county formed the planning advisory committee, which became involved in water and sewer issues, the irrigation company has been soft-pedaling the covenants program.

The company's rights to water are primarily for recreational use, but there has been a history of providing domestic water from one or more public wells to anyone who wished to haul it home. When asked if the company owned rights to provide domestic water to the entire village, Barker asserted that they did, and then added, "We may have to purchase additional rights."

RFS&I is a nonprofit corporation formed in the 1940s as a successor to prior companies. It undertakes the management and maintenance of the water structures. In addition to fees charged to irrigation users, the company sells permission to fish, boat and otherwise recreate at the lakes. Local property owners can become "fishing members" by paying an initiation fee of $1,650 and annual dues of $350. Nonowners can also purchase fishing rights.

As a nonprofit with 450 stockholders, RFS&I's stock is subject to a fixed transfer price. Stockholders have no way to profit from the company's activities.

Unless, perhaps, in the event that the company's holdings are transferred lock, stock and barrel to another entity such as a water district.