Water tower regulations

[stroskey]

We have a unique situation where part of our incorporated area is served by a neighboring water district. Because the other water district is very small they can not provide adequate flow for fire protection to buildings in this area so builders can not get a certificate of occupancy from the city. State law is on the side of the small water district and we've gone round-and-round on ways to fix this huge problem. They will not accept a buy-out or relinquish their rights the service area, they will not build larger pipes because they don't have any money, and no other solutions have been found. Our city has enough pressure and capabilities to serve this area but because they own the rights nothing can be built in the area. To make a long story short, they have now asked if they can build a water tower on a piece of property in the city limits.

There are two thoughts here - we can allow them to build their tower and increased pipes and service this area (if they have money). This would resolve the problem of fire protection but it would mean there are two different providers in town. The other option is to amend our regulations to forbid water towers unless they meet severe conditions (enough that our water can easily meet them but they could not). This would possibly force them to sell the service rights but the drawback is they may not sell their rights and the area continues to be undevelopable.

Please note the two water districts are not on good terms and since this has been going on for years most solutions have been tried. Knowing that, do you have any thoughts on this?

Edit - I should have added we have no current regulations regarding water towers at all (except for water tanks placed on buildings). We do not require a permit.

[shell_waster]

That sounds like a sticky situation. In my opinion I think you have to look at what your purpose as the local government is for and if this service provider cannot provide adequate flow for public safety purposes then it is possible a case be made that you can provide the service and ask a court to force the sell. Or do a ground lease on the city property for them to construct their tower and store their water. The contract could include language that should the contract expire and not be renewed the tower becomes your property and it should be easily constructed to tie into your water system.

Could the property owners who cannot obtain CO's on their buildings file a suite against the water district for lack of service or minimum coverage? This could be a way for a judge to provide the district an ultimatum for improvements, even if it puts them into debt. As a water district they should be able to borrow money for improvements and raise the rates in the new/improved service area to recoup the cost.