Northstar Development

Review: My husband and I have owned a house in Helena,MT since 2010.We are currently renting out our home because my husband and I are both in the military and had to relocate. We have had several issues with North Star Water and Sewer. First, it was just the response time. It does not matter what time of day you call, there will be no answer. And it usually takes a minimum of a few weeks to get a response back on an email or voicemail.About a year and a half ago, North Star switched for a flat rate of $60 for water to meter reads. So now, water bills are huge. We pay the $60 flat rate and an additional meter reading. So for the summer months, our bills were well over three hundred dollars.Most of the homes in this area are on a half acre or more. So now we are faced with the dilemma of not watering our lawns that we all paid a substantial amount for, or have $300 plus water bills. And even with the $300+ water bill our lawn was still suffering with large yellow spots and dead landscaping. I would estimate that to have a nice maintained lawn plus basic water usage, our bills would probably be near $500.I also own a home in Lewistown, MT with a decent sized yard that we maintain and looks great. Our water bills are very reasonable here.These bills are ridiculous for the size of the properties that North Star services. To go from $60 to over $300 has urged my husband and I to sell this property.Each time I call to discuss these matters, I do not get a response for weeks. This has gotten beyond frustrating and ridiculous; not to mention financially straining. It is unfortunate that I am considering selling my home because of how poor ONE service is.Desired Settlement: I know for certain that I am not the only resident with these concerns. I have spoken to several who are considering moving but are even afraid they can not sell their homes because of the water services.I would like North Star to be more timely in their responses and customer service as well as establish a more reasonable billing system. This is ludicrous and I am considering selling my home even if I lose money because this water issue has been horrible to deal with.

Business

Response:

November 13, 2013

To: Revdex.com

From: [redacted]

Northstar Development, LLC

RE: Case ID [redacted]

In reference to the consumer complaint #[redacted],1 would like to explain the situation at Northstar PUD in reference to water and sewer.

When the subdivision was initially approved and the covenants were drafted, they required the installation of meters in every home within the Subdivision with the very clear intent that the water would be metered at some time in the future; primarily for conservation reasons as there simply isn't an unlimited supply of water in the area. The complaint is somewhat incorrect in that the base water fee initially was $30 and the base sewer fee was $30 for a total base of $60 to cover both water and sewer.

Regardless of homeowners knowing that the water would be metered at some point, a large percentage of homeowners were using absolutely obscene amounts of water that far exceeded normal usage for comparable subdivisions or even public systems within Helena and other towns around the state. Some were literally running their sprinklers for 24 hours straight and there was water running down the alleys and streets. Some apparently thought that the $30 per month would permanently allow an unlimited amount of water. The simple fact was the water system could never support that type of abuse. It took us over 18 months to get PSC approval for a water rate structure that was similar to other subdivisions around the state or they wouldn't have approved the structure. The structure is as follows:

$30 fiat allows for up to 10,000 gallons.

$5 per 1,000 gallons in excess of 10,000 gallons.

If they were getting $300 water/sewer bills it would equate into approximately 58,000 gallons of water in one month which is almost double the average normal usage for the homes in the area during irrigation season.

$300-$30 for sewer - $270

$270 - $30 flat for 10,000 = $240 / $5 = 48 units X 1,000 gallons = 48,000 + 10,000 base = 58,000 gallons.

Our data of true water usage which was presented to both DEQ in order to get subdivision approval and the PSC in order to obtain approval on the rate structure which was necessary to put an end to obscene amount of water that was being used within the subdivision.

Our research and data provided the following information:

1) During non-irrigation season, the typical home used approximately 5,000 gallons of water for domestic use.

2) We talked with numerous experts in the field of lawns including several companies that provided the majority of the sod in the area. Their initial response was that the noticed people in Northstar were significantly overwatering their lawns. They indicated the ideal amount to water their lawns was 1" at a time for 3 times a week during the evening or night when the wind and heat had the least impact on evaporation. This watering schedule eventually results in a healthy lawn by forcing the grass to develop a mature root system, when the people over water, the roots never get a chance to mature and if they water during the day, a vast amount of the water goes to waste in evaporation. They calculated the normal home and landscaping in the area and calculated that most homes should be using approximately 25,000 gallons a month during irrigation season and that takes into consideration the domestic use which averages 5,000 gallons.

3) We forwarded this expert information to every homeowner in the area and even offered to set up seminars with the experts to explain the ideal watering schedule as to amounts and times. The majority of homeowners in the area have since adapted and still have nice lawns and are paying an normal fee for a normal amount of water. Some extreme summers simply make it difficult to have a 'perfect' lawn without using an extreme amount of water which they now have to pay for based on the P5C approved rates,

4) When the rate structure was implemented, we saw an immediate reduction of water consumption of over 50% and the amounts used since then have been in the normal range as most homeowners just needed to adjust their bad habits.

5) The PSC water rates were approved on a temporary basis and we will be applying for permanent rates before next irrigation season and the rates may actually come down but certainly won't go up.

We won't know the permanent rates until some time next year.

6) We got official PSC approval in late June 2012 and the rates went into effect in July 2012. The first months bills were sticker shock to most people within the subdivision as it showed actual usage. We had 6 homeowners that were using between 100,000 and 150,000 gallons per month. We had over 50 homeowners that were using over 50,000 gallons per month. The water system simply could not handle this excessive consumption as our pumps were running 24 hours a day for days on end and it was ruining our aquifer where we obtain water from 5 different wells. Because of the initial sticker shock, we allowed a 90% discount for that first month as a matter of good faith. We also supplied the above expert information as to ideal watering habits, and again, most adjusted quite easily and still have normal landscaping.

7) We have done everything by the book as to working with the PSC and our rates have not been illegal or unethical in any way.

I hope this explains the situation within the Northstar Subdivison as to the metered water issue.

Managing Member-Northstar Development, LLC

Consumer

Response:

I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me.

Regards,