Big Timber Adopts Bulk Water Policy Ending CMR Controversy
The Big Timber city council and Mayor Greg DeBoer gathered once again at Carnegie Library on Monday, August 18th to discuss and approve a bulk water sales policy drafted by water subcommittee members Karri Baird and Justin Ferguson in consultation with city attorney Jim Lippert and Public Works Director Kris Novotny—the final installment to a three-part series in neighboring Sweetgrass County.
The policy stipulates unprecedented guidelines on bulk water sales by Big Timber municipal—a public offering for nearly 30 years recently subjected to public scrutiny following multiple large-scale transactions with the Crazy Mountain Ranch (CMR), a self-proclaimed private membership experience near Clyde Park, purchased by CrossHarbor Capital in 2021—proprietors of the Yellowstone Club in Big Sky and other major real estate development projects throughout the United States.
In July, CMR was accused of water rights violations in the Shields Valley, resulting in a lawsuit filed by the Department of Natural Resource Conservation (DNRC), since settled via consent decree filed in the Park County district court. The initial lawsuit sought to impose civil ramifications after an investigation by the DNRC revealed that CMR had appropriated water to irrigate a 112-acre golf course using claims historically purposed for agriculture. The settlement mandated that CMR cease irrigation using existing claims and seek water for purchase elsewhere—eventually acquired through the public works department in Big Timber.
Within three weeks, the city sold 1.66 million gallons of treated water to CMR, profiting over $20,000 and arousing controversy within the ranching community located just 30 minutes east of Livingston. The uproar culminated in city council members and DeBoer temporarily halting bulk water sales (with the exception of emergency services) pending the adoption of a formal policy to regulate future transactions.
“This is probably the fastest policy we have ever done. I know it’s a lot of work and kind of rushed, but we feel it’s pretty comprehensive” said DeBoer during opening statements.
Councilman Ferguson then introduced the new policy prior to council discussion and public commentary, outlining a set of procedures to both optimize bulk water sales and soothe concerns expressed by constituents at recent city council meetings. For instance, requests for “transactions involving multiple sales or those exceeding 20,000 gallons within 14 days” must be submitted to and approved by city council (with exemptions for emergency services upheld from the recent moratorium)—a clause created to prevent transactions such as those to CMR without public notification or consideration by the council.
The new policy also contains a tiered pricing system, as previously proposed by citizens and council members alike: $14, $15, and $20 per 1,000 gallons for Big Timber residents or businesses within city limits, Sweetgrass County residents or businesses located outside of city limits and anyone outside of Sweetgrass County, respectively.
However amenable, the policy was not without reproach, initiated in part by councilman Jeff Davis, who had called for suspending bulk water sales during a special meeting arranged the previous week on Monday, August 11th.
During council discussion, Davis endorsed adding surcharges for offsetting facility strain caused by large-volume transactions, likening this cost structure to increased rates for city residents who use more than 20,000 gallons within a billing period. He further insisted such charges were only reasonable given that bulk water is treated using city facilities—as opposed to using untreated sources, which would otherwise require installing costly infrastructure not readily accessible nor affordable at this time.
“When we engineered this water treatment plant… there should be something that tells you so many hours of running all the mechanisms or so much water volume. Every single part should contain a rating,” remarked Davis.
This proposition, though duly considered, was ultimately met with resistance from the water subcommittee. Ferguson, for example, argued that the existing rate accounted for maintenance and repair costs, confirmed by city Clerk and Treasurer Hope Mosness. Baird, on the other hand, commented that raising rates any further may “price us out of the market,” a concern shared by Novotny, who was absent from the meeting.
DeBoer furthermore clarified that the rate of deterioration to equipment like membranes and pumps is contingent on a number of factors and varies from month to month, creating challenges for totaling damage-related costs at any given time. Both councilman Leonard Woehler and DeBoer agreed that because voluminous sales like those to CMR were unusual, these concerns were largely unwarranted and could be addressed through provisions related to purchase requests reviewable by the council.
Woehler insisted that the policy, subject to revision as stated therein, be approved as amended and, revisited if deemed necessary—a statement supported by Lippert, who said, “frankly, the policy can be changed at any time.”
Davis also questioned whether water stations were monitored by public works employees during filling and suggested, for accounting purposes, issuing daily rather than weekly invoices to each purchaser. Though DeBoer reassured Davis that meters were regularly supervised, the latter topic received no further attention and is not addressed within the policy, regardless of its potential merits.
Other issues raised during public commentary included, for instance, unchanged bulk water rates for Big Timber city residents at $14 per 1,000 gallons (compared to city usage increases, such as those approved during the meeting, expected to result in a marginal $1.47 increase per billing cycle); enforcing restrictions on the resale of bulk water; specifying criteria used by the council for approving large-scale transactions (water supply conditions, system capacity, etc.); and increasing rates for recreational users.
The council, specifically Woehler, explained that the bulk water sales rate established in 2008 had likely exceeded market standards and were now appropriate in light of inflation and increased operations costs for extracting and treating surface water—competitive with neighboring counties, according to Baird. DeBoer stressed that city usage and bulk sales rates were wholly distinct and should be dissociated.
City attorney Jim Lippert warned against designating specific decision-making criteria to protect the council from limitations. Instead, he recommended that council members be afforded the liberty to consider a wide variety of factors. Both he and DeBoer reminded attendees that purchase-related resolutions would take place within a public forum open to commentary from city residents.
“Putting restrictions on the council is counterproductive,” opined DeBoer, “I think this [policy] covers more than the basics… So far, the council has done a good job weaving through these issues.”
“We are more interested in the Boulder than anybody here. Fishing included. Because that’s where our drinking water comes from. We don’t want to see it to the point where the fish don’t thrive. Where it’s hurting tourism. It will affect the most critical infrastructure we have, which is water. The council is not going to let that happen,” he continued.
Slight modifications were made to the original document before councilman Woehler motioned to approve the bulk water policy as amended, seconded by Baird who voted in favor alongside Ferguson, leaving Davis as the lone dissenter in a 3-1 decision, preventing any further delay.
“… this policy gives us latitude to dictate how we use and sell our water down the road and a legal leg to stand on,” said DeBoer.
Per multiple sources, Crazy Mountain Ranch is currently purchasing bulk water from the City of Boulder, as well as Utility Solutions, a privately-owned company in Bozeman providing water and sewage services to Four Corners. Dan Astin of the Livingston Enterprise reports that Utility Solutions is supplying CMR with 145,000 gallons weekly.
DeBoer and Woehler speculate that CMR will likely not return to purchase bulk water from the City of Big Timber.
DNRC approval of Change of Appropriation Water Right applications submitted by CMR in May will determine whether the ranch continues purchasing bulk water for golf course irrigation following this season.