Wasilla untroubled by loss of water, sewer rights

WASILLA -- The Wasilla City Council reacted mildly to Palmer's recent receipt of the water and sewer rights to the planned Mat-Su Valley Medical Center during a special council meeting Saturday morning.

Palmer was recently granted utility rights to the disputed area, near the intersection of the Parks and Glenn highways, rights that both cities fought to obtain over the last few months. This decision came after a week of negotiations between Palmer, Wasilla and Valley Hospital.

The council voted unanimously Saturday to grant their city attorney, Tom Klinkler, the authority to approve Palmer's service agreement with the hospital. This vote proceeded as expected, since Wasilla had already given its stamp of approval to the agreement during the negotiation process.

Council Member Noel Lowe viewed Palmer's victory as no setback to Wasilla's enterprising spirit, saying, "We've shown to be more progressive in terms of development."

Lowe believes that, since Wasilla has grown at a much faster rate than Palmer in the past, someday the city will be in a better position to provide water and sewer services to the hospital than its sister city. However, Klinkler believes that expansion of the city's utility services to the area west of Trunk is not yet visible on the horizon of Wasilla's planning.

"These areas are not in immediate need of sewer service," Klinkler said, "we're talking maybe 10 to 20 years in the future."

Klinkler noted that this particular case was interesting inasmuch as there is no legal precedent for two municipalities claiming utility rights to the same facility. Municipalities have battled independent providers for water and sewer rights in the past, but the Palmer/Wasilla case is unique.

According to the council, Wasilla failed in its bid for the rights due to its higher utility rates and lower sewer capacity, problems that the council hopes to address through the application for new wastewater permits and the budgeting of additional city dollars to improve its utility plan for 2005.

Public hearings will be held before the Regulatory Commission of Alaska's final decision on the water and sewer issue, but Klinkler said the resolution to award rights to Palmer had thus far not encountered any dissent from the public.

Although some Wasilla council members expressed concern that Palmer's provision of utility service to the hospital could encourage possible annexation of the disputed land, the council also denied that the issue evidences any rivalry or bad feelings between the two cities. On the contrary, the resolution is indicative of Palmer and Wasilla's desire to reach mutually beneficial decisions.

"I think it's an ideal agreement for both sides," said Council Member Ron Cox. "I don't think either side lost."

Valley Hospital CEO George Larson also had equal praise for both municipalities involved with the agreement. "I commend Wasilla Mayor Dianne Keller and Palmer Mayor Jim Cooper and City Manager Tom Healy for looking to the future and planning for the big picture of our borough's infrastructure needs," he said.

Chris Holden, Division Five President for Triad Hospitals, agreed, saying: "I am impressed by the cooperative spirit demonstrated by officials from both communities."

Wasilla Mayor Dianne M. Keller was unfazed by Palmer's recent gains, believing that both cities stand to profit from the solution.

"I think we should be supportive of this project," Keller said. "I think it'll be good for Wasilla in the long run."

Contact Daniel Spoth at daniel.spoth@frontiersman.com.