The Holbrook City Council held a public hearing prior to the Sept. 13 meeting in regards to the consideration of increasing rates for water and wastewater in the city. City Manager Randy Sullivan presented the increased rates to the council, noting that the rates have not increased since 2004. Since the rates have not increased to match inflation, he explained that the proposed increase will help to catch up. “Utilities (cost) is the main cause for the increase,” said Sullivan. The current rate of utilities is not covering the cost of that department.
The current residential water and sewer rates within city limits are both $1.75 per 1,000 gallons and an increase would raise both to $2.25. The base water fee rate would go from $6.50 to $10, the base fee for sewer from $12 to $15 and sanitation will remain at $17.
The residential water rates outside city limits would increase from $1.75 to $3.25 per 1,000 gallons. The base water fee would go from $13 to $19.
The current commercial water and sewer rates are both $1.75 per 1,000 gallons and both would increase to $2.25. The base water rate would go from $12 within city limits and $24 outside city limits, to $24 in city and $48 outside, the base fee for sewer would go from $25 to $35 for both, and sanitation would vary.
The proceeds from the increase would also go into a fund for future water and wastewater projects, such as addressing the sewage bottlenecking issue.
During the call to the public, Sun Valley Indian School administrator Chris Miller addressed the board concerning the water in Sun Valley, where the water rates would almost double. “The water is brown and very salty,” stated Miller, “It’s hard to imagine we are going to more expensive than Holbrook while being much dirtier.” Miller claimed that even filters do nothing to reduce the saltiness of the water and it is still undrinkable. “I empathize with everyone on the council, but you need to know our situation.”
Councilman Richard Peterson and Mayor Bobby Tyler both stated that it was the first time they have ever heard about this issue. “The water quality in Sun Valley is salty and discolored,” confirmed Sullivan, “but it is sanitary, it’s required to be.”
“The problem with Sun Valley is anything this side of the river is notoriously salty, it always has been,” said Councilman Wade Carlisle. “There are options. We could put waterlines to the other side of the river to wells and get storage tanks.”
Other options Carlisle proposed was for Sun Valley to do their own water and have a Reverse Osmosis (RO) system or create a water improvement district. “I appreciate your situation,” he directed at Miller. “These are all options, they all just cost money. Talk to Randy (Sullivan) and look at financing options.”
Mayor Tyler even mentioned the possibility of using portable ROs, which he stated have been used at the power plant he worked at for years.
“This is why we are raising costs, to have funds to pay for all this,” added Carlisle, “If we run a breakdown situation, we’re always strapped to come up with money.”
Miller concluded by stating that the Sun Valley Indian School paid $30,000 for water softeners, to which the water still remains undrinkable.
Carlisle mentioned the one cent sales tax could be another source of revenue with minimal hurt and half could go to the water and waste water issue.
“Even with this increase, we are still $10 less in residential water and sewer than in all the local communities,” stated Sullivan, “I don’t like to compare, but those are the numbers.” Councilman CJ Wischmann commented by saying that he didn’t care about anyone else. “Holbrook’s Holbrook. Also, to say the average is very misleading. It needs to be put to the public what their percentages are and get their opinion.” Sullivan responded by reminding Wischmann that was what the public hearing was for. “Not one person has come in and gotten a packet on these rates.
“If you want, I can do that,” stated Sullivan in regards to Wischmann’s request for percentages rather than rates. “But you’ll have many different answers with percentages, everybody’s bill is different which is why we do rates, not percentages.” It was estimated that the rate increase would be around 13 percent. “Inflation is roughly two percent per year. In 12 years, we would need a 24 percent increase to match inflation. This is half that,” explained Sullivan.
It was noted that a possible issue with the rate increase mentioned is that people might stop using as much water for lawns and landscaping. “If people use less water and use catch basins, I don’t think that’s a bad thing for Holbrook,” stated Carlisle. “Desert landscaping is just as appealing as grass in my opinion. If people use less water and run pumps less, that’s good too.”
Councilman Tim Dixon added saying that he had talked to several constituents and most said they do not want an increase in water rates. “No one does,” responded Sullivan. “But we’ve got to do something. I have a green lawn, and this increase will be horrible. But at the same time it’s a business decision. We are in the red and have to do something.”
Dixon inquired if the general fund monies could go to help the issue. Randy said they could, but it’ll take away from other things and that the city should be increasing its rates every year, but hasn’t.
Wischmann asked if it could be put in the budget to increase at one percent. Sullivan replied, “We’d never get caught up with one percent yearly, we’d have to do three percent.” Councilman Peterson’s suggestion was that they start matching yearly inflation similar to how Social Security does.
“Last year we were $132,000 in the hole. Three percent isn’t going to cover the deficit,” said Sullivan. “I recommend we do the 13 percent increase then at budget time add in the three percent.”
Carlisle suggested phasing this increase in over three years, which he stated, “will be easier to swallow than 13 percent.” Sullivan said he would come up with a plan and put it on another council meeting agenda.
During the Call to the Public, Leo Maestas stated that he was confused about the implementation of a written petition, which was an item on the agenda. He believed it to be repetitive of the other two Call to the Public opportunities listed on the agenda. The board approved the written petition, saying that it forces things to be addressed. The other two call to the public opportunities are just discussion. If a petition is submitted, it is required to either be on the agenda or have a response within the next 30 days. “It allows for follow-ups and presses the issue,” explained Carlisle.
Councilman Peterson addressed concerns he had regarding the Call to the Public in the Aug. 23 council meeting in regards to comments made discrediting the previous city manager Ray Alley. “Silence indicates agreement and I do not agree,” stated Peterson. “Alley solved many financial problems. We’re now able to open buildings that were once vacant and are now being used, thanks to Alley.
“It was said he created a hostile work environment,” Peterson stated that the allegations were dismissed due to there being no merit to the complaints. He concluded by saying that Alley had done a lot for the city and things that were said in regards to Alley should not have even been said in that meeting.
The board also approved the bid results for the runway fog seal project at the Holbrook Municipal Airport. The bid went to American Road Maintenance for $150,398. The board also authorized the lease of real property for right of way from Arizona State Land Department, which is the entrance into the closed city landfill on Highway 77. Since only four board members were present and it is required for a minimum of five, Councilwoman Francie Payne voted on the item via telephone.
Mayor Tyler stated that he attended the League of Arizona Cities and Towns Conventions where he received very good information on the new marijuana laws and tax structure.
He noted that he and Taylor Vice Mayor Shawn Palmer took a tour of the marijuana cultivation facility in town noting, “It was a hundred percent professional, I was very impressed.”
Sullivan addressed an effort to obtain an unused building on Hopi Drive. “We’re trying to get the bank to give us the old Print Place building,” said Sullivan.
In the second call to the public, Bill Mosier stated that Holbrook was not represented at a recent Real AZ Corridor meeting, to which Tyler said was false. Mosier also said that he has never seen job openings on the city website and wants to see where they are posted. He also said he would like to know procedures for firing and hiring, to which Peterson requested a report from Sullivan pertaining to that item.
