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2 Sep 2010
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Council takes stand against Global Water rate increase
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Maricopa Mayor Anthony Smith paddled alone in stormy waters at Monday night's city council meeting. Smith was the only member of the council to vote against a resolution expressing the city’s stance against a proposed rate increase by Global Water.

“We cannot handicap utilities to the point of not being able to provide timely infrastructure for development,” Smith said.

In a more than 40-minute debate on the city's position concerning the proposed Global Water rate hike, council members Carl Diedrich and Brent Murphree also expressed concerns about voting in favor of the resolution before ultimately changing their tune.

“I have an issue with the council taking a public stance on this issue when a process is in place to regulate the rates,” Diedrich said. Diedrich went on to say he would like to see the city rebate the 3 percent franchise fee it receives from Global Water to customers who are able to cut back on water usage. Last year this amount equated to $400,000.

“This (the rate increase) is a heavy burden we all have to bear as citizens,” Murphree said.

Global Water is requesting a 34 percent increase in its water fees and 130 percent increase in the fees charged for sewer service. An Arizona Corporation Commission hearing is slated for Dec. 14 to consider the utility’s request.

Trevor Hill, Global Water’s chief executive officer, approached council before the debate on the issue saying the language in the resolution had a resentful tone. “We filed the rate increase to bring financial stability to a service the city needs,” Hill said.

Hill continued by saying his company took steps to minimize the rate increase by omitting $30 million in debt from its proposed rate increase, phasing in the rate increase and offering discounts to people who cut water usage. “I am sensitive to the financial issues the residents of Maricopa are having,” Hill said.

However, without the rate increase, Hill said the company would not be able to support the city’s growth plans, and when approached about providing a new business or employer with a water connection, would possibly not be able to comply in a timely manner.

Hill also defended the 8 percent rate of return his company was requesting, citing $150 million debt his company was paying a 6.5 percent debt service fee on. Hill also addressed the homeowners' associations, saying the company would be willing to help put some measures in place to help them conserve water.

Councilman Joe Estes understands that water usage can be monitored much more closely in the community. “Many of these communities are using five to 10 times as much water as required on their sod,” Estes said. Despite his testimony, Estes said the time was wrong for a rate increase and the citizens of the community need to know their council supports them.

“People moved to Maricopa primarily because the cost of living was less, but now with property taxes and utility rates, it is becoming cheaper to live in the Valley,” Estes said. “What is the draw to Maricopa now.”

He said the high utility rates were not just detrimental to current and future potential residents but a roadblock to employment and development.

“What companies are going to come to Maricopa when they get cheaper water, electricity and property taxes in Chandler and Gilbert,” Estes said. “What do we have to offer.”

File photo


More Articles >>
  • “We cannot handicap utilities to the point of not being able to provide timely infrastructure for development,” Smith said. My God we have a Mayor who thinks only of the utility but not of the people he governs. His statements at the ACC meeting when against all the voters who showed up. (ravensnest)
  • I was one who spoke out against the rate increase and what Mayor Smith said. However, after the event Mayor Smith sought me out to discuss his points. I was impressed with that. He restated his comments, which I now believe were misinterpreted. (JoeMan)
  • I was one who spoke out against the rate increase and what Mayor Smith said. However, after the event Mayor Smith sought me out to discuss his points. I was impressed with that. He restated his comments, which I now believe were misinterpreted. (JoeMan)
  • He did not say he was 'For' the rate increase. In fact, he said he wanted the commission to enforce rates that were equal to those in surrounding cities. (JoeMan)
  • Also, if you recall, Marty McDonald got up to speak and supported the mayor's suggestion of a 6 tier rate structure that encouraged conservation and the potential for customers to have a lower water rate than they currently have. He called the mayor's idea brilliant. (JoeMan)
  • My question now is where was Farrell and Brown? Why didn't they get up to speak? (JoeMan)
  • My second question is where was the BIG man Leon Potter? He said he was going to be there. I went there to see what our mayoral candidate looked like, spoke like, and how he responded to the public and commision. He never showed. What's with that? (JoeMan)
  • Overall, I think the commissioners heard the message well. I don't think there's a chance in **** that they will come back with no increase, but I think it is very possible they will lower the increase tremendously. (JoeMan)
  • The mayor and council need to make sure they come back to discuss their decision. They said they would now let's hold them to it. Accountability is important for all elected officials. The mayor showed accountability by finding me last night. (JoeMan)
  • Leon Potter had no accountability. He said he was going to the meeting to support the public, but he didn't even speak. As far as I know, he wasn't there. Wait a minute, unless he is not a he, but a she! Could that be? (JoeMan)
  • Ok, enough about them, what about the elephant in the room? A BIG Elephant! What was with commissioner Kennedy only introducing Council Members Brown and Griffin? What was with that? We don't draw lines between color in Maricopa do we? (JoeMan)
  • If we do, I'm moving out, it's not my kind of town. Why didn't Brown and Griffin take the microphone and introduce the rest of the council? What's with that? (JoeMan)
  • Looks like your on a role JoeMan, lol. I was not abe to attend either because work took me a few thousand miles from town. Was the turn out good? Was the sentiment totaly against the increase or just the amount of increase? Please comment where you can. (CBKD)
  • CBKD The turnout was great . All seats filled with standing room only for those who could not find a seat.All speakers were against any increase except Mayor Smith. (ravensnest)
  • I'm hoping that this article is but the first part in a series of discussions about last night. I'd also like to hear about the overwhelming turnout and what residents had to say. Follow-up with the ACC? City Council and the Mayor weren't the only ones there... This is a BIG issue and I'd like to see more investigative journalism. (thick)
  • I agree this story should have been up yesturday. Where is last nights story??? The city had nothing to do with setting this meeting up. It was the tons of responses from citizens, businesses and HOA management co. (azcopa)
  • In Leon's defense, on forum, Leon let us know 4 weeks ago that he would not be able to attend the ACC meeting due to previous work obligations and sent his regrets of his inability to be there. (CopaGrandma)
  • CopaGrandma- thank you for that. I believe it was on 11-11 near the time I first heard of the meeting, I mentioned the scheduling conflict. However, I updated that yesterday and said I WOULD be there (LeonPotter)
  • JoeMan- I WAS there last night. You might not have known because as you said you don't know what I look like. Also, I did not speak. I submitted a speakers card, but chose not to speak, but put statements and checked " don't approve" to be sent on the record. (LeonPotter)
  • Joeman- the Mayor may have told you the context was misinterpreted, but he did not state his position in favor or against when he spoke as citizen after reading the Preamble to the resolution. The other councilmembers, stated an emphatic "against increase" when they addressed the commissioners. (LeonPotter)
  • JoeMan, I would like to seek you out,too.Here is my info C#(520)582-5425. My e-mail adress is LeonPotter@msn.com. we can set up a time to get together. I would like to meet you. (LeonPotter)
  • JoeMan- I appreciate you wanting to find out more about me. I felt the meeting wasn't about me. I wanted to see the process at work and see the public "voice" itself. I learned more by listening. My sentiments were expressed in one form or another by many others. (LeonPotter)
  • Hill also defended the 8 percent rate of return his company was requesting, citing $150 million debt his company was paying a 6.5 percent debt service fee on. GW has gone awry, they expect the public to subsidize it debt service. Yes, stockholder companies take on debt,too, but the consumer does NOT have to purchase from them and there is competition. (LeonPotter)
  • I really like the idea of Global getting nothing and going under if they can't get their finances under control. The executive pay/rate increase makes me sick. Their rate was high before the rate application. Maricopa city could and would do better without a profit margin. Adios Global, sink or swim, your choice. (CBKD)
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