A “lack of compassion,” “no empathy” and “greed” were among the comments thrown out by some of the nearly 1,000 residents who packed the cafeteria at Maricopa Wells Middle School Tuesday night to vent to the Arizona Corporation Commission. “I have been on the Commission for six years and this has to be one of the top-three attended public-comment sessions,” said Kristin Mayes, Arizona Corporation Commission chairwoman. Last night’s open forum came in response to a proposed rate increase by Maricopa’s water utility, Global Water, which will go before the Arizona Corporation Commission in a hearing on Dec. 14. “This is a very difficult topic,” Mayes said. “I will sit on the bench when this case is heard and ask the questions that the community brings forth tonight. “We understand these rate increases are coming at the worst possible time,” she said. The utility is asking for an increase in both sewer and water fees inflating the average monthly bill in Maricopa from $76.30 to $121.21 over the course of a three-year period. The proposal also calls for an increase in the cost of effluent water, which is used for landscape irrigation in several communities, bumping the rate from 33 cents per thousand gallons to $2 per thousand gallons. (For more details. click here.) “We all pay the same bills and have the experience to know what is a legitimate rate increase,” said commissioner Gary Pierce. HOA issues The rate increase is one that many of the HOA presidents and board members say could cripple their ability to stay afloat. HOAs can only increase their dues 20 percent a year per state statute, noted Christian Price, HOA president at Maricopa Meadows. Price said if the smallest of the recommended increases — 86 cents per 1,000 gallons — is approved, the HOA would still be $45,000 short of meeting its budget after a 20 percent increase in dues. “These rate increases could ultimately drive some of the HOAs into bankruptcy,” Price said. (For more on the HOA's stance, click here.) Price was one of several HOA members who spoke out, detailing cuts they have made to reduce their water use and HOA budgets. “There is no more room to cut,” said Al Suckerman, HOA board member in the Rancho El Dorado community. Suckerman said the HOA had reduced water usage to the point that Global Water actually called and to ask why their consumption was so low. Even with cuts and a 20 percent increase in dues approved for 2010, Suckerman said his community is facing a $250,000 budget deficit even without a rate increase by Global Water. Pamela Hilliard, a property manager with Associated Asset Management that oversees nine communities in Maricopa, said the water increase could be detrimental to future development. Currently, five of the nine communities Hilliard’s company manages are builder-operated HOAs, which means that they will have to absorb the shortfall in operating costs. “Who is going to come in and buy the lots if these rate increases drive the remaining builders away,” she said. Cost to the public While HOAs are concerned about effluent water rates, many in the community were focused on the rate issue as a whole, including members of the city council. The council approved a resolution Monday night to oppose Global Water's rate proposal. “We as council members have heard the stories of families with utility bills nearly as much as a mortgage payment, and of local businesses letting families in because they had no power or water at home,” said councilwoman Marquisha Griffin. “In a time when we are facing record numbers of foreclosures, lost jobs and already high utility rates, any increase is too much.” Griffin says the rate hits some residents harder than others. “For some families, the extra $40 dollars a month may not be much, but for others it’s a tank of gas, lunch money, groceries or diapers for their child,” she said. “Not only will this rate increase pass along a financial burden to our citizens through their water bill, but it will also cause their HOA dues to increase.” Councilman Joe Estes echoed many Griffin's concerns, adding that people moved to Maricopa because of the cost of living, but the utility rates are stripping residents of that benefit. “They (Global Water) put in a lot of infrastructure, now they want us to pay for it,” Estes said. “It was not our decision. This increase would have a significant negative impact on the businesses and residents of Maricopa.” Many citizens agreed with Estes on his view of having to pay for Global Water's “bad” investment. “During the boon, many bought homes (and) they didn’t go to others to help cover the cost of their bad investment,” said Maricopa resident John Kamouzis. Kamouzis, a local Realtor, said the cost of utilities has begun to drive people from Maricopa and would make it a less attractive destination in the future. Another resident, James Valenzano, said the increase would bury his family. “I haven’t had an increase in four years and now they want to ask for more money when they are already $27 million in the black,” he said. And resident, Ted Yoakum, said he couldn’t believe the audacity of (Global Water) to ask for such a large rate increase. “This is nothing more than greed, it’s ridiculous,” said Alan Marchione, who is running for city council in the spring. Customer service While many focused on the financial burden the rate increase would have on their pocketbooks and families, others came to the podium to talk about Global Water's customer service. They cited issues such as being disconnected with no notice, holding checks so until late fees were incurred, and showing no empathy or concern for their hardship. One woman in particular talked about her water service being disconnected while she was away on vacation. And after paying to have it restored, she and her young children had to wait three days for the service to be turned on. “Global treats some of its customers as second-class citizens and it is not fair,” said Maricopa resident Marty McDonald. McDonald offered a solution that was loudly applauded among those attending the open hearing. He suggested the city let Global Water go bankrupt and then take over the service. “The city would have to find a way to pay for all the debt, but at least the aspect of making a profit would be gone,” he said McDonald added that if Global was to get approved for the rate increase, the company needs to use some of the extra money to create tangible water conservation programs. Global Water responds The hearing ran nearly four hours, but one side was not allowed to state its piece: Global Water. However, several executives, managers and other employees from the water company stood in the back of the room during the hearing and listened to the comments from residents. “We stayed up all night trying to figure ways to make our rate-case impact less profound,” said Global spokesman Paul Walker. Global Water originally submitted its application for a rate increase on Feb. 20. And after several public hearings, Walker said the utility submitted a revised proposal several weeks ago that included financial assistance to community HOAs in instituting water-saving measures and offered financial relief for families at 200 percent of the federal poverty level. Could Global Water survive without the rate increase? Tough question, Walker said. “We have gone through all our cash reserves, laid off 40 percent of our staff and asked others to work more,” he said. “There is not much more we can do.” Photo by Michael K. Rich |