CC - Agendas - City Council - REGULAR - 12/2/2014

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Agenda Item # II.E: CITY OF PRESCOTT WATER AND WASTEWATER RATES 1.Water rates must be "just and reasonable." Arizona Revised Statute Section 9-511.OID. & E: D. Any proposed water or wastewater rate or rate component, fee or service charge adjustment or increase shall be just and reasonable. E. Rates and charges demanded or received by municipalities for water and wastewater service shall be just and reasonable. Every unjust or unreasonable rate or charge demanded or received by a municipality is prohibited and unlawful. 1.1. Proposed Aquifer Protection Fee The aquifer protection fund intended projects include cleaning up the Watson and Willow Lakes. Prescott City Charter Article VIII. Section 12 requires Watson and Willow Lakes be "retained as open space and/or utilized for water supply and recreational uses in perpetuity." Is charging water users a fee to clean up Watson and Willow Lakes, which are to be used in perpetuity for open space and/or water supply and recreational uses just and reasonable? Should the aquifer (or watershed) protection fund be financed by the general fund rather than water users? If shared between water users and the general fund. how should it be proportioned? 1.2. Proposed effluent rates The Water and Wastewater Rate Study Report suggests a reasonable effluent rate is 70% of the potable water rate and calculates that to be $1,100 per acre-foot by a method that ignores tiered rating similar to potable water use schedules. Notwithstanding this calculation and methodology, the proposed effluent volume rate is significantly less than the rate set forth in the water rate study report as reasonable. Will the adoption of a less than reasonable marketable effluent rate and the proposal to apply the same rate to municipal golf courses as the reduced rate contracted with private golf courses unjustly or unreasonably shift costs and value of water service from effluent users to potable water users? If so. the proposed rates are "prohibited and unlawful." 2. Long-term effluent contracts —unlawful restrictions on Prescott City Council? Are effluent agreements contracted by previous city councils with Prescott Lakes. Hassayampa, and Hanson Aggregates unenforceable and void as unlawful attempts to bind subsequent councils. including the current council. from exercising their legislative authority and responsibilities. e.g. adopting just and reasonable water rates pursuant to ARS 9-51 1.01? See Constitution of the State of Arizona. Art. 13. Sec. 6 and Higgins ' Estate v. Huhhs, 31 Ariz. 252. 252 P. 515 (1926). *The Supreme Court of Arizona in City of Scottsdale r. Municipal Court of Tempe, 90 Ariz. 393. 368 P.2d 637(1962)established that the operation of a sewage disposal plant is a governmental function. And. "[elstablishing rates to be charged for sewage disposal for customers within the corporate limits of a city is a governmental function. See 10 McQuillan. Municipal Corporations. s 29.101. p. 467 (3d Ed. 1970);" Copper Country Mobile HOME!Park r. City of Globe. 131 Ariz. 329. 332-333. 641 P.2d 243,246-247 (App. Div.2 1981)