Casino chairman criticizes sewer-rate proposal w/ Joplin wastewater rate history

By Debby Woodin

dwoodin@joplinglobe.com

A public hearing has been scheduled for June 1 on a proposed increase of Joplin sewer rates, but the chairman of one of the city’s largest commercial users won’t wait until then to object to the amount and to the city’s approach in making the decision.

John Berrey, business chairman of the Quapaw Tribe, which operates Downstream Casino, said he will attend the council’s next regular meeting on May 18 to express his views.

Berrey told the Globe on Wednesday that the proposed increase in sewer rates plus a 50 percent surcharge the council voted May 4 to impose on customers located outside city limits could cost the casino $20,000 to $50,000 a year more, though city figures estimate the increase at less than $10,000.

The proposed rate increases are part of those planned in connection with $35 million in sewage plant upgrades city officials say are being mandated by federal and state regulations.

Objections

Asked what he intends to the tell the council, Berrey said, “First of all, I want to talk about fairness and about their process, and how there’s little or no input by the user” in decisions on the rates. “It’s pretty dramatic what they’re doing.”

He also objects on behalf of employees who live in the city.

“As one of the area’s largest employers, I think it’s sort of unfair to our employees, many who live in the city limits,” he said. “And also when we built our infrastructure, we put in some extra water lines and we donated that to the city to save them future expansion work costs. And we’ve never received a ‘thank you’ or, I guess, this is our ‘thank you’ for using our capital to help them. We don’t have a problem paying our share, but we don’t think their process or their amount of increase is fair.”

City Manager Mark Rohr said he has personally talked with a consultant for Downstream on ideas for lowering costs. He had the city’s consultant on the rate study re-examine the study twice, adjusting the terms of the city’s debt and other factors, to reduce rates. He said the proposed rates are 10.5 percent lower as a result.

“We will continue to work with Downstream Casino and any other person or entity that can provide us with any ideas on how to lower rates,” Rohr said.

Tim Nyander, the manager of city services including wastewater, said Downstream’s bill would rise from $1,950 a month to about $2,765 based on current usage, including the surcharge. That would cost $9,780 more a year.

Rate proposal

A five-year plan for sewer rates expired last year and a new rate study was done by a consultant to recommend the level of rates needed to pay for operations and debt for the next five years. The city staff says it has no choice but to do approximately $35 million worth of construction at the city’s two wastewater plants, largely to meet the new state and federal mandates that go into effect in 2012. That work will be paid for with the increased rates.