The Joplin Globe, Joplin, MO

Joplin Metro

June 1, 2009

Council reduces sewer surcharge proposed for out-of-city users

By Debby Woodin

dwoodin@joplinglobe.com

After hearing pleadings from representatives of several area communities and one of Joplin’s largest out-of-city sewer customers, the City Council agreed Monday night to impose a 30 percent surcharge rather than a 50 percent rate the panel previously had approved.

Representatives of Duenweg, Duquesne, Loma Linda and Downstream Casino Resort all asked the council to reduce the sewer surcharge that a majority of council members previously had supported. A rate study done by an outside consultant had recommended a 30 percent rate.

Duenweg

Russell Olds, mayor of Duenweg, told the council that about 600 households and businesses in Duenweg would be affected by the rate. “Our constituents believe the 50 percent rate is at least arbitrary,” Olds told the council.

A Duenweg council member, Jane Ballard, told the council that Duenweg residents paid to build a trunk line that eventually was sold to the city so it could be used for a Joplin industrial park.

“We have been partners,” she said, “But we feel the rate is not equitable.”

She estimated that the city has 1,600 customers outside the city limits who would pay an extra $17,000 a month if the rate was 50 percent and $9,700 if the rate was 30 percent.

“The rate increase of 50 percent is really rather drastic for our residents,” Ballard said.

Another speaker, William J. Long, said he lives in Duenweg and owns a business in Joplin. “Fifty percent is a little strong for people’s ability to pay in Duenweg,” he said. He said he could afford to pay a little higher rate on his Joplin business if the council would set the out-of-city rate at the lower 30 percent for the benefit of residential customers.

Duquesne

David Weaver, a former Duquesne alderman who recently moved to Carthage but is helping to finish a project in Duquesne to install sewer lines and convert that town to public sewer rather than septic tanks, said 700 will be hooking onto Joplin sewer service. He said those customers would be hit with the bond indebtedness for the installation of the lines, a hookup fee of about $1,000 plus the Joplin sewer rates all at once.

He asked Joplin to implement the 30 percent rate and to stagger it over five years like the $6.32 rate increase in-city customers will be charged over five years.

Casino, Loma Linda

John Berrey, financial chairman of the Quapaw Tribe and the Downstream Casino Resort, and Bruce Anderson, mayor of Loma Linda, also spoke. Both said they understood that Joplin has to raise rates to pay for $35 million in required construction work at the city’s two wastewater plants. A public vote on financing for the project is slated for Aug. 4 in Joplin.

But Berrey and Anderson asked the council to stay with the rate study’s recommended 30 percent surcharge rate.

Council member Benjamin Rosenberg made a motion to amend the council bill and authorize the surcharge at 30 percent.

Councilman Bill Scearce, who at a May 4 meeting obtained council approval for the 50 percent rate, said the rate is not unusual, and that if the 30 percent surcharge did not generate enough money to help cover the cost of providing the service to those outside customers, Joplin residents would have to make up the difference.

The vote on a council bill is not final for 30 days.

Rosenberg contended that the city has an obligation to be fair and equitable to all customers of the sewage utility, and that the rate study consultant believed 30 percent would cover the costs.

Councilman Phil Stinnett said he felt an obligation to protect Joplin residents in case the lower surcharge fell short of covering costs.

Councilman Michael Seibert said he had changed his mind since the previous vote, and he supported “trying to find a balance” by giving favorable consideration to the outside users. He said the rate could be changed if it is not high enough.

Mayor Gary Shaw also supported the lower rate in view of the concerns expressed by the outside users. He said he believed he was protecting the interests of Joplin ratepayers by hiring the consultant to evaluate and recommend the rates that would pay the bills for operating the service.

Asked for a reaction after the vote, Berrey said: “I think my reaction is positive. We are fortunate to have people who were willing to take some input from the people who are impacted and make a decision that was a little more fair.”

Weaver said he appreciated the consideration. He said the change would make basic residential bills in Duquesne about $36 a month rather than $58. “For some of our families, that’s a lot,” he said.

Rezoning rejected

In other action, the council for the second time nixed a zoning request that would have allowed Kum & Go to build a convenience store at 32nd Street and Indiana Avenue. A number of residents of the neighborhood voiced opposition, citing concerns about increased traffic at an intersection that is heavily traveled already and about lights and noise from a 24-hour operation.

Jeremy Cribb, a real-estate development representative for the company, did not say if Kum & Go will take any further action to seek the zoning.

“Tonight’s vote will not necessarily dictate our future plans for Joplin, but it is indicative of the business climate,” he said.

The company recently acquired several stores in Joplin, Webb City and suburbs, and now operates nine stores in the immediate area, he said.





Rate vote



The council voted 5-4 to amend the bill and then 5-4 on a subsequent motion set the sewer surcharge rate at 30 percent. Councilmen Morris Glaze, Phil Stinnett, Mike Woolston and Bill Scearce voted against the lower rate, while members Michael Seibert, Gary Shaw, Melodee Colbert-Kean, Jim West and Benjamin Rosenberg voted in favor.

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