Citing aging equipment and rising costs for managing and maintaining the sewer system, Miami Town Council lays out the need to raise rates in order to cover the cost of sanitation and waste water services.
In a brief meeting, the council heard an update on flood-related funding, approved a contract for engineering services to assist with flood-related grant applications, and approved an increase in garbage and wastewater rates.
Town Manager Alexis Rivera provided an update on flood-related funding, with the following highlights:
Council voted to increase rates and charges for sanitation and wastewater services. Town Manager Rivera pointed out that rates have not been raised in five years, and that the town has to pass through costs that aren’t covered by grants.
During the public hearing, two residents spoke against the ordinance. John Violet of 257 N. Chisholm Avenue opposed the rate increase, saying he didn’t think citizens were getting the services they should, pointing out the big piles of rocks left over from the last rain, which haven’t been cleared.
“I’d like to know where the money will go, and that the rates should only go to cover the costs of the service and not other things the town wants to do.”
Councilmen Medina and Reiman explained that Miami has a small number of residents – about 700 – and that the costs of sanitation and wastewater services, including staff, equipment, and dumping fees, must be covered by that small number of payers. Councilman Reiman pointed out that the town has an aging garbage truck that will have to be replaced at some point. He said all sewer fees go to pay for sewer operations and not into the general fund.
Councilman Sammy Gonzalez confirmed that the sewer operation is not a for-profit entity and that its funds do not go into the general fund or other town operations. However, it must maintain reserves to replace equipment or infrastructure when necessary.
“The reality is costs are going up dramatically, and there’s no other place to generate revenue.” Councilman Reiman
Councilman Medina also pointed out that rocks being left in the road have nothing to do with sanitation and wastewater services.
Noreen Prater, 1338 Turner Street, asked why rates in Miami are so much higher than in Kearny, Globe, and Superior. She said her garbage and sewer bills are higher than a lot of her utility bills, and asked the council to take more time to consider the rate increase.
Councilman Reiman responded that, “Each community’s financial situation with respect to their sewer operation is based on financing and the cost of building that particular system and operating that particular system.”
Without knowing the details of how each community’s system was built and paid for, it’s impossible to know why their rates are what they are, he said. In many cases, mines paid for the system.
Councilman Reiman pointed out that in the past, Miami had a gravity-feed system that was essentially free to operate. But ADEQ required the town to build a plant, which now has operating costs of $10,000 to $12,000 per month.
Council approved an agreement with the engineering consultants, Wilson & Co., under which Wilson & Co. will provide services to help the town obtain post-flood grants. The contract amount is $80,729, and the term is six months.
Mayor Madrid explained that Wilson & Co. will help the town make a good impression with its applications to secure funding for flood mitigation projects. According to the contract, the $80,729 will cover 432 man-hours for conceptual design of proposed improvements to be included in grant submissions, as well as rough preliminary cost estimates associated with proposed improvements, and project management.
“We’re going to develop the [grant possibilities] we think are going to have the most effect downstream of mitigating and doing a benefit cost analysis.” Patrick Wolf, Wilson & Co.
Patrick Wolf from Wilson & Co. explained that the NRCS has a Jan. 16 deadline for one of the grant applications, the Emergency Watershed Protection Grant. Other grant possibilities include a long-term grant that could include the railroad channel, as well as a Forest Service Good Neighbor grant, and possibly some ADOT grants.
Wolf said his staff has already spent about 80 hours developing those alternatives, and he himself has spent about 48 hours, including two visits to Miami. Going forward, he will have two people working 20 hours a week each, and he himself will spend 12 hours a week to meet the initial Jan. 16 deadline.
Council also approved the following motions:
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To view documents related to this meeting, click here.
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