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Battling GLCRUA’s high rates ongoing dilemma
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| The contact basin is a mixing chamber for the ozone-rich material and process water. The raw water comes from the Floridan Aquifer and the Price Creek Water Plant is rated as a 9 million gallon per day capacity treatment plant. COURTESY PHOTO |
Water customers outside city pay 25 percent more.
By JEFF M. HARDISON
jhardison@lakecityreporter.com
Some people believe the Greater Lake City Regional Utility Authority (GLCRUA) water rates are too high.
Some of those concerned taxpayers who live outside the city limits — in an area previously served by a water system that was installed and operated by Lenvil Dicks — have become vocal about their opposition to the rates.
The GLCRUA bought the Dicks’ system last year and then the rate went up by
300 percent, according to some residents.
Manuel Enos retired from the U.S. Navy in 1982. He and his wife, Glenda, bought a home in the Lake City area. After the GLCRUA bought the water system, the price of water tripled, Enos said.
“We were getting great water for $10 to $11 a month,” Enos said. “Then the GLCRUA ‘Rip-off Authority’ bought the system. My bill for 4,000 gallons last month was $29.”
Enos believes that City Manager Scott Reynolds’ plans to annex the whole area served by GLCRUA into the city. By not living in the city, Enos added, he does not get to choose who sits on the City Council or who is selected to be the city manager.
He is not happy about the sale of the water system, either. If Dicks had approached the property owners, Enos said, people would have tried to buy the water system from Dicks, Enos said. He thinks area residents could operate the system.
“We have some people right here who have been involved with water systems,” he said.
Enos is among those who could have helped, he said. After retiring from the Navy, he worked in the Jacksonville Water Department for four years.
Cost of business
Utilities in the Lake City government is big business. The 2008 budget for the Water-Sewer Fund of the GLCRUA was $10.3 million. The proposed budget for 2009 is $10.4 million. The surplus, or impact trust, part of the budget for
2008 was $1 million. In 2009, the surplus is projected to be just under $406,000, according to records.
In the fiscal year ended Sept. 30, 2007, there was $718,462 more brought
in than spent in the then-$8 million budget.
City v. Dicks’ system
Another consumer who is critical of rates is Dan Wicklund. He lives in the Eastwood subdivision. It is served by the former Dicks’ system. He concurs with Enos in regard to water being too expensive.
“Under Lenvil Dicks, the cost for 10,000 gallons was a little low — about $16,” Wicklund said. “Under the GLCRUA, it is now $39.70.”
Wicklund’s June 24 water bill for 12,000 gallons showed a cost of $45.18, he said. If Wicklund had used the same amount of water under the Dicks’ fee schedule, it would have cost $19, he said.
Wicklund thinks Lake City bought too costly of a water system.
“The city residents were sold a load of goods with the new expensive system,” he said. “A Chevy would do, but they bought a Cadillac.”
Stephen Roberts, director of water treatment facilities, said the city had to make a choice.
“We have to treat water to the regulator’s criteria and standards,” Roberts said. “It’s not that we wanted to build a $13 million plant.”
This system is the most efficient method to achieve the goal of clean water, he said. Ozone is injected into the water to destroy organic matter. Then chlorine, ammonia and aqua mag are added for sanitation and taste purposes.
Taste of water
The amount of chlorine added with the ozone process is much less than the former procedure, Roberts said. At the old water plant on Putnam Road,
300 gallons of chlorine were added for every 1 million gallons of water. At the new Price Creek water plant, there is 15 gallons of chlorine added for every 1 million gallons.
The new water system produced water that placed fourth in a statewide competition for best taste. In September 2007, the Florida Rural Water Association had a taste contest in Key West, Roberts said, and the Lake City water sample came in fourth.
Differing rates
Wicklund said the rate structure has another unfair aspect.
It is unfair for the city to charge more for customers who live outside the city limits, he said. This has nothing to do with property taxes, Wicklund said, because the revenue from the utility service is independent of property values and millage rates.
Two and a half years ago, the city created a rate schedule that went up by 5 percent each year, Wicklund said.
In the fiscal year beginning Oct. 1, 2006, the first 3,000 gallons of water cost $15.25 for Lake City residents and $19.06 for GLCRUA customers outside the city limits.
Those fees went to $16.01 in 2007 and will go to $16.81 on Oct. 1 of this year for city residents.
Those fees went to $20.02 in 2007 and will go to $21.02 on Oct. 1 of this year for non-city residents.
Water consumers who live outside the city limits pay an additional 25 percent more than the city residents, Wicklund said.
“This is just because they (GLCRUA) can charge more to people who live outside the city limits,” Wicklund said. “I live closer to the new wells than people in the city, so extra transportation of water is not a valid reason to pay 25 percent more.”
Rates and conservation
Lake City Strategic Planning and Marketing Director Nick Harwell shared a concept regarding the rates in the city and outside of the city limits.
“It’s all about conservation,” Harwell said. “We are committed to the FDEP (Florida Department of Environmental Protection) conservation plan. We couldn’t discriminate between one group over another (when the city took over the Dicks’ systems). We had to give them the same rates as anyone else. We encourage an element of conservation.”
Wicklund said the rate structure for the city encourages more use rather than conservation, because it costs less per gallon when a resident consumes a higher amount.
Comparing rates
Harwell said the rates in Lake City are more than a big city, because the economy of scale is smaller here.
When people compare water rates for a city as big as Jacksonville, Harwell said, they are not being fair. By larger cities having a bigger customer base, they can spread costs over a larger market, he said. As the greater Lake City area grows, Harwell said, the rates will be spread over a bigger base.
The Florida Rural Water Association recently published a 10-page research paper that was authored by Sterling L. Carroll, an engineer with the FRWA.
The research paper by Carroll showed regulation of systems varies in Florida.
“Regulation of water in Florida is fragmented,” Carroll quoted the Office of Program Analysis and Government Accountability, which said, “In Florida, several entities are responsible for regulating the quality, supply and cost of water. The specific regulatory entities vary depending on whether the utility is privately or government owned.”
The Florida Public Service Commission only regulates privately owned water systems, Carroll noted.
Records of water costs from the PSC, show low and high rates covering a wide range in the six-county region around Columbia County.
The PSC no longer regulates water and wastewater rates in Columbia County, according to records.
Of the five counties touching Columbia County’s borders, the PSC showed few base rates as of Dec. 31, 2007. No rate was shown for Hamilton and Suwannee counties.
The City of Live Oak, however, shows on its Web site that a minimal monthly residential utility bill is $42.99. The bill covers minimal water at $10.25, as well as sewer, landfill, garbage and utility tax. The minimal monthly commercial utility bill is $108.80, according to the city’s Web site.
The PSC does not regulate rates in Union County, but it listed the base rate for B&C Water Resources at $12.61 and a bill comparison rate of $27.31 for “5M” and $42.01 for “10M,” although the comparison form does not explain the methodology for “5M” and “10M.”
Alachua County, according to PSC records, showed Aqua Utilities Florida, Arrendondo as having a base rate of $13.85 and 5M and 10 M comparisons of $25.60 and $37.35 respectively. Also in Alachua County, Kincaid Hills Water Co. showed a base rate of $6.94 and 5M and 10M rates of $11.54 and $16.14 respectively.
Some of those concerned taxpayers who live outside the city limits — in an area previously served by a water system that was installed and operated by Lenvil Dicks — have become vocal about their opposition to the rates.
The GLCRUA bought the Dicks’ system last year and then the rate went up by
300 percent, according to some residents.
Manuel Enos retired from the U.S. Navy in 1982. He and his wife, Glenda, bought a home in the Lake City area. After the GLCRUA bought the water system, the price of water tripled, Enos said.
“We were getting great water for $10 to $11 a month,” Enos said. “Then the GLCRUA ‘Rip-off Authority’ bought the system. My bill for 4,000 gallons last month was $29.”
Enos believes that City Manager Scott Reynolds’ plans to annex the whole area served by GLCRUA into the city. By not living in the city, Enos added, he does not get to choose who sits on the City Council or who is selected to be the city manager.
He is not happy about the sale of the water system, either. If Dicks had approached the property owners, Enos said, people would have tried to buy the water system from Dicks, Enos said. He thinks area residents could operate the system.
“We have some people right here who have been involved with water systems,” he said.
Enos is among those who could have helped, he said. After retiring from the Navy, he worked in the Jacksonville Water Department for four years.
Cost of business
Utilities in the Lake City government is big business. The 2008 budget for the Water-Sewer Fund of the GLCRUA was $10.3 million. The proposed budget for 2009 is $10.4 million. The surplus, or impact trust, part of the budget for
2008 was $1 million. In 2009, the surplus is projected to be just under $406,000, according to records.
In the fiscal year ended Sept. 30, 2007, there was $718,462 more brought
in than spent in the then-$8 million budget.
City v. Dicks’ system
Another consumer who is critical of rates is Dan Wicklund. He lives in the Eastwood subdivision. It is served by the former Dicks’ system. He concurs with Enos in regard to water being too expensive.
“Under Lenvil Dicks, the cost for 10,000 gallons was a little low — about $16,” Wicklund said. “Under the GLCRUA, it is now $39.70.”
Wicklund’s June 24 water bill for 12,000 gallons showed a cost of $45.18, he said. If Wicklund had used the same amount of water under the Dicks’ fee schedule, it would have cost $19, he said.
Wicklund thinks Lake City bought too costly of a water system.
“The city residents were sold a load of goods with the new expensive system,” he said. “A Chevy would do, but they bought a Cadillac.”
Stephen Roberts, director of water treatment facilities, said the city had to make a choice.
“We have to treat water to the regulator’s criteria and standards,” Roberts said. “It’s not that we wanted to build a $13 million plant.”
This system is the most efficient method to achieve the goal of clean water, he said. Ozone is injected into the water to destroy organic matter. Then chlorine, ammonia and aqua mag are added for sanitation and taste purposes.
Taste of water
The amount of chlorine added with the ozone process is much less than the former procedure, Roberts said. At the old water plant on Putnam Road,
300 gallons of chlorine were added for every 1 million gallons of water. At the new Price Creek water plant, there is 15 gallons of chlorine added for every 1 million gallons.
The new water system produced water that placed fourth in a statewide competition for best taste. In September 2007, the Florida Rural Water Association had a taste contest in Key West, Roberts said, and the Lake City water sample came in fourth.
Differing rates
Wicklund said the rate structure has another unfair aspect.
It is unfair for the city to charge more for customers who live outside the city limits, he said. This has nothing to do with property taxes, Wicklund said, because the revenue from the utility service is independent of property values and millage rates.
Two and a half years ago, the city created a rate schedule that went up by 5 percent each year, Wicklund said.
In the fiscal year beginning Oct. 1, 2006, the first 3,000 gallons of water cost $15.25 for Lake City residents and $19.06 for GLCRUA customers outside the city limits.
Those fees went to $16.01 in 2007 and will go to $16.81 on Oct. 1 of this year for city residents.
Those fees went to $20.02 in 2007 and will go to $21.02 on Oct. 1 of this year for non-city residents.
Water consumers who live outside the city limits pay an additional 25 percent more than the city residents, Wicklund said.
“This is just because they (GLCRUA) can charge more to people who live outside the city limits,” Wicklund said. “I live closer to the new wells than people in the city, so extra transportation of water is not a valid reason to pay 25 percent more.”
Rates and conservation
Lake City Strategic Planning and Marketing Director Nick Harwell shared a concept regarding the rates in the city and outside of the city limits.
“It’s all about conservation,” Harwell said. “We are committed to the FDEP (Florida Department of Environmental Protection) conservation plan. We couldn’t discriminate between one group over another (when the city took over the Dicks’ systems). We had to give them the same rates as anyone else. We encourage an element of conservation.”
Wicklund said the rate structure for the city encourages more use rather than conservation, because it costs less per gallon when a resident consumes a higher amount.
Comparing rates
Harwell said the rates in Lake City are more than a big city, because the economy of scale is smaller here.
When people compare water rates for a city as big as Jacksonville, Harwell said, they are not being fair. By larger cities having a bigger customer base, they can spread costs over a larger market, he said. As the greater Lake City area grows, Harwell said, the rates will be spread over a bigger base.
The Florida Rural Water Association recently published a 10-page research paper that was authored by Sterling L. Carroll, an engineer with the FRWA.
The research paper by Carroll showed regulation of systems varies in Florida.
“Regulation of water in Florida is fragmented,” Carroll quoted the Office of Program Analysis and Government Accountability, which said, “In Florida, several entities are responsible for regulating the quality, supply and cost of water. The specific regulatory entities vary depending on whether the utility is privately or government owned.”
The Florida Public Service Commission only regulates privately owned water systems, Carroll noted.
Records of water costs from the PSC, show low and high rates covering a wide range in the six-county region around Columbia County.
The PSC no longer regulates water and wastewater rates in Columbia County, according to records.
Of the five counties touching Columbia County’s borders, the PSC showed few base rates as of Dec. 31, 2007. No rate was shown for Hamilton and Suwannee counties.
The City of Live Oak, however, shows on its Web site that a minimal monthly residential utility bill is $42.99. The bill covers minimal water at $10.25, as well as sewer, landfill, garbage and utility tax. The minimal monthly commercial utility bill is $108.80, according to the city’s Web site.
The PSC does not regulate rates in Union County, but it listed the base rate for B&C Water Resources at $12.61 and a bill comparison rate of $27.31 for “5M” and $42.01 for “10M,” although the comparison form does not explain the methodology for “5M” and “10M.”
Alachua County, according to PSC records, showed Aqua Utilities Florida, Arrendondo as having a base rate of $13.85 and 5M and 10 M comparisons of $25.60 and $37.35 respectively. Also in Alachua County, Kincaid Hills Water Co. showed a base rate of $6.94 and 5M and 10M rates of $11.54 and $16.14 respectively.
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Slick Willy wrote on Jul 27, 2008 10:41 AM:
I will keep this short but if you look real close I think you will find " Super Dummy " don't really manage City Hall.
Check it out for your self. "