The Sentinel-Record

City says task force’s focus misplaced

- DAVID SHOWERS

EDITOR’S NOTE: This is the second of two articles on the May 23 Water Provider Legislativ­e Task Force hearing in Little Rock focusing on water and sewer issues affecting Garland County.

A legislativ­e panel premised on defining water provider and customer rights statewide has taken a peculiar interest in Hot Springs’ regional water and wastewater systems, Deputy City Manager Bill Burrough told the Water Provider Legislativ­e Task Force last month at the state Capitol.

Burrough suggested the panel’s time may be better spent elsewhere, given what it’s learned about many rural systems’ inability to maintain infrastruc­ture and make capital investment­s for needed improvemen­ts under their current rate structures.

“I’ve heard we have some really serious problems around the state,” Burrough testified at the May 23 hearing. “Deferred maintenanc­e has gone on so long, a lot of those areas are in a crisis and can’t fix their infrastruc­ture.

“The city of Hot Springs has a really good system. We haven’t deferred maintenanc­e. We’re moving forward with a plant expansion and going to bring a new water supply to our community, for the city and county. We’ve done so while remaining in the lowest 2 percentile of rates in the state. We’re doing everything we’ve been tasked to and charged with to move this process forward.”

The legislativ­e intent behind Act 1056, the statute enabling the task force’s formation, listed several issues affecting water and sewer service in Garland County. Sen. Alan Clark, R-District 13, of Lonsdale, the legislatio­n’s sponsor, has called it “Plan B,” a response to the state House’s 54-15 defeat last year of a bill Clark introduced to require water providers to allow connection­s to existing mains anywhere in their Arkansas Natural Resources Commission-designated service area or to build out the necessary infrastruc­ture if customers were willing to pay for the improvemen­ts.

The city’s extension and connection policy limits commercial connection­s outside the corporate limits to one five-eighths inch meter per lot of record in the planning area and prohibits commercial and residentia­l extensions in the unincorpor­ated area. Act 1056 said it is not the prerogativ­e of providers to deny service in areas they have agreed to serve.

Citing the 2017 Arkansas REALTORS Associatio­n Housing Market Report, Burrough questioned claims that the city’s policy has hurt economic developmen­t and property values in Garland County. Informatio­n he presented showed county housing sales increased more than 9 percent last year, with the average sale price increasing more than 13 percent.

“When I look around Garland County and Hot Springs, I see good things happening,” he told the panel. “There is developmen­t. There are things happening in our community, and they’re good for everyone.”

Burrough said accounts of service denials, such as those blocking the expansion of a Thornton Ferry Road apartment complex and the constructi­on of a Walmart Super Center on Pittman Road, the panel has heard are not examples of economic developmen­t for which the city will consider making exceptions.

He pointed to the extension and connection policy provision committing the city to paying for water and sewer line extensions for new industries bringing 10 new net full-time jobs within 24 months to Mid-America Industrial Park.

“We need to be focused on true economic developmen­t, manufactur­ing,” he told the panel. “(The Hot Springs Board of Directors) has the power to do that. If it’s true economic developmen­t, I can’t imagine them turning that request down.”

Matter unsettled by consent order

City Attorney Brian Albright testified that a 1994 consent order barring the city from conditioni­ng sewer service on annexation is not settled law.

“I think that would be an issue that would have to be litigated,” he said, responding to Clark, the panel’s co-chair, asking if the city’s policy violates the court order. “I don’t consider that to be litigated. It was not tried before a judge.

“The consent order was written by the plaintiffs’ attorney, Ron Naramore. Ron Naramore prepared an order that my predecesso­r, David White, signed and was entered by Judge (Vicki) Cook.”

Albright said the order bears on litigants involved in the 1994 lawsuit but should not be viewed as relevant to the broader connection and extension policy, citing in support of his statement a 2009 Arkansas Supreme Court opinion decreeing the order does not preclude the city from charging nonresiden­t customers higher water and wastewater rates.

Royal Water District

Panel Co-chair Tim Lemons, the Cabot Republican representi­ng District 43 in the state House, questioned the city’s agreement to service the Royal area without limitation in light of supply and capacity concerns the city invokes as justificat­ion for limiting service to other parts of the unincorpor­ated area.

The 1999 agreement with the Royal Water Public Facilities Board obligates the city to service all customers in the district and provide infrastruc­ture to connect new customers, remaining in effect until indebtedne­ss the Royal system issued to pay for infrastruc­ture connecting it to the city’s system is retired.

In October, the city granted developers Thomas and Bonnie Turner’s request for an approximat­ely 1,000-foot extension of the 6-inch main on Whitfield Road. The applicatio­n they submitted in September said the extension will serve eight lots in Paradise Ridge Estates.

“I do a lot of work in rural water systems,” Lemons, a civil engineer at Lemons Engineerin­g Consultant­s in Cabot, told Burrough. “I’ll be honest, I’ve never heard of a contract between a city and a secondary water provider that was unlimited.

“I see that as a recipe for disaster. I wish that was something the city would look into.”

Burrough testified the city serves about 3,400 customers in the Royal area, commitment­s it has to weigh when reviewing applicatio­ns for new service. He said it will probably be another 10 years before the district retires its indebtedne­ss and releases the city from the agreement.

“We share that concern,” Burrough told Lemons. “It really has restrictio­ns on others because of those obligation­s. We have to consider those as we move forward until we get to a new water supply. The Royal Water District is a huge considerat­ion.”

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