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Council to eye effluent rate hike

By NATHAN BRUTTELL
Today's News-Herald
Published Tuesday, February 23, 2010 12:44 AM MST

In the desert, even wastewater can become a valuable commodity.


With the near completion of the sewer project, an excess of effluent (or treated wastewater) and possible benefit uses to the city, the City Council is expected to discuss a possible increase in effluent charges at its regular meeting at 6 p.m. today at City Council chambers in the police facility.

The city currently charges about $52 per acre-foot for effluent as a waste product, but officials say the effluent could also be used for city facilities, such as city parks, and the current charge does not meet minimum recovery costs.

“It’s a valuable commodity now because we have alternatives to just disposal,” Interim Public Works Director Mark Clark said. “With competing interests related to golf courses and other private uses or government uses with parks, it has become more economically viable.”

Several private golf clubs use effluent to treat courses through one-year renewals and all are subject to renegotiation and price increase, according to a council communication. Most current contracts expire in June or July so staff is hoping to have a new rate set by then, Clark said.

“We recognize the business and recreational value for golf courses,” Clark said. “We don’t want to make it unreasonable so we can’t price ourselves out of that use either.”

A main component for the possible increase is potential use in the city’s parks system. City staff is recommending two rates, one for commercial use and one for governmental use. Through the two separate rates “transitioning major city park users to effluent use will have a positive impact on the general fund,” according to the communication.

“The city would like to have as low cost as possible for the government rate and that would mean recovering the costs to provide the water to the parks,” Clark said. “The (commercial rate) goes to profit-making businesses and we recognize that value in the private industry.”

The new possible rates are still anyone’s guess, Clark said.

“Obviously right now staff thinks the price is worth more than the $52 we’re currently charging,” Clark said. “Where that price is set will ultimately be left up to the council but we agree it’s worth more than what we’re charging.”

Clark, Water Resource Coordinator Doyle Wilson and city staff surveyed cities around the state to get an idea for a possible range.

“The price of effluent is typically in the range of 50 to 80 percent of the potable water rate,” Wilson said. The cost of potable water in Lake Havasu City ranges from about $800 to $1,500 per-acre foot. “Believe it or not, our water costs right now are very low. There are several factors we will review during the meeting that could determine what is right for Lake Havasu.”

Councilman Brian Wedemeyer said he would like to see all or most of the revenue earned from the increased rate going back to the community.

“My big concern is that it’s used to bring down or reduce sewer rates,” Wedemeyer said. “While it is a commodity, it’s one that’s been made available by the citizens who put in the money for our sewer system.”

Clark said it is required that the revenue go back into the sewer project, but added the reduction might be insignificant to the individual taxpayer.

“Right now we’re getting a bit more than $50,000 a year and let’s say we raised it to $250 per-acre foot, we’d still only be getting a little over $340,000 a year,” Clark said. “It’s a step in the right direction, but compared to the $385 million in the sewer, the magnitude of it won’t be that huge. But it is a start because it’s adding a possible new revenue that wasn’t there before.”

You can contact the reporter at nbruttell@havasunews.com

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Comments (2 comment(s))

    fordman wrote on Feb 25, 2010 2:13 PM:

    " Let me get this right. The sewer project is nearing completion and now we are going to think about using the waste water at the City parks? I have quite a bit of experience in this area and I am very confused. You don't just grab usable effluent as it passes by, it must be treated at a facility and then distributed to the desired locations.This would mean running new reclaimed water lines (purple) to all of the parks in the City, digging up many of the roads that have just been completed. Add to that, every park must be dug up to install the reclaimed water lines as well. You can not just tie in to the existing point of connection or all of the drinking fountains and sinks will also be tied to the reclaimed water! The cost of this separate system will be huge and should have been incorporated into the sewer project while the streets were torn up. "

    johnjay wrote on Feb 23, 2010 7:30 AM:

    " Unintended consequence, many of the HOA's and hotels use this to irrigate. The condo and hotel owners will have to raise their rates for the summer and winter guests, in a market that won't support the increase. So the property will just sit, resulting in more foreclosures. In all seriousness this sewer bond will bleed the city dry just like anyone who ran their credit cards up and then had a reduction in income. Think about it if you were a bank or thinking about relocating to Lake Havasu, would you invest based on knowing how much debt they hold and how irresponsible the city government was by getting their constituents into this position. I don't think there is much hope, the city will eventually go BK, it's death by 1000 cuts (or tax increases depending on how you look at it). "

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