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Status Report From The Glenlakes Sewer Rate Negotiating Committee
December 9, 2009
The purpose of this letter is to inform Glenlakes Subdivision property owners of the tentative verbal agreement between BCSS and the members of the Committee (Dan Gormley, Lakeview Estates; Janet Maxwell, The Villas; Larry Morgan, The Gardens; Bob Grant, Carnoustie). At a meeting in January 2009, the Committee and Baldwin County Sewer Service (BCSS) representatives agreed on the following items:
The “competitive” sewer rate would be determined by taking the average of the “sewer only” rates provided by Gulf Shores, Orange Beach and Foley and adding a 10% premium. Why the 10% premium? Because cities have lower interest rates for acquiring capital than private companies and cities usually operate public services at no profit. This is how the $32.50 sewer rate was calculated for the property owners of Glenlakes Subdivision.
- Property owners of record before January 2008 would receive credit for the 13 months that BCSS increased the sewer rate to $54.50 per month. The refund of $286 ($54.50 per month less the $32.50 per month times 13 months equals $286) will be credited to each qualifying property owner at $32.50 per month.
- We have an understanding with BCSS that the $32.50 sewer rate would continue for 12 months from January 2009. BCSS would review the sewer rates of the three cities sometime in January 2010 and make an adjustment to the Glenlakes sewer rate based on the formula in the first paragraph. The Committee would be informed of the rate change prior to BCSS billing the new rate. The Committee has the right to approve or challenge BCSS on all future rate changes.
- BCSS acquired the sewer services for Glenlakes in December 2004 and shortly after increased the Sewer Tap fee to $2,500 for new home construction. The original Sewer Agreement stipulated the Sewer Tap fee should not exceed $1,500 for a single-family residence. Therefore, BCSS agreed to a cash refund of the $1,000 overcharge to the qualifying property owners.
BCSS has honored the $32.50 monthly sewer rate and has refunded the $286 overcharge during the past nine months. The refund of the overcharges on the sewer rate is now completed and your $0.00 per month sewer billing has expired. Therefore, you can expect to receive a $32.50 sewer bill in January 2010. The sewer rates for the surrounding cities will probably increase either before or after January 1, 2010. The Glenlakes property owners can expect an increase in the sewer rate by BCSS.
The latest BCSS “written proposal” for a contractual agreement was received in mid-November of 2009. The Committee met on December 4, 2009 to review this latest proposal from BCSS. Our attorney was present to help us thoroughly understand the faults and legal implications. This latest proposal is much the same as the 3 previous proposals. BCSS wants to eliminate the original Sewer Agreement (dated November 13, 1991). BCSS wants to eliminate any and all possibilities for lawsuits from the property owners, the Associations and developers of Glenlakes Subdivision. The wording of the BCSS proposals would eliminate the strengths the Glenlakes residents have enjoyed from the original Sewer Agreement. Therefore, the Committee has refused to accept any of the BCSS proposals.
The Committee has authorized our attorney to draft a response to BCSS to notify them of the Committee’s steadfast refusal to agree to any contractual agreement, proposal, amendment or addendum that would in any way alter or nullify the terms and conditions of the original Sewer Agreement. The letter to BCSS should be ready within a week or so. We will wait for a response from BCSS and their response will determine our future course of actions.
The Committee has worked hard to represent your interests and we feel that we are close to getting this matter resolved. The committee wants to thank each of you for your patience and support in this matter.
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