Maumelle's City Council decided Monday against getting into the wastewater business and agreed to allow negotiations to proceed for North Little Rock Wastewater to handle sewer services.
The eight aldermen were unanimous in a voice vote to knock down proposed legislation for Maumelle to enter the business once Maumelle Water Management consolidates with Central Arkansas Water.
The vote established that the city has "no desire" to take over wastewater operations, even with hesitation by a few aldermen and a motion -- eventually withdrawn -- to table the legislation in order to have time to acquire more information, especially on what rates to charge.
"I don't know what information we could give you in a [council] workshop that we haven't given you tonight," said Mayor Mike Watson, whose recommendation was to go with North Little Rock Wastewater. Watson added that it would cost the city $18,000 to do a rate study, even if Maumelle ended up with North Little Rock Wastewater's rates.
Maumelle Water Management, which provides water and wastewater services for Maumelle, will dissolve once the consolidation with Central Arkansas Water occurs by March 1. The Maumelle utility's board approved Central Arkansas Water's consolidation proposal last week. The Maumelle utility's current water rates will remain during a two-year transition period.
The only question remaining was whether the city of Maumelle would want to assume $2.5 million in debt from the wastewater part of the utility and then attempt to operate services for the utility's current 7,400 customers, or have Central Arkansas Water negotiate a contract to hand that responsibility to the already established North Little Rock Wastewater.
Alderman Preston Lewis likened the Maumelle utility's consolidation with Central Arkansas Water to someone buying a house, with the wastewater operation being "the dog we have to find a home for."
"I encourage you to go with a professional utility," outgoing Maumelle Water Commissioner Ralph Kearney told the council.
Marc Wilkins, North Little Rock Wastewater director, gave a presentation to the Maumelle council about his utility. North Little Rock Wastewater has 85 employees, 32,000 customers and three water treatment plants, with enough capacity to serve Maumelle's needs as well, he said. Maumelle Water Management would have six wastewater employees left over from the Central Arkansas Water consolidation.
Wilkins told the council that North Little Rock has proposed a five-step rate increase that the North Little Rock City Council is expected to vote on this Monday. The proposal would raise Maumelle's wastewater rates by about 30 percent over the next five years. The rates would be the same for Maumelle customers as they will be for those inside North Little Rock's current service area.
"Even with these increases, North Little Rock's rates are very competitive within the central Arkansas region," Wilkins said. "Everybody would pay the same rate. A customer is a customer to us."
Lewis and aldermen John Vaprezsan and Marion Scott each expressed a willingness to wait on making a decision because they wanted more information.
Vaprezsan, who said he felt "less educated" about the wastewater option than he did about the water portion's consolidation agreement, asked if there was a written contract proposed to allow North Little Rock's utility to assume Maumelle's operations and control its rates. Maumelle also won't have representation on North Little Rock's Wastewater Committee, but neither will it have a sitting member on Central Arkansas Water's Board of Commissioners.
Tad Bohannon, chief counsel for Central Arkansas Water, has been the lead in negotiations involving options for Maumelle's water and wastewater operations on Central Arkansas Water's behalf. Bohannon said there is no written agreement, but one hadn't yet been necessary.
"I think you heard most of the agreement tonight," Bohannon said. "No, there is not a written agreement, but I can tell you what it's going to say."
Metro on 10/20/2015