Tontitown Mayor Nixes Water Contract
Edgmon Also Vetoes Measure On Commission
Last updated Monday, July 7, 2008 6:53 PM CDT in News
By Bob Caudle
THE MORNING NEWS
A mayoral veto of a water contract between Springdale and Tontitown may slow negotiations between the two cities.
Tontitown Mayor Joe Edgmon said he vetoed the contract after talking with Tommy Deweese, manager of external affairs for AEP Southwestern Electric Power.
"Tommy wasn't happy with the figures," Edgmon said. "It's kind of in his ballpark right now."
Ironically, the mayor vetoed himself. The Tontitown City Council earlier approved the contract as a resolution and Edgmon signed it.
Springdale City Attorney Jeff Harper requested the Tontitown council approve the measure as an ordinance.
"The reason I changed my mind was that Tommy (Deweese) didn't agree with the figures," Edgmon said. "I vetoed it to send it back to the Water and Sewer Commission to work it over."
Deweese said his company is happy with Tontitown and their service, but wants relief on fees.
"We're in the process of negotiating a water contract," Deweese said. "The bottom line is the flow to the plant is pretty minimal. We're trying to protect our ratepayers just like Tontitown is trying to protect theirs."
Tontitown's five-year contract with Springdale began July 7, 2004. A contract amendment on Oct. 24, 2007, caps Tontitown's use at 458,000 gallons per day, up from the original 350,000 gallons per day.
"We conducted a rate study for all our wholesale users and recommended a 2 percent rate increase for wholesale customers," said Rene Langston, executive director of the Springdale Water Utilities Department. "Tontitown has an extra $4,500 per month for their volume of service. But we can't apply a rate increase until the contracts of the wholesale users expire."
Langston said Springdale is having to build facilities for an increased level of service that's only going to be used three months a year.
"(Southwestern Electric's) peak plant runs during our peak season," Langston said. "That's pretty expensive. We felt the increased cost should be passed on to the end users, not Springdale water users. Southwestern Electric offered, at one time, to help in the construction. But we opted to go with the rate increase rather than help with construction."
Mick Wagner, executive director of the Tontitown Water and Sewer Department, said the $4,500 per month cost will be passed on to Southwestern Electric.
"Whether the cost is $4,500 per month or $4 per month, Tontitown customers will not bear that expense," Wagner said. "It will be borne by SWEPCO. If SWEPCO uses less water, they can approach Springdale about lowering the $4,500 fee."
Tontitown has adequate water lines to handle its growth, Wagner added.
"We're not paying any more for our water than when the plant opened," Wagner said.
Tontitown City Attorney Mark Dossett said the veto will, at the least, delay the contract by a month.
"If there's not an override, we'll have to figure out a way to negotiate a contract," Dossett said.
Edgmon also vetoed an ordinance leaving the city with a water and sewer commission rather than a water and sewer committee.
At its last City Council meeting, aldermen voted to rescind a measure leaving the commission versus committee question to a vote of the people.
Edgmon said he vetoed the water and sewer commission ordinance because the council voted once to take the issue to the voters.
"They all agreed to let the public decide," Edgmon said. "They agreed to put it on the ballot and that's the way it should be."
Dossett said ordinances vetoed by the mayor are not in legal effect unless they are overturned by the council.
Fast Facts
Tontitown Power
• American Electric Power's Southwestern Electric Power Company announced plans May 31, 2006, to build up to 480 megawatts of peaking generation at Tontitown. Peaking facilities are used primarily to meet higher demand during summer months when heat and humidity lead to increased air conditioning use and demand on the electric system.
• American Electric Power's Southwestern Electric Power Company began commercial operation of Units 1 and 2 of the Harry D. Mattison Power Plant at Tontitown Dec. 28. The plant consists of four natural gas-fueled combustion turbines. AEP-SWEPCO began commercial operation of Units 3 and 4 on July 12 of last year.
Source: Staff Report
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