City looking at possible increase in water rates

Posted September 15, 2011 at 1:04 pm

City water customers may be seeing an increase in their monthly water bills in the near future, but the amount of the increase–which isn’t expected to be a significant amount–has yet to be determined by the Albany City Council.

At its monthly meeting last Tuesday evening, September 6, Albany Mayor Nicky Smith recommended a water rate adjustment to the council.

Mayor Smith said that due to the rising cost of electricity and all other aspects of producing and treating the water supplied to customers, he was recommending an increase in the base rate of usage up to the first 2,000 gallons of water used and $1 per each 2,000 gallon consumed over the base amount.

“I have to recommend it (increase), but we’ve already made cuts in the budget and done everything but lay off employees,” the mayor said. He later added in the discussion that if rates were not raised, he would have no choice but to lay off some employees.

Councilman Tony Delk agreed with the mayor’s assumption pertaining to city employee lay-offs, “times are too hard to start laying off people.”

Councilman James “Smitty” Smith voiced concerns about the affects of an increase would have on low-income and especially elderly residents on fixed incomes.

The mayor said that most of the elderly people on city water use less than the 2,000 base amount and they would be affected the least with any increase made. The mayor also said the city water department was a “business” and had to be run that way in order to operate and maintain the service to residents, adding it was somewhat of a ‘job retention plan.’

The mayor and council members discussed a few different ranges in rate hikes that would not be too much of a burden on customers, while still raising enough revenue to operate the system and avoid laying off employees.

They also discussed issues such as the amount of water lost monthly due to leaks and line breaks, the costs of operations and checking on water rates of other municipalities and water districts about the same size of Albany.

Apparently not all council members are in favor of raising water rates, however, most indicated they also wouldn’t like to see any employee layoffs.

Following the discussion, the council decided to gather some information over the next few days and voted to table to issue and take action at a call meeting that was scheduled for this week.

The council, with five of six members present, also heard from local businessman J.W. Collins, co-owner of Dyer Drug Company, who requested the city allow for a designated curb side pick-up space in front of the drug store to assist people in need to get their prescriptions brought to their vehicles.

The curb side pick-up would replace one of the current spots in front of the store and Conner recommended that another spot continue to be used for handicap parking and a third spot directly in front of the store a 30-minute parking space.

Although councilman Tony Delk voiced concern about who would enforce the 30-minute parking space on that side of Cumberland Street in front of the store, he did agree with the idea of offering the curb side prescription pick-up space and made the motion to allow for it, along with the handicap space and the 30-minute parking space. The motion passed by unanimous vote.

Mayor Smith also agreed to have some of the trees in front of the drug store on Cross Street be trimmed.

Two bids were received on city insurance, including on property, buildings, vehicle, liability, etc. The bid advertisement time was 4:30 p.m. the day of last week’s meeting. However, Mike Davis, of Davis Insurance in Albany, hadn’t officially submitted his bid at that deadline but did have it in hand at the 5 p.m. meeting.

The other bidder, Jamie Sparks, of Sparks Insurance in Albany, the current provider, had no objection to the Davis bid being accepted despite the slight time discrepancy, but only asked that no bids be taken after those proposals were officially opened.

City legal advisor Norb Sohm said questions could be raised by some about the matter, primarily the other bidder if they were to not receive the bid. However, after Sparks voiced that he had no objection to the other bid being opened, the council agreed to open both but take no other proposals after those bids were made public.

Both agents reviewed their respective policy plans and amounts. The base bid Davis Insurance submitted was $65,924 on an estimated city worth of $28.2 million while Sparks base bid was $62,455 on an estimated city worth of $23.1 million in assets.

Following the presentations and a brief review, the council decided to review both plans and take official action at this week’s special meeting.

In other business, the council:

* Voted to authorize the mayor to apply for, sign and administer a $179,000 fire department safety grant, if approved, to be used for safety equipment for the fire department.

* Councilman Delk suggested requesting the state highway department put a turning lane in front of Nolan Street and the Exxon station on North Cross Street to help alleviate some traffic congestion in that area, especially with the anticipation of the new Dollar Store.

* Delk also commended those who took part in putting on last month’s car show, in particular Bun Claborn, that was very successful. The show brought in hundreds of vehicles and spectators to the downtown area. Delk said he felt the city and county should get behind and support the car show due to its success.

* Discussed putting up Children at Play or possibly even rumble strips in the Nolan Subdivision area to help slow down traffic due to the number of children in the neighborhood and discussed possibly setting a date for the proposed city clean-up day prior to the Foothills Festival.

A special call meeting of the council was held this Wednesday, September 14 with several items expected to have been placed on the agenda, including city water rates, city insurance and setting a date for the clean-up day. That meeting was too late for press deadline and details will be published next week.