Water rate change for golf courses rejected

A water rate structure change designed to reduce the cost of water for five golf courses on the city of Fort Smith water system failed to gain a motion for a vote at Tuesday’s meeting of the Fort Smith Board of Directors.

The owner of Fianna Hills Country Club sought relief from a rate structure imposed in 2007 that has raised the club’s water bill more than 55%. The option presented the city board Tuesday night was to move Fianna Hills to a customer class that would potentially lower the club’s water bill by $13,933 in 2009, and $17,589 in 2010. The full effect of creating a new “golf” class of commercial users would be to reduce the city’s water revenue by almost $50,000 in 2010. There are five golf courses within the city’s water system. The tradeoff would be to raise non-golf commercial rates by 2 cents per CCF (748 gallons).

“Water is a raw material of our business. It is not a luxury,” Randy Shock, attorney for Fianna Hills told the board Tuesday night.

Shock also said the club did not ask to be put into a new “golf” category and did not intend for its rate relief request to be passed on to other commercial customers.

Jim Shields, co-owner of Fianna Hills Country Club, said the “punitive residential rate” only serves to “jeopardize the business model” that employs 70 people, injects $3 million annually into the local economy and provides entertainment and quality of life opportunities for more than 500 families in the area.

City Director Kevin Settle opposed the new rate structure, saying it would open a “Pandora’s Box” in which large water users would line up to seek rate relief. Settle said the board had to decide if it wanted to consider the needs of 500 families or the lower rate structure for “thousands of businesses.”

When a motion was called for the new rate structure, no motion was made.

Shields, visibly angry about the decision, said the board is being “grossly unfair” in the rate structure and said he would try again to seek rate relief.

OTHER BUSINESS
• The board unanimously approved a measure that would allow daycares operating in residential areas to hire one permanent employee. The new provision will allow residential daycare owners to hire a substitute when the owner is out for childcare training, family emergencies or other similar situations.

• Annexation was approved for Chaffee Crossing properties to include an AOG meter station area, National Guard Armory facilities and The Arkansas River Valley Nature Center area.

• The board approved the reappointment of Barbara Webster to the Fort Smith Housing Authority.