Arkoma mayor suggests court action if Fort Smith pursues proposed sewer rate

Arkoma Mayor Joshua Johnson on Tuesday (June 10) told the Fort Smith Board of Directors that if the two cities can’t negotiate a new sewer rate agreement, a “plan B” could be to seek an injunction blocking Fort Smith’s proposed rate increase.

The board, Fort Smith officials and Arkoma officials have in recent weeks discussed publicly and privately a plan by the City of Fort Smith to substantially increase the rate Arkoma pays for sewer service.

Arkoma officials say city residents can’t afford the $8.75 ccf sewer rate that was set to begin June 1. The board on June 3 approved a 21-day deadline on enacting the new rate in order to provide time for negotiation.

The existing rate Arkoma is charged is $2.69 ccf, meaning the new rate imposed by Fort Smith would be a 350% increase. Johnson went public in mid May with his frustrations about the proposed sewer rate increase. Fort Smith board members have been somewhat divided on the issue, with some demanding Arkoma pay what Fort Smith residents are charged, and other board members hoping to agree on a rate that is less significant for Arkoma while covering Fort Smith’s cost to provide the service.

Fort Smith Chief Financial Officer Andy Richards on Tuesday outlined a rate calculation – based on past usage, Fort Smith’s treatment cost, and other factors – that ranged between $5.95 and $6.23 per ccf that could be charged to Arkoma.

But Johnson and Arkoma Vice Mayor Bobby Weatherford said Tuesday the Fort Smith board can charge those higher rates, but Arkoma and its residents can’t afford to pay them. He said if Fort Smith demands a rate it can’t afford, then Arkoma would seek an injunction to prevent the higher rate until Arkoma could find an alternative sewer treatment source.

“I’d like to come to an agreement that we can pay, and continue to be a customer for you,” Johnson said. “But if that’s not the pleasure of the (Fort Smith) board, and if we can’t come to a number that’s like that, then we’ll move to plan B. And I don’t think there is a good plan B. But it’s not paying $8.75.”

Fort Smith Director Kevin Settle said there are “12 properties” that are not within city limits that pay the $8.75 ccf rate, and if Fort Smith grants Arkoma a lower rate, the businesses and individuals on the 12 properties may also want a lower rate. Johnson pushed back, saying those customers are treated as regular customers, while Arkoma is a municipal customer.

Director André Good said he preferred Fort Smith Acting City Administrator Jeff Dingman and city staff negotiate a rate that doesn’t result in a court case.

“If we can’t increase it to a rate they can pay, it will make this even worse,” Good said. “So we have to come up with some kind of agreement that gives us the increase we’re looking for, but also give us the difference (between a wholesale and retail rate).”

The board ended the discussion with an understanding that Fort Smith and Arkoma officials would continue with negotiations with the goal of having a rate plan, or rate plan options, on the Fort Smith board’s June 17 regular meeting agenda.