SPECIAL MEETING
MINUTES
NSD Business Office
1326 W. Highway 92 #12
Bisbee, AZ 95620
September 12, 2022, at 10 PM
Minutes
NSD Chair Stephen Dey called the special meeting to order at 10:10 PM. Present: Charles Behney, Stephen Dey, Jesus Guerrero, Andrew Foster absent, Robert Orlowsky, excused. Ms. Monika Patience was also present.
Under old business, the minutes were revised from a special meeting to a regular meeting. Mr. Dey made a motion to accept the meeting, which was seconded by Mr. Behney. The minutes were approved unanimously.
Mr. Dey changed the order of New Business to discuss the rate increase before the letter to customers regarding rates. Mr. Dey stated that a rate increase was necessary to prevent NSD from running out of operating expenses. NSD barely has enough funds for basic needs, such as the office and testing. An increase of either $25 or $27 was brought up by Mr. Dey. Mr. Dey suggested a temporary rate increase for six months, and then the board would readdress it. Mr. Behney asked for the record that the rate increase was necessary due to past due accounts from residents and businesses not paying. Yearly customers would not be charged extra. Mr. Dey wanted to know how many monthly customers would be affected by the rate increase. Mr. Behney noted that 150 customers paying $25 a month would raise $3750 in revenues. Mr. Dey stated that tax revenues were soon to arrive, and some other customers were now paying. Mr. Behney suggested a rate of $25 while Mr. Dey considered a $27 increase.
Mr. Behney made a motion to raise the rates to $25 for six months, after which it will be revisited. Mr. Dey amended the motion to raise the rates to $25 a month for monthly customers, for six months, effective on November 1st until May 30, 2023. Any customer can pay the yearly fee of $170 until November 1st, 2022. After that it will rise in accordance with the new fees, to be readdressed in six months. The motion was seconded by Mr. Behney and then passed unanimously.
Mr. Behney read the rough draft of the letter to NSD customers. The board edited the letter and unanimously approved this draft for November:
Dear Naco Sanitary District Customers,
There are several Naco Sanitary District customers who have not paid for their sewer services and are past due.
These past due accounts owe the NSD approximately $30,000, as of September 9, 2022. Because of this, NSD will need to raise their rates to $25.00 for the next six months to continue to provide services for the Naco community.
Customers who are not paying will have their services discontinued, their water may be disconnected, and a lien may be placed on properties that have non-payment and past due accounts. Cochise County may condemn the property.
After six months, when the NSD accounts are no longer past due, the rates may be reduced again.
The former NSD Board of Directors received a Notice of Violation that caused the wastewater treatment plant to go out of compliance with the Aquifer Protection Permit. This cost NSD $15,000 to bring the WWTP back into compliance.
The required flowmeter was over twenty years old and was out of warranty and no longer functioned. NSD paid $20,000 for a new, automated flowmeter to remain in compliance with ADEQ.
As a result, reserve accounts were emptied, so NSD must raise rates and refill our reserve accounts for the community’s waste and sewer services.
Sincerely,
The Naco Sanitary District Board of Directors
Mr. Dey spoke about the past due letter that will need to be on a future agenda.
The meeting was adjourned at 10:35.
_____________________________________
Stephen T. Dey
Naco Sanitary District Chair October 4, 2022
NACO SANITARY DISTRICT
P.O. BOX 755
Naco, AZ 85620