Editor's note: The following story appears in the July 1 Scottsdale Independent. Post comments by hitting reply in the upper right-hand corner. Comments will be posted in an upcoming issue of the Scottsdale Independent.
Water Controversy: City studies Arizona American takeover
Scottsdale leaders seek improved sustainability efforts
By Zach Colick
Independent Newspapers
A preliminary proposal by Arizona American Water Co. that asks the city of Scottsdale to assume water treatment operations at the company’s Miller Road Treatment Facility isn’t sitting well with some city leaders.
Rather than operate a single treatment facility for the private company, some local officials feel the city would be better served by simply buying the company outright and taking over all water operations in Scottsdale.
Arizona American officials met June 24 in front of the Scottsdale City Council’s subcommittee on water issues and discussed a plan that would allow water from the PCX-1 well at the Miller Road Treatment Facility to be treated at the city’s Chaparral water treatment plant.
The water would then be transferred back to the Miller Road Treatment Facility before making its way to more than 2,600 Scottsdale homes served by Arizona American. The private utility company would pay the city an undetermined fee for the service.
“They’re basically proposing the city take the keys and operate the facility,” said Councilman Bob Littlefield, who also sits on the water subcommittee.
The proposal is controversial in the eyes of subcommittee members Ron McCullagh and Mr. Littlefield, as the PCX-1 well was the well in which TCE contaminants were found in January 2008 after a malfunction occurred at the Miller Road Treatment Facility.
The incident prevented many Scottsdale and Paradise Valley residents from drinking their tap water for several days before the matter was resolved.
“The fact that my residents were exposed to that is a problem,” Mr. Littlefield said.
Mr. Littlefield feels the contamination incident left many residents with a bad impression of Arizona American and some still question the private company’s ability to deliver quality water.
He thinks Arizona American wants the city to take over operations of the plant in order to regain customer confidence.
Mr. Littlefield and Mr. McCullagh, who is an Arizona American customer, fear the city could face additional liability if it assumed control of the treatment facility.
The city, they say, could be liable for anything that went wrong during either the treatment or delivery of water.
“Who knows what condition the Miller Road Treatment Facility is in,” said Mr. Littlefield, noting the transaction costs are not close to being quantified. The EPA, he added, has to approve the transaction in the first place.
It could take the EPA up to six months to decide on the issue, according to Mr. McCullagh.
“It might be 2011 by the time we sink our teeth into this,” he said.
Rather than operating one well on Arizona American’s behalf, Mr. McCullagh and other city leaders believe the city should look into condemning or taking over Arizona American’s operations altogether through eminent domain.
The possible business transaction comes on the heels of an announcement last week that the city is still pursuing plans to condemn or possibly take over Arizona American’s local operations.
It is unclear whether the city would pursue taking over operations solely in Scottsdale or also in nearby Paradise Valley. Both communities are part of the Paradise Valley Water District.
The completed $311,000 study by Carollo Engineers, P.C. and FCS Group, which was awarded July 1, 2008, to consultants to determine whether the city should take over operations, was reviewed June 24 during a closed-door executive session.
Arizona American President Paul Townsley said he supports working cooperatively with the city, EPA, SRP and Motorola for a shared resource and to solve the issue of a dwindling groundwater supply in Scottsdale.
His company would continue operating its other wells to deliver water to nearby Scottsdale and Paradise Valley customers.
But Mr. Townsley denied any suggestion that his company is for sale and strongly urged city leaders to drop any efforts to take over the company.
“I urge you to end any attempt to implement eminent domain. I don’t even understand buying something you already have,” he said to the water subcommittee members. “The company is not for sale, and this decision is not in the best interest for the city or the taxpayers.”
While the TCE contamination incident was the starting point for discussions about acquiring Arizona American outright, Mr. McCullagh said Arizona American’s inability to deliver surface water to its residents vs. constantly pumping groundwater is not a sustainable practice for the future.
Mr. McCullagh said Arizona American’s presentation in front of the city’s water committee was “superficial.”
He and other committee members wanted to drive home the point that constant pumping of groundwater creates long-term problems for Scottsdale, which has a limited groundwater supply.
Overpumping groundwater in the area has created fissures and subsidence in north Scottsdale. Some worry it will draw contamination from a nearby Superfund site into city wells or simply dry up wells altogether.
“I don’t know why we want to treat their water for their customers,” Mr. McCullagh said. “If so, why not just take over their operations?”
Mr. McCullagh and Mr. Littlefield also want to make sure the plume of TCE generated decades ago from Motorola and which sits underground in Scottsdale is controlled so it does not spread farther north into north Scottsdale.
All options, including condemnation, city takeover or agreeing to Arizona American’s proposal, are still on the table as the consulting study is still incomplete.
The subcommittee does not make the final decision; rather it will make a recommendation to the City Council.
Last edited on Mon Jun 29th, 2009 09:28 pm by Zach Colick
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