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Talks have been under way for the better part of a year for the county to sell the district to Water District No. 3 and the city of Pacific, with half going to each political entity or either of the two buying the entire sewer district.
The city and water district agreed to a division of the district with the north side of Interstate 44 going to Water District No. 3 and the south side of the interstate going to Pacific.
The city would continue to process all of the wastewater collected in the district in its sewage-processing lagoon.
Sales talks first stalled when Adams said he would not move forward with the sale until a town hall type meeting was held with the sewer district users. He said Brush Creek customers had not been fully informed on the financial realities of the district.
The mayor also predicted that rates would have to be raised because the county has been subsidizing the district and he did not want Pacific to be blamed for the sewer rate hike.
The county called for an immediate sale without a public meeting. When Pacific officials did not attend the meeting, the county agreed to sell the entire sewer district to the water district.
Pacific pulled out the 1970s Brush Creek Watershed Study known as the 208 Plan, which assigned the city of Pacific to manage the wastewater development of the Brush Creek watershed.
Both county and water district officials expressed their frustration at the Sept. 23 meeting, saying that they would like to move forward with the sale. Pacific officials were not present for the meeting.
The county wants to know Pacific's intent with relation to sewer district ownership, according to Hillhouse.
"If Pacific wants to buy all or half the sewer district we'd like to know it," he said. "If they (Pacific officials) continue to hold up the final outcome and claim they can stop new hookups on the system, then they're stifling economic development in the east end of the county, the very thing they say they want."
Hillhouse said the Brush Creek Sewer District Board had instructed Rich Wilson, county public works director, that the district hold no more public meetings to discuss the sale until the water district board and the Pacific Board of Aldermen declare in a public meeting what their intentions are.
Adams said he does not want to move forward until the county has a truthful discussion with sewer district customers about the cost to operate the district.
"A rate increase is inevitable for those customers," Adams said. "Whether the county keeps the sewer district or we buy all or half of it, the rates will have to be increased."
The mayor said he does not want the city of Pacific to buy the sewer district and immediately have to raise the rates.
"He doesn't want to look like the bad guy," Hillhouse said. "I can understand that, but I'm not sure we agree on the need for a rate increase."
"I've been saying for two years that Pacific is ready to move the issue forward, but the right way to do that is to involve the users," Adams added. "The users need to understand that there will inevitably be an increase in their rates."
The mayor said when sewer rates were raised to meet the operational costs it should be the county to tell the users, not the city of Pacific.
"Even if nothing happens and the county retains ownership of the sewer district, it is inevitable that there will be a rate increase," Adam said. "The users need to know that and it is the county that should make that disclosure to them."
Hillhouse said he is willing to address a rate increase, if that's what it takes to conclude the deal.
"But I'm not convinced that a rate increase is warranted. We're not going to increase the rates just to be increasing them," Hillhouse said. "The mayor is right that the cost to operate the district exceeds revenue, but there are two things we're addressing on the cost issue. I think we may be closer to meeting the cost than Pacific realizes."
One factor that affects the inadequate revenue is the number of sewer district customers who don't pay their bills.
"It appears that those are mostly business customers," Hillhouse said. "We took action that would allow us to shut off service to those customers. They won't be able to operate their businesses without paying their sewer bills."
Another place where the district operating cost can be reduced is with the stormwater infiltration.
"There is an inordinate amount of stormwater infiltration from older portions of the system," he said. "Those can be improved and we're taking steps to make those improvements."
When all is said and done, if a rate adjustment is what it takes to close the deal, the sewer district is probably ready to make an adjustment, according to Hillhouse. "Once we justify that a rate increase is needed."
Adams said his staff also is reviewing the possibility of Pacific leasing the sewer district rather than buying it.
Another aspect of cost to operate the sewer district is the number of customers.
"We're serving 900 people in a pretty wide area," Hillhouse said. "And this area is prime for economic growth, more industry, more jobs, more houses. A larger number of customers would reduce the fixed costs by spreading it over a greater number of users. We need to decide whether we're going to grow in this area or not."
