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RESOLUTION NO. 1991 -30
A RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE TOWN 0 PO IN
HILLS, RELATING TO THE ARIZONA CORPO TION S ON, nffl
RESIDENTIAL UTILITY CONSUMER OFFICE ES Y ARRAL
CITY WATER COMPANY FOR A WATER RATE I / C /
WHEREAS, Chaparral City Water Company as r�ques e r e i crease d
said rate increase must be approved by the A izona Cor a C ission' and
WHEREAS, The Residential Utility Consumer Office h i di ated t t there
are some unresolved questions relating to the inclusion f all Cent 1 Arizona
Project costs in the rate base; and
WHEREAS, The Mayor and Common Council wish to state there position on this
matter;
NOW, THEREFORE, BE IT RESOLVED that the Mayor and Common Council of the
Town of Fountain Hills respectfully request that the Arizona Corporation
Commission consider taking whatever action it deems appropriate to allow the
Residential Utility Consumer Office to fully present its case as to why some or
all of the Central Arizona Project costs should not be included in the water rate
base as presently proposed by the Arizona Corporation Commission staff.
PASSED AND ADOPTED this 16th day of May, 1991, by the Mayor and Common
Council of the Town of Fountain Hills, Arizona.
ATTEST:
Cassie B. Hansen, Town Clerk
APPROVED AS TO FORM:
William E. Farrell, Town Attorney
REVIEWED BY:
Paul L. Nordin, Town Manager
John M. Cuti llo, Mayor
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RESOLUTION NO. 1991 -30
A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF THE TOWN
OF FOUNTAIN HILLS, RELATING TO THE ARIZONA CORPORATION
COMMISSION, AND THE REQUEST OF CHAPARRAL CITY WATER
COMPANY FOR A WATER RATE INCREASE. (DOCKET # U- 2113 -89-
212)
WHEREAS, Chaparral City Water Company has requested a water rate
increase and said rate increase must be approved by the Arizona Corporation
Commission; and
WHEREAS, the Residential Utility Consumer Office ly did
not request to intervene and become a party to this Case, thus did not appear at
a Pubic Hearing held April 11 and 12, 1991, and now desires to present evidence
and discussion as to the degree of inclusion of Central Arizona Project costs
into these rates or those of future requests; and
WHEREAS, Presiding Hearing Officer Rudibaugh stipulates that evidence
as to how to apportion CAP costs was not presented at the Hearing;
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
TOWN OF FOUNTAIN HILLS, ARIZONA, THAT the Common Council of the Town of Fountain
Hills respectfully requests that the Arizona Corporation Commission reopen the
Public Hearing on this rate case and allow RUCO to fully present
options on the method of handling CAP costs in water rates used in Fountain
Hills.
PASSED this 16th day of May, 1991 by the Mayor and Council of the
Town of Fountain Hills, Arizona.
John M. Cutillo, Mayor
REVIEWED BY:
Paul L. Nordin, Town Manager
ATTEST:
Cassie B. Hansen, Town Clerk
APPROVED AS TO FORM:
William E. Farrell, Town Attorney
3 nk a-x *k
RESOLUTION NO. 1991 -30
A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF THE TOWN
OF FOUNTAIN HILLS, RELATING TO THE ARIZONA CORPORATION
COMMISSION, AND THE REQUEST OF CHAPARRAL CITY WATER
COMPANY FOR A WATER RATE INCREASE. (DOCKET # U- 2113 -89-
212)
WHEREAS, Chaparral City Water Company has requested a water rate
increase and said rate increase must be approved by the Arizona Corporation
Commission; and
WHEREAS, the Residential Utility Consumer Office did not request to
intervene and become a party to this Case, thus did not appear at a Pubic Hearing
held April 11 and 12, 1991, and now desires to present evidence and discussion
as to the degree of inclusion of Central Arizona Project costs into these rates
or those of future requests; and
WHEREAS, Presiding Hearing Officer Rudibaugh stipulates that evidence
as to how to apportion CAP costs was not presented at the Hearing;
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE
TOWN OF FOUNTAIN HILLS, ARIZONA, THAT the Common Council of the Town of Fountain
Hills respectfully requests that the Arizona Corporation Commission reopen the
Public Hearing on this rate case and allow RUCO to fully present options on the
method of handling CAP costs in water rates used in Fountain Hills.
PASSED this 16th day of May, 1991 by the Mayor and Council of the
Town of Fountain Hills, Arizona.
John M. Cutillo, Mayor
REVIEWED BY:
Paul L. Nordin, Town Manager
ATTEST:
Cassie B. Hansen, Town Clerk
APPROVED AS TO FORM:
William E. Farrell, Town Attorney
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To Fountain Hills Citizens and the Arizona Corporation Commission:
RE: PROPOSED WATER RATE INCREASE
The Council has noted an increased amount of community discussion over the proposed water
rate increase. The Town Council has diligently endeavored to promote a spirit of fairness
and cooperation in the community. We suggest to all parties involved that if those
qualities of cooperation and fairness are applied in this situation, that a positive
outcome will be the result.
It is important for all interested parties to understand some essential elements in this
process. The Arizona Corporation Commission, with its three elected Commissioners, has
total and complete authority in this proceeding. It is the Corporation Commission that
will make the final decision in this matter. It is important to note that the Town Council
has no, and we repeat no, authority whatsoever to schedule any rehearing or any other type
of proceeding in this matter.
The Residential Utility Consumer Office (RUCO) is charged with the responsibility to be
the "consumer advocate" in these matters before the Commission. In this case, RUCO has
publicly admitted their error in not entering this case sooner. However, they are now
actively involved and they are now providing significant input into the process.
The Council and senior town staff have taken the time to review these proceedings. This
review clearly shows that this matter is complex and deserves careful consideration. It
is also our view that the present proceedings, while arguably flawed in some areas, adhere
to a basic doctrine of fairness and impartiality. The recently released proposed order
issued by Hearing Officer Rudibaugh represents an understandable and reasonable attempt
at compromise. RUCO's efforts to represent the Fountain Hills consumers in this case is
laudable, and the Council would not oppose RUCO's attempts to pursue whatever options it
feels are fair and appropriate.
The Council would also encourage both RUCO and Chaparral City Water Company to carefully
examine Hearing Officer Rudibaugh's logic and in the spirit suggested by Mr. Rudibaugh's
opinion, continue to treat this situation in a reasonable and fair manner. The Council
commends the Corporation Commission members personal interest in this case. It is noted
that all three elected commissioners participated in the proceedings before Hearing Officer
Rudibaugh. We are certain that Corporation Commissions' final decision will embody the
concepts of fairness and reasonability.
To our Fountain Hills citizens, we encourage all of you who are interested to take time
to study both sides of the issue and, regardless of the outcome, do all you can to preserve
a very precious natural resource, our water.
Sincerely,
John M. Cutillo
Mayor
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(This letter was approved by the Fountain Hills Town Council on 5/16/91.)