Ferriday water rates on the rise

Published 12:03 am Wednesday, May 9, 2012

FERRIDAY — Following estimates based on slippery numbers for water consumption in the Town of Ferriday, residents should expect to see a $6 increase on their monthly water bill starting June 1.

At a public hearing about the rate increase at the Ferriday aldermen meeting Tuesday, one audience member asked if the rate would double the current rates once the new meters kick in approximately three months.

“Rates are not going to double, people are going to be paying for what they get,” Mayor Glen McGlothin said.

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Currently, Ferriday residents pay a flat rate, and some residents don’t monitor water usage because meters are broken. McGlothin said the town will be sending a letter in June letting residents know they’ll have to start paying for additional gallons they use in excess of 2,000 gallons once the meters kick in.

He said the warning should give residents time to rethink letting their garden hoses run and neglecting to fix leaking toilets and pipes.

McGlothin said currently the town doesn’t collect revenue on approximately 40 percent of water it pumps out and currently loses approximately $300,000 on water a year. When the new system and working meters are in place, the town should be taking in money on water.

The new rate, which the board voted unanimously to accept, will be a flat rate of $23.30 a month. Once the new meters are installed, residents will be charged $3.20 for each additional 1,000 gallons.

Because Ferriday has received a U.S. Department of Agriculture Rural Development grant of $5.2 million to pay for 75 percent of the new water system, the town must pay a third party operator to run the water system as required by the federal government.

JCP Management of Harrisonburg, the third-party, which was approved by the USDA and aldermen, will receive $23.75 from each customer as well as commercial rates and, eventually, rates for residents using more than 2,000 gallons. There are approximately 1,500 residential water meters in Ferriday.

Engineer Bryant Hammett said when publicizing the official request for proposal he attempted to use his industry connections attract more bids for the operating contract to get competitive rates.

“To be candid, I couldn’t find a lot of people interested in running the Ferriday water system,” Hammett said.

Hammett said he knew JCP owner Glen Womack and trusted him.

Hammett also said that the rate the aldermen voted on is subject to change, especially since it’s based on numbers that were difficult to estimate.

“There’s such a poor record about water (consumption) in Ferriday, nobody has a crystal ball,” Hammett said.

Therefore, the rates are subject to negotiation and can be adjusted if the analysis they used to calculate the new rate proves to over or under estimate the cost.

USDA Rural Development Louisiana State Director Clarence Hawkins, who attending at the meeting to answer questions, said the federal government will regularly check up on the operation of the facility and see to it that rates are fair.

“We’re not going to let you get ripped off,” Hawkins said.

The project will also be paid for with a $1.3 million loan from the USDA, $150,000 from Walmart funds and a $250,000 grant from the state Local Government Assistance Program.

The new water wells and water treatment plant could be under construction by the end of this year, Hammett said.

In other business, McGlothin introduced an ordinance to have an elected police chief. The board did not take action on it. The ordinance proposal will be publicized for 30 days before any action is considered.