Stephens City water committee rejects FCSArates, urges $9.25/1,000-gallon charge for quarry withdrawals

The Stephens City Water & Sewer Committee voted April 18 to formally reject the Frederick County Sanitation Authority's proposed FY2019 rates and to ask Town Council to increase the charge for water withdrawn from Town quarries by the Authority to $9.25 per 1,000 gallons.

Committee members said a draft open letter to residents is intended to correct what they described as misinformation in local media and, in committee minutes, accused the Sanitation Authority of "illegal withdrawal of water from Town quarries" and "erroneous and fraudulent billing." The committee made minor edits to the letter, approved it for distribution and asked staff to collect Council signatures and mail the letter with tax records by April 20.

At the same meeting the committee unanimously agreed to protest FCSA's FY2019 water, wastewater and debt-service rates, insisting Stephens City be treated as a wholesale customer rather than under commercial/retail rate schedules. The committee also asked staff to provide an updated statement of account showing amounts due the Town.

"The committee concluded the rates are arbitrary and capricious and directed staff to send notice to the Authority that the Town demands wholesale-customer status," the minutes say, attributing the positions to committee members and staff.

The committee's recommended $9.25 per 1,000-gallon rate for quarry withdrawals, if adopted by council and sent to the Authority, would take effect in 30 days, according to the minutes. The recommendation was made after discussion of historical billing worksheets and debt-service allocations provided by FCSA and Frederick Water, which the committee reviewed as supporting documentation.

A March 29 letter from Frederick Water Executive Director Eric R. Lawrence attached to the record shows Frederick Water planned to apply its commercial/industrial rate schedule to Stephens City water purchases for FY2019 and lists the Town's meter accounts. The FCSA worksheets and exhibits in the record itemize depreciation, operating costs and debt-service allocations at the Parkins Mill treatment plant and related facilities; one FCSA worksheet calculates a Stephens City wastewater rate and a monthly debt-service charge attributable to the town.

Committee Chair Jason C. Nauman and legal counsel asked staff to send the rate protest and the citizens' letter and to provide the council with options for next steps, including a notice that the Town expects to be billed and treated as a wholesale purchaser. The minutes direct legal counsel and the town manager to prepare letters to the Authority.

The committee's actions set up an intergovernmental dispute that could change how the Sanitation Authority bills for quarry withdrawals and wastewater service. The Town's next steps hinge on whether Town Council endorses the recommended rate change and on any formal response from the Authority.

Sources: Water & Sewer Committee minutes, submitted FCSA and Frederick Water worksheets and correspondence.