Under threat of litigation, the Rock Hall Town Council, which also serves as the Utilities Board, passed a motion by a 3-1 vote on Monday to recoup water and sewer fees that were discounted to four out-of-town customers back in 2009. The rates were reduced to the in-town rate, which amounted to a 50 percent rate cut.
Councilmen Brian Jones, Brian Nesspor, and Olin “Butch” Price voted to recoup the discounts — but Councilwoman Susan Francis voted against. Mayor Robert Willis abstained because his family business was one of the four accounts to receive the rate reduction.
The rate cuts were a result of a request made in May of 2009 by Art Willis, who owns the Sailing Emporium along with his son, Mayor Willis.
Mayor Willis was a councilman when he served on the utilities board in 2009 and he also abstained from voting on the rate reduction then.
As a result of approving Art Willis’ request, three other accounts received the rate cut by default.
The threat of a lawsuit was initiated by five local residents (Gren Whitman, Plotczyk Anita Gottlieb, Kate Johnson, and Linda Buckle) after they determined back in July that the decision to approve the lower rates was procedurally flawed and therefore illegal. Local resident Anita Gottlieb discovered the 2009 rate cuts after she called Art Willis on public statements he made that the Sailing Emporium was a paying a “multiple of the in-town rate for the water and sewer services delivered” to his marina.
“Only if the town had changed the code was there a legal basis for reducing anyone’s sewer fees outside of the town limits [and] that did not happen,” said Elise Davis, attorney for the five residents, at the July 22 council meeting.
The discounts have grown to about $15,000 over the past four years and the Sailing Emporium’s share has exceeded $9,000.
Monday’s vote clears the way for the council to determine interest rates and fees associated with recouping the discounts, said the town’s attorney, Charles “Chip” MacLeod.
The council will soon vote on a resolution to establish repayment terms that are fair, especially to the three customers who’ve been caught in the middle of the dispute through no fault of their own.
Price said in a phone interview with Spy on Wednesday that he would try to get good payment terms for all four customers.
“My personal thoughts are that all of the customers should be given five years to pay,” Price said. “We don’t want to put an unfair burden on any of the customers. We thought [the discounts] were the right thing to do in 2009, but apparently it was not.”
“But if we don’t do this, we will lose a lawsuit,” Price said. “This whole thing leaves a bad taste in my mouth and the three of us feel just terrible ”
Francis also agreed with Price that the decision in 2009 may have been flawed but she rejected the idea of turning the responsibility back to the customer
“…It was an unfortunate decision on the town’s part in 2009, but we should not financially punish the residents and business owners,” Francis said in an email to the Spy on Wednesday. “It is unfair to ask the account holders to pay back something they never requested. Its like giving a gift and then asking someone to pay it back four years later.”
MacLeod advised the council at Monday’s meeting that there was a good argument to recoup the revenue and avoid litigation.
Below is a video of the discussion about recouping the water and sewer fees. The video is about 12 minutes.
William Merritt Ashley Jr. says
Editor,
I may not be the sharpest tool in the shed but it seems that four people (other than Council Members) can dictate policy for a town that has duly elected officials sworn to do that job. That’s like me saying, that cabin I sold you last year for x dollars is now 4x dollars but I’m going to give you four extra quarters to pay me.
Besides all this Chip McLeod (town attorney), who do you work for?
Robin Wood Kurowski says
Editor,
I was not present at the last Mayor and Council meeting which I am told that was on Wed, Oct 9. From the sounds of it, a Spy reporter was present to report.
I hear that Mr. Willis brought his attorney that specializes in government/public policy and works.
It there an update for this story?