Editorial: Let’s break down Hazlewood versus City of Guthrie

By Chris Evans
Guthrie News Page

If you live in Guthrie, you likely have become well aware of the nearly eight-year water and sewer ordeal with the City of Guthrie and two Guthrie residents which made its way to the ballot during last week’s election.

There have been many articles written on this topic from several news outlets. I will try to organize what has happened in the past eight years, without all the legal jargon.

Patty Hazlewood and Karen Schandorf, among other citizens, became irritated when they were charged a Water Treatment Plant Fee of $7.50 per month on their utility bill despite not receiving water from the City of Guthrie. In which, I completely understand.

The fee, which helps pay off the $15 million water plant on S. Division St., was ultimately removed by the City for those non-water customers, but not until approximately 22 months later. One GNP reader does not recall receiving a refund (estimated total of $175). Their issue was a matter of principle rather than money. Again, I get it.

With her frustration of additional fees and handling of other City decisions, Hazlewood decided to run for city council and won. She served from 2009-13.

Hazlewood and Schandorf filed their petition on Sept. 7, 2008, seeking a charter change to require a vote of citizens before utility rates could be changed. The petition was circulated and collected enough signatures. However, the City denied it while questioning the petition’s validity, which brought on the lawsuit against the City.

In Logan County District Court, after two days of testimony in a non-jury trial, the court ruled in favor of the City saying if the initiative petition was in place it would create an undue burden on the City and Guthrie Public Works Authority (GPWA) that it would destroy the city’s ability to engage in the business of a utility.

As with many court cases, the decision was appealed to the Oklahoma Court of Appeals (OCOA).  Read the entire court document. In April 2015, they overturned the District Court’s decision and, ultimately, the petition was sent to an election for the people to decide on any proposed increase or decrease in water and sewer rates. Related story: Appeals court overturns decision on Guthrie’s water and sewer rate increases

Well, almost.

The election was held one week ago today. Nearly 60 percent of the voters (783-529), said they want a say in utility rates. Only one problem. The language appears to be incorrect. I say “appears” because I’m sure this item is the next to be discussed in a courtroom.

The petition that was passed around and signed by residents eight years ago was the exact same language that appeared on the Aug. 23 ballot. In that language it states, “This section shall constitute a limit on the legislative power of the City Council as to the matters included herein, and not otherwise.” Read the Initiative Petition (Sept. 5, 2008).

One problem.

The Guthrie city council does not set utility rates. The GPWA does. A judge has ruled that these two are separate and legal entities. Yes, the seven council members that make up city council are the same seven “trustees” that make up the GPWA. Is that right? Is that wrong? Depends on who you ask, but a court says they’re separate. Related article: Did last week’s election on future utility rate increases really determine an outcome?

If the petition had read GPWA it would be as clear as Guthrie water. Okay, cheap shot on a different topic.

Perhaps, this is why we never heard from City Hall educating voters about the election topic, or encouraging everyone to vote because it really was not going to change anything. The City did not care if the city council cannot raise rates, they never have.

The ballot was not written by the City, but was taken word for word from the petition that was authored by the Hazlewood camp and signed by residents. View Ballot

Will another court decide city council and GPWA belong under one umbrella? Updated new article: Hazlewood attorney: “They do not respect their constituents or the law” 

One idea for team Hazlewood that may speed up the process. Would it be quicker to drop this lawsuit, form another initiative petition with the correct language (GPWA), get the signatures and take it to another vote of the people?

We will find out one day, maybe.

Added Information

— “Guthrie Public Works Authority and the City of Guthrie are two distinct legal entities with two different areas of responsibility,” City Manager Bruce Johnson said in an email to Guthrie News Page. “The City of Guthrie is responsible for more purely governmental services (i.e. police, fire, ems, streets, parks, etc.) and the GPWA is an enterprise trust more closely related to business type services (i.e. water, sewer and sanitation).”

— WATER TREATMENT PLANT FUND

The Water Treatment Plant Fund is where the Water Treatment Plant Fee is collected.  In addition to this revenue, all revenue from the 2008 and 2014 water rate increase is transferred into this fund, which totals $950,000. The debt service for the new water treatment plant is paid out of this fund.  The debt service for this fiscal year is budgeted to be $1,300,000.

— CMOM

The CMOM Fund is the fund that was created for the large sanitary sewer line replacement project that was completed during the summer and is used for other allowable improvements. This fund is now used to collect the CMOM fee associated with these projects.  The fund is also where the CMOM project debt service is paid and where the annual sewer line improvement money is budgeted.  The CMOM fee per utility customer is $8.00 and the total annual revenue is estimated at $335,000