PUBLIC COMMENTS REGARDING: 

Arizona Corporation Commission

Re: Case WS-21182A-23-0292

To: Arizona Corporation Commissioners for Utility Companies

RE: Rate increase Requested by Foothills Utilities - case number above.

https://efiling.azcc.gov/online-services/utilities-public-comment-external

(File a COMMENT AT THE ABOVE LINK - Just copy and paste this right into the COMMENT SECTION. When signing, include your cross streets in the comments section so these signature count!!)

As a member of the community of Yuma County Fortuna Foothills,  I am presenting my opinions on the matter of the rate increases that Foothills Utilities (previously owned by Andrew and Paula Capestro doing business as:  Farwest Water & Sewer Utilities, LLC  at 3157 E 44th St, Yuma, AZ and still incorporated in the AZCC Database with Paula Capestro as President).  I am formally commenting with my opinions to the ADEQ efiling portal OPPOSING the Foothills Utilities requesting a rate hearing.  I am of the opinion that without the resolution of 23 years of FAILED, INFRASTRUCTURE OF WATER AND SEWER SERVICES, this rate hearing should not be approved.

In my opinion, my community needs resolution of the following things PRIOR to any rate increase, based on the history of this situation.

ONE – In my opinion, A TOTAL MORITORIUM ON issuance of permits to all commercial, residential or other development(s) that will add to the already OVERWHELMED SYSTEM. This sewer PLANT system, per YUMA County Deputy Director reached MAXIMUM daily sewer processing at 900,000 gpd the summer of 2023 and the Section 14 Plant was upgraded to 1.3M capacity.  In September 2023 after the Section 14 upgrade, sewage is being tanked between Plants, WWTPs nearly every early morning starting at 4:30am and after 8pm at night.     Last week the chronically reported high toxic levels of Marwood WWTP filled blocks of the community with toxic levels of H2S due to a major pump failure at Seasons because the main pump failed and the backup pump did not work.  The entire WWTP sewage contents was ‘vaulted, pumped and tank transported to Marwood. 

TWO – In my opinion, an investigation of ALL COURT ORDERED REPAIRS from 2 formal Consent Decrees, 2010 and 2013 which were allowed to remain self reporting with NO INTERIM management on site for ‘compliance acceptance with WWTPs, Plant and Collection systems were closed.  Yet, all sewer and water systems remain in 2023 in failed states WWTPS, collection systems and water system noted in the Decrees.  In June 2023, the AZCC hearing mandated 30 days for buyer and seller of the utility to write and present a formal plan for water backflow protection systems and submit it to the Yuma County officials and the AZCC (Arizona Corporate Commissioners for Utilities).
After a RUCO ordered outside engineering inspection in 2012-2013 during the AZCC ‘valuation hearing’ detailed a devastating lack of maintenance and continued structural failures; and, after the $40M mixed BAN and ‘Sewer Rate Increase ‘bailout’ of Capestro’s after he publicly announced ‘bankruptcy’, we have arrived in 2023 and the first  AG 2008 and an AZCC 2013 2nd ‘mandated’ Consent Decree of a Water Filtration system has never been installed and the closing of the sale mandated a water backflow solution program is going to result in an added burden for already paid for upgrades in past rate increases.  These prior and continued failures, in my opinion, need to be reviewed and confirmed by an independent Water/Sewer Engineers that ‘self reporting’ resulted in full compliance.  

THREE– In a public forum over 100 community members voiced their opinions that a full disclosure of full plans by Foothills Utilities as to HOW they are going to handle the 1600 NEW HOMES and the two NEW GAS STATIONS being added to an ALREADY GROSSLY OVERWHELMED SYSTEM for the Yuma County Planning Departments approval for rezoning for the Granite Development LLC (in the wash).  In commenting, I believe this is critical to our community.

FOUR – In my opinion,  Foothills Utilities must be REQUIRED BY AZCC AND AZDEQ to put forth plans to correct all of the HEALTH HAZARDS (H2S GAS) and TDS meter readings of 15,000,000 and a SPECIFIC TIME FRAME THAT THOSE MANDATES BE ACCOMPLISHED. And, a CERTIFIED WATER/SEWER ENGINEER MUST oversee these repairs and confirm that they have been completed.
 

My comments are in opposition to any rate increases for Foothills Utilities as doing so, would in my opinion present in community comments items directly related to this ENVIRONMENTAL AND HEALTH HAZARD IN OUR COMMUNITY - WE DO NOT WANT TO BE THE NEXT FLINT MICHIGAN.

 

UNRESOLVED CONCERNS CONTRIBUTING TO RATE INCREASE OPPOSITION:

 

5  In my opinion, THE SELF REPORTING isn't working based on one example:  the abandonment in 2023 stated by Gabe Martinez with Foothills Utility of The Rancho Encantada lift station because "it is too expensive to repair/maintain".  Rep. Tim Dunn began working with this community for a resolution long before the AZCC received a filing from NW Natural Waters, LLC for a rate increase.

In my opinion, without return visits for a formal inspection to confirm ‘self reporting’ of numerous infrastructure mandated repairs, 11 years The Arizona State Law for utilities to ‘self report’ and this has proven to be a failure for rate payers who continue to see the ‘compliance acceptance’ infrastructure in a continued failed state in 2023.

 The PROMISE of "we are working on it" – Enforced Onsite Inspectors confirming the ‘self reports’ to the AZCC or the AZDEQ to assure completion of the repairs/restructuring/updating with DEADLINES – Self Reporting is not ADDRESSING the HEALTH AND ENVIRONMENTAL HAZARDS THIS COMMUNITY IS FACING ON A DAILY BASIS.

Sewer smells that continue DAILY around major failures identified in 2013 and again in 2023 for lift stations.

It is a fact in the fall of 2023: Water TDS meter readings as high as 15,000,000 ppm. Making our water UN POTTABLE.

It is a fact that during the rate evaluation and rate hearing of 2012 and 2013 an engineering report by RUCO of a failing utility that was 'bankrupt' per the transcripts was rewarded with both a $21M BAN and a rate increase that 8,500 users have paid $55.55 per month since 2014.

 This revenue stream of the last 10 years totally $5,666,100 needs to be forensically audited to determine how much was spent ‘based completely on the RUCO formal engineering review.  

We believe this engineering full inspection is again overdue in 2023 to determine why this level of revenue is not only self sustaining but appears to be a huge profit for Foothills Utilities annually going forward.

 Increasing the sewer rates for historical failures ‘again’ is a punishment of the rate payers.  Increasing the sewer rates for ‘proposed land development’ is a punishment as this burden should be on the developer not the utility users.

In presenting my ‘comments’ I find our community is being punished as rate payers with an additional rate increase because apparently stock dividends are not what they need them to be for investors who bought the 'bundled utilities' stocks from the NW Natural Waters, LLC ‘tuck’ or bundling of utility stocks. 
 

I am  OPPOSED to this rate increase as our community, in my sincere believe of facts in evidence at the last rate hearings of the former Farwest utility, it is the rate payers who were punished and we deserve, in my opinion, a full accounting of Andrew Capestro's $85M in previous AZCC approved BANs which were infused capital to upgrade, repair, replace failing or failed infrastructure in sewer systems and for water protections.

Were the rate payers sewer revenues for Farwest now Foothills Utility used to pay back $85M BAN bonds sold to infuse capital financing for Farwest.  How is this possible when Farwest 'declared bankrupt'?

 Or, were the bond purchasers holding the debt and the bonds were defaulted? Did those stocks pay dividends to those BAN bond holders over the past 20 years, how much?

It is hard for any rate payer in my community to imagine that a company (Foothills Utilities or NW NATURAL WATERS, LLC) would buy another company (Far West Water) and not do due diligence. Being fully aware of what they were buying.

 I want to thank you for reading my comments and opinions related to this request for a rate increase.  I do not support further rate payer punishments from a utility that in my opinion should have had their license cancelled during the 2013 rate hearing or in 2018 after a community of 700+ rate payers turned out to publicly comments against a rate increase and again in 2021 when they were given another 25 license. 

ALL OF US SIGNED HERE, ARE REQUESTING THAT THE MEETINGS FOR THIS RATE INCREASE APPLICATION BE HELD IN YUMA, FOOTHILLS, WHERE THIS COMPANY SERVICES.

Thank you for considering this petition and these comments.

Respectfully submitted,

ALL OF YUMA FOOTHILLS COMMUNITY, YUMA AZ.