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Sanitary district’s<br>total revenues down

The South Grand Canyon Sanitary District saw total revenues fall 10.7 percent and a net loss of more than $69,000 during the last fiscal year, the board of directors learned at its meeting Wednesday.

In a presentation by the accounting firm Frost and Palmer, it became obvious that the events of Sept. 11, 2001, negatively impacted the sanitary district, just as it did every other entity in the area. The net loss of $69,189 included interest expense of $113,491 and interest income of $11,455.

However, even with that negative number, the district had a positive cash flow. Net cash flows for the fiscal year came in at $43,833, up from the previous year’s total of $42,234. The district’s assets were listed at $4.98 million with $4.29 million of that in the form of property, plant and equipment.

The district was negatively impacted by lower interest rates earning $11,588 less interest income.

The figures presented to the board were in preliminary draft form and not final.

"Waste Management is gone, so there’s less revenue, but with increased rates and fees, we hope to make up for that," said the board’s Pete Shearer.

The district did spend some money on improvements, such as a new employee trailer and reconfigured fencing. In the future, the district will be spending money on RP Drive, the road it recently acquired, and other things such as landscaping around the plant.

On the subject of money, the district is fighting for an $8,400 payment from Waste Management, the trash disposal company that holds a lease with the district for storage of its equipment.

Tusayan Wastewater Treatment Plant superintendent Bob Petzoldt said a deadline of Dec. 15 had passed for payment. A payment of $6,000 was being sought, even though the bill stands at $2,400 more.

Petzoldt said Waste Management’s Melody Deaton stated past-due rent through Oct. 2 would be paid. But on Dec. 17, Petzoldt said Deaton wanted to further negotiate the invoice.

Petzoldt told the board if payment is not received, the next step would be to go after the value of the entire 10-year lease, which is worth $144,000.

In a waste disposal meeting held later in the day, Waste Management officials were confronted with the non-payment issue.

"Waste Management is getting caught up in policy because it’s so big and stopped paying its lease to the district," Petzoldt said. "That hurts us when we don’t get revenue we expect. You stopped payment but left the equipment there."

Pat Burke, market area general manager for Waste Management, said he was made aware of the debt in mid-November when he received a letter from the district. The company’s equipment was soon thereafter removed from district property.

"We made the decision to move out back in the spring," Burke said. "Our records show we paid through June. On May 20, we made payment for June. We stopped using it sometime in June."

Burke then made reference to a former employee who was supposedly the only person who knew equipment remained at the site.

"I didn’t ask you to get the stuff off, I asked for you to make payment," Petzoldt said. "We’re a small community, a nonprofit organization. To stick it to us like that (does not allow us) to lease it to someone else. We would’ve liked to solicit the lease site."

Burke said the district was supposed to have been notified last spring of Waste Management’s decision to vacate the spot. However, Petzoldt said no such notification was received.

Greg Bryan, a local businessman and member of the Grand Canyon Chamber of Commerce, said "on behalf of the community, this is an important factor for us" and asked for Waste Management to provide documentation of any notification.

"There were discussions with the sanitary district and certain requirements that never happened and the lease never executed," Burke said.

Petzoldt said the lease cannot be located in the district’s files, but added "the point is, you had the stuff out there until mid-November and should pay rent on that."

Burke ended the conversation by saying, "I’m not going to stand for blackmail or whatever," adding that he did not like the sanitary district to make the representation that there is an existing lease.

The exchange between Petzoldt and Burke occurred at a public waste disposal meeting where community members could listen to proposals. Waste Management was heavily criticized on several fronts at the meeting.

In other news from last week’s sanitary district meeting:

o Barry Baker, who is spearheading an effort to fund a co-regeneration plant feasibility study, said that effort will be held off until the new year.

o The board agreed to put its old mobile home up for sale, using a public bid process and advertising in a newspaper.

o Petzoldt gave an update on the district’s dealings with the airport and its sewer system. The airport faces a consent order deadline of Feb. 1 for testing and repairing manholes and sewer lines. Petzoldt said the airport was expecting contractors to complete the work in mid-January.

o The acquisition of R.P. Drive continues with split paperwork submitted on Nov. 19 and attorneys working on legal papers for deeds and the abandonment of the Squire easement.


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