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Killearn, Clayton at impasse
By Donald Fraser Staff Writer
Killearn Inc., and Clayton city officials are still at loggerheads over water and sewer rates for Kingwood Resort.
Killearn approached Clayton about receiving city services before its purchase of the resort, said J.T. Williams, president and board chairman.
The company developed Waterfall Country Club on Highway 76 West and redeveloped Kingwood Resort, a formerly defunct golf resort on Highway 76 East.
Clayton's approval of the water and sewer service contract "was an inducement for me to come in and purchase Kingwood Resort," Williams said.
Williams said both the county and city governments recognized that revitalizing the defunct property would provide jobs and help the local economy.
A Nov. 30 letter to Williams notifying him of Clayton's plans to raise Kingwood's sewer service rate must be based on a "misunderstanding between us and the city," Williams said. He said his contract with the city "calls for a fixed base rate" and that the city "can't arbitrarily increase fees."
In a Dec. 10 letter to Clayton, Williams wrote "we have reviewed the contract and it is our opinion you cannot increase the base rate for the 2,000 gallons of sewage usage."
"In addition, the (rate) increase" would have "to be reflective of your actual cost increases," he added.
"I read the letter," said Clayton Mayor Tom Ramey Sr. "We are of the opinion that we can (increase rates)." Paying the loan for the pipeline and pumping station "is something we feel is his obligation to carry."
"We feel what we are doing is right," Ramey said of the decision to increase sewer rates for Kingwood. The rate increase "would keep us being solvent" on the loan.
Clayton's quarterly loan payment to the Georgia Environmental Facilities Authority, which funded the project, is $23,301.
Kingwood Resort's $6,151 sewer service base rate, which is supposed to furnish enough revenue to offset Clayton's sewer infrastructure loan from GEFA, falls short $1,616 monthly, Ramey said.
City Manager Cissy Henry said Kingwood was receiving $1,000 worth of free sewer service monthly.
Clayton and Killearn entered into a $927,000 contract in February 2000 for the construction of water and sewer lines to Kingwood.
Councilwoman Armede Bynum requested a notation that the meeting minutes reflect that project expenses would be paid by Kingwood, not Clayton. However, missing council minutes and information from GEFA leaves Clayton without all the information necessary to justify raising rates for Kingwood.
"Until they get all their facts," Williams said no decision should be made.
Williams said another misunderstanding was council "thought the loan was to serve only Kingwood." The installed pipeline and sewage pumping station "is about 20 times the capacity that Kingwood would ever use."
Information from GEFA will probably show part of the loan "proceeds went for capacity increases." That increased capacity was intended to allow other residents on Highway 76 East to tap onto the sewer system, Williams said.
Because the loan paid for a project that would allow other customers than Kingwood to tap onto the sewer system, Kingwood should pay "most of the loan, but not all of it," he said.
Killearn approached Clayton about receiving city services before its purchase of the resort, said J.T. Williams, president and board chairman.
The company developed Waterfall Country Club on Highway 76 West and redeveloped Kingwood Resort, a formerly defunct golf resort on Highway 76 East.
Clayton's approval of the water and sewer service contract "was an inducement for me to come in and purchase Kingwood Resort," Williams said.
Williams said both the county and city governments recognized that revitalizing the defunct property would provide jobs and help the local economy.
A Nov. 30 letter to Williams notifying him of Clayton's plans to raise Kingwood's sewer service rate must be based on a "misunderstanding between us and the city," Williams said. He said his contract with the city "calls for a fixed base rate" and that the city "can't arbitrarily increase fees."
In a Dec. 10 letter to Clayton, Williams wrote "we have reviewed the contract and it is our opinion you cannot increase the base rate for the 2,000 gallons of sewage usage."
"In addition, the (rate) increase" would have "to be reflective of your actual cost increases," he added.
"I read the letter," said Clayton Mayor Tom Ramey Sr. "We are of the opinion that we can (increase rates)." Paying the loan for the pipeline and pumping station "is something we feel is his obligation to carry."
"We feel what we are doing is right," Ramey said of the decision to increase sewer rates for Kingwood. The rate increase "would keep us being solvent" on the loan.
Clayton's quarterly loan payment to the Georgia Environmental Facilities Authority, which funded the project, is $23,301.
Kingwood Resort's $6,151 sewer service base rate, which is supposed to furnish enough revenue to offset Clayton's sewer infrastructure loan from GEFA, falls short $1,616 monthly, Ramey said.
City Manager Cissy Henry said Kingwood was receiving $1,000 worth of free sewer service monthly.
Clayton and Killearn entered into a $927,000 contract in February 2000 for the construction of water and sewer lines to Kingwood.
Councilwoman Armede Bynum requested a notation that the meeting minutes reflect that project expenses would be paid by Kingwood, not Clayton. However, missing council minutes and information from GEFA leaves Clayton without all the information necessary to justify raising rates for Kingwood.
"Until they get all their facts," Williams said no decision should be made.
Williams said another misunderstanding was council "thought the loan was to serve only Kingwood." The installed pipeline and sewage pumping station "is about 20 times the capacity that Kingwood would ever use."
Information from GEFA will probably show part of the loan "proceeds went for capacity increases." That increased capacity was intended to allow other residents on Highway 76 East to tap onto the sewer system, Williams said.
Because the loan paid for a project that would allow other customers than Kingwood to tap onto the sewer system, Kingwood should pay "most of the loan, but not all of it," he said.
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