BULLHEAD CITY – The Bullhead City council has approved a staff recommendation to seek $90 million in bond financing to move forward with a court approved condemnation of the local assets of the Epcor water company. Tuesday’s vote was unanimous.
“This is one of those landmark votes of the city council,” said city manager Toby Cotter. “This is one of the most important steps in the process of acquiring the Epcor water system.”
A trial jury early next year will determine the specific amount Bullhead City must reimburse the company for the hostile takeover. The city has argued in favor of a $55-million buyout while Epcor contends the assets are well worth double that amount or more.
Cotter said $80 million will be used to advance transition to municipal ownership and management. The other $10 million is earmarked for miscellaneous costs, including legal fees and funding development of a master plan for the water company.
Cotter said all involved are confident the city will be able to get the bonds issued at a reasonable interest rate of 3% or less. He told council members staff will work to complete the takeover as quickly as possible, though he said he could not outline a timetable.
Dave Hawkins
