Bullhead City intends to acquire water utility
BULLHEAD CITY – Bullhead City is preparing to go to court to try to take control of the assets of a local water company through eminent domain. The move is founded in voter approval last November for the city to seek acquisition of local EPCOR Water Inc., assets.
City Manager Toby Cotter told the City Council March 3 that a valuation effort resulted in a $55-million municipal acquisition offer. A company executive said the utility is rejecting what it believes to be a lowball offer, or any offer for that matter.
“EPCOR is not for sale. We’ve stated that many times in many forums, both public and otherwise, and we continue to have that as our position,” said Jeff Stuck, Vice President of operations for EPCOR. “We’re in the business of running water utilities and we’re not interested in selling our water utility. We will use any legal means available to retain our business.”
City Manager Toby Cotter said EPCOR resistance is futile. He said the law supports the city’s ability to take control of the utility.
“The city will acquire EPCOR through eminent domain. Arizona law clearly allows us to do that. The only issue not settled yet will be the cost,” Cotter said. “We will own their system. What will be determined in a Mohave County court is how much we will pay for it.”
Cotter reminded the Council that the takeover is motivated by EPCOR’s history of poor service and customer gouging.
“In Bullhead City, over the last four years, we’ve seen an approximate 90% rate increase by EPCOR, Arizona,” Cotter said. Following the meeting, Cotter said the city has prepared its condemnation action for Superior Court filing.
Stuck told the Council that Bullhead City will end up spending more on condemnation litigation than its $55-million offer to buy the utility.
- Dave Hawkins
