HOA claims sewer company shorted homeowners on refund
by Brian DiTullio

CAREFREE – Residents of Carefree Inn Estates believe they were shortchanged by Black Mountain Sewer Company regarding refunds ordered by the Arizona Corporation Commission.

Tom Van Dyke, president of the Carefree Inn Estates Homeowners Association, presented a letter to Carefree Town Council at its regular meeting Aug. 7 which states the HOA received only one refund for the entire 33‑home subdivision.

Van Dyke said he has contacted other HOAs within Black Mountain’s service area and found all individual homeowners received a refund. He added that an attempt to speak with company representatives was turned down and he was informed the refund given his HOA was appropriate.

The catch is, Carefree Inn Estates HOA has all homeowners’ charges combined into one bill from Black Mountain Sewer, which is paid by the HOA, and the company considers it one account; therefore, only one refund check of $412.15 was issued instead of 33 separate checks totaling $13,600.

“We thought you should be aware of this,” Van Dyke said in addressing the council during call to the public.

In December 2006, the corporation commission ordered Black Mountain Sewer to refund unused development fees to its customers totaling $833,367. In addition, as part of a rate‑hike decision, the commission imposed a six‑month time period for the company to fix odor problems in the Boulders and Carefree Inn Estates subdivisions.

The commission’s decision reads, in part, “the proposed refund should be calculated on a per customer basis, irrespective of customer class.”

Van Dyke states in his letter that he is officially notifying town council “of the non‑performance of our community’s sewer utility service. BMSC’s lack of integrity and responsibility for one HOA in our community reflects a corporate attitude of deception and character that is not acceptable in the town of Carefree.”

Town Manager Jon Pierson said Carefree will be asking the commission to issue an opinion on the matter because of the HOA’s unusual method of handling the monthly service bill. As for the odor problem, Pierson noted some repairs have been made involving airflow.  

Council members made no comment regarding the disputed refund, as Arizona law prevents a political body such as the town council from discussing items during call to the public that are not on the meeting agenda.