Sioux City and Big Ox Energy are trading accusations over a proposed 6.5% sewer rate increase for city residents.
Mayor Bob Scott placed the blame Monday during the city council meeting on the South Sioux City company which owes the city around three million dollars in unpaid fees and is currently not operating:
OC……because of that. :25
Kevin Bradley, the manager of the South Sioux Big Ox plant, sent a response late Tuesday night stating that they strongly deny that they are the cause of Sioux City’s proposed rate increase.
Bradley says Sioux City has billed Big Ox approximately $ 3 million for “surcharges” supposedly due to treating excessive “Total Suspended Solids” from the Big Ox facility in 2018.
He says the surcharge is based on a formula contained in a municipal statute and not on Sioux City’s actual treatment costs.
Bradley says Big Ox has repeatedly said it is willing to reimburse Sioux City for the actual additional costs that Sioux City incurred to process temporarily elevated levels of TSS, but for the past 7 months, Sioux City has refused to provide Big Ox with any substantiation or back-up of additional costs allegedly incurred by Sioux City.
The city has not issued a response to Bradley’s statement.