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Officials mull selling water to Aqua Ohio



Published: Tue, May 17, 2011 @ 12:05 a.m.

By David Skolnick

skolnick@vindy.com

YOUNGSTOWN

City officials are considering selling up to 2.2 million gallons of water daily to Aqua Ohio as part of a deal that includes a provision that neither would sell water in the other’s distribution areas in Mahoning County.

That kills any plans the ABC (Austintown, Boardman and Canfield) Water and Storm Water District had of purchasing bulk water from Aqua rather than from Youngstown.

“It was a complete surprise,” said Austintown Township Administrator Mike Dockry. Aqua “told us in a letter in 2009 that they’d be willing to sell water to ABC.”

Youngstown City Council will consider approving the contract at its Wednesday meeting. The deal then has to be ratified by the city’s board of control, said Mayor Jay Williams.

The city will sell the water with a 10-percent surcharge. Youngstown water customers outside the city — including those in Austintown as well as portions of Boardman, Canfield, Mineral Ridge, Liberty and Girard — pay a 40-percent surcharge.

“It’s a different type of customer,” Williams said explaining the difference in the surcharges.

The city expects to spend about $350,000 to $500,000 for its portion of the project that would connect its pipes with those of Aqua, said Youngstown Water Commissioner John Casciano. The project should be done by the end of 2012, he said.

The city expects to receive about $100,000 to $125,000 annually from the Aqua deal, he said. The city makes about $23 million a year in water sales.

The city sells about 17 million to 18 million gallons of water a day, Casciano said.

Al Sauline, Aqua’s local manager, played down the deal saying the company needs a back-up water source for its customers. The company sells 1.6 million gallons of water a day.

The company would use Youngstown water on an “as-needed basis” in cases of a waterline break or if its customers increase their demand for water, he said.

“We don’t anticipate needing [Youngstown water] every day,” Sauline said.

He also said it’s routine for water deals to have a “noncompete clause as standard language.”

Sauline also dismissed his company’s interest in possibly providing water to the ABC district.

“To be truthful, we’re looking at serving our base without expanding,” he said.

One of the key reasons for forming the district was concerns from officials in Austintown and Boardman about a potential joint economic development district concept proposed in March 2008 by Youngstown. The city wanted to use its water system to charge a 2-percent income tax to workers in Boardman and Austintown; something township officials vehemently opposed.

Youngstown officials dropped the proposal shortly after the complaints.

“This [Aqua] agreement on its face is to provide water. Period,” Williams said. “New sentence. We continue to believe regional cooperation, whether they be JEDDs or any number of other forms is the only way this area is going to advance. Our philosophy on economic regional cooperation remains unchanged.”

Before the JEDD study was released, city and Aqua officials engaged in a public spat with Aqua offering to buy Youngstown’s water system. The city rejected the offer.

“The past is the past and Youngstown and Aqua are working together toward a mutually-beneficial plan,” Williams said.

Sauline agreed saying, “I’m glad things have changed. We can’t afford an adversarial relationship.”


Comments

1CrestwoodRocks(107 comments)posted 2 years, 11 months ago

Doesn't Youngstown, Austintown, Canfield and Boardman all use the Meander Creek Reservoir for water?

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2Millie(192 comments)posted 2 years, 11 months ago

Here comes the JEDD to tax the suburbs.

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3palbubba(662 comments)posted 2 years, 11 months ago

The one thing this deal will facilitate is more spending by the water department in mostly wasteful ways. The one thing it won't facilitate is the reduction of rates to the consumer as rates recently went up in Youngstown by more than 8%. I guess 23 million dollars a year is just not enough. The article contains not one benefit for the consumer, which is very typical.

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4dd933(216 comments)posted 2 years, 11 months ago

The article in the Business Journal seemed to indicate that this deal would allow Aqua Ohio to expand their services. This article quotes Mr. Sauline as saying "we're looking at serving our base without expanding." Perhaps the young mayor should get more assurance that this deal is not going to be the cause of further urban sprawl. The whole county is losing population so when a new home is built & occupied in Springfield, Beaver or Green Townships an old one is abandoned in Youngstown or Campbell. (or Girard or northern Boardman)

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5commoncitizen(949 comments)posted 2 years, 11 months ago

Youngstown will charge Aqua 10% for the water BUT is charging surrounding communities 40%??

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6Bigben(1996 comments)posted 2 years, 11 months ago

Crestwood Rocks- Some of Boardman , Canfield and Austintown get City water.I believe part of Boardman gets Aqua water from Evans Lake .

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7Bigben(1996 comments)posted 2 years, 11 months ago

dd933-Post 4 .

I tend to be a little skeptical about the future aspirations of the City and aqua too.We aren't getting the closed door discussions.

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8AnotherAverageCitizen(1172 comments)posted 2 years, 11 months ago

dd,

Beaver, Springfield, Green are part of Mahoning county. If folks more their from Y-town, the county is not losing population.

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9Bigben(1996 comments)posted 2 years, 11 months ago

From the Vindy ,"The population in Mahoning County dropped by 7.3 percent from 257,555 in 2000 to 238,823 in 2010. " I think some of the townships dropped too.

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10semick(15 comments)posted 2 years, 11 months ago

Mahoning County, if you don't like what Youngstown Water is doing, then take it over using eminent domain and turn it into a county entity. Then you can structure the rates as you desire.

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