MVSD disputes costs of rate hike, dam work

WARREN — The chief engineer of the Mahoning Valley Sanitary District called the assertion that the expected rehabilitation of the Meander Dam will cost more than $100 million and a possible doubling of water rates in Niles “highly speculative.”
Scott Verner called a recent statement by Trumbull County Commissioner Denny Malloy that water rates charged to its bulk water customers in Niles could double because of the dam’s rehabilitation … “baseless and reckless.”
Verner said the original engineer’s estimate for the project in October was $55 million.
“One bid was received in the amount of $109,390,720 and was rejected since it exceeded the allowable 20% threshold,” Verner said.
The later project then received a revised engineer’s estimate of approximately $59.9 million.
During a June 5 rebid opening, the MVSD received a bid of $106,499,514 for the project from the same contractor, Thalle Construction Co. of Hillsborough, North Carolina.
“This bid will also likely be rejected since it too exceeds the allowable 20% threshold,” Verner said.
He noted the MVSD is preparing to rebid the project in the fall and cannot, and will not, predict a rate until it has the final bid number.
“However, various rate scenarios that have been run to date predict nothing close to doubling the rate,” Verner said.
The MVSD provides water to about 220,000 customers in the Youngstown, Niles and McDonald areas.
He said MVSD would inform its customers about any possible rate increase.
Malloy said Tuesday he was basing the information presented during the June 10 commissioners’ workshop on a television news report.
“Scott said he forecasted a 0.13 increase, but I believe that could increase to double that … at least a quarter,” Malloy said.