YOUNGSTOWN — The city administration decided not to move forward with a request to have city council authorize up to $130,000 to hire a law firm to assess the functionality and long-term viability of SOBE Energy Solutions LLC, the beleaguered downtown utility company.

The item, sponsored by Mayor Derrick McDowell, was pulled Wednesday before council could consider it in order to discuss it prior to a vote.

The ordinance would have permitted the board of control to sign an agreement with Roetzel & Andress to assess SOBE’s functionality and “identify financially sustainable long-term solutions ensuring that the steam system operates safely and reliably.”

Andy Resnick, the city’s spokesman, said: “We feel it’s best to put this before the appropriate committee and allow council members and the community to hear the many complexities around this public utility issue as we work on how to best move forward.”

The proposal will end up in front of council’s public utilities committee for discussion. The committee is expected to meet as soon as next week.

Councilman Mike Ray, D-4th and committee chairman, said, “I think it makes sense to discuss (it) in committee. This will allow for a better explanation and collaboration.”

The proposal was to have Roetzel & Andress, a law firm whose Akron office has handled some high-profile cases for the city, provide insights into whether and how SOBE can operate under new ownership.

SOBE, which provides steam heat for a majority of downtown, has experienced significant financial problems and would have shut down if the Public Utilities Commission of Ohio didn’t intervene and get a receiver named to run the company.

Reg Martin, the receiver, was removed after less than five months on the job with the current receiver, John C. Collins, recently saying the company’s “finances are not good,” and that SOBE cannot pay the $55,570 owed to Martin and his attorney because if it was paid “all at once, it could hurt the company financially. It could impact our ability to pay other expenses. $55,000 would be a lot of money at this time for the company to pay.”

Mahoning County Common Pleas Court Judge Anthony Donofrio on Sept. 26 appointed Martin as SOBE receiver and Kenneth R. Goldberg as his legal counsel at the request of the PUCO as the company was insolvent and unable to provide heat to its customers.

A rented 800-horsepower boiler was repossessed Sept. 30 from SOBE because the company defaulted on paying for the equipment that provided heat and hot water to its 28 downtown Youngstown customers. That resulted in SOBE abandoning the city.

SOBE owed $383,214 in back payments to the steam plant’s owner, Wabash Power Equipment Co. of Wheeling, Illinois. The repossession would have made the company unable to provide utilities to its customers.

The company also owes about $4 million to creditors.

Also, the equipment rented by Martin proved to be unreliable during the winter months.

SOBE’s boilers repeatedly failed to provide proper heat and hot water for its customers, forcing a number of them to shut down.

Several buildings were without heat for five days, starting Feb. 7, after the failure of two SOBE boilers, including an 800-horsepower one that arrived Feb. 1.

That came only days after SOBE couldn’t provide heat from Jan. 27 to Feb. 2, and Feb. 3 in some buildings, during days when the temperature was well below zero. Even after steam heat started flowing, some businesses couldn’t get it because of broken pipes.

Without the repossessed boiler, Martin was able to rent a 650-horsepower steam plant that was hooked up about 10 days after the other was taken away.

Because of the $750,000 Martin received from Enbridge Gas Ohio as part of the company’s settlement of the 2024 Realty Tower gas explosion investigation by the PUCO, he was able to rent a 200-horsepower boiler.

Martin also used the Enbridge settlement money to later rent an 800-horsepower boiler, which arrived Jan. 30. But that and the 650-horsepower boiler failed Feb. 7 with heat not restored to buildings until Feb. 12.

When Martin took control of the company, he said it owed millions of dollars in unpaid bills and could go out of business.

Numerous customers criticized Martin for being unresponsive and not doing enough to get heat to buildings during the coldest periods of the year.

Donofrio on Feb. 17 granted a PUCO motion to remove Martin as SOBE’s receiver. The PUCO request came Feb. 11.

Donofrio also granted requests from the PUCO on Feb. 17 to appoint Collins of Akron to replace Martin and for Michael J. Moran, a Cuyahoga Falls attorney, to replace Goldberg as the company’s legal counsel.

Magistrate Nicole Butler agreed April 2 to permit Youngstown to intervene in the receiver court case.