St. Clairsville water debate continues
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ST. CLAIRSVILLE -- The city's debate concerning the possible sale of water and wastewater facilities to a private entity continued Monday.
Council members and residents heard a report from residents Brewster Martin and Ernie Schlatt, who joined St. Clairsville Mayor Terry Pugh and Councilman Jim Velas on a fact-finding tour of facilities owned by Aqua Ohio in the communities of Green and Struthers last Wednesday.
Schlatt was unable to attend the meeting, but wrote a letter that Martin read, stating that Schlatt's doubts were answered to his satisfaction.
"Recognizing that water and sewer utility rates are going to go up regardless, Mr. Schlatt feels the city should sell these assets at this time," Martin said. "The mayor (of Green) had good things to report about working with the private contractors."
He said they had heard positive reports, saying repairs were handled quickly and citizens were largely satisfied. Schlatt was of the opinion that any future rate increases would likely be higher if the city undertook repairs on its own.
Martin then gave his own report, saying that he still had questions.
"My report however, is not quite as rosy. I'm not here to say that I oppose privatization, but I think there might be a rush," he said. "I do have concerns. … Aqua Ohio is basically a monopoly. They have no competition, and that concerns me right off the bat. We don't want to give our water plant away."
Martin said he hoped the city would get the true value of the facilities in any sale. He also voiced concerns that workers might not be based in St. Clairsville but would drive from a more distant site to make repairs. He also wondered when any needed upgrades to the aging system would take place should the city sell.
"I have a feeling that council thinks if the plant is sold, then in a very short time the problems will disappear," he said, adding that the town of Jefferson has fewer water customers and citizens than St. Clairsville. He said Aqua Ohio owns their facilities and has been undergoing waterline replacement for many years.
"I have a lot of concerns. I'm not against it, but I think the concerns need addressed," he said.
Council President Tim Porter inquired if there were any opportunities for local assistance through organizations such as the Rural Community Assistance Partnership.
Safety and Service Director Jim Zucal said while St. Clairsville was a city, RCAP chiefly handled rural areas.
"We don't meet their formula based on median household income and our utility rates," he said.
"Our orders and directives come from the Ohio EPA. As we continue to move forward, we also continue getting more violations. I don't think the EPA looks at how much money we have or what we can spend or what we can do. They just want results."
The EPA's funding formula for rates requires 1.8 to 2.3 percent of median household income, and St. Clairsville's median household income is $68,000, and two percent would be $136 per month for a minimum water and sewer bill. He said St. Clairsville's was $42.
"We would have to raise our minimum bills and all bills, we would have to triple them to meet that formula, which would mean we are eligible for grants and loans," he said, adding that more information was available by request.
Zucal added that other entities have expressed an interest since the city has place the system up for bid.
"We've been contacted by other entities that do purchase water and sewer systems," Zucal said. "I think we all agree, it's about the future of the city. … The Ohio EPA calls or emails every single day. There's always an issue at the water plant."
He also pointed out recent issues such as iron and manganese-colored water and his discussions with residents with concerns and health issues. He also said according to the EPA the lifespan of the system is limited.
"It's just been years of neglect," he said. "The constituents of this community deserve better. They deserve clean, safe drinking water, and we currently cannot produce desirable water."
Zucal presented a potential timeline for a sale process, with a proposed selection of a vendor from qualified bids by June 14, establishing a contract by July 12, followed by three readings to approve the contract by Aug. 19.
Afterward, he said that if a private entity took over the system, the entity would also take on the city's debts.
"The city would be debt-free," Zucal said, adding that the total water and sewer debt was about $8 million.
Bill Brooks, resident who has voiced opposition to privatization, commended Martin for a thorough report afterward. Brooks said that he believed more information was still needed regarding the cost of making upgrades locally.
"I don't like this rushing to judgment," Brooks said.
In addition to Porter, a full council of Beth Oprisch, Frank Sabatino, Mark Bukmir, Jim Velas, Perry Basile, Linda Jordan were present.