WARREN State audit casts doubt on city's fertilizer business

The report is the last of performance audits requested by the city in 2000.
By DENISE DICK
VINDICATOR TRUMBULL STAFF
WARREN -- Selling Nature's Blend may not be cost effective and the city's community development department should consider performing economic development activities internally, according to the latest round of performance audits by the state.
The report obtained by The Vindicator, marked "confidential discussion draft," is the last of a series of performance audits requested by the city in 2000.
It covers water, water pollution control, environmental services and community development departments.
State auditors used Cleveland Heights, Cuyahoga Falls, Elyria, Hamilton, Lima, Lorain and Mansfield for comparisons.
Mayor Hank Angelo declined to comment on the report because it isn't in final form and has not been released publicly. Council's finance committee is set to review the draft next week.
"Based on current operational costs, projected revenues and information obtained from other cities, selling packaged Nature's Blend may not be cost effective," the draft says, referring to the fertilizer made from municipal waste composted and sold by the city.
At previous council committee meetings, Tom Angelo, water pollution control director, said the product wasn't intended to make a profit but it has helped fund the department, postponing the need for a sewer rate increase, he said.
The city entered a 20-year agreement with a distributor which lacks clear and specific measures to ensure the distributor effectively performs all duties, according to the report.
Not in compliance
The water pollution control department, meanwhile, was found not to be in compliance with the Clean Water Act and the director is revising the long-term combined sewer plan to address Ohio Environmental Protection Agency recommended changes.
"Without an approved [long-term combined sewer plan], WPC is not compliant with the National Pollutant Discharge Elimination System permit and with the Clean Water Act," the report states.
The community development department outsources its economic initiatives to Warren Redevelopment and Planning at an annual cost of $102,000, something the peer cities don't do, the audit says.
The department also doesn't formally monitor the effectiveness and success of WRAP's activities.
"Based on the relatively low business investments per capita and lower number of new jobs created per capita, activities performed by WRAP to improve the economic condition of the city are not as successful as the peers," the draft report says.
"Employing a full-time director and urban rural grants coordinator would allow community development to perform economic development activities, thereby eliminating the need for WRAP to perform all of the city's economic development functions."
The city should consider performing economic development functions internally, including revolving loan activities, it said.
The community development department provides more programs than the peer cities, but hasn't implemented many programs to address high priority needs of the city, the auditors wrote.
Because the department doesn't evaluate the success of its grant-funded programs, it's unable to assess effectiveness of programs and services or make effective funding decisions.
Water department
The draft also notes that as of January, the city water department had about $117,000 in past-due payments between 90 days and 120 days and $2.1 million owed over 120 days.
The auditors are recommending amending ordinances to place responsibility for utility payments on the property owner.
That plan has previously been discussed at council committee meetings.
The audit also says the water department's meter reading technology isn't as advanced and efficient as peer cities, resulting in the need for more meter readers and clerks to manage accounts.
The department saw 2.6 times more lost time claims and more than eight times more medical claims for meter readers than comparison cities. The report recommends updating the meter reading technology.
Garbage collection
Under environmental services, the report says monthly costs to provide residential garbage collection exceed the monthly fee charged to residents by 13.2 percent.
The city uses commercial refuse revenue to offset the residential operations deficit. City council earlier this year passed a temporary $1 per month increase to cut down the deficit.
An on-site inspection of the department found "numerous hazards," but the report also commends the department for avoiding compost landfill costs by researching alternative leaf-disposal methods.
It also commends the water pollution control department for reducing the roster by two full-time operators, realizing an annual savings of about $107,000 in salaries and benefits.
denise.dick@vindy.com