Ohio auditor investigates budget-draining projects

Mayor Melfi had asked the state auditor to review the projects.
By TIM YOVICH
VINDICATOR TRUMBULL STAFF
GIRARD -- The Ohio State Auditor's Office has opened an investigation of projects that have sunk the city into a financial emergency.
Mayor James J. Melfi and city Auditor Sam Zirafi confirmed Friday that two state investigators were in city hall Thursday.
Zirafi said they asked for copies of checks dealing with the installation of lighting along West Liberty Street, between Market Street and U.S. Route 422.
Zirafi explained that he hasn't copied the material the investigators want but that he will be doing so.
Three projects
Melfi said he asked the state auditor to look into three projects that caused the city to be placed under a state-imposed fiscal emergency in August 2001. They are the city's purchase of the Girard Lakes, electrical improvements made by Ohio Edison Co. and construction of the Girard Justice Center.
The city bought the lakes in 1995 for about $2.5 million without an appraisal or inspection of the Lower Girard Lake dam. The annual debt payment on the purchase is $234,000.
Since then, the lakes have not been used as a water source as originally intended, and the Ohio Department of Natural Resources has declared the aged dam unsafe, s repaired.
The construction cost of the justice center that houses the municipal court and police department was originally estimated at $3 million but ended up costing about $5 million to complete.
The contracts with Ohio Edison included the West Liberty Street lighting project and burying of electric lines under Route 422, which is ongoing. The contracts total about $2.5 million.
OE contracts
Councilman Joseph Christopher, D-at-large, chairman of the streets and sidewalk committee, has been researching the OE contracts.
Christopher said he doesn't believe the utility company owes the city any money for the West Liberty lighting work, but does believe it owes the city $450,000 for burying the lines.
He maintains that OE made improvements to the Salt Springs Road substation and installed higher voltage lines, both of which would benefit only OE and not the city.
Melfi said the investigators are definitely probing the purchase of the lakes and dealing with OE, but they made no mention of the justice center costs.
"They're kind of secretive," Melfi said.
yovich@vindy.com