WATER McDonald to Girard: Pay bills and sign pact or lose service

The contract between the village and the city expired last year.
By ANTHONY M. NICK
VINDICATOR CORRESPONDENT
McDONALD -- Girard city officials have about two weeks to present the village with a signed water contract and a payment plan for $145,834 in past-due bills or face a shut-off of service.
The demand was outlined in an Oct. 19 letter signed by Mayor James Border. The letter is addressed to Girard Mayor James Melfi, with copies being sent to city council members.
The final paragraph of the letter states that if the "Village of McDonald does not receive a signed contract and a payment plan for the funds owed the village within 14 days from the date of this letter, we will have no alternative except to stop water distribution to your city."
During village council's Wednesday meeting, Border said the letter was sent earlier that day.
The village buys water wholesale from the Mahoning Valley Sanitary District and sells the excess to Girard. The village provides about 3.5 million gallons of water per month to the area around Interstate 80 and Salt Springs Road.
The old 3-year contract between McDonald and Girard expired in April 2003.
That deal charged Girard $1.98 per 1,000 gallons used, based on a guaranteed minimum usage of 6.5 million gallons per month.
Moratorium granted
After the expiration of the old contract, the village granted Girard a 12-month moratorium in which it charged only for actual consumption and allowed the city to pay on a month-to-month basis.
The moratorium was granted because of the city's fiscal problems.
When the moratorium ended, a new contract was approved by village council with an effective date of May 1, 2004. The new contract has yet to be signed by Girard officials.
At an earlier council meeting this month, Village Solicitor William Roux said a new three-year contract had been sent to the city Oct. 5, along with a letter stating that "time was of the essence" in seeking a response from Girard.
The new three-year contract charges $2.55 per 1,000 gallons used, but also offers a discounted rate of $2.39 per 1,000 gallons based on a guaranteed minimum monthly usage of 3.5 million gallons.
Roux added the reason for the large difference in the minimum amounts between the old and new contracts was that a leak was discovered and fixed in the waterline in 2003, causing a drastic reduction in the city's usage.
The mayor said that negotiations with Girard were initiated in the spring by Village Administrator Thomas Domitrovich, but said that both he and members of council felt they were being ignored by city officials.
Melfi's response
The Oct. 19 letter acknowledges that Melfi responded to council with a letter dated Oct. 13, but that correspondence asked only that the city be billed at the discounted rate of $2.39 per 1,000 gallons.
The letter also states that Girard is being charged $2.55 per 1,000 gallons, the rate for actual consumption.
The letter further states the city owes the village $138,081 incurred during the 12-month moratorium when Girard was charged for actual consumption only.
The village's position is that the 6.5 million gallon per month guaranteed minimum usage provision stated in the old contract was still in effect during the moratorium.
The letter also demands payment of an additional $7,753 it says the city owes since the new contract went into effect May 1.