Council gives first reading to contract raising rates

Aqua's rate increase is too high, a councilman says.
By WILLIAM K. ALCORN
VINDICATOR STAFF WRITER
STRUTHERS -- City council gave the first of three readings to a three-year contract with Aqua Ohio that calls for a water-rate increase of 4.6 percent per year, effective March 1.
Council asked Law Director Carol Clemente Wagner to review the legislation before it comes up for a second reading at the next meeting at 7 p.m. Dec. 22.
The only councilman who voted against the contract was Daniel R. Yemma, who said the increase exceeded the 3.4 percent rate of inflation and was therefore too high.
The 3rd-Ward councilman said it was hard to vote against the increase because Aqua "has been and is a good corporate neighbor."
Yemma said the last contract with Aqua had a 2.5-percent annual increase, and "I contend that the people I represent are doing worse than they were three years ago."
The 4.6-percent annual increase, down from the 6 percent initially asked for by Aqua, was the "best we could do," said Councilman-at-large Dexter A. Hollen, chairman of council's utility committee.
Aqua could have assessed an annual 3-percent surcharge for replacement and rehabilitation of water infrastructure without consulting the local communities.
Contract provisions
Under the new contract, Aqua cannot do that, Hollen said. In addition, Hollen said Aqua agreed to spend $2 million on infrastructure improvements over the life of the contract, double the amount of the last pact.
Aqua supplies water to about 18,000 customers in Poland Village and Township, New Middletown, Lowellville and Struthers, parts of Coitsville, and Beaver, Springfield, Canfield and Boardman townships.
The increase must be approved by Mahoning County commissioners as well as the village or city councils in the affected municipalities.
Aqua representatives negotiated the proposed contract with a panel of representatives from the areas affected rather than submitting a rate increase to the Public Utilities Commission of Ohio.
Albert J. Sauline, vice president of governmental relations for Aqua, says that saves money for the company and its customers.
"There is no doubt in my mind that if Aqua went to PUCO, it [Aqua] would have gotten at least a 9-percent annual increase," Hollen said.
Aqua representatives said the average family monthly bill of $29.19 would increase to $30.53 in 2006, $31.93 in 2007 and $33.40 in 2008.
Temporary budget
In other action, council unanimously passed a three-month temporary 2006 appropriations budget, effective Jan. 1, which has the same spending levels as 2005.
Passing a temporary budget gives legislators an opportunity to review actual 2005 revenues and expenditures before setting a permanent 2006 budget, officials said.
alcorn@vindy.com