City takes advantage of treatment capacity
Warren officials plan to approach Cortland with a water supply proposal.
By PETER H. MILLIKEN
VINDICATOR TRUMBULL STAFF
WARREN -- City officials are trying to use their excess water treatment capacity as a revenue-producing asset and as a tool for water rate stabilization, water main replacement, job retention and regional economic development.
"Warren's not an island, and if Warren can help neighboring communities, it also helps Warren," said Mayor Michael O'Brien.
City officials plan to approach Cortland officials soon concerning Warren being a potential supplier of water to Cortland, which now relies on well water, said Robert Davis, Warren's director of utility services. Warren already supplies treated water to Howland, Champion, Bazetta and Fowler townships and Lordstown.
Southington situation
Most recently, Warren officials agreed to sell 300,000 gallons a day of treated city water to Aqua Ohio Inc., a private water company that would provide Warren water to Southington. It is the first business deal between the city and a private water company.
The city won't be able to annex Southington in exchange for the water supply because Southington isn't contiguous to the city. But the city stands to gain $150,000 to $250,000 a year from the deal, Davis said.
The only cost to the city is $2,500 to $3,000 to install a water meter at the city line, which the city would have to test for accuracy every two years, Davis has said.
Aqua won't have to build a new treatment plant, but it would build and maintain a five-mile waterline from the city limits to the center of Southington via U.S. Route 422 (Parkman Road) at company expense and bill the new customers.
Since most Southington Township well water contains sulfur or is otherwise inadequate for household use, some Southington residents pay to have water trucked in or draw it from ponds through private filtration systems.
County's stance
Southington officials approached the city administration after Trumbull County officials told them they weren't in a position to supply water to the township, Davis said.
However, Gary Newbrough, county sanitary engineer, said he told Southington Township trustees earlier this month they might be able to get county water if a petition could be circulated to property owners.
Under that arrangement, the county would supply water through a five-mile pipe from State Road in Champion via Route 305 to the center of Southington. "It's a very feasible project if I could get enough strength on a petition," he said.
Newbrough said county commissioners would have to approve the Warren-Aqua-Southington arrangement through a service area agreement.
But O'Brien said: "Southington needed the water. We have the water, and it's their arrangement with Aqua."
'Luxury' for city
Aqua would buy the water at 11/2 times the rate paid by city customers, the mayor said. The new revenue would help hold down water rates for city residents and help pay for replacement of aging waterlines, said Safety-Service Director William "Doug" Franklin.
Warren gets its water supply from Mosquito Lake. Its plant is capable of treating 22 million to 24 million gallons a day, but it now treats and supplies an average of only 14 million gallons daily, Davis said.
"We have the luxury that we have probably eight million gallons to sell," the mayor said. "Knowing that we have more water to sell, we can use that as an attraction for industry," he added.
Albert Sauline, Aqua's vice president for governmental relations and division manager, said Aqua is potentially interested in other ventures similar to the one in Southington. "We're interested in helping the county develop a water system to bring in residential and commercial development," he said.
Aqua's rates are regulated by the Public Utilities Commission of Ohio and compare favorably with rates of other area water suppliers, Sauline said.
Aqua would fund the Southington line's construction using its own money and, most likely, state or federal loans or grants, he said.
Indirect benefits
Aside from increased water department revenue, Warren stands to benefit indirectly from regional economic development that may occur in outlying areas because of the extension of city water supply, O'Brien said.
Water supply extensions can be done in conjunction with Joint Economic Development Districts in which Warren and surrounding communities could share tax revenues generated by businesses that establish plants in the district, Franklin said.
The JEDD is "a creative way to use your water to get money in your general fund, which supports services like police and fire," Franklin said.
Besides new economic development, Warren is using water as a job retention tool. O'Brien has offered Trumbull County a $90,000 annual water bill credit if it keeps its Department of Job and Family Services in downtown Warren for at least 10 years at current staffing levels. O'Brien has also said he'd be willing to give Delphi Packard Electric a price break on its water and sewer bills to help keep its plants here.
milliken@vindy.com