Mayor counters offer for plant

Campbell has two years left on a contract to buy water from Aqua Ohio.
By WILLIAM K. ALCORN
VINDICATOR STAFF WRITER
CAMPBELL -- Campbell Mayor John Dill says an offer by Youngstown to buy the Campbell water treatment plant and distribution system is a little late in the game and has several barriers to overcome.
One of the obstacles is a current 10-year contract that Campbell has with Aqua Ohio, formerly Consumers Ohio Water Co., to supply raw water to Campbell, which in turn treats the water and sells it back to Aqua.
The contract was signed June 9, 1998, and is in effect until 2008. The contract may be terminated for "cause" by either party, but even then either party has a minimum of two years to develop alternative water supplies before the deal is dead. Likewise, under normal circumstances, a two-year notice must be given in the eighth year of intent to terminate the agreement at the end of 10 years, Dill said.
Further, Dill said the city agreed, after eight months of negotiations, and council passed enabling legislation, to sell the water treatment plant and distribution system to Aqua.
Previously, Youngstown officials said the city would be interested in selling treated water to Campbell, but not in owning its water treatment plant and water distribution system.
Lawsuits
Finalization of the sale to Aqua is being held up by two lawsuits filed by the Let Us Vote Committee, which is opposed to the sale of the city's water system to Aqua unless the residents approve the sale at the ballot box.
Dill said he does not want to discuss details of Youngstown's offer until after court hearings on the suits seeking injunctive relief and a declaratory judgment relative to the sale of the plant. The hearings are scheduled for Feb. 21 before Mahoning County Magistrate Timothy Welsh.
The Vindicator obtained a copy of Youngstown's offer, which was dated Jan. 14 and came from David Bozanich, director of finance.
Bozanich said Youngstown would service Campbell's water needs by extending Youngstown's lines. He also said the offer is "conditional upon some additional engineering analysis and legislative approval."
Here are the major items in Youngstown's offer:
Full assumption of the Campbell water system's annual debt service through the year 2024.
An annual capital improvement payment to Campbell of $300,000 a year for the first 10 years and then a payment of $150,000 per year for the next five years.
A purchase price of $3 million to be paid upon closing or over a period of 20 years with interest.
A commitment to spend at least $100,000 a year on general system improvements.
A commitment to a rate schedule which would be financially equal to the current structure with anticipated adjustments.
A willingness to make milestone payments upon the completion of certain goals.
The terms of Campbell's agreement to sell the water plant and distribution system to Aqua are similar to Youngstown's offer. The private water provider would pay $3 million up front to the city and $300,000 a year for 10 years and make $100,000 a year in improvements.
alcorn@vindy.com