Trumbull commissioners hear $8M proposal to sell public water system
Trumbull County commissioners on Thursday explored Aqua Ohio’s tentative proposal to purchase the Southeast Water District serving Vienna, Brookfield and Hubbard townships for at least $8 million.
Township and Hubbard city officials met with Aqua Ohio in July 2020 about the possibility, and wrote commissioners in January 2021, urging them to consider it.
Commissioner Niki Frenchko last week moved to deny Aqua Ohio a meeting, but that action never got a vote, The Vindicator reported.
She led Thursday’s meeting by telling Aqua Ohio’s President Robert Davis and Area Manager Jennifer Johnson that the Mahoning Valley Sanitary District-operated system “currently isn’t for sale.”
Davis said even if the deal doesn’t make sense for township customers, he said he thinks it’s “incumbent” on county officials to at least consider it.
During the hourlong meeting, county officials questioned the water provider on its intentions — whether it planned to develop or ultimately abandon the system if it’s unprofitable — and on expected rate increases.
According to Trumbull County Sanitary Engineer Gary Newbrough, Aqua Ohio charges $64 on average for 5,000 gallons of water in Mahoning County, whereas it would be $43 through the sanitary district.
Johnson said though most publicly operated utilities are run well, “we’ve seen systems that haven’t raised rates in 20 to 30 years. Frankly, that’s irresponsible. They’re not able to keep up with the systems they’re running.
“Our philosophy has been small, incremental rate increases to keep up with maintenance,” Johnson said.
Aqua Ohio’s most recent rate negotiations in Mahoning County made monthly water bills about $2 more expensive — but in that same period, Aqua Ohio made $35 million in infrastructure investments, she said.
Residents in parts of Hubbard Township are eager to tap in — specifically, parts of the Maplewood neighborhood — said township Trustee Frederick Hanley, adding his home draws water from a well he claimed is less than a mile from an injection well.
“Hubbard Township’s issue is not water quality. We wish we had water to complain about,” he said.
Newbrough said Thursday he was previously unaware of “huge demand” for municipal water in that area.
“We can’t help unless we know. If the trustees are coming to Aqua instead of coming to commissioners … that puts us in a position where we’re not able to work for you,” Frenchko said.
Newbrough said though county officials have met with township residents about water projects, the county has never been petitioned to expand service.
Commissioner Mauro Cantalamessa said county officials should first determine there are actually interested customers.
“We tried several water projects with interest surveys,” he said Thursday. “Every one of them came back — it wasn’t affordable.”
Vienna Township Trustee Phil Pegg said Thursday about a quarter of township homes have well water. Pegg has previously voiced concerns about water quality in the district, currently supplied by Mahoning Valley Sanitary District via the city of Niles, as reported by The Vindicator — specifically, its calcium content.
Mike McNinch, the sanitary district’s chief engineer, on Thursday called the allegations “baseless” and said an internal review determined they were “unfounded.”
Cantalamessa told Mahoning Matters following Thursday’s meeting he doesn’t expect Aqua’s operation to be more affordable than the county, but that “it’s incumbent on the commissioners to explore these options.
“I think this got twisted and turned around that we’re somehow selling the water district. But the reality of the matter is we do have areas that need water.”
Below are some of Aqua Ohio’s “flexible frameworks” for how the sale could work, taken from the proposal officials reviewed Thursday. All terms and conditions would be finalized in negotiations, the proposal states.
- Aqua Ohio could pay at least $8 million outright for the system;
- The company could also make deferred payments “to assist with future cash flow requirements for the county”;
- The company would consult with county officials during the transition;
- The company would commit to a capital spending plan for current and future upgrades, developed in advance alongside the county;
- The company could be a “uniform” water provider for Southeast’s customers. Currently, Aqua Ohio serves a part of Brookfield Township.
Here’s more on Aqua’s proposed benefits to water customers:
