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Akron proceeding with another sewer project; agreement not yet reached on system overhaul

By Stephanie Warsmith
Beacon Journal staff writer

Akron is proceeding with another sewer project, though an agreement still hasn’t been reached in a federal environmental lawsuit over the city’s sewer system.

Akron City Council approved plans Monday to spend about $15 million to expand the sewage treatment plant.

The city held off on the project in April, when council voted to move forward with two other sewer projects. City officials were still discussing potential approaches to the treatment plant upgrade with the federal and state Environmental Protection Agencies (EPAs). Council gave the go-ahead at the time for two projects to separate sanitary and stormwater sewers.

Public Service Director Rick Merolla said the EPA approved plans for the two separation projects and the improvements to the treatment plant. He said the city received a state loan to pay for the treatment plant project.

“These are projects that have been identified, no matter what alternative we take,” Merolla said.

The city originally thought the upgrades to the treatment plant would cost closer to $20 million, but Merolla said the bids came in about $5 million lower. The project includes expanding one of the five tanks at the treatment plant so it can handle 130 million gallons a day, up from 110 million gallons.

Merolla said the city will study how the expansion works for a few years. If it is effective, he said, the same upgrade may be made to the other tanks.

He said Columbus recently decided to make such an improvement to its system.

Merolla expects work on all three sewer projects to begin in October or November.

The projects will be financed through state loans paid back by higher rates for Akron’s sewer customers.

Akron and the federal and state EPAs are still in talks on a long-term plan on how to fix the combined sewer overflows that pollute local waterways.

The city and the U.S. Justice Department have appealed a decision by U.S. District Judge John Adams rejecting one long-term plan that the city and state and federal EPAs had signed off on. A trial in Adams’ court is on hold, pending the outcome of the appeal.

Steam-heat system

In other business, council voted to sell $6.9 million in certificates of participation to pay for upgrades already made to the downtown steam-heat system.

Merolla said the sale of certificates will reimburse Akron for operating money used in 2009 and 2010 to make emergency repairs to the steam plant when the city took it over. That included improvements to the electrical and water systems and getting more than one boiler up and running.

The city has been contracting with Akron Energy Systems LLC to run the plant since September 2009, when Akron Thermal, the former indebted operator, ceased operations.

Akron sold $13.2 million in certificates of participation, a type of financing similar to notes and bonds, in July 2010 for repairs to the steam plant. Merolla said this involved more long-term upgrades, such as improving the efficiency of the boilers and the distribution system.

Merolla said the system, whose customers include Akron Children’s Hospital and Akron General Medical Center, should be in good shape heading into this winter.

The certificates for the steam-plant improvements were among several debt issues council approved Monday.

Council also signed off on the sale of bonds and notes to cover the cost of previous purchases and projects, including street and park improvements and economic development efforts.

With the additions, Akron’s debt will reach about $853 million, but, with the retirement of previous debt, the total is expected to drop to about $820 million by the end of the year, said Treasurer Steve Fricker.

The city’s debt at the end of last year was about $836 million, Fricker said.

Stephanie Warsmith can be reached at 330-996-3705 or swarsmith@thebeaconjournal.com.

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