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Customers say they can't afford
Utility bills soak residents

Water and Sewer LLC wants to more than double its rates since it's losing money

By Rick Armon
Beacon Journal staff writer

RICHFIELD: Mike Began and Michele Pirozek don't like taking showers at their home.

They don't water their lawn.

They run the dishwasher only once a week.

And they do laundry elsewhere.

In fact, the young, first-time homeowners are loathe to use their water at all.

They can't afford to.

Even with extreme conservation — including shutting off the shower while soaping up and hauling five-gallon plastic jugs of water into the house to wash their hands and brush their teeth — their bimonthly water and sewer bill is $250, or about $1,500 a year.

For two people.

And now Water and Sewer LLC, their small, private utility that already charges some of the highest water and sewer rates in the state, is asking the Public Utilities Commission of Ohio (PUCO) to let it more than double its rates because the company is losing money. If the increase is approved, some families could end up paying more than $6,000 a year.

The request has angered customers — there are only about 80 living in Richfield and Richfield Township — who have been dealing with, and complaining about, the high rates for years. And to make matters worse, a remedy exists, and has for years, that would eliminate
the water and sewer bill nightmare.

It involves shutting down the utility and bringing in water service from Cleveland and sewer service from Richfield.

But an ongoing dispute between a housing developer — who happens to own the utility company — and the township and village governments has kept that from happening.

And that dispute has kept customers paying through the nose.

''I don't want to keep paying these rates. It's ridiculous,'' said Pirozek, 25, who was unaware of the utility costs when she and Began, 27, moved into their three-bedroom colonial last year.

''When I think about how much money we could be saving or putting toward furniture for the house or retirement. . . . It's a waste of money.''

The history

Housing developer Randy Kertesz bought about 125 acres of wooded, undeveloped property in the township about eight years ago.

He didn't want to be in the utility business, but the nearby water and sewer plants came packaged in the deal. The utility serves a mix of condos and single-family homes that were there before he bought his land, and could serve Kertesz's future development.

Since the purchase, Kertesz has lobbied both the village and township to accept a proposal for small lots and high-density housing on his township property.

The more homes to sell, the more money he could make.

Kertesz, whose company is based in the Cuyahoga County suburb of Woodmere, is seeking to build about 200 single-family homes.

He is offering to abandon the water and sewer plants, clearing the way for customers to be served by Cleveland and Richfield, thus lowering utility costs for residents. Of course, in exchange, he wants utilities available for his development and his housing plans approved.

Township and village leaders have repeatedly rejected his housing proposal.

''They'd like high-density housing,'' township Trustee David Wyatt said. ''We don't want to see high-density housing.''

Rate request

Water and Sewer lost $122,929 last year, leading to the need for the substantial rate increase, according to the company request filed last month with the PUCO.

And in an odd twist, the company also has said residents' water conservation has meant less revenue, resulting in the need for the rate increase.

The last time rates went up was in 2004.

Kertesz said he had put off the request hoping a deal could be struck with the local governments.

''We are just looking to cover our costs and hopefully make a small rate of return on our investment,'' he said.

The new rates would be astronomical compared to what other water and sewer customers pay in Ohio. If approved by the PUCO, water rates would jump from $11.28 per 100 cubic feet to $23.61. Sewer rates would increase from $12.33 to $27.59.

Compare that to Akron, where water and sewer customers pay $2.14 and $3.04, respectively. Or Cuyahoga Falls, where they pay $1.79 and $3.15, respectively. Or Kent: $2.40 and $3.74, respectively. (Those rates don't include additional billing charges.)

Kertesz admitted he wouldn't want to be his own customer.

''I feel sorry for the people,'' he said. ''But unfortunately, absent any other alternative, the rates are the rates. . . . We don't want the residents, existing or future, to pay 2 cents more for water or sewer than is absolutely necessary.''

Who's to blame

Still, the residents accuse him of being greedy and holding them hostage until he gets his housing development approved.

''Developers are always the bad guys,'' Kertesz said about the criticism. ''We cut down trees and displace Bambi.''

He has placed the blame on the township and village. He mailed a letter to village residents in March, accusing village leaders of not following through with a proposed agreement to deliver Cleveland water.

Meanwhile, government leaders said they are trying to reach an amicable settlement.

Village Mayor Michael Lyons said he hopes for a deal that would bring new water and sewer lines to the area while the housing issue is worked out on the side.

''It might be more ripe now than in the past to step through this process,'' he said. ''In the past, it was all or nothing. What I'm hoping is that it won't have to be all or nothing.''

He's so optimistic he has asked the village engineer to prepare cost estimates and preliminary designs for extending lines so the work could be done as quickly as possible if an agreement is reached.

But the issue is complicated by political boundaries and multiple parties. The land to be developed is in Richfield Township. The vast majority of customers are in Richfield village. The city of Cleveland, which already serves most of the village, would provide the water. Richfield village would provide the sewer.

There's also the matter of who would pay to extend utility lines and who would own them.

''It's not a simple issue. It's very complex,'' Wyatt said. ''Ultimately, something will be worked out. Whether it's tomorrow, next week, next month or next year. If reasonable people come together, it will get worked out.''

Customer worries

That day can't come soon enough for the residents who are stuck in the middle.

''We're really to a point where quite a few families won't be able to pay their water bill,'' said Coleene McDevitt, who's lived in the neighborhood for 15 years. ''I've had people tell me they are putting their water bill on their credit card or borrowing money from family.''

The residents talk about taking quick showers. How you never see children running through the sprinklers on hot days. And the grass turning brown in the summer because no one dares water the lawn.

They also worry about whether they would be able to sell their homes. Who would knowingly buy a home with such high water and sewer rates?

The customers are hoping that an agreement will be reached soon — or at least that the PUCO will reject the rate increase. The PUCO is reviewing the request and a recommendation should be made in four or five months.

The village has filed an objection to the rate increase.

Summit County Council President Nick Kostandaras also has spearheaded a county resolution to oppose the increase. It could be approved Monday.

''We cannot be gouging the public with these kind of increases,'' he said.

Kostandaras vowed to pull Gov. Ted Strickland into the fight and to take a busload of protesters to Columbus to camp out at the PUCO offices if necessary.

In the meantime, customers like Began and Pirozek, who plan to marry this year, will continue conserving water.

''I think we should all be conserving water,'' Pirozek said, ''but to feel guilty about taking a shower in your own house is ludicrous.''

 


Rick Armon can be reached at 330-996-3569 or rarmon@thebeaconjournal.com.

 

RICHFIELD: Mike Began and Michele Pirozek don't like taking showers at their home.

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