City manager: Take water system regional

July 28, 2010

By Jane Prendergast • jprendergast@enquirer.com

Growing Cincinnati's century-old water system into a regional district could mean hundreds of jobs and millions in economic development spinoff, University of Cincinnati economists say.

The findings of the study by UC's Economics Center for Education and Research were released Wednesday, hours before the first public meeting about the proposal. The study also said creating a regional district would save consumers $23 million over 10 years in water bills by gathering more customers, therefore spreading out water costs among more rate payers.

But dozens of opponents aren't buying it.

More than 200 people showed up Wednesday night at Xavier University's Cintas Center to hear City Manager Milton Dohoney and others explain what they want to do and why. In short, the city needs more money to keep up with changing technology and regulations, but it can't expand the current system because the state constitution requires utility facilities to serve city customers. To gather more customers, the city would have to build more facilities in areas that would be too far from the city to practically serve city residents.

The city estimates it would get an average of $14 million a year over 75 years as payback for selling the water assets to a new regional district.

More than 40 people lined up to speak at the public meeting, a required step before the city files for approval from the Hamilton County Common Pleas Court. Initially, the comments were balanced pro and con, mostly with water works employees arguing against each other. Some booed employee Peggy Phelps when she stood up to say the regionalization is a good idea. Not all AFSCME members oppose the plan, she said.

But AFSCME's regional director, Pete McLinden, and Doug Sizemore of the AFL-CIO testified that the groups are adamantly opposed. They're worried taking the system regional would threaten the job security of their employees and be a step toward privatization, even though Dohoney repeatedly has said he would not proceed with the regionalization if employees aren't protected. He insists the new system would specifically say that a district could not be sold to a private entity.

Some of the testimony stayed on point, others far from it.

One woman told Dohoney he was crazy for thinking other communities would buy his water.

Tom Ewing, of the Cincinnati USA Regional Chamber, said the proposal would help generate economic development.

City officials have said they intend to file the court documents soon. Voters ultimately will decide if they want the regional system. Officials hope to put the issue on the ballot next year.