Clayton terminates water service agreement

CLAYTON — City Council adopted an ordinance Thursday to terminate a water service agreement with the City of Dayton originally established on September 13, 2000.

“This has been under discussion for about three years,” said City Manager Rick Rose. “When I first had one of the first water/sewer meetings with the city of Dayton and Montgomery County, discussions came up about our current agreement and how few water accounts opened under this agreement. It really isn’t profitable.”

When the two cities entered into the original agreement it was designed in anticipation of the city growing in the service agreement area and the water distribution system would expand with Clayton providing water bought from Dayton to new customers. Clayton would have been responsible for any new distribution lines off the water mains.

“In 16 years we’ve made it up to a whopping 90 customers and it is just not cost effective for us to try to maintain the system,” Rose said.

He discussed these concerns with Dayton officials who stated they were more than willing to look into the matter. Dayton agreed to take the water lines over at no cost and the $4.2 million Clayton has on its books owed to Dayton would be take off its debt service portion of the agreement. Technically no other money would have been exchanged other than when a new customer tapped into the water service.

A ‘Regional Amenities Fund’ that was included in the original agreement where any new customer would pay into the amenities fund, but that never really took off as expected.

“It would be our recommendation that we get out of the water business,” Rose added. “Basically all this agreement says that whatever we had taken over is now the city of Dayton’s. They will take it back over and there is no expense to us. We pay nothing; they pay nothing and our 90 customers that signed up for water during the original agreement will actually see a slight reduction in their water rates.”

By Ron Nunnari

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Reach Ron Nunnari at 684-9124, via email [email protected] or on Twitter @Englewood_Ind