The Great Water Plant Giveaway (part one)

To truly understand how this happened, we have to start at the beginning.

In the fall of 2014, the Board of Public Utilities (BPU) sought significant water rate increases to fund construction of a new water tower and water treatment plant on East High Street. The plan called for:

  • A 15% rate increase in 2014

  • Another 15% increase in 2015

  • Additional increases in 2016

The stated reason for the new tower and plant was capacity. As reported at the time:

“…Last summer, water levels ran dangerously low in the city’s existing water tower…”
(Source: Madison Messenger)

There was also the claim made that  “If we have a large fire, we could run out of water,” (Source: Madison Messenger)

These early rate hikes were framed as essential to meet London’s growing water demands and avoid future shortages. What followed, however, would set the stage for one of the most costly giveaways in the city’s history.

January 2015 – First Major Obstacle
The project quickly ran into financial trouble. The lowest bid for the tower came in at 20% higher than projected. With some modifications and an additional low-interest loan, City Council approved the contract by the end of January 2015. This marked the official start of what was promised to be a decades-long investment in London’s water infrastructure — paid for directly by residents through higher rates. (Source: Madison Messenger)

January 2015 – Contract Approved 

After weeks of debate, the London City Council voted 5-2 on Jan. 22 to let the Board of Public Utilities (BPU) build a second water tower for $3.1 million, with a second water plant planned at $8 million. To fund the projects, BPU had raised water rates 15% in 2014 and did so again in March 2015, with more hikes to be expected through 2018. The increases sparked controversy since BPU could, at the time, raise rates without council approval. Councilman Trint Hatt had proposed legislation requiring council oversight for water rate changes, which BPU said it supported. (Source: Madison Messenger)

Late 2015 – Water Supply Confirmed
Later that year, BPU provided a progress update on the project. Addressing concerns about water availability, they stated:

“The two wells have been tested many times and are in good shape. There’s more than enough water to carry the capacity.”
(Madison Messenger, “Progress on New London’s Water Tower”)

This public statement confirmed that the city’s water supply was not only stable, but more than adequate — removing one of the primary justifications for handing control of the system to an outside entity in the years to come.

March  2016 – Loan Application Approved
London’s Board of Public Utilities (BPU) is awaiting approval of a $6.5 million loan from the Ohio EPA and Ohio Water Development Authority to fund construction of a new satellite water treatment plant. The agencies are set to vote on March 31, and approval is expected. Thanks to council members completing an EPA education course, the city qualifies for a 1.22% interest rate on the 30-year loan—down from 1.9%. The project cost covers engineering, design, planning, and construction. If approved, work will begin this summer, take about 18 months, and the plant should be operational by late 2017.(Source: Madison Messenger)

August 2016 – Water Tower to be Lifted into Place

A second water tower would soon rise over London.

During the Aug. 18 city council meeting, London’s Board of Public Utilities water superintendent, shared the project’s progress and what remains to be done.

The new one-million-gallon tower and automated satellite plant were being built on 20 acres along Route 142 near Deer Creek Honey Farm. The tower, currently assembled and lying on the ground, was scheduled to have its exterior painted by Sept. 9.

Between Sept. 12 and Oct. 7, cranes were to lift the tank into position. Interior painting and installation of the electronics and instrumentation would be complete by Nov. 4. Final sign-off was expected in late November, after which the tank would be filled.

Construction on the plant’s foundation was to  begin the same month, with both the plant and tower projected to be operational by late summer or fall of 2017.(Source: Madison Messenger)

February 2018

After August 2016, there was little mention of the East High Street water plant until the Board of Public Utilities (BPU) cautioned Council about potential future costs from the Ohio EPA. The concern centered on possible new nutrient discharge limits, similar to those already imposed in northern Ohio, which are aimed at reducing phosphorus and nitrogen levels to prevent algae blooms.

London’s wastewater superintendent, Dan Leavitt, noted that the city’s plant discharges into Oak Creek, a tributary to Deercreek Reservoir, making London a likely candidate for such mandates. He anticipated EPA rules by 2020 and required upgrades by 2023.

The projected cost for upgrades was $3.04 million. A $198,000 design phase was proposed to prepare plans in advance. Leavitt stressed the importance of readiness, while pointing out that zero-interest loans from the Ohio Water Pollution Control Loan Fund would likely be exhausted by June.

On February 1, City Council approved on first reading a resolution allowing the BPU to apply for a $198,000 loan. Council member Rex Castle supported early action, citing past missed opportunities. If approved, the loan would be for five years, with costs manageable under the wastewater department’s budget.

If mandated upgrades move forward, Leavitt explained the city would need to evaluate funding options, including existing resources, grants, increased rates, or a mix of all three. (Source: Madison Messenger)

May 2018  – High levels of Ammonia found in Water Source
At the end of April 2018, both the BPU and the Closser Administration were informed that the water source for the East High Street Water Plant contained elevated levels of ammonia, measured as “slightly above EPA standards.” Nearly six months passed before the matter was formally brought to Council with a request for action. (SOURCE:MADISON MESSENGER)

October 2018 – BPU comes before Council about Contaminated Water Source 

The Board of Public Utilities (BPU) had notified City Council that the new East High Street Water Plant will not go online until early the next year, nearly six months after high ammonia levels were discovered in its water supply.

The plant, located near Deer Creek Honey Farms, was set to begin operating in February but faced construction delays until May, when testing revealed the issue. According to BPU’s Stan Kavy, the ammonia levels were slightly above EPA standards and come from the water itself, not ground contamination.

To resolve the problem, the EPA and project engineers recommend installing a small, additional filtration system. Kavy noted the cost is minor compared to the $10.2 million already invested in the plant and its one-million-gallon water tower, both financed with long-term, low-interest state loans.

While the city continued pumping water through the wells to naturally lower ammonia, a filtration system was likely still needed. A final cost estimate is expected within 30–60 days. The city is also drilling a deeper 300-foot test well to check for better water quality. (SOURCE:MADISON MESSENGER)

December 2018

In October 2018, the London Board of Public Utilities (BPU) announced it would drill a third well at the East High Street water plant in an effort to address elevated ammonia levels before the facility goes online. The new well, initially planned at 300 feet, was extended to 400 feet after preliminary testing suggested the need.

According to Water Superintendent Marty Colwell, the two existing wells had struck an unusually high concentration of naturally occurring ammonia—three times the maximum limit set by the Environmental Protection Agency (EPA)—a rare occurrence for this region. Treating such levels would significantly reduce the plant’s efficiency, cutting production from 500 gallons per minute to 350.

Since July, the water department had been continuously pumping the two wells in hopes of reducing ammonia, but with little success. Colwell said the third well was drilled deeper in hopes of avoiding the contaminated pocket. “If the water quality proves better, the plan is to pump from that well simultaneously with the other two to dilute the ammonia levels,” he explained.

The city is now in the pumping and testing stage of the new well. Colwell said results should be available soon, but emphasized that no matter the outcome, some level of treatment will still be required. The test results will determine the scale of the treatment system to be installed at the plant.(SOURCE: MADISON MESSENGER)

December 2018
This might seem like a side note, but it could have been a real turning point for the City of London. Madison County bought the state-owned water treatment plant for just one dollar. What many don’t realize is that the offer was made to the City of London first. Imagine the possibilities—millions of dollars in savings, the potential for growth like we’re now seeing with Mid-Ohio, and even the chance to annex the prison and capture the income tax revenue that goes with it. Unfortunately, the city turned it down, and with that, those opportunities were lost. (SOURCE: MADISON MESSENGER)

January 2019 - Opportunity Missed

How much did it cost Madison County to get the prison water plant operational? According to County Administrator Rob Slane, approximately $401,000—far less than the original $2 million estimate.

At the Jan. 15 commissioners meeting, Slane reported that cleanup, repairs, and upgrades to the London Correctional Institution’s water treatment plant are coming in significantly under budget. The county purchased the facility from the Ohio Department of Corrections in December for just $1, and is now providing water and wastewater service to London Correctional, Madison Correctional Institution, the Ohio Peace Officer Training Academy, and the Bureau of Criminal Investigation.

The county also plans to extend service north along State Route 56 to Summerford, west on Route 40 to Lafayette, and north on Route 29 to the I-70/U.S. Route 42 interchange.

One immediate priority is addressing the plant’s lime lagoons, a requirement of the Environmental Protection Agency (EPA). A local contractor will handle the $60,000 cleanup as part of the overall $400,000 package of improvements.

To cover expenses until water payments begin arriving in February, commissioners are considering short-term financing through the county treasurer’s office rather than dipping into the general fund. (SOURCE: MADISON MESSENGER)