Steubenville shores up its water operations
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STEUBENVILLE -- City Council transferred $267,562 to shore up the water operations budget to begin to deal with the cost of the January water outage that impacted downtown.
The real cost issues facing the water fund will begin to be dealt with Tuesday when City Council's utilities committee will meet at 6 p.m. to start going over the cost of repairs and upgrades to the system to prevent future large outages, as well as to meet requirements from the Ohio Environmental Protection Agency.
The OEPA is meeting today with city officials to discuss orders facing the city to prevent further outages, including mapping and replacing valves on mains to allow water line breaks to be isolated.
Utilities committee chairman Gerald DiLoreto said he will seek help from state and federal and regional agencies.
"I want a letter to (U.S. Rep.) Bill Johnson (R-Marietta) signed by City Manager Jim Mavromatis seeking his support not only in word but in revenue," DiLoreto said. "This town cannot foot this bill by itself."
He said the utilities committee meeting should be the first of many during the next several months to find solutions and keep the public informed.
During the monthly budget session with Finance Director David Lewis, Mavromatis said the city probably won't be able to do all the required valve replacements in one year. A planned hydrant replacement project will be curtailed.
"It will be several million dollars. I know we've discussed increased service costs and it needs to be done, but that's not going to handle these problems. It will handle manpower and supplies and breakages we normally get. It all has to be laid out for council," he said.
Sixth Ward Councilman Bob Villamagna said state Sen. Frank Hoagland, R-Mingo Junction, and state Rep. Jack Cera, D-Bellaire, have been invited to the meeting. Fifth Ward Councilman Eric Timmons said representatives of Jefferson County and a consulting firm from Pittsburgh the county has used also are expected to be in attendance.
In other matters, council was briefed during a finance committee meeting about how the Regional Income Tax Agency works on city income tax collections.
Matthew Mau, a government liaison with RITA, said the agency added 877 new income tax accounts in 2017, collected $4.2 million in electronic filing and saw total income tax collections of $11 million, including payments made to the city directly. He said there were 93 lawsuits seeking $180,000 in tax liabilities filed by RITA on behalf of the city in 2017, with $56,000 collected to date.
Fourth Ward Councilman Scott Dressel asked about collections on outside contractors, especially those working in the oil and gas industry. He noted there are two well pads in the city limits with about 80 employees working, as well as pipeline and other workers living in the city totaling "a few hundred," but income taxes aren't being paid. He said communities up and down the Ohio Valley are facing the situation.
Mau said specific employer questions needed to be discussed in private, but Brian Thunberg, a government liaison with RITA, explained there are issues with changes in state tax law that could impact some collections. He said small businesses are not required to withhold municipal income taxes and the state increased the number of days worked before income taxes are required from 12 to 20. He said there also is the question of domicile instead of residence. If someone has a residence in the city but there is evidence, such as family, voting records, a driver's license and other records indicating an intent to return elsewhere, then the other place is the domicile. If the domicile is outside the city, the person isn't required to pay city income tax in Steubenville. If, however, they're working inside the city limits, they have to pay the city income tax, he said.
In other matters:
• Mavromatis said the city will conduct the bulk refuse pickup from mid-April into May during a six week period.
• Mavromatis said the city will be cutting down trees in the 100 block of South Fourth Street to meet concerns from AEP about interference with power lines.
• Mavromatis called on downtown building owners to plan to decorate storefronts, even if the buildings are vacant, for the 2018 holiday season to give visitors a better impression.
• Mavromatis and Villamagna informed downtown business owner Mike Strean that the responsibility for maintaining sidewalks is up to the building owner or business.
• Villamagna said a plan by a committee of the Steubenville Revitalization Group for planters along North Fourth Street will have to be presented to council.
• Villamagna said millions of dollars are being invested in the city by private businesses, including the River Rail Terminal, new businesses on University Boulevard, a new store to be built in the West End, and a major project coming to Trinity Medical Center West, remodeling at Eastern Gateway Community College, a $7 million new convent on Lovers Lane and the three dozen stores at the Hollywood Plaza.
"Things are going on. You have to look around. Money is being invested in this community," he said.
Council went into an executive session to discuss pending litigation.
(Giannamore may be reached at pgiannamore@heraldstaronline.com.)