Saturday, August 25, 2001
Meetings to detail water system sale
By Terry Flynn
The Cincinnati Enquirer
NEWPORT Three meetings are scheduled for early September to bring Newport water customers up to speed on the proposed sale of the system to the Northern Kentucky Water District.
City Manager Phil Ciafardini said the meetings will be at the city building and televised on local cable television. They are being held at the request of the City Commission to give residents the opportunity to see what is being offered, know what changes might take place and be able to voice their opinions.
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IF YOU GO
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What: Meetings on the proposed sale of the Newport water system.
When: Sept. 6, 7:30 p.m.; Sept. 8, 2 p.m.; and Sept. 10, 5:30 p.m. prior to the city commission meeting.
Where: Newport city building, 10th and Monmouth streets.
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The Water Advisory Board members met with city staff to set up the meetings, Mr. Ciafardini said. The Water Advisory Board will attend the meetings, as will staff members; representatives of the Northern Kentucky Water District; and, hopefully, all members of the City Commission.
The Water District has bid $17 million for the Newport water system, the only remaining city-owned water system in Northern Kentucky. A majority vote of City Commission is needed to approve the sale.
At their last meeting Aug. 13, commissioners were split on whether to give the city manager authority to reach a final purchase-price agreement with the water district. The proposal to move ahead with negotiations was defeated, 3-2.
Commissioners instructed Mr. Ciafardini to set up public meetings where citizens could voice any disagreement they had with the proposed sale.
The city attempted to sell the water system to the Northern Kentucky Water District two years ago but the proposed sale was voted down in the November 1999 election.
In 2000, the Kentucky General Assembly changed the law requiring that the sale of a publicly owned utility be approved by voters, and permitted the sale with approval of a governing body.
Commissioner Jerry Peluso, who originally campaigned against the sale in 1999, said he now believes the sale of the water system is the right way to go because it continues to be a liability for the city.
But I think we must let everyone in the city know what's happening, he said. We need meetings to explain what is good or bad about the sale.
Mayor Tom Guidugli recently said that if the city retains ownership of the water system, rates for Newport customers will increase by about 55 percent starting in October.
If the sale to the water district is approved, the city would make more than $8 million when all financial liabilities are cleared. And the water district has indicated in its contract proposal that water rates would not be raised for one year.
Mr. Ciafardini said the city staff is examining the original 1999 contract proposal to see if any changes might be necessary to finalize a new contract and purchase agreement.
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