Mayfield Heights Council Authorizes Agreements to Join Cleveland Water suburban main renewal program

Mayfield Heights on Aug. 4 approved a resolution authorizing the mayor to execute three agreements with Cleveland Water that would make the city eligible for the utility’s suburban water main renewal program. The agreements include a restated water service agreement, an economic development (municipal utility district) agreement, and an asset transfer agreement transferring ownership of local distribution mains (16-inch and smaller) to Cleveland Water.

The vote follows a presentation by Alex Margavicious, identified in the meeting as Cleveland Water Division commissioner, who described the program’s structure and scoring criteria. Margavicious said the restated agreement has a minimum 20-year term and automatically renews thereafter; a municipality may revert to its prior agreement if it gives Cleveland five years’ advance notice, but must reimburse Cleveland on a prorated basis for any capital reinvestment the utility made in the intervening period. “If you execute, you will sign a new agreement called the restated agreement. It is for a minimum of 20 years,” Margavicious told council members.

Why it matters: Cleveland Water says the program has funded nearly 500 projects and reinvested roughly $243 million in suburban mains to date; proponents at the meeting said the program allows Cleveland to undertake capital replacement on smaller suburban mains it previously could only repair. Members of council and city staff pressed Cleveland and the city’s engineer about selection criteria, timing, cost exposure and the effect the agreement would have on local economic-development incentives.

Most important facts - Program elements: restated water service agreement, municipal utility (economic development)…