The City of Wilmington announces the successful conclusion of its years-long battle over improper charges associated with its water supply at Caesar Creek Lake. At its regular meeting on Thursday night, City Council unanimously approved a landmark amendment to the city’s water supply contract with the Ohio Department of Natural Resources (ODNR), marking a significant victory for Wilmington residents.
The newly-approved amendment brings cost assurance for the city, paving the way for millions of dollars in savings over the coming years. In addition, the Council endorsed a settlement with ODNR, which forgives over $1.2 million in contested bills dating back to 2018. The agreement also includes a $120,000 payment to cover past improper billings.
Wilmington Mayor Patrick Haley expressed his gratitude, stating, “This is a huge win for the city. We are in debt to Attorney General Yost and Governor DeWine for taking on this fight for us.”
The dispute stemmed from a 1993 contract between the city and ODNR for water supply from Caesar Creek Lake. Under a separate agreement between ODNR and the U.S. Army Corps of Engineers, bills for lake operations and maintenance were passed on to the city by ODNR.
In 2017, the city began questioning the skyrocketing bills, citing concerns over fairness and accountability. The city's inquiries were initially disregarded, as the Corps maintained the position that the city bore full liability for the contents of the bills. Despite these challenges, city officials remained steadfast in their commitment to rectify the situation.
Brian Shidaker, former Director of Public Service and Public Safety, reflected on the struggle, “We were fighting the good fight against a giant, much like David facing Goliath. We understood the importance of rectifying this injustice for the betterment of our city.”
A myriad of irregular charges with no apparent connection to water supply came to light during exhaustive scrutiny of the billing data, revealing questionable expenses that included:
Attendance at Cincinnati boat shows
Solar Panel Repairs
Thousands of Unexplained Labor Hours
A Washer and Dryer
Birdseed
Charges Related to Corps facilities other than Caesar Creek Lake
Heating and Cooling Equipment at the Visitor’s Center
Travel Expenses
Cedar Chip Bedding for Duck Boxes
Maintenance of Nature Trails and Parking Lots
Pedestrian Bridges
A Bobber the Water Safety Dog Costume
The Ohio Attorney General's Office initiated legal action in 2020 by suing the federal government in the U.S. Court of Federal Claims. Allegations included breach of contract due to improper operations and maintenance charges, breach of good faith, and improper interest charges. Judge Carolyn N. Lerner concurred with the state’s arguments, citing the Corps’ opaque records and arbitrary billing process as violations of the implied covenant of good faith and fair dealing. This ruling spurred settlement discussions between the state and federal governments, resulting in an agreement in August.
Under the settlement, the federal government will pay the state $595,691.30. Additionally, starting in 2024, the state's and thus the city's contribution to operation and maintenance expenses at Caesar Creek Lake will be a flat rate of $197,500, with adjustments for inflation in subsequent years.
"The most significant outcome for the city is the certainty of costs,"remarked Public Works Director Rick Schaffer. "Under the previous system, the 2024 operations and maintenance bill would have been nearly $600,000, and the 2025 bill would have exceeded $800,000. These escalating expenses would have eventually bankrupted the water department."