WILMINGTON — The City of Wilmington’s long battle over charges associated with the Caesar Creek Lake water supply has been resolved.
At Thursday’s Wilmington City Council meeting, the council approved an amendment to the city’s water supply contract with the Ohio Department of Natural Resources (ODNR), “marking a significant victory for Wilmington residents,” the city said in a news release.
According to the release, the new 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 Pat Haley said, “This is a huge win for the city. We are in debt to Attorney General (Dave) Yost and Governor (Mike) 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. In a separate agreement between ODNR and the U.S. Army Corps of Engineers, the 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,” the release states.
Brian Shidaker, the former safety/service director, said, “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.”
The city argued that many of the charges imposed on it had no connection to water supply.
Among the expenses billed to the city were:
• 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.
The release advised 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.”
The release indicated that 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,” Public Works Director Rick Schaffer said. “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.”
Reach John Hamilton at 937-382-2574
