After decades of being passed through ownership, the city’s steam plant might finally get a more permanent set of owners.
The city’s department of public service proposed a co-op form of ownership of the plant during a committee meeting Monday that would involve the city, Cleveland Clinic Akron General Medical Center and Akron Children’s Hospital.
The Akron Recycle Energy System (RES) plant on Opportunity Parkway has been hanging in ownership limbo since 2013, when voters approved the city’s donation of the plant to Akron Children’s Hospital. A history of troubles and the realization that the asset was a financial burden pushed the city to want to donate it to Akron Children’s, which had wanted it to serve its expanding campus.
Although voters approved it, Akron Children’s was not required to accept the plant until the facility was up to its standards.
“At the time, the plant was not in the condition that we would’ve been comfortable accepting it in,” Tim Ziga, Akron Children’s associate general council, said at the meeting. “From the hospital’s perspective, we were concerned about reliability and redundancy, and the plant didn’t reflect well on either of those criteria.”
Currently, the city has two options in determining future ownership of the plant.
The first option would be for the city to continue owning the plant, and all users involved would be contractually obligated to share in the capital and operating needs for the next 25 years.
The second option is forming a “three-legged stool” co-op between the city, Akron General and Akron Children’s. Each leg of the partnership would have equal control over decisions about the plant.
The two hospitals currently use 70 percent of the steam produced at the plant for heating and cooling. In the proposed co-op, the hospitals would represent their interests while the city would represent the interest of the remaining users, which include Summit County, Canal Place and the Akron RubberDucks.
While Akron Children’s is on board with the partnership, Akron General’s stance is up in the air. John Moore, the city’s director of public service, said previous Akron General CEO Tim Stover “was fully on board.” However, since merging with the Cleveland Clinic and Stover’s sudden retirement, Moore says he plans to discuss more about the co-op with the hospital in upcoming weeks.
Either way, Moore said the city is seeking to fix the plant up with an $11.9 million state grant. The city plans to improve efficiency and reduce operating costs by purchasing rental boilers and providing a return line to hospitals. It also plans to demolish parts of the old BFG plant, a deteriorating facility that partnered with the RES plant in 1995, but hasn’t been used since 2015.
Some council members were skeptical of the proposal.
“If there were things you weren’t comfortable with in 2013, why would you be comfortable in 2016?” asked At-Large Councilwoman Veronica Sims. Ziga responded with a list of improvements the facility has made in the last few years, including eliminating coal power boilers and installing more reliable gas-powered boilers.
“I applaud Children’s in terms of sticking with us … but I can also appreciate everyone’s concern here on the council,” said Jeff Fusco, at-large councilman.
Other council members expressed support for the proposed co-op.
“Sometimes we look behind us too much, and we need to look forward on this,” said Ward 6 Councilman Bob Hoch.
Moore said he will continue talking with council members and answering their questions until they can make an informed decision to vote on funding in the upcoming weeks.
Theresa Cottom can be reached at 330-996-3216 or tcottom@thebeaconjournal.com.