Task Force Chairman Roy Ray said the 13-member group has recommended that the City of Akron immediately begin negotiations with the owners of Cleveland Thermal, LLC to take over the Akron steam plant. Ray is the former mayor of Akron and a former Ohio State Senator.

The owners of Cleveland Thermal have successfully operated a similar system for buildings in downtown Cleveland and have created a new operating entity, Akron Energy Systems, LLC to run the Akron plant.

"The major users of the system have reached a consensus that a new operator will be able to solve the problems that have plagued the system for years," said Mayor Plusquellic. "I intend to follow the recommendation of the task force." 

Akron leased its former Recycle Energy System in 1995 to Akron Thermal LP and entered into a long term agreement for operation of the city system, which provides steam and hot water to 87 customers, and chilled water to 21 customers. Akron Thermal has been the sole supplier to Akron General Medical Center and Akron Children's Hospital. The University of Akron and Akron City Hospital have their own back-up system, and both have been called upon in recent years to produce energy because of failures in the Akron Thermal system.

"The future reliability of the system was a major factor in the task force recommendation," said Ray. "Cleveland Thermal met with each of the four large customers to assess their needs and persuade them that they could make the operation dependable."

This week, the Thermal Energy Task Force conducted its ninth meeting since August 28 and heard presentations from Jeffrey Bees, president of Akron Thermal, and from Mark Divis (DIH vuhs) president of Cleveland Thermal prior to making its recommendation.

"I'm very pleased that as part of its proposal, Cleveland Thermal will repay past due sewer and water bills to the city that were incurred by the system," Plusquellic said.

Akron Thermal had proposed to restructure its debt to the city and other creditors and submitted a re-financing package that would have required a guarantee by the city to pay the debt in the event of a default by Akron Thermal.

"Cleveland Thermal does not require any guarantee by the City of Akron for its financing of this project," said Ray.                                                                                                            

Akron Service Director Richard Merolla has delivered a notice to Akron Thermal LP to vacate the city-owned steam plant by Tuesday, June 19. The city will enter into an emergency management contract with Cleveland Thermal to take-over operation of the system until a longer term operating agreement is negotiated and presented to Akron City Council for approval. Cleveland Thermal will interview current employees who want to retain their positions at the Akron facility.

As part of its proposal, Cleveland Thermal has pledged to invest $100,000 immediately to assess the operating and capital needs of the Akron system, and plans to invest an additional $3 million in environmental upgrades as well as $7 million in capital improvements.

In arriving at its recommendation, the task force utilized two independent consultants hired by the city: an engineering consultant to look at operations and capital needs, and a financial consultant to review financing proposals.