Wednesday, February 19, 2020

Pressing Ahead on Upper Pottsgrove Sewer Sale



POINTED ADVICE: Above, John Bealer, former township commissioner and chair of the township's sewer committee, says the board should entertain questions from its citizens at its public meetings.

Upper Pottsgrove Commissioners are pressing ahead with their exploration of the sale of the sewer system.

During last night's commissioners' meeting, Board chairman Trace Slinkerd said bids for the system will be opened on March 16.

The board of commissioners will meet in "executive session," from which the public is excluded, on March 18 and March 25.

Also on March 25 and on April 2, Slinkerd said  public meetings will be held to entertain questions and comments from the public.

(Additional meetings may be scheduled on April 6 and April 8 if needed, he said).

He also mentioned that a special lawyer has been hired to oversee the process for the township, although no name was mentioned.

Slinkerd said the commissioners are expected to vote on the matter on April 20.

That will make about a year since the matter was first raised publicly.

Last April, Sewer Committee Chairman and former commissioner John Bealer said the township was approached by Aqua PA and Pennsylvania American Water about selling the system.

Ever since the passage of Act 12 in 2016, private utility companies like Aqua and PA American Water have been on a buying spree.

The act changes the way the systems are valued and allows municipalities to charge much more to sell the system than they previously did. This makes overtures from private companies much more attractive because the sale prices are much higher.


More recently, on Nov. 19, Royersford Borough Council voted to sell that borough's sewer system to Pennsylvania American, which provides the borough's public water, for $13 million.

In August, 2018, neighboring Limerick Township sold its much larger system for more than $75 million to Aqua PA, in a move that allowed the township to eliminate debt and fund several capital projects, but may also mean a rate hike for Limerick customers of as much as 84 percent.

Limerick's annual average sewer rate of about $384 will be frozen for one more year under the law. 

Upper Pottsgrove's annual bill is about $860, one of the highest in the area.

That may be because the system has about 1,600 "equivalent dwelling units," which is how sewer charges are calculated, that together have nearly $9 million in debt, money spent cost to expand the system to homes with failing septic fields and failing systems, like the Regal Oaks subdivision off Gilbertsville Road.

About 35 percent of the quarterly sewer bill goes to debt service on the system extension.

If the Upper Pottsgrove system is purchased, the debt would still be owed by the township, so that would likely be the first place the money from the sale would be spent, Bealer said last year. Slinkerd has said money from the sale could also be used for needed facility upgrades, like to the police station and a desperately needed new salt shed.

In the meantime, work continues on the system.

Last night, the commissioners approved a bid from Doli Construction for another phase of the Regal Oaks sewer system project. The bid of $537,440 was within the budget for the project, which benefits from a $200,000 state grant to cover part of the cost.

The project will connect 26 homes on Rose Valley Road and Holly Berry Court, as well as seven homes on Gilbertsville Road.

In response to a question from Commissioner Martin Schreiber, Township Manager Michelle Reddick said the township will not have to pay back the grant if the township sells the sewer system.

The one thing that makes the Upper Pottsgrove system sale different is that the township does not own a treatment plant. It pays to send its sewage to the Pottstown Wastewater Treatment Plant on Industrial Highway.


There is a "sewer services agreement" under which the authority agrees to accept and treat the township's outflow.

The authority would have to approve the re-assignment of that agreement to a new owner, or the new owner could negotiate a new agreement with the authority, explained Authority Solicitor Vincent Pompo.

Additionally, moving that agreement from a government body to a for-profit company would also require approval by the Pennsylvania Public Utility Commission, said Pompo.

New Trails Coming

In other matters, the board voted to seek bids for two trails, one in Sunset Park and the other on Fox Hill. 

A grant obtained through the Pottstown Metropolitan Area Regional Planning Commission's regional recreation committee will cover part of the Fox Hill trail, and another grant from the Pottstown Area Health and Wellness Foundation will cover part of the Sunset Park trail.

Bealer Chides Board for Stifling Questions 

And, as those of you who watched the video posted above, Bealer took the unusual step chiding the township commissioners last night for its refusal to entertain questions from the public during public meetings.

After invoking the spirit of liberty, freedom and the right to question one's government on which the nation's founding was based, Bealer noted that at a previous public meeting, a member of the audience audience had posed a question regarding "an action contemplated by their elected officials."

"That individual's voice could not be heard, however, because the immediate response from the chairman of the board was 'we don't do questions.'"

"I was disappointed my neighbor's request seeking additional information was so easily dismissed," said Bealer. "I'm hopeful going forward that my local elected officials will agree that having open and engaging public meetings will be their best policy."

And with that, click here to read the Tweets from the meeting.

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