Should the Bucks County Water & Sewer Authority Sell Its Sewer System?

DOYLESTOWN, Pa. —The Bucks County Water and Sewer Authority will hold two public open house events on Tuesday, July 26 to hear what the public says about the potential sale of its sewer conveyance system to Aqua Pennsylvania in what would be the largest such transaction in state history.

The first “Public Open House” will take place on Tuesday, July 26 from 10 a.m. to 12 p.m. at the Bucks County Community College’s Perkasie Campus (Great Room located in the North Building) at One Hillendale Rd., Perkasie, PA 18944

The second public open house is scheduled for Tuesday, July 26 from 5 to 7 p.m. at the Bucks County Community College – Newtown Campus (Gallagher Room in the Rollins Center), 275 Swamp Road, Newtown, PA 18940. Use the parking lot by the West Entrance.

The authority on July 13 voted to enter into exclusive talks to sell its wastewater system to Aqua Pennsylvania for $1.1 billion and to formally solicit public feedback on the proposal.

Aqua Pennsylvania submitted an unsolicited proposal in late 2020 to acquire the system. To date, that document has not been made public.

“The BCWSA was presented with an initial acquisition offer and the authority had the fiduciary responsibility to examine every detail and determine the most beneficial decision for all concerned,” wrote board chairman John Cordisco in a letter to ratepayers. “This analysis ensured that customers would have rate protections, municipalities and their taxpayers would realize financial benefits, programs would remain in place to achieve the highest environmental standards, and no current and former employees’ pay and benefits would be negatively impacted.”

After receiving the initial offer and conducting an analysis, the BCWSA says on its website that it has taken the procedural step to enter negotiations with Aqua Pennsylvania, which triggered a series of public meetings on the proposed sale.

“There is no decision to sell until we hear from the public,” says the authority.

While the authority talks transparency, allegations of back room deals have surfaced, fueled by the fact that the vote to enter into exclusive talks for one year with Aqua and formally solicit public feedback never appeared on the authority’s July 13 agenda, which is required under the state’s Sunshine Law.

Under the law, the agenda must include a listing of each matter of agency business that will be or may be the subject of deliberation or official action. The Act also prohibits an agency from taking official action on a matter of agency business at a public meeting, if the matter is not included in the meeting agenda that was posted and distributed for the meeting in question.

The act does say that business can be added to the agenda by a majority of the governing body of the agency through an amendment to the agenda to include the additional matter. The reasons for amending the agenda, however, must be announced at the meeting, and the amended agenda must be posted on the agency’s website and at the principal office location of the agency no later than the first business day after the meeting.

As of July 17, the agenda had not been updated as per the Sunshine Act.

An email sent to the authority by Patch was never returned or even acknowledged.

On its website, the authority said any decision to sell the sewer system must meet the following criteria: ensure ratepayer protections over the next 10 years; provide $1 billion in proceeds for the county and its taxpayers; provide the highest-level of environmental regulations; provide job security for all employees; and public transparency.

If a sale is approved, after paying off the debt that’s associated with its operations, the authority said Bucks County would receive about $1 billion in proceeds from the sale, which it would use to eliminate the entire county debt, create a fund for customers to stabilize sewer rates over the next decade, cover future tax increases, and provide funding for essential services as needed.

While the BCWSA is contemplating selling its sewer system, it would continue to own and provide water service.

Entering into its consideration, BCWSA says it anticipates infrastructure challenges in the future that will require a significant financial commitment to maintain improvements for all customers.

“Communities across our footprint are serviced by an aging sewer system that needs ongoing repairs and upgrades. A private entity like Aqua Pennsylvania can handle infrastructure needs more efficiently and effectively since they can spread costs and work over a larger system,” it says.

“Additionally, many of our customers have already experienced the costly headaches caused by aging laterals that have failed and damaged their properties. Aqua Pennsylvania will also seek PUC approval for the ability to replace damaged customer wastewater laterals to address the stormwater inflow, which is something BCWSA is not permitted to do.”

Along with a one-year rate freeze, the authority said the county could establish a Customer Benefit Fund, which would be used to allow only minimal rate increases over the next 10 years.

“The sale of only the sewer operation means significantly lower rate increases,” said the authority. “Low-income residents will continue to have access to grant or discount programs to help pay bills.”

If the acquisition goes through, all BCWSA employees would maintain their jobs based on current collective bargaining agreements. All pension plans would also remain intact, and employees and their families would maintain their current health, vision and dental plans. Post-retirement health benefits would also be provided for current and former employees.

Aqua Pennsylvania would also assume all necessary permits to operate the systems and assume all Pennsylvania Department of Environmental Protection (DEP) and U.S. Environmental Protection Agency (EPA) consents and orders related to the systems. The company would also have the ability to manage the growing problem of stormwater and it will be able to replace customers’ laterals.”

Since last winter, community groups, workers and residents have attended board meetings to express opposition to privatization of BCWSA. More than 300 Bucks County residents have signed petitions opposing the privatization. And this week the authority's municipal partners began weighing in, agreeing to send a letter to the authority asking to keep them in the loop.

The Bucks County Water and Sewer Authority is one of the largest water and sewer authorities in the Commonwealth of Pennsylvania providing water and sewer services to more than 100,000 households, business accounts, and some 525,000 people in the southeastern Pennsylvania region.