Resolution Opposing Sewer System Sale Approved By Doylestown Borough

DOYLESTOWN BOROUGH, Pa. — The Doylestown Borough Council on Monday voted unanimously to pass a resolution opposing the sale of the Bucks County Water and Sewer Authority’s (BCWSA) sewer assets to Aqua Pennsylvania.

In its resolution, the council “respectfully implores” that the Bucks County Commissioners take all reasonable and necessary steps to compel the BCWSA to abandon negotiations with Aqua and to continue operating as an independent, nonprofit agency, as intended when it was created in 1962 by the Bucks County Commissioners.

“If there is no other recourse, we believe the county should disband the BCWSA and take over the sewer assets and operations of the sewer system until a public entity is found to sell the system to,” the resolution continues.

The authority, which services 100,000 customers, nearly one-third of the county’s population, entered into exclusive negotiations with Aqua in July. Aqua has offered to purchase the sewer assets for $1.1 Billion.

“At a time when costs are increasing for all Bucks County residents, through no fault of our elected officials, residents can scarcely afford an increase in sewer rates,” says the borough’s resolution.

“Doylestown Borough believes it is unconscionable for BCWSA to sell it sewer assets to Aqua as the long-term financial impacts that major increases in sewer rates will have on residents and businesses being served and on Bucks County in general.”

According to the borough, Aqua has a history of increasing its sewer rates substantially, including those municipalities which sold their private wastewater systems to Aqua like Limerick Township whose rates increased 82 percent, East Bradford Township whose rates increased 64 percent, Cheltenham Township whose rates increased 65 percent, East Norriton Township whose rates increased 57 percent and New Garden Township whose rates increased 53 percent.

“Wastewater services such as those provided by BCWSA are essential to protecting the environment and it is imperative that those services be provided at cost-effective and reasonable fee structures; and privatization of BCWSA's sewer assets ultimately results in negative impacts for local municipalities and their residents.,” reads the resolution.

In addition, the council voted unanimously to send a letter to the Bucks County Commissioners opposing the sale of the sewer authority assets, citing a track record by Aqua of rate increases following such sales.

At a public open house in July, BCWSA Chair John Cordisco said negotiations would continue with Aqua until a deal is reached, the year is extended or talks break off. He said there is no date set as to when a decision will be made.

“We’re hoping to provide sufficient information and get information back that will help us in making this very significant decision. There has been no decision made relative to the sale of the sewer authority,” he said.

Cordisco said any deal would have to include the creation of a rate stabilization fund either implemented by the county or by the authority that would keep rates in check for the next decade or more.

“There will be funds put aside that will insure that your rates will be no higher than if you were still with the Bucks County Water and Sewer Authority,” said Cordisco.

Cordisco said if the sale happens, the $1.1 billion would first be used to pay off the authority’s debt. “The balance of about $850 million would then go to the county and they could use it to payoff its debt if it so chooses, which is about $106 million. The county would then realize an additional $15 million a year in its budget in debt service savings.”

In addition, the authority would continue to collect tapping fees of between $3 million to $5 million a year, which would be passed onto the county as additional revenue.

Aqua Pennsylvania would also assume all necessary permits to operate the systems and assume all Pennsylvania Department of Environmental Protection and U.S. Environmental Protection Agency 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.

Also entering into the equation, said Cordisco, are a number of future infrastructure challenges that will require a significant financial commitment if the sale doesn’t go through.

“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,” said Cordisco.

“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.”