Council considers sewer system sale

NORRISTOWN » Council members came one step closer to selling the Norristown Municipal Sewer System Tuesday night, by voting unanimously to authorize the solicitation of Requests for Qualifications from potential buyers during their regularly scheduled work session.

Scott Shearer, Managing Director for PFM Financial Advisors LLC, the firm the municipality hired in late 2017 to perform a limited scope valuation of the system, said the exploratory process stalled a bit due to procurement issues involving a nearby township’s sewer sale, but assured Council that those roadblocks, which involved Pennsylvania Utilities Commission procedures, have been cleared.

“Basically, the point of the RFQ process is to really see who is interested in this transaction,” Shearer said, adding that once the RFQ is sent out later this week, potential bidders would be expected to respond within about a month.

If Council decides to move forward, and everything progresses as scheduled over the next few months, interested bidders would sign confidentiality agreements and be sent negotiating documents ahead of the issuance of Requests For Proposals in January, Shearer said.

The motion to approve the RFQ included the retention of the Philadelphia-based law firm Dilworth Paxson to provide legal assistance to the asset purchase group.

Shearer said there are many reasons why cities and towns across the state have been opting to

“Basically, the point of the RFQ process is to really see who is interested in this transaction.” — Scott Shearer, Managing Director for PFM Financial Advisors LLC

sell their sewer systems. Some want to bolster a flagging pension system, while others want to focus more on core services or long-term capital plans, he explained.

In Norristown, the major impetus behind exploring the monetization of the sewer system is what Municipal Administrator Crandall Jones called Council’s “aggressive vision for redevelopment.”

“That includes riverfront redevelopment, downtown redevelopment and certainly now in the mix when you add state hospital redevelopment, part of the discussion had to be about the capacity of our utilities to accommodate all of that rapid development,” Jones said.

Jones also said it has become apparent in talks with the sewer authority that “we have an old system” and it made sense for Council to evaluate whether or not to stay the course and hold on to the asset indefinitely or to pass it on to an outside entity better equipped to handle repairs and maintenance issues.

In other business, Council unanimously approved a $1.76 million contract for the milling, paving and installation of handicap curbs along the entirety of Swede Street and portions of Ann Street to Glasgow, Inc, and subcontractor Ramos & Associates Inc., contingent upon their submission of required bonds, insurance and documentation.

Jones said both contractors have met the requirements of the municipality’s Responsible Contractor Ordinance and the contract came within about $10,000 of the municipal engineer’s original estimate.

Jones added that Swede Street is “very challenging” because of its lack of a bonded and cohesive substrate and said crews would work on the roadway adjacent to the Montgomery County Courthouse and One Montgomery Plaza on nights and weekends to avoid disruption of County business.

Norristown’s new Recreation Manager Erica Genuardi dropped by to present Council with a proposed amended fee schedule for youth programs and league sports. Genuardi said she looked at recreational fees charged by neighboring townships when devising the new schedule and separated the fees into two categories: program fees, which she said are comparable, and league fees, which would be charged for group sporting activities at all municipal parks and fields. The amended fee schedule was approved unanimously.

Additionally, Council approved authorization for a public hearing to be held Sept. 18 to consider a proposed amendment to the municipality’s comprehensive plan that would include language promoting local hiring, and another hearing, scheduled for Oct. 16 establishing special exception criteria for sober living homes.