‘NOPE’ FILIBUSTERS BOARD MEETING
Citizens group continues criticism of proposed sewer sale; final vote set May 11
TOWAMENCIN » It may be all but a done deal, but Towamencin residents still have plenty of questions for their supervisors about the proposed sale of the township’s sewer system.
Residents sounded off for another hour and a half against the sale Wednesday night, asking questions they feel remain unanswered — while picking apart claims made at the two public townhalls and months of discussion on the sale.
“I’ve done some analysis on this whiteboard. It says, if we keep the system, the township will get one billion dollars. If we privatize the system, we’ll lose a billion dollars. Do you believe this projection?” said resident Kofi Osei.
“That’s the problem with posting numbers without work. It doesn’t make sense. We have a company offering five times the face value of the sewer system. Are you not worried you are complicit in a scam? Are you not worried you are complicit in a scam?” he repeated.
Over the past three weeks, two public townhall meetings were hosted by the township to hear analysis and field public comment on the possible privatization of the township’s sewer system. The sale and associated study have been discussed by the township and its residents since 2020, with five bids received for a possible sale or lease in February, and residents hammering the board on specifics ever since, while warning that any sale proceeds to the township would ultimately be borne by ratepayers.
At the start of Wednesday night’s supervisors meeting, board Chairman Chuck Wilson announced that the board’s next regular meeting at 7 p.m. on May 11 will be held at Dock Mennonite Academy, 1000 Forty Foot Road, the same site as the two April townhalls.
“Due to the anticipated turnout for the sewer decision agenda item, we realize a larger venue is needed,” he said.
Since the April 20 townhall, he added, two new items have been posted in the public data room regarding the sewer sale, including an amortization requested by resident Martin Cohen on the costs to the township to borrow $115 million, the bid price submitted by bidder NextEra Energy which four of the five board members have indicated they will approve. The sec
ond item was requested by Osei, founder of the Towamencin Neighbors Opposing Privatization Efforts group of residents opposing the sale, as he has picked apart the financial analysis performed by outside consultant PFM.
“Mr. Osei has asked for the assumptions that went into the assumed Towamencin sewer rates if we did not sell the system, and those are now in the data room as well,” Wilson said.
The board chairman then began reading public comments submitted via email, nearly all of which opposed the possible sale. Sandra Green said she thought “There is no good argument for selling our municipal services, including the sewer.”
“Selling the sewer will impact the financial health of Towamencin residents forever, to fund a short term need,” she said.
Tina Gallagher said she was “disappointed to see four supervisors declare their allegiance to a predatory sewer company, over the concerns of the residents.”
“Many are seniors who like myself, will be greatly impacted. Not a single supervisor mentioned this in their individual comments. All the millions touted will be on the backs of residents. Shiny things don’t impress me. Strong morals do,” she said in submitted comments. In person, Gallagher held up a whiteboard as she wrote terms she heard during the townhalls.
“Residents may benefit from the homestead exemption. It was estimated. The reserve created may be used. We assume —vague words, foggy words to me,” she said. “I don’t want a private company with shareholders, when our township can do the same job, as efficiently, without harm to our residents.”
Michael Cunningham said, after attending the two townhalls, “I have serious concerns. NextEra is overpaying us, in order to gain a foothold in Pennsylvania.”
“The money we get will be invested, and you will have great plans for using the interest. But you will not always be our supervisors, and a new slate of supervisors can spend or waste it all on some ridiculous extravagance. Just think of how excited past supervisors were to build the bridge to nowhere,” he said.
Jack Sisko said he opposed a sale after the first townhall, but changed his mind during the second for several reasons: “The most important was, I was able to see the numbers being presented. The first Zoom meeting only showed the presenter. Looking at the numbers, and thinking about them, really struck home.”
Joe and Monica Catanzaro said they thought “the board has proven they have done their research and due diligence, to provide clear and concise information, on the reasons the majority of the board feels the sale of the sewer treatment plant is a positive situation for the township.”
Joseph Toner said he was “appalled that four of five supervisors are for the sale of the sewer, and the opposing supervisor is a Democrat. Long-term, this will hurt every resident. I am registered as a Republican, but I’ll never vote for any of you again.”
Lisa Lieb asked why the financial projections shown in the townhalls included dramatic increases in township real estate property taxes to make up for revenue lost by the township selling the sewer system.
“If you’re going with NextEra, we, your constituents, are flushing our hardearned dollars down the drain, and we get no benefit with the exception of a skyhigh bill.”
Michael Miller asked why the board never answered a question in the April 6 townhall about committing to not raising taxes in the wake of a sale, and said he thought the outline of possible uses of the sale proceeds “fails to provide the residents of Towamencin with an acceptable plan.” Jenn Foster said she thought comparisons made during the townhalls to other utilities run by private companies were “so off-base it’s almost laughable. I can cut the cable cord, I can shop for both electricity and cell service.”
“I also know a thing or two about market breakthrough, and I can tell you with 100 percent certainty that NextEra will make their money back,” she said.
Foster added sharp words for Wilson, saying she felt he had been “closed-minded, disingenuous, and flat-out contradictory in almost everything you said. The shadow ‘sewer committee’ you are a part of, is not only a conflict of interest, but I believe solely organized to keep your desire to sell, hidden from public view.”
Vanessa Gaynor said she was “troubled” by the plans, and opposed the sale, while Stephanie German “did not hear very many people say this was a good idea.” Judy Cunningham said she thought the board was “being blinded by the money,” and thought the contract with PFM that pays the consultant a percentage based on the sale proceeds “was poorly constructed, to allow a profit only if we sell. To me, this invalidates the financial advice.”
Gary Starkweather said in an emailed comment that he still had not gotten any formal notifications from the township, and added in-person commentary that he thought the bid by neighboring Franconia Township’s sewer authority more closely reflected the system’s true value.
“I don’t see why Franconia wasn’t more seriously considered. Yes, you couldn’t pay for all of these grandiose capital projects, but I’m not sure everybody wants all of those capital projects,” he said.
Joe Silverman read campaign literature from 2001 when Wilson and late former supervisor Tom Hollenbeck were first campaigning for the board.
“We proposed to take a ‘residents first’ approach to the following areas: taxes, spending, here’s one: ‘Openness and communications.’ Conduct surveys on critical issues, using the Towamencin newsletter.’ I haven’t seen any of that,” he said.
Cohen questioned figures in the financial presentations: “Is this something I’m missing here? Our rates will be doubling as soon as the rate freeze is lifted? Is that correct?” Wilson replied: “Everyone has the presentation.”
James Collins questioned the credibility of the NextEra officials at the townhall who vowed that the company would not seek to recoup the $115 million from ratepayers.
“Even if we can take him at his word, the truth is, there’s no guarantee that he’s gonna be the guy making decisions in two, five, ten years. This is a company. They can decide they’re going a completely different route,” he said.
“Once this becomes theirs, it’s theirs for them to do whatever they want to do. And because it’s no longer ours, we no longer have a say,” Collins said.
Bruce Bailey compared it to other services like police: “We wouldn’t rent that out to the Pinkertons. We have our own police department, and we run it well. You wouldn’t sell the supervisors off, and bring in a management company to run the township. It doesn’t make sense.” And David McCreary then said he thought PFM’s numbers “aren’t worth anything, and even as they were presented, they’re still a bad case for the township.”
Osei then took the floor for roughly 20 minutes, asking questions he felt were still unanswered, then pausing as he asked questions and the board and staff left them unanswered. Among the questions: whether the township manager would like to express an opinion about privatization, why he should not be critical about “stagnant rates for decades” prior to 2022, if the board believes they can invest better than NextEra, why large tax hikes are assumed over the next decade, and how much the board plans to raise taxes and sewer rates for 2023.
Osei then asked specific questions to supervisors Rich Marino and Kristin Warner, repeating them for emphasis, about why they wanted to expand spending during a period of inflation, why the public should trust the board with the $115 million, and what criteria were used to pick NextEra’s bid. The only answers to Osei’s questions came from supervisor Joyce Snyder, the only supervisor who has said they oppose the sale, who said she had not had any non-public conversations with PFM.
“When were you made aware that NextEra was the preferred bid? And were you ever asked for your preference?” Osei asked.
“The same time the rest of the citizens of Towamencin were. And no,” Snyder answered.
Osei then told the board he planned to “read a bunch of literature relating to the sewer sale, until I get bored, or you motion to adjourn the meeting.” Solicitor Jack
Dooley replied that Osei had “no right to just consume this meeting by reading documents. That is not public comment.”
The two then argued back and forth, with Dooley warning Osei to be “very careful about disrupting a public meeting,” and Osei asking “What’s the line of too much disruption?”
“I think you’re reaching it, because this board has to move on to do other work,” Dooley said. Osei then started to read a letter from October, before handing the microphone over to Silverman, and as the latter read more literature from 2001, Wilson asked for a motion to close the public comment period. Marino and Warner then moved and seconded, Snyder voted against, and the board voted threeto-one to proceed with other business.
Towamencin’s supervisors next meet at 7 p.m. on May 11 at Dock Mennonite Academy, 1000 Forty Foot Road. For more information or meeting agendas and materials visit www. Towamencin.org.