Sewer sale goes against will of people
On March 8, 2023, the Towamencin Township Board of Supervisors added a last-minute voting item to their meeting agenda. This item was related to an update given to the township by Nextera, the purchaser of our sewer system. Nextera informed the township they wish to get out of the water/ wastewater business and is therefore backing out of the sale. Just when you thought this could be good news for the township, Chuck Wilson informed those in attendance that the Asset Purchase Agreement would be transferred to Pa American Water.
While the Asset Purchase Agreement does allow for this transfer, it must mutually be agreed upon by both Nextera and the township. The options that Rich Marino laid out were that the township could either agree to the transfer, or Nextera would continue through the PA PUC process and then sell it off to PA American. The impetus behind this is a mysterious $10M penalty that Nextera wishes to avoid if they were to back out of the agreement. Again, this penalty, which does not seem to appear in the agreement, would only be invoked if the township chose to invoke it. The agreement allows for a termination with no penalty if both parties agree.
The board, by 4-1, voted to advertise this news, as well as amend the existing agreement naming PA American Water the purchaser. The final vote will take place on March 22, 2023.
The four supervisors that voted in favor of this sale last year did so despite public outrage. In November 2022, 60% of the community voted in favor of a Government
Study Commission to explore the ways in which a Home Rule Charter could stop the sale of the sewer system. On March 1, the commission voted to add the Home Rule Charter ballot question to the May 16th primary ballot. Chuck Wilson, Rich Marino, Laura Smith, and Kristen Warner continue to defy the will of the people by pursuing this transfer and sale, and it is irresponsible for them to pursue this prior to the community voting on this referendum.
It is also important to note that this decision to sell our sewer system was made without an updated comprehensive or strategic plan for the township. In fact, Towamencin hasn’t had a comprehensive plan since I graduated high school, which was in 1989. The township hasn’t had a strategic plan since the first iPhone was released. That was in 2007. Four of our supervisors decided the best approach to doing their jobs would be to sell a public asset that is not in disrepair and is still making money for the township, with no long-term plan for what to do with the money from any sale. That is pure laziness and a dereliction of their duties as representatives.
At the time of the sale to Nextera, and the concern from citizens on rates, Chuck Wilson said you can’t predict rates. In addition, Rich Marino said of Nextera they don’t have plans to recoup all their money because they are trying to break into the market in Pennsylvania.
Well, PA American Water has established rates, and they have a presence in Pennsylvania. Their rates come in on average to $1200 per year to start. In addition, unlike Nextera, PA American is not offering a 2-year rate freeze. For those that believe the PA PUC is in place to protect ratepayers, they just granted PA American a 40% rate hike.
On May 16th, voters will have an opportunity to vote on a Home Rule Charter that would prohibit this sale or any future attempt to sell this public asset. In November, voters will have an opportunity to choose another township supervisor. See you at the polls.