DUBOIS – Sandy Township officials said a recent court ruling just doesn’t sit right with them. And because of it, they are going back on an earlier plan not to appeal the judgment in the sewer rate issue.
Already the township has spent about $600,000 fighting DuBois City’s contention that the township should pay $6.92 per 1,000 gallons of wastewater sent to the city’s treatment facility.
“I feel we have no other recourse on this at this time,” said Jim Jeffers, supervisor. His sentiments were echoed by the other four supervisors.
Sandy Township Supervisor Chairman Brady LaBorde said the commonwealth has placed checks and balances in the system to prevent monopolies for things such as electricity and gas, but water and wastewater are left to local entities.
“Basically, that gives that party the right to seal,” he said. “I don’t think we have a choice but to appeal.”
The supervisors explained that those who live in DuBois pay $6.92 per 1,000 gallons, but those funds pay for not only treatment, but also billing, attorney fees, maintenance and replacement.
In Sandy, that same fee pays only for treatment. People on the system pay the $6.92 per 1,000 to DuBois; $3.80 per 1,000 to the Pennsylvania Infrastructure Investment Authority for a loan; leaving only $1.80 per 1,000 for billing, etc. Customers also pay $12.25 per month for a maintenance fee.
As of now, Sandy Township is obligated to pay the difference between the $6.92 and what the township had been paying. That adds up to more than $2.3 million. According to Sandy Township Manager Richard Castonguay, the township owes about $1.7 million, according to the court ruling.
The supervisors and one township resident also pointed out that Sandy Township co-signed on the city’s loan to build the treatment facility, and said the city received government dollars to help in the construction because it would assist two municipalities.
For now, Castonguay plans to sit down with DuBois City representatives to come up with a number both parties can agree upon, and Castonguay is going to ask local banks for information on borrowing the money to pay the township.
If the township wins its appeal, the funds will come back, but as of now, Castonguay said the township is looking
“We’re at the point now with what this debt is going to be plus our sewer repairs where we’re going to be asking people to be choosing between eating and heating their houses this winter and paying their sewer bills,” said Dave Sylvis, supervisor. “That’s pretty desperate.”
He added that this decision by the court is detrimental to business because companies looking to build or expand do not want to choose an area with high-cost utilities.
Castonguay said that if the rates stick in the township, some rates could be higher than the highest rates reported in the state.
He cited a recent issue of “The Authority,” a magazine printed for municipal authorities.
The highest non-residential bill found was $411, and Castonguay said, “Based upon our current charges, our bill would have been $488.25.” On the residential side, there was some better news. “The Authority” found that the highest price in the state (for 4,000 gallons per month) $120, and Sandy Township was looking at $59.
“That’s a little better,” Castonguay said, but noted that the price is still much higher than the average of $35 per month and the median of $28 per month.
Now the issue of the rates will be sent to Commonwealth Court, which could rule on the matter or remand it back to Clearfield County Court for a verdict.