DUBOIS – On Monday night, the Sandy Township Supervisors voted to proceed with the necessary steps to propose a joint municipal authority.
The supervisors said it would be for wastewater only based upon discussion from the most recent Sandy Township-DuBois City joint committee meetings.
The two municipalities had previously discussed having the joint authority manage both the water and wastewater systems.
According to Supervisor Kevin Salandra, who represents Sandy Township on the committee, the current joint authority proposal should have several benefits, which include:
- reducing the average bill of $73.75 to around $40. As a result, a customer who uses 3,000 gallons monthly should realize a savings of $345 over the course of a year. The township should also realize $2.3 million in debt savings.
- retaining ownership of its assets. However, Sandy Township would lease them to the joint authority.
- helping keep money invested on the wastewater system in local communities.
- having a voice by appointing directors to the joint wastewater authority.
“Kevin and I didn’t think we could make a proposal to the city without the blessing from [the full board],” said Supervisor Mark Sullivan.
He added that he’d spoken with DuBois City officials who were aware of the possibility of a proposal and they appeared to be in favor.
Supervisor Jim Jeffers said though the rates didn’t seem too bad, he had some concerns with the proposed joint wastewater authority.
First, Jeffers said the net savings may not be as large as it seemed. He pointed out that the joint authority didn’t include the water system and the full costs, which were previously shared between the water and wastewater evenly, would still exist.
Jeffers added that these costs would still need to be paid for by the township’s water authority.
Next, Jeffers said the joint authority would be made up of five directors. DuBois City would have three and Sandy Township would have two.
Though the township would have a “voice,” he said it would always be outnumbered 3-2. He suggested they include Sykesville and Falls Creek in order to prevent DuBois City from having the majority of votes.
Salandra countered, saying the board’s make-up actually favored the township. He said when you consider what each municipality would bring to the authority, the city should have five directors for each township director.
Salandra didn’t address Falls Creek but did point out that Sykesville doesn’t get its wastewater treated by DuBois City, so there wouldn’t be a reason for it to be part of the proposed joint wastewater authority.
Jeffers said he was concerned about the authority subcontracting maintenance work to DuBois City. He said he would like to see it be awarded to the lowest bidder instead.
Jeffers also said the township would still pay higher wastewater rates than DuBois City. However, Salandra explained that over time, their rates would converge because the city’s would increase.
When both municipalities reach the same rate, it would remain the same so long as the joint authority was in existence. Sandy Township’s rates would be higher at first due to its amount of debt and how quickly some debt needed to be paid off.
Then, Jeffers and Salandra debated the initial five-year term for the authority. Jeffers wanted to see rates locked in for a longer period of time; however, Salandra said there were too many unknowns with the new wastewater treatment plant’s construction to project a fair rate yet.
Solicitor Greg Kruk added that the township still had items to investigate before presenting a final proposal to DuBois City. These involved:
- some municipal authority loans being tied to assets. Leasing these assets might affect the loans.
- a review being conducted by the township auditor.
- a review being conducted by the township’s special counsel.