In eight days, Towamencin Township Supervisors will take another step closer to a possible sale of its sanitary sewer system.
Per The Reporter Newspaper, bids sought for the potential sale of the sewer system are due Feb. 11. According to Board of Supervisors Chairman Chuck Wilson at the meeting last month, the next phase in the process will not happen until early April as "consultants will need time to analyze (bids), put together projections, et cetera, which everyone has asked for, and which we will provide.”
Click here to read the details on the township’s sewer valuation study, including monetization status reports, depreciation cost studies, and phase agreements.
The board
voted to seek bids in December. It took them a little over a year to get to that stage, as
talks began in fall of 2020 on privatizing its Kriebel Road treatment plant.
The concept originated at the township sewer committee meeting on Sept. 3, 2020, where, following a presentation from Public Financial Management on valuation and monetization of the sewer system, the committee recommended investigating the monetization of the sewer system and producing an analysis and valuation study,
according to the township’s website.
Later in the meeting, Wilson would defend the township’s transparency through the issue, saying it has "not been sneaky about this” and it has been "very forward” and conducted everything in public.
Read more on Supervisor Wilson’s comments and the project timeline to date here.
A number of residents – calling themselves
Towamencin Neighbors Opposing Privatization Efforts, or NOPE, and founded by Kofi Osei – have mobilized citizens via video, social media, and editorials to vehemently oppose the possible sale, in large part because of concerns over exorbitant increases in sewer rental fees and other charges.
During public comment, Wilson read off the following submitted comments:
"A private company runs a sewer system to make a profit, which can only be done by increasing rates, and reducing services. Whoever purchases our system will be the only provider in the township. The fact that we don’t have a choice for sewer system provider, eliminates the service provider’s motivation to keep the rate competitive, or provide good service,” said Jay Young.
"Residents mostly are unaware that you’re attempting to sell an asset out from under us, and most importantly, I have not talked to one resident who wants this asset sold,” said Judy Phipps.
"We are not looking at selling the sewer system to satisfy any short-term cash need at all. I think we’ve stated that numerous times now. And we do run this township prudently — in terms of finances, we look closely at our expenditures, and when we talk about raising taxes or fees, we don’t take that lightly,” said Lucy Kline.
Osei was present at the meeting and questioned
the township’s FAQ on the project, according to The Reporter.
"It promises that the (Towamencin Municipal Authority) employees will retain their jobs at similar compensation. In talking about the sewer, and going to the TMA meetings, meeting a few of the workers, they seem like a great group that do great work,” he said in the report. "I believe in their ability to train their successors, and so should you. If we have to overstaff for a bit, fine. Raise rates, I won’t complain, but I will have some choice words if my rate hikes end up in some CEO’s bank account.”
Martin Cohen suggested waiting to see how other municipalities do with their privatization efforts.
"Let’s wait a few years and see how much more Limerick’s rates went up. Last I heard, a few months ago, Aqua, who purchased theirs, they put in for a 94 percent rate increase. I’m curious how much more that rate will go up in another five years,” he said in the article.
James Collins suggested supervisors address residents who are unaware of the possible privatization and add a notification in everyone’s upcoming March sewer bills.
"That way, you’re ensuring everyone who is going to be affected by this purchase, would actually be notified of a meeting that would affect their future bills. And that would clarify a lot of the concerns and questions that folks may have,” he said.
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