Two of the Bucks County Commissioners on Tuesday came out against the potential $1.1 billion sale of the Bucks County Water and Sewer Authority’s wastewater system to Aqua Pennsylvania.
The move marks major opposition against the sale of the system that serves about 100,000 retail sewer customers mainly throughout Bucks County and numerous wholesale customers in the region.
Commissioners Chairperson Bob Harvie and Vice Chairperson Diane Ellis-Marseglia, both Democrats, issued statements just past 10:15 a.m. stating they are against the deal and want the authority to not move forward. They both said they understood why the offer from Aqua and explored.
Harvie said he spoke with John Cordisco, the former head of the county Democratic party and chairperson of the authority board of directions, to ask the authority ends negotiations with Aqua.
“As a Bucks County Commissioner, I don’t have a direct vote on whether or not a sale should happen, but I and the other Commissioners do have the power to change the charter of the Bucks County Water and Sewer Authority,” he said, stating the option of altering or curtailing the charter is on the table.
Ellis-Marseglia stated she has heard the negative feedback on the proposal from the public and municipal leaders.
“While the financial aspect of this deal is a reasonable alternative given the expensive infrastructure work ahead, what we heard from the public was clear, nonpartisan, and near-universal: do not sell off the publicly run BCWSA sewer system to a private entity. Fear of ballooning rates, as evidenced by similar takeovers around the country, and loss of a well-managed, highly regarded public utility topped the feedback I have received,” she said.
Commissioner Gene DiGirolamo, a Republican, did not issue a statement. LevittownNow.com has asked him for comment.
The Bucks County Water and Sewer Authority was reviewing the statements and did not immediately have comment.
The county chartered the authority in 1962, and the commissioners – two Democrats and one Republican – don’t have any official authority to approve or deny the sale. However, the authority board said they would take the commissioners thoughts into consideration.
If the Bucks County Water and Sewer Authority Board of Directors does agree to a sale of the sewer system, the chartering organization, which is the county commissioners, could see the funds go into public coffers.
The county could net as much as $1 billion in profit from the sale of the system.
While the sale would be a windfall, numerous municipalities, grassroots groups, and residents have opposed any proposed sale, which would increase sewer rates and move control from a public organization with direct input from ratepayers to a national for-profit company that has shareholders.
Aqua has pushed to convince ratepayers that the sale would make sense, and the authority has said it would lead to improvements to the system by the for-profit firm.
Residents have called on the commissioners to oppose the sale. Some have even floated the idea that the county’s governing body should strip the Bucks County Water and Sewer Authority of their charter, which would require a new entity to run the system.
The commissioners’ announcement comes a day before NOPE, a group opposed to the sale, and others are set to rally outside the Bucks County Administration Building in Doylestown Borough to voice opposition of the sale.
Below is Harvie’s full statement:
For the past several months, there have been many questions and much concern about the possibility that part of the Bucks County Water and Sewer Authority will be sold to a private company. We have heard those concerns from our residents and from elected officials throughout the county, and we thank them for being advocates for our county.
There are some advantages private companies have over public utilities, just as there are areas where public utilities have advantages over private companies. The Authority’s Board members have been exploring the possibility of a sale because they take seriously their responsibility to do what is in the best interests of their customers. The Authority has been acting as they should, asking questions, exploring options, weighing the benefits and costs. I respect their professionalism and their efforts to be transparent through this process.
The purchase of public utilities by private companies has accelerated in recent years and while we don’t yet know what the long-term effects of these purchases will be, we do know that they have led to increased costs for customers.
Because neither the Commissioners nor our staff have been part of the negotiations, the County had many questions we needed answered. We sent about 50 questions to the BCWSA and posted them publicly. The Authority promptly answered those questions for us, and their answers were also made public. Speaking for myself, the answers we received did give me more clarity on this issue, but also raised some additional questions.
While I see much potential in adding an estimated billion dollars to the County treasury, I cannot say that I feel comfortable with this transaction. I did speak with the Chair of the Authority to ask that he and the rest of the Board stop any negotiations and not sell any of the BCWSA operations. As a Bucks
County Commissioner, I don’t have a direct vote on whether or not a sale should happen, but I and the other Commissioners do have the power to change the charter of the Bucks County Water and Sewer Authority.
Following my conversation with the Chairman of the Authority I believe the board of the BCWSA will do what is necessary to end discussions with Aqua, Inc.
Below is Ellis-Marseglia’s full statement:
Today, I am calling on the Bucks County Water & Sewer Authority to end consideration of its proposed sale to Aqua, Inc. I have carefully reviewed all information available regarding this sale and cannot recommend that the BCWSA continue to entertain Aqua, Inc.’s proposal.
I greatly appreciate the diligent work of the BCWSA, its board and staff in vetting this proposal and maintaining transparency with the public by holding town halls, public meetings, and responding promptly to the Commissioners’ concerns and questions. When $1.1 billion was offered, BCWSA, whose systems may face over $250 million in upcoming repairs, had a fiduciary responsibility to thoroughly research the proposal and listen to feedback from the public, weighing pros and cons.
While the financial aspect of this deal is a reasonable alternative given the expensive infrastructure work ahead, what we heard from the public was clear, nonpartisan, and near universal: do not sell off the publicly run BCWSA sewer system to a private entity. Fear of ballooning rates, as evidenced by similar takeovers around the country, and loss of a well-managed, highly regarded public utility topped the feedback I have received.
Granted, the Commissioners do not have the power to approve or deny any such sale – that responsibility rests with the independent BCWSA – we can only advocate a position on behalf of Bucks County residents. That said, the Commissioners do appoint the BCWSA board and reserve the power to dissolve the authority entirely, and I trust that the members of the BCWSA will do what’s in the best interest of the ratepayers.
To be clear, this doesn’t get us out of the woods. Harsh realities do await in the form of the aforementioned system repairs, an issue that will eventually face ratepayers. But I believe we can find solutions to those issues without involving the sale of one of our public institutions to a private corporation, under which we’d no longer have any oversight.
See also:
Bucks County Commissioners Ask Questions on Potential Bucks County Water & Sewer Authority Sale
Bucks County Water & Sewer Authority Exploring Plan to Sell Part of System For $1.1 Billion
Editorial: Why We Decided to Sell Our Sewer System
Despite Vocal Opposition, Towamencin Supervisors Sell Sewer System for $115M in Historic 4-1 Vote
Towamencin Supervisors Vote 4-1 to Advertise Sale of Sewer System for $115M, Final Vote May 25
Letter to the Editor: Vote No on Selling Sewer System
Residents Speak Out After Towamencin Supervisors Signal Intent to Sell Sewer System
Towamencin Supervisor Majority Says They’re in Favor of Selling Sewer System Despite Opposition
North Penn Says Proposed Towamencin Sewer Sale Would Have Minimal Impact on District
To Sell or Not to Sell: Towamencin Board to Decide Sanitary Sewer Fate in May
Towamencin Inches Closer To Possible Sewer Privatization With Feb. 11 Bid Deadline
Editorial: Selling the Sewer System Would Be Bad for Towamencin (and Elsewhere)
