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The Municipal Authority of Westmoreland County and private water supplier Aqua Pennsylvania are bidding to assume control of the Ligonier Township Municipal Authority's water and sewage systems, but the township authority Wednesday took steps to plan for its continued operation in the hope of holding off a takeover.
The township board appointed committees to look into hiring a full-time manager and whether user rates and tap-in fees should be increased. It also agreed to seek fee proposals for an appraisal of the authority's assets.
The board directed Gibson-Thomas Engineering to prepare updated options and cost scenarios for a project that has languished — proposed extension of sewage service to areas along Route 119 north of Ligonier, including Oak Grove and the Sheetz convenience store at Route 271.
Attorney Gary Falatovich, special counsel to the township supervisors, wrote to the authority Jan. 31, requesting that it “perform a realistic assessment” of its ability to make repairs and move forward with improvement projects while seeking some specifics by March 17, including wage and benefit projections for a new manager and the total estimated cost, available funding sources and possible rate increase associated with the Oak Grove sewage extension.
Falatovich suggested, if the township authority misses the deadline, driven by the offers to purchase it, the supervisors will reconsider an ordinance they tabled Jan. 24 that would set in motion steps toward dissolving the authority — a prelude to potential sale of its assets.
Member John Beaufort said the township authority is considering two versions of a business plan that are “an ongoing thing that aren't going to be settled in a week or a month or even two months.”
Township manager Terry Carcella acknowledged some figures involved in planning improvement projects are a “moving target” that can't be pinned down yet. He said the supervisors are simply “asking for a plan to be submitted … on how you're going to move forward with this authority.”
As summarized at Wednesday's meeting, Aqua Penn's proposal includes paying the township $3.45 million for the local water system and entering into a six-year contract to operate its sewage treatment plant, beginning with a $213,000 fee for the first year. The company indicated it would consider purchasing the plant after the contract expires and would continue to use the authority's existing source of water, which township customers have praised for its quality.
The county authority (MAWC) is looking to pay $3.5 million for the local authority's assets while assuming $5.95 million in debt and allowing the township to keep $1.3 million the local authority has in its coffers. MAWC stated it would freeze township water and sewer rates for four years and would expect the township to pay $2.75 million toward an estimated $6.2 million cost of the Oak Grove sewer extension.
MAWC suggests additional funding for the project would include a $750,000 payment by Sheetz, about $1.8 million in debt service and $825,000 from collecting a $3.000 tap-in fee — double what the township authority has charged.
In response to citizen complaints that many are unable to attend, the authority changed its voting meetings from 4 p.m. to 7 p.m. the first Wednesday of each month. Its workshop meetings will continue at 4 p.m. the last Wednesday of the month.
Jeff Himler is a Tribune-Review staff writer. Reach him at 724-836-6622 or jhimler@tribweb.com.
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