SR water system sale stalls
SLIPPERY ROCK — For the time being, it appears the borough's plan to sell the Slippery Rock Municipal Authority to a private company is off the table.
By a 5-1 vote July 6, council decided to end the fact-finding phase concerning the possible sale of the beleaguered authority, essentially ending the legal process to make the sale possible. Council could reopen the process later should it decide to.
The latest maneuver clears the way for the authority to begin seeking loans for infrastructure improvements, according to borough administrator Lucinda Lipko.
The borough had considered the dissolution and sale of the water authority as a way to avoid costs from upgrading the existing water treatment plant and building a new sewage plant.
The system has 1,750 water connections and serves the borough, Slippery Rock University and parts of Slippery Rock Township.
During the fact-finding process, the borough banned the authority from seeking loans.
Lifting that ban would allow the authority to pursue loans for the expensive improvements, that, according to conflicting figures, could cost $15 million to $20 million.
Blase Tucci, council vice president, cast the sole dissenting vote. Council President Dave Miller did not attend the meeting.
The decision went against input from many of the citizens who urged council to thoroughly study the pros and cons of the issue before making a decision.
"Quick decisions are unsafe decisions," resident Chuck Brochetti said.
Marilyn Hines said although she would prefer not to sell the authority, she also hoped council would examine all facets of the issue.
"Either way we are going to pay more for water," Hines said. "I urge you to be proactive not reactive."
Residents and council members expressed concerns over how the estimated $8 million to $10 million gained from selling the authority would be managed. Many wondered how the authority staff would be affected in a sale.
Council member Bob Bowser said water rates paid to the authority could continue to increase at the company's discretion, and council would have no control.
These uncertainties, Tucci argued, were why the borough should continue to examine the facts.
"I have concerns with either venue, I just don't have the answers yet," Tucci said.
Borough council in April heard bids from Pennsylvania American Water and Aqua America.
At that meeting, the companies projected Slippery Rock residents would pay rates of $7.89 per 1,000 gallons used and $10 per 1,000 gallons of water used, respectively.
In April, residents paid $3.85 per 1,000 gallons of water to the municipal authority.
However, those rates are expected to increase as the cost of improvements are included in customers' bills.