Fri, May 16 2008
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WHEN PEOPLE IN SHARPSVILLE voted to turn down a $7 million offer to sell their water plant to Aqua America, we thought that was a mistake.
But while The Herald editorialized at the time that selling the plant was the best move, it doesn’t do any good to reflect on what could have been or should have been. Everyone in Sharpsville needs to get over it.
The offer is long gone and the borough — and an unhappy lot of South Pymatuning Township residents who didn’t get to vote — are faced with finding a way to finance the construction of a new plant.
By a 5-2 vote Wednesday, Sharpsville council OK’d legislation to build a new $10 million water plant. With the exception of South Pymatuning residents, few others have shown up to oppose the construction. The decision helps meet state Department of Environmental Protection timelines.
However, the problem is whether there is any type of funding help from state or federal sources. For Sharpsville to try to fund the entire project without outside grants or low-interest loans could be too expensive for taxpayers to swallow. When the vote was taken on whether to sell the plant to Aqua, some of the opponents of the move were confident that the borough would be able to get funding help. But so far, that hasn’t turned out to be the case. In fact, the borough’s request for a low-interest state PENNVEST loan was rejected. Another round of funding is coming soon and the borough again is requesting funds.
Some residents and other proponents of building the plant have started a conspiracy theory that funding is being withheld from various sources to force the sale of the plant. While we acknowledge that lobbying and politicking may be occurring, as is the case with most projects, we doubt that an organized conspiracy is under way. Some time after residents rejected the $7 million offer and it was withdrawn, Aqua countered with an offer that was reported to be in the $3 million range.
We see this as resembling the popular TV show “Deal or No Deal.” The banker raises or lowers bids according to the odds. When Sharpsville voters said “no deal,” the bid decreased as cost estimates for the plant increased. To the $3 million offer, we would say “no deal” as well and be inclined to build the new plant. But, if Aqua would offer $7 million or something close, we think it would be time to revisit and give that offer serious consideration.
As it stands today, Sharpsville residents had better get ready to pay more for their water. But how much more? Some monthly increases being tossed around are frightening, while other numbers seem modest for a new plant with state-of-the-art filtering technology.
While the financial burden to residents would be softened by grants or low-interest loans, how much each water user would have to pay today remains anyone’s best guess with so many questions hanging in the balance.
The cost has to be especially pertinent to a business like Dean Dairy in South Pymatuning, a huge plant that uses a lot of water and is by far the borough’s largest customer. Dean may have to decide if it’s economically feasible to pay higher rates. A nagging problem will be state and federal regulations that will mandate that the plant be upgraded throughout the years, probably more sooner than later.
One scenario has the borough floating a 40-year bond issue to build the project. We see that as ridiculous, possibly unavailable, and believe that any financing should be limited to 20 or 25 years. The borough faces lots of questions and variables down the road, especially with financing and its unhappy neighbors, who are seeking high-powered legal advice about the validity of the contract that the township signed with the borough in 1996.
Residents can only hope that council will make the right decision that will provide them clean water at an affordable price. Their choices are limited at best, with buying water in bulk from Aqua as one of them. Considering that some people pay at least $1 for bottled water, building a cost-effective plant capable of delivering safe water while generating revenue may be the best alternative for the borough, but only if it turns out that residents can afford it.
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