Borough takes next step towards MABS sale
KAYLEE LINDENMUTH / SHENANDOAH SENTINEL - The Municipal Authority of the Borough of Shenandoah Offices.
SHENANDOAH – Borough Council took another step towards the sale of the Municipal Authority of the Borough of Shenandoah, the water company, Monday evening.
The borough approved the execution of a 57-page asset purchase agreement with Aqua Pennsylvania, Bryn Mawr.
Solicitor Jim Amato declined to provide the agreement to the Sentinel after Monday’s meeting.
In November, council approved an ordinance which authorized “proper officers” of the borough to execute and deliver an asset purchase agreement, which was approved by that ordinance, and to execute any other agreements, consents, licenses, etc., to execute the agreement.
That ordinance was approved 6-1 by council, with the lone “no” vote being Eileen Burke.
Burke described the sale approval Monday as being “shoved down our throats” because it wasn’t presented at the prior week’s workshop.
“We just got this on Friday,” Tony Sajone, borough manager, said.
“Well then, don’t you think we should hold it and go over it, and not get it shoved down our throats,” Burke asked.
Amato told Burke that the matter had been approved previously in November.
“So then it was a done deal in November, is that what you’re saying?” Burke asked.
“No, I’m not saying that,” Amato said. “This was for the execution of the asset purchase agreement, authorizing and approving the asset purchase agreement. The asset purchase agreement was attached to that ordinance. You reviewed it back then. And the asset purchase agreement that’s up for execution tonight is substantially the same as the asset purchase agreement that was reviewed back in November by council.”
“So, in other words, we’re going to take a vote on that tonight to approve it,” Burke asked.
“You already basically approved it, you’re just going to take a vote on it to execute it and have it signed,” Amato said.
“And you can’t wait until the new regime comes in or whatever, you’s have to shove it down the taxpayers throat,” Burke said.
“No one’s shoving anything down anyone’s throat, Eileen,” Amato said.
Mary Catherine Berresford said it was her belief that a town meeting was supposed to be held regarding the sale, without Aqua present.
Donna Gawrylik, former MABS chair, asked about a provision she said was mentioned regarding the asset purchase agreement that would provide monies to the borough. She asked if that would be before or after the sale.
Amato asked her to be more specific, saying there are 57 pages in the agreement.
“When you say there’s a provision and there’s a stipend, I’m not sure what you’re referring to,” Amato said. “I don’t recall any reference to a stipend.”
“There’s nothing referring to a stipend that I can recall,” Amato said. “I’ve reviewed this agreement, I’ve been at all the meetings, and when you’re just referring generally to a stipend or to a provision, you have to be more specific. There’s a lot of provisions in the agreement.”
Borough Manager Tony Sajone asked Amato if he was saying that there wouldn’t be money exchanged before the sale.
“I’ve never heard of that, that they’re giving us money before the sale,” Amato said.
Now, the sale of the authority will go before the Pennsylvania Public Utilities Commission for approval.
The sale has been in the works for several years, with the borough and Pennsylvania Economy League working to approve the borough’s financial stability.
The borough would receive $12 Million in the sale, and, after resolving MABS’ debt, would have $6.5 Million to use for various projects in town.
MABS serves Shenandoah, Shenandoah Heights, William Penn, Lost Creek, Raven Run, Rappahannock, and Connerton via a system of reservoirs atop Locust Mountain and in the Ringtown Valley. MABS also has a water treatment plant at Raven Run and 56-miles of cast iron pipes.
Aqua’s Roaring Creek Division, of which the Shenandoah system would become part of, serves Girardville, Mount Carmel, and much of that portion of the Susquehanna Valley.
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