MABS ends fiscal year in black, hears about potential sale
KAYLEE LINDENMUTH / SHENANDOAH SENTINEL FILE – The Municipal Authority of the Borough of Shenandoah office and treatment plant in Raven Run.
RAVEN RUN – The Municipal Authority of the Borough of Shenandoah heard reports on their 2019-20 budget and its potential sale at their regular meeting last Thursday in Raven Run.
According to Office Supervisor Jennifer Hepler, the borough ended with a surplus of $42,092. The authority’s fiscal year ended on Sept. 30.
In her report to the board of directors, she said that, in September, the authority collected around $100,000 more than usual after shut-offs and late fees were re-instituted, after a coronavirus-prompted hiatus.
The authority board also heard an update from its solicitor, Joseph Nahas, on the proposed sale of it and its assets to Aqua Pennsylvania.
“My understanding is that this matter is not ripe until the borough votes on whether or not they intend to sell this asset,” Nahas said. According to the Legal Information Institute, “a claim is ‘ripe’ when the facts of the case have matured into an existing substantial controversy warranting judicial intervention.”
Nahas presented the borough’s proposed ordinance, specifically section six.
“It is the desire of the Borough that MABS cooperate with the Borough in connection with all aspects of the sale,” the ordinance, first reported by the Sentinel, reads. “If MABS does not cooperate, the Borough intends contemporaneously to: 1. terminate the existence of MABS, 2. require MABS to convey by appropriate instruments all of the Water System Assets it has any right or title to pursuant to Section 5622(a) of the Municipality Authorities Act, 3. assume all of MABS’ obligations, 4. pay off or otherwise satisfy all debt and other obligations of MABS required to be satisfied under applicable law, and 5. consummate the Sale with Aqua.”
“So, essentially, if the borough votes to sell the authority, and MABS does not want to play ball with the borough, the borough does have within its ordinance to dissolve MABS’s organization,” Nahas said.
Nahas said that the next step for MABS, if the borough votes to sell the authority, would be to consult their special counsel, Elliott Greenleaf and Dean, of Wilkes-Barre. MABS retained the law firm in March to investigate the proposed sale, seven months before the plan was made public.
In other business, MABS voted to provide raises to the two part-time employees.
“The part time office staff [member] has been here for three years, that would be her annual raise, and the distribution staff [member] was told when he was hired after three months he would get a raise,” Hepler told the board. Both received $0.50 per hour raises, to $13 an hour for the office staff member and $12.50 for the distribution staff member.
The three board members in attendance — Chairman Joe Anczarski, Brian Dillman, and Leo Pietkiewicz — voted for the raises. Gary Wood and John Szczyglak were absent.
The MABS board declined two customer requests for bill reductions as well.
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