Columbia Municipal Authority votes YES on LASA sale
For the sale to be complete, Columbia Borough Council must also approve it. That vote will take place at the Committee of the Whole meeting this coming Monday, June 23.
William Kloidt said he based his decision to sell on two main factors: the future cost of sewer lines, and economies of scale. He also urged the borough to negotiate for a position on the LASA board. Kloidt proposed that funds from the sale be used for other projects, such as placing windmills on the borough farm to generate electricity for the borough. He projected that one windmill would cost $2.2 million and added that workers displaced by the sale could be employed in this endeavor.
Norm Meiskey said the sale will eliminate a significant number of liabilities and that employees have kept the plant running as efficiently as possible with old equipment. He cited the borough's antiquated infrastructure as another factor in his decision to support the sale. He also said that expenses incurred by LASA for maintenance and upgrades will be passed on to over 30,000 ratepayers, rather than only 3,700 in Columbia. He added that there will be a five-year integration to LASA's minimum rates and that since their inception, LASA has averaged a 2% per year increase.
Breneman Shultz voted against the sale over concerns that $50,000 per month will be required for three years during the transition period, with no revenue being collected during that time.
Comments
That Manheim Township received over $31 million for their sewer system.
The Columbia Waste Water Plant has had only three violations in the last sixty years totaling a little over $10k in fines.
The Columbia Waste Water Plant produces a grade A residual that can be used in your garden, LASA has a grade B residual that will cost them $26 million for this upgrade.
Columbia is responsible for the $10 million dollar pipeline if this agreement is accepted by Columbia Borough Council.
The Columbia Waste Water Plant produces over $800,000+ in revenue to pay for salaries, upgrades and training in Columbia Borough.
When upgrades are needed to the plant, Columbia is eligible for state and federal grants. LASA is not, these upgrades will be passed on to the consumer.
I believe Columbia Borough Council needs to take their time, think of the future on the revenues that will not be there twenty years from now. Hold out for a larger payout such as $20 million, make LASA pay for Columbia's future. LASA wants not only Columbia, but all the towns North such as Marietta, Bainbridge, Maytown and Elizabethtown. Make them pay for the rights and hold out for more money.
Columbia citizens will feel the effect in the future with no income for the borough.