COLUMBIA SPY

Thursday, June 19, 2014

Columbia Municipal Authority votes YES on LASA sale

At its June 19 meeting, the Columbia Municipal Authority voted to sell Columbia's sewer system assets to the Lancaster Area Sewer Authority (LASA). In a four-to-one vote, the Authority approved the sale. William Kloidt, Michael Schober, Raymond McCarty, and Norman Meiskey voted for the sale, while Breneman Shultz voted against it. Authority members conceded that adjustments to existing agreements, such as those with West Hempfield, will be needed.

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.