HARRISBURG — The public would have greater scrutiny of agreements to sell or lease municipal sewer and water systems under legislation House lawmakers approved unanimously Monday.
The measure headed to the Senate would require that municipalities hold a public meeting and publish a legal notice before entering a sale or lease agreement. This notice would have to be published between seven to 60 days prior to an agreement.
The measure surfaced last month after the Scranton Sewer Authority approved the sale of the sewer system to Pennsylvania American Water Co. for $195 million. The system serves Scranton and Dunmore.
However, sponsors said the legislation addresses broader concerns about having a transparent process since a number of private water companies are making offers to buy public water and sewer systems in Pennsylvania.
These sales can have an impact on water and sewer ratepayers and they should have a chance to weigh in ahead of time, said bill sponsor Rep. Kate Harper, R-61, Blue Bell, chairwoman of the House Local Government Committee.
“They should get a chance to ask questions,” she said. “Like, what will happen to my rates if this happens?”
Sometimes, competing bids are offered for a public water or sewer system which can affect rates in different ways, Harper said.
A public meeting gives the entire community an opportunity to weigh in on a sale, said Rep. Robert Freeman, D-136, Easton, the panel’s ranking Democrat.
Rep. Marty Flynn, D-113, Scranton, supports the measure.
“This being a public asset, I think it’s a good idea,” he said.
Scranton is pursuing the sewer system sale to generate revenue to shed its status as a fiscally distressed city under Act 47. The authority started exploring a sale two years ago before approving it by a 4-0 vote in March.
Dunmore Borough Council plans to seek public input on how to spend the estimated $24 million the borough would receive from the sale.
The sewer system sale has several more steps ahead before its anticipated completion in October. These steps include approval by the federal Environmental Protection Agency, U.S. Department of Justice and U.S. District Court, the state Department of Environmental Protection and Public Utility Commission.