Chartiers sues sewage authority
Chartiers Township is suing Canonsburg-Houston Joint Authority over its decision to double the tap-in fee for new customers in a showdown that could have implications for customers in the five communities using the sewage system.
The township filed its lawsuit against CHJA Oct. 14 claiming the authority breached the 30-year contract signed in July 2008 that any mechanism to pay for infrastructure improvement projects must be done “uniformly” across the system in the way of rate hikes rather than one-time tap-in fees.
CHJA’s board voted in July to double the tap-in fee from $800 to $1,600 to connect new customers into the system beginning in September, which was met with resistance by Chartiers Township officials. The increase would affect plans to extend sewage service to 175 customers in the township’s Midland neighborhood that are experiencing malfunctioning septic systems.
The lawsuit filed in Washington County Court also claims the authority’s plans to float a $25 million bond to upgrade its sewage treatment facility in Canonsburg does not line up with the service agreement set to expire in 2038.
The bond would not be paid off until 2044, meaning the contract would need to be extended at least six years.
Chartiers, North Strabane and Cecil townships entered into a partnership with CHJA to funnel sewage to the treatment plant run by Canonsburg and Houston. The three townships have a growing population with new housing developments, and would be most affected by the higher tap-in fees compared to the landlocked boroughs.
Cecil Township already signed an extension with CHJA, but Chartiers and North Strabane are currently negotiating a contract extension. The bond cannot be finalized until all parties agree to an extension.
Chartiers Township Manager Jodi Noble said officials are optimistic about finding a resolution despite the litigation.
“We have been in discussions. Our solicitor and theirs have been meeting,” Noble said. “We are hopeful to settle it amicably for the customers we all service.”
Glenn Alterio, the attorney representing CHJA, acknowledged the contract negotiations with Chartiers and North Strabane, and added an extension is required to finance the bond.
“Obviously, a resolution is always preferable to litigation, but whether a resolution can be achieved, we can’t say at this time,” Alterio said. “There needs to be an extension of the current service agreement. Otherwise, you don’t have a guarantee of revenue for that bond.
Daniel Slagle, who is the township engineer in Chartiers and serves in the same capacity for the North Strabane Municipal Authority, estimates that the tap-in fee should not exceed $900. He told North Strabane supervisors during their Tuesday night workshop meeting that the township’s municipal authority planned to meet with CHJA representatives Wednesday morning.
“North Strabane is concerned about the tap-in fee and are paying close attention to the lawsuit,” Slagle said.
CHJA Director Katherine Gilmartin acknowledged an “informal meeting” but did not disclose what was discussed and said she could not comment on the lawsuit filed by Chartiers Township. The authority is on track to operate independently of both Canonsburg and Houston boroughs by 2016.