Oct 27, 2016 4 min read

Rostraver Township residents packed the municipal building Wednesday to voice their opinions on the proposed sale of the township sewage authority to the Municipal Authority of Westmoreland County, with the majority speaking against the idea.

Township Commissioner Gary Beck outlined the proposal at the contentious joint meeting with the township sewage authority, which calls for Rostraver to receive $3 million dollars from the sale and MAWC to assume the current $29.7 million authority debt service. Sewage rates would be frozen for three years and the retention of the authority’s eight employees may be negotiated.

“With the $3 million from the sale, that would mean no tax increase for at least six years in the township. This sale would benefit all of the residents in Rostraver Township,” said Beck.

Commissioner Gary Litvany asked about the disparity of sewage rates in two areas of the township. District 1 monthly bills are $35 a month, while District 2 rates are $65 a month. Rostraver Township Sewage Authority Chairman Denny Manown said that many factors contributed to the unevenness of residents’ monthly bills.

One of the main factors was a state Department of Environmental Protection-mandated project that would have cost residents a $4,500 tap-in fee and some businesses in the area upward of $1 million. The authority financed the cost and added the surcharge to the District 2 monthly bills. Manown added that the authority has been working to make the rates more even throughout the township.

He said part of the problem has also been the lack of communication between the township commissioners and the sewage authority. “We have sent more than one budget, which you have not accepted or discussed with us,” he said.

Commissioner Devin DiRienzo said that in May the commissioners received information from the authority of a rate increase and a letter was sent back requesting more information, which was provided.

DiRienzo asked Manown if he felt that the authority was getting cooperation from the board of commissioners and Manown answered no, adding that he found out about the possible sale of the authority from a newspaper article.

“We are willing to sit down and answer any questions and to work these rates out,” he said. Manown added that the sewage authority finances are solvent.

“We pay our bills on time and have never missed a payment to our debt service or our suppliers. About 70 percent of our budget goes to our debt service, then operating costs and future projects.,” he said. Manown added that the authority assets are worth about $45 million.

In September, after receiving the proposal from MAWC, Rostraver commissioners directed township solicitor Albert Gaudio to investigate possible ethical issues involving Beck and Commissioner Patrick Egros, who both have sons who work at MAWC. Gaudio also is a former solicitor for MAWC.

Gaudio received a legal opinion from the Pennsylvania State Ethics Commission that the two commissioners may vote on any actions concerning MAWC, since it is a political subdivision and not a business. While the township may benefit financially, the two commissioners will not beneift, the ethics commission stated.

Rostraver Sewage Authority solicitor Romel Nicholas said there are many factors to look at before the board decides to sell.

“I am not for or against the sale. But, I am against taxation without representation,” Romel said, adding the township will not have representation or input with the larger authority. He doesn’t believe that township officials have thought through all the possible impacts of the sale.

“There is risk of possible future litigation which could cost the residents high rate increases. There could be pending litigation in right of ways. What if the authority has problems and wants to sell? These issues and nuances should be looked at before any sale,” he said.