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Lock Haven council advances first reading to acquire city water and sewer systems, authorizes valuation RFP
Summary
Council gave first-reading approval to an ordinance expressing intent to acquire the city’s water and sewer systems and authorized an RFP to determine fair-market value, while inviting neighboring townships to discuss a joint municipal authority; the move aims to avoid frequent PUC rate filings over the next decade.
Lock Haven — The city council moved forward on a plan to take ownership of the municipal water and sewer systems, approving a first reading of Ordinance 5-23-07 that directs the city attorney to prepare language expressing the council’s intent to acquire the utilities and pursue ownership options.
Council President (unidentified in transcript, Speaker 2) introduced the ordinance and said the city intends to explore forming a joint municipal authority with neighboring townships as a path to operating the systems while avoiding repeated filings with the Public Utility Commission (PUC) for rate changes over the next 10 years. The council voted to approve the first reading; a second reading will be scheduled at the next meeting.
June Hauser, who identified herself as chairman of the city authority board, spoke at length about the capital pressures facing the system and cautioned that different governance structures carry different abilities to set rates. “I’m June Hauser. I’m chairman of the [city authority] board,” she said, and warned that authority structures, whose members are typically appointed rather than elected, can have the ability to impose rate increases. Hauser cited large capital projects — including dam renovations and well-drilling costs — as drivers of future rate pressure.
The council also authorized staff to solicit proposals for utility valuation services (an RFP) to establish fair-market values for the water and/or sewer systems. During discussion, members said that if neighboring townships decline to join a joint authority, the city would consider other options — including offering the system for sale to private operators — while noting any purchaser would still be subject to PUC oversight.
Council packets and letters about the proposal were made available to the public and press, and council asked staff to continue outreach to Wayne and Cascade (as named in the packet) townships to invite them into discussions about a joint municipal authority. The authorization to solicit valuation proposals passed on recorded roll-call votes.
