Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Stormwater Duck Pond topic
No spam. Unsubscribe anytime.
Ferguson Township OKs Duck Pond MS4 Credit Agreement with Penn State, Raises Long‑term Liability Questions
Summary
Ferguson Township authorized a nonbinding term sheet with Penn State to take 43% responsibility for maintenance tied to shared MS4 DECON credits, enabling the township to record roughly $245,000 in credits but prompting debate over open‑ended repair exposure and DEP approval dependency. The measure passed 4–1.
Ferguson Township’s Board of Supervisors voted 4–1 May 6 to authorize a nonbinding term sheet with Penn State that would let the township use DECON (duck pond) stormwater credits toward its MS4 permit obligations while accepting a share of ongoing maintenance responsibilities.
Township Manager said staff and the township solicitor negotiated the term sheet with Penn State after the board previously directed staff to pursue the duck pond credits rather than an in‑town restoration project. "We are responsible for 43% of the maintenance," the manager said during the presentation, characterizing the deal as an alternative to a multi‑hundred‑thousand‑dollar restoration the township would otherwise have to design and construct.
The term sheet would create a credit bank with an initial value staff described in the meetings materials (approximately $245,000) that would grow with a CPI escalation. The agreement is conditional on Pennsylvania Department of Environmental Protection (DEP) accepting the duck pond as eligible for MS4 credits; if DEP does not approve the credits, the term sheet provides an exit and no financial obligation for the township.
Several supervisors pressed staff about long‑term exposure. One supervisor said the township could face unplanned repair bills if the pond requires major work, noting exceptions in the draft that remove the board’s $50,000‑cap protections for certain catastrophic or end‑of‑life repairs. The manager and solicitor stressed the negotiated term sheet includes limitations and engineer review steps, and that the township engineer would participate in design reviews.
A member of the public asked whether the township could simply buy the credits rather than escrow a credit bank that grows over time; staff said that option was not negotiated and could not be confirmed at the meeting.
Supporters argued the arrangement is a lower‑cost way to meet MS4 obligations compared with local construction projects. The manager said staff will place annual restricted funds in the budget to cover anticipated contributions and work with the auditor on appropriate treatment.
Outcome: the board authorized moving forward with the term sheet and directed staff to finalize the MOU consistent with the negotiated terms; the motion passed 4–1.
Next steps: staff will finalize the MOU with Penn State, continue engineer review, and place required restricted funding in the 2026 proposed budget. If DEP does not approve the credits the agreement terminates without obligation.
