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Paradise Township Sewer Authority approves Letter of Intent with York Water Company to explore sale and contract operations
Summary
The Paradise Township Sewer Authority unanimously approved a Letter of Intent with York Water Company to explore an agreement of sale; York Water said it would not operate the plant during the 90-day LOI period but may enter a contract operations agreement 30–60 days after a sale is finalized and would expect to review any financial analyses.
The Paradise Township Sewer Authority on Jan. 21 approved a Letter of Intent (LOI) with York Water Company to explore a potential agreement of sale and future operational arrangements.
Matt Scarpato, York Water Chief Operating Officer, told the board York Water would not operate the wastewater plant during the 90-day LOI period but, if PTSA and York Water reach an agreement of sale, York Water would be willing to enter a contract operations agreement 30–60 days after the agreement is finalized. Scarpato also said provisions in the LOI allow for third-party financial analysis; if PTSA hires a firm such as PFM, York Water would want to obtain the resulting reports.
Board member Dave Bowman asked what would happen to customer rates if a sale proceeded; Scarpato said the Public Utility Commission would require York Water to hold rates until York Water’s next rate case and that rates could not be automatically increased immediately after a sale. J.B. Stoltzfus asked whether PTSA would remain liable for bills if a contract operations agreement were in place before a sale closed; Scarpato confirmed PTSA would remain responsible for bills until the purchase is final.
After discussion, Bryan Stoltzfus moved to approve the LOI; Dave Bowman seconded and the motion carried unanimously. The minutes record that York Water indicated interest in any financial analyses PTSA commissions as part of due diligence.
The minutes do not record any formal sale, specific timeline for a sale beyond the LOI period, or dollar terms; they record only the board’s authorization to proceed with the LOI and to consider further analysis and negotiations.
