Water customers to see rate hike
DUNBAR TWP. — North Fayette County Municipal Authority customers will see a $4 increase in their water bill beginning in June.
In unanimous action Tuesday, board members Phil Mahoney, Tony Georgiana, Barbara Fetsko, Pat Trimbath, Vince Weaver, Richard DiCenzo and newly appointed member Rich Kasunic signed off on the 12 percent rate hike for the nearly 14,700 water system users.
Kasunic, a former state senator, was appointed to the board by county commissioners in January. He replaces Mark Yauger, whose term expired in December.
Since 2015, customers have paid more annually for the service. In the two preceding years, customers saw an eight percent hike as the authority began planning to construct a nearly $30 million water treatment plant.
Bob Softcheck, authority general manager, said the 2017 rate increase is solely due to the loss of Pennsylvania American Water (PAW) as a customer.
“We have to make up the loss in the revenue,” he said, estimating the amount to be about $1 million. “While for the past two years the increases have been set aside for the (new construction) debt service, this increase will not.”
Softcheck said the authority administration and board repeatedly reached out to PAW to renegotiate a contract with the water supplier, but were rejected.
The company has contracted with the Municipal Authority of Westmoreland County (MAWC) to supply water for its customers in Fayette County.
“Unfortunately, it is the end of a 30-year relationship,” said Softcheck.
The additional revenue will be used to further upgrade its distribution system as state Department of Environmental Protection (DEP) mandates continue to require the authority to improve the distribution system.
“(The DEP) is no longer just focusing on the treatment plant but now reaching out to the distribution system,” said Softcheck.
Mahoney, meanwhile, said there was no alternative to the price hike that will move the average customer bill from $34.75 to $38.90 for 5,000 gallons of water.
“We are still below a lot of our competitors even with this increase,” he said. “We are either in the water business or not. We have to do this.”
The new construction project, meanwhile, remains on the drawing board but is progressing, according to engineer Richard Barnett of Senate Engineering Inc.
Firm representatives and board members met Tuesday with the DEP to discuss both the construction project and the renewal of the authority’s water allocation permit.
Board members directed Senate engineers to begin preparing the permit application and an accompanying five-year plan.
Turning to other business, the board adopted a $7.3 million spending plan for 2017.
The authority derives its revenue through the sale of water to various other water suppliers, metered sales to residential, commercial and industrial customers, fire protection water supply and other sales.
The budget figures indicate that the authority will expend $5.1 million to operate the authority and distribution system over the next year.
About $1.2 million recouped from the past rate hikes will be set aside for the construction of the new water treatment plant, according to the budget, with about $123,000 available for capital projects.
In other matters, the board also conducted the following business:
n Agreed to continue providing Fairchance Borough with water service.
n Authorized the sale of a 2006 Chevrolet Uplander minivan to Justin Scott for $75.
n Donated $250 to the Fayette County Children’s Water Festival that will take place May 25 at the county fairgrounds.
n Agreed to install electric service at the Furnace Hill Booster Station at a cost of $5,547.
n Authorized the sale of a 1994 John Deere backhoe/loader.