The Harmar Water Authority is offering to buy the Springdale Township water system.
Springdale Township officials said this week the Harmar offer was unsolicited and came in a letter dated Jan. 2, that was dropped off at the township office.
The letter, signed by Harmar Water Authority Chairman Jason Domaratz, quotes a price of $241,000 to buy the system.
“From what I understand, it’s not the first time,” Richard Schwartz, commissioners chairman, said of Harmar’s offer. “But it might be time to discuss it.
“I’m not asking anyone to make a decision,” he said at this week’s township commissioners meeting. “This is up for discussion.”
“I think it’s too early to know if that number is good or not,” said township engineer Matt Pitsch, who is also the engineer for Harmar. “The first step is talking internally to decide whether this is worth pursuing and begin investigating what’s involved.”
He said that would include determining the system’s needs, the costs involved and what the Harmar authority is willing to provide and/or guarantee.
Springdale Township’s system serves 840 households. Most of the water it provides is purchased from the Harmar Water Authority. It also purchases water from Springdale Borough and the Fawn-Frazer Water Authority to serve a smaller number of customers.
In the past two years, the township commissioners have been working to upgrade the system by replacing obsolete water meters with new remote-read models and upgrading lines as finances allow.
Financial challenges to the system also have been an issue.
Last spring, Commissioner Ken Igo, the water department chairman, said the water fund was facing a projected $20,000 deficit by the end of 2024. That prompted the commissioners to raise water rates in July by 35%, which was a $52.28 increase that is in effect through 2026.
When the increase was announced in late May, Igo said, “The reason we are doing that is because the water fund as it is today is basically empty. We’re making up the deficit and trying to put something in the fund, because if we have a major catastrophe now we’re going to be in trouble.”
Township Manager Bill “Red” McElligott said there will be a water fund deficit but the final figure has not been determined yet.
Commissioner Tim Basilone, who did a study of the system, found that 65% of the township’s water is being lost due to obsolete lines and connections. He said that is something that has to be addressed if the system is sold to Harmar.
“Strictly from a financial standpoint, I am very interested,” Basilone said. “I have no idea how you value an ancient water system.”
Some residents seemed wary of the proposal, noting the recent rate increase and work that the township has undertaken such as the meter replacement. Igo shared that sentiment.
“I think there are a lot of questions that need to be answered and a lot of things that need to be discussed,” Igo said.
Meanwhile, he said the township would continue to make planned system improvements.
“We’re not putting the brakes on anything we’ve been discussing in the budget,” Igo said.
The commissioners agreed to contact the Harmar authority officials and express a willingness to talk.
“There’s no time limit on this,” Schwartz said. “We’re not under the gun on this.”