We are aware of the complaint filed in the Montgomery Court of Common Pleas by Jenn Foster and Kofi Osei. After reviewing the complaint and consulting with our legal team, the allegations made are without merit and factually incorrect and we intend to vigorously defend against the lawsuit. NOPE has consistently provided inaccurate information to the public. And we look forward to providing accurate information in this court proceeding.
As we have previously explained, and as we have shared with the opponents of the sewer system sale, the Township legal team does not believe the passage of the Home Rule Charter negates the sewer sale under current Pennsylvania law, the Pennsylvania and U.S. Constitutions. There is strong legal precedent against overturning pre-existing contracts based on the passage of new laws. Terminating the Agreement would put the Township in breach of its duly negotiated agreement. Furthermore, we, as elected representatives of our citizens, continue to believe firmly that the sale is in the best interest of our community. As such, we do not intend to seek to terminate the contract.
We explored privatization in accordance with Pennsylvania’s Act 12 of 2016 (sale of municipal water/wastewater systems for fair market value), believing it was our duty to do so. Throughout this 18-month journey - including learning about how the Act 12 process works, retaining municipal finance and legal experts, identifying current and future township needs, evaluating the benefits of a sale, pre-qualifying bidders and then finally making the decision to sell - we exercised due diligence and transparency. We remain confident that, after considering the many benefits to our community, we have made the right decision. We intend to honor our contractual commitments. We are committed to working with PA American Water Co. on a smooth transition.
This matter is pending at the Public Utility Commission. The Public Utility Commission is the statewide agency with jurisdiction to determine whether the transaction is in the public interest and to ensure that rates will be just and reasonable. The Township is confident that the Commission will find the transaction in the public interest notably due to the mounting necessary capital expenditures ($40M) for the system, the environmental challenges of the system and that PAWC has a proven record of environmental stewardship in the operation of wastewater systems. We think the PUC will also find important other significant benefits of the sale such as superior customer service, cyber security to protect our customers, emergency response and expertise in handling increased flows from storm events and other water issues, as well as, funds for needed and desired capital expenditures on Township projects.
