Ford City Approves Water Rate Increase

by Jonathan Weaver

Ford City’s water plant is about 30 days from construction – and water rate increases are not too far behind.

At a special meeting of Borough Council last night, elected officials unanimously approved a PennVEST $3.1 million revenue note agreement via ordinance to fund the borough’s new water treatment plant construction.

If that sounds familiar, Solicitor Paula Willyard said council officials previously voted as if the ordinance was a ‘guaranteed revenue bond’ instead of a ‘guaranteed revenue note’ as was necessary. State Department of Community and Economic Development leaders suggested the original ordinance be repealed since both include different financing terms.

As a result, there is a “slight” delay to the beginning of construction – pushing the start date from July 20 to approximately August 4, Willyard and Council President Carol Fenyes said.

PennVEST closing is scheduled for August 3.

The loan includes a one percent interest rate.

The ordinance was motioned by Councilwoman Kathy Bartuccio and seconded by Council Vice-President Tyson Klukan before being unanimously adopted 6-0.

In conjunction with the ordinance, council members adopted a three-percent water rate increase at a special meeting last week.

Just as former Borough Manager Eden Ratliff said previously, Fenyes said the water rate increase was a contingency of accepting the loan offer to build the new water treatment plant.

“It had to be done,” Fenyes said. “We had to do it.”

According to Klukan, effective in November, water prices will increase 90 cents over the duration of the loan payback. For example, for customers with a 5/8-inch meter, the new water bill will read a minimum of $30.90 monthly.

Comparatively, customers with a four-inch meter will now have to pay a minimum of $721.

In March, Gibson-Thomas Engineer Ed Schmitt opened bids for water plant construction at the county Planning and Development office in Kittanning.

Between water treatment plant general/mechanical and electrical construction, as well as installation of a remote meter reading system, low bids totaled more than $3.3 million.

“The numbers are certainly manageable at this stage of the game,” Schmitt said in March.

Out of 10 contracting groups between Westmoreland County and southern West Virginia contacted to perform general and mechanical construction, bids from four companies were ultimately accepted – including from Kukurin Contracting, of Export (Westmoreland County), Wagner Electric – of Portersville (Butler County), Genesis Construction Group, of Mount Pleasant (Westmoreland County) and Newman Plumbing, of Harmony (Zelienople).

Water bids were opened in August 2015, but were more than the financing offer.

But, that was after Ford City received an additional $750,000 competitive Community Development Block Grant.

May 19, Armstrong County Commissioners Pat Fabian and Jason Renshaw approved the contracts.

The water plant itself would cost about $2 million to construct. In past public meetings, Schmitt said there are several safety, treatment and regulation issues at the current Neale Avenue plant.

Besides the new treatment plant construction, grant funding is also to go toward restoring and painting a water storage tank, restoring an existing pump station and emergency generator and installing new water meters.

The previous Ford City Borough Council also considered increasing water rates during a special meeting last July, but at the time, water rates were to increase by $1.

In April 2015, Ratliff calculated that with 1,200 residential customers, the one-percent interest due would equal about $12 per year in interest for the next 20 years.

Water bills are currently dispersed at the beginning of each month and bills are due no later than the 15th of that particular month. Borough water customers receive a 3,000-gallon water allotment each month.

During the WTYM morning show “David and Friends” in March, Klukan said most residents currently receive monthly bills in the amount of $83.10 – $30 for water, $27.60 for sewage, and $25.50 for trash – but given the new increase, that would increase to an even-$84.

Community leaders first heard the financing might increase local water bills in February 2013 before bids were opened.

“Everything’s on track now. This is the last detail and hopefully everything will be smooth sailing,” Fenyes concluded.

Water plant construction is to take about a year.

After the brief special meeting, council members met in executive session to discuss various topics – including personnel and property.