MABL board approves new MOU

Motion passes 4-1 following heated discussion between Rocco, Berrier

LEWISTOWN -- The transfer of control over the water and sewer system for a large portion of Mifflin County to a county-wide authority is one step closer to reality after the Municipal Authority of the Borough of Lewistown Board of Directors voted at its monthly meeting Wednesday to accept the memorandum of understanding passed by Lewistown Borough Council on Monday.

The vote was 4-1 with board member Frank Berrier casting the lone dissenting vote. The vote came after an impassioned discussion between Berrier and fellow board member Jeff Rocco about the MOU.

Berrier maintained the amount of money that will be paid to Lewistown Borough -- approximately $13 million over 30 years, including a $1 million upfront payment -- will come at the expense of the water system's customers. He cited the potential difference between what MABL's investigation determined would be a fair price and what Lewistown Borough considers a fair price and how much that would cost rate payers in the future.

"We have a letter from (Lewistown Borough Council President) Venus Shade stating $300,000 per year was reasonable," Berrier said. "We did our own analysis. Our person said a reasonable number was around $165,000 a year. … That's $5 million over 30 years of discrepancy. That will be on the backs of the rate payers, 10% of whom are struggling to pay their bills."

Berrier said he did not have a problem, per se, with a county municipal authority, but questioned why the price tag was so high for what he said is so little in return.

"They're paying $13 million to change management? Why should we reward the borough?" Berrier asked. "Nobody is looking out for the rate payers. Our job on this board is to look out for the rate payers and provide affordable water, not look out for the county."

But Rocco questioned Berrier's motives by asking why he was in favor of giving the borough a $300,000 yearly payment under the lease-back proposal.

"You're making statements that aren't true," Rocco said. "You're saying this $13 million is on the rate payers, but that's not any more than the $300,000 you're willing to give the borough."

Rocco also questioned when the letter from Shade was presented to the MABL board because Rocco said the borough had not shared information regarding how much it was seeking for the water system in previous discussions.

Berrier then moved to interject while Rocco was speaking, which led to Rocco telling Berrier to "shut up" several times, prompting board president Ben Rager to intervene in an effort to keep the discussion cordial.

"The rate payers will not have any burden on them from this transaction," Rocco said with Berrier stating he disagreed.

After discussion, Rocco made a motion, seconded by board member Barry Bargo, to accept the MOU. Berrier then immediately made a motion to table Rocco's motion pending "further discussion with Lewistown Borough," which ultimately died due to a lack of a second. The board then passed Rocco's motion by a 4-1 vote with Berrier in opposition.

The MOU now moves to the Mifflin County Municipal Authority to take action at its meeting next week.

Also on Wednesday, engineer Pat Ward gave a brief update on the Juniata Terrace water main project. Ward said that MABL is not receiving cooperation from Norfolk Southern regarding access to the pipe, which runs below the railroad tracks. He said they are still deciding what to do to upgrade the existing water main.

Ward also said the county is supportive of MABL applying for Community Development Block Grant funds to construct a second water main into Juniata Terrace once applications are being accepted.

In other business Wednesday, the board:

¯ Accepted the budget report;

¯ Accepted the voucher report;

¯ Tabled pending payments to law firms Tucker Arensberg ($1,313.66) and Cozen O'Conner ($9,189.71) from January;

¯ Approved BRIF requisition 2021-06 in the amount of $3,716.50;

¯ Approved canceling the service contract with Suez Utility Service Co. Inc. for chlorine contact tanks 1 and 2;

The Municipal Authority of the Borough of Lewistown meets at 1:30 p.m. on the third Wednesday of each month at MABL headquarters in Lewistown. The next MABL meeting is scheduled for July 14.