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Health & Fitness

Why are Collegeville-Trappe residents the last to know?

Nevin H. Scholl

Trappe Borough Councilman

530 Betcher Road

Find out what's happening in Perkiomen Valleywith free, real-time updates from Patch.

Trappe, PA  19426

Phone (610) 409-1950 E-mail SchollNH@aol.com

Find out what's happening in Perkiomen Valleywith free, real-time updates from Patch.

 

                                                                     July 24, 2013


Re:  Merger of Collegeville-Trappe Joint Public Works Department And  Collegeville-Trappe Municipal Authority 


Dear Jack,

Collegeville and Trappe Borough Councils are considering voiding an existing agreement the effect of which would be to transfer our publicly owned $14 million water and sewage system assets to an independent Authority from the Boroughs’ direct control.  (The existing agreement provides for the transfer of assets to a Committee under the direct control of Collegeville and Trappe Councils.)  In comparison Trappe Borough non-utility assets are only $2.5 million, so one can see that this is a significant transaction worthy of public discussion and input.

In order to further inform the public about this important debate, I prepared the attached summary of the issues for inclusion in the recently mailed Trappe Borough Newsletter.  I tried to be as impartial as possible, but despite my best efforts and offer to permit editing to satisfy any concerns, a majority of Council elected to remove the article from the Newsletter.  As a result the Newsletter included no information for the public to consider.

I am requesting that you include the letter in your blog.  The public has a right to the facts before Council votes to transfer $14 million of assets out of the control of its Borough Council.

Sincerely,

Nevin H. Scholl

Enclosure

                                                                                          

                                                                                                                                                                     NHS   

                                                                       6/25/13

 

Merger of Collegeville-Trappe Joint Public Works Department And Collegeville-Trappe Municipal Authority

By way of background, since 1935 the Collegeville-Trappe Public Works Department (“Committee”) has supplied water and public works service to the boroughs of Collegeville and Trappe.  The Collegeville-Trappe Municipal Authority (“Authority”) provides sewage services.  The “Authority” was created in order to issue debt, subsequently repaid. 

Each borough appoints three members to the “Committee” and three members to “Authority” Board of Directors.  “Committee” members serve at the pleasure of Council, while “Authority” members serve for overlapping fixed terms.

Most, if not all parties to the current debate, agree one combined entity would be more efficient and cost effective than the current structure of both a “Committee” and an “Authority”.   Some examples are reduced audit, insurance, legal and engineering costs.  A simpler structure yields lower management costs. 

The debate is over which entity type, “Committee” or “Authority”, would best serve the interests of both Trappe and Collegeville residents. 

On both October 2, 2012 and June 4, 2013 a resolution to merge the “Committee” into the “Authority” was brought to the floor of the monthly Council meeting.  On both occasions Council determined that there were too many unanswered cost/benefit questions to make a decision.

On June 4, 2013 some answers were first made available to the public.  It was also confirmed that significant pension cost questions related to the “Authority” option would not be answered until early July.

Merge the “Authority” into the “Committee”

Proponents of this approach suggest it is an easy low cost solution that, in settlement of a previous lawsuit, was actually agreed to by Collegeville and Trappe.  Why renegotiate what Collegeville and Trappe have already agreed upon?

If the “Committee” were the surviving entity it would continue to receive the $200,000 plus in pension credits from Pennsylvania each decade.  (On the other hand authorities are not eligible for these credits.)

Also under the “Committee” structure rates would be set by Committee members.  The Committee members are typically current Council members who serve at the will of Council and can be changed at any time.  Your Borough Council would retain the final say as to water rates, sewer rates and union contracts.  Under this scenario voter wishes can be implemented immediately through your elected representatives.

The “Committee” and “Authority” combined have assets of approximately $14,000,000, which is six times that of Trappe alone.  “Committee” proponents argue that assets of this magnitude should be under the control of elected representatives, not under an “Authority” controlled by appointees.

Merge the “Committee” into the “Authority”

Proponents of this approach believe that by moving most of the borough’s assets, and decision making regarding rates and union contracts out of the domain of voter elected officials to an independent body of appointees, “politics” will be removed.

Council appoints “Authority” Board members for five year staggered terms.  The current Trappe Authority Board members’ terms expire December 31, 2014, 2016 and 2017.  One can readily see that it takes many years for a newly elected Council to be able to transfer the will of the voters to the “Authority” Board.

Current Status

We currently await additional information from our pension experts, but are open to your input on this significant change.                                                                                                                 

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