Bristol Township Closer to Being Under Aqua Water System

Bristol Township Council passed two resolutions at its June 6 meeting, which, for its part, puts the finishing touches to the transfer of the township’s water system to Aqua America.

One resolution re-confirmed the sale and transfer of its water system through an assets purchase agreement between the township and Aqua, which was originally approved in December 2011.

According to Russ Sacco, former township solicitor and current solicitor representative to Aqua, the sale has deemed the township’s water assets to be worth $3,428,000.

He then provided the council with further explanation and background of the assets purchase agreement.

Sacco said the agreement will affect approximately 400 residents and 200  businesses in the  Newportville-Ferguson areas of the township. In a previous Patch article, which reported on the council’s initial exploration of the 2011 agreement with Aqua, Sacco said the township had been looking to sell its water system for years, and that the system does not earn money for the township, but rather passes down bulk rates, which are already set by Aqua.

In the report, an Aqua representative told the council that rates won’t be increased immediately after the close of the sale, and would freeze the bulk rate price until 2014.

Currently, Sacco said that the township purchases water from Aqua, which is distributed to through the piping system to residents, businesses and other water assets, such as the township’s 84 hydrants. Once the sale is completed, Aqua will assume responsibility for the distribution, maintenance and related water system expenditures from the township.

According to Sacco, the closing date for the water assets sale may come as early as the end of this month.

Lower Bucks County Joint Municipal Authority Resolution Agreement

The other resolution passed by council, was brought up during the logistical process of completing the townhip-to-Aqua water-system transfer. According to Sacco, the Lower Bucks County Joint Municipal Authority (LBCJMA), filed a court action in the mid-1980s against Bristol Township, and its water authority at the time (since dissolved), to cease service to the Keystone Park area of the township.

Sacco explained that the action was over a territorial dispute, which eventually led a court to determine that the township owned the piping but LBCJMA had the territorial rights to the area, and could stop the township from distributing service.

However, Sacco said that nothing really came from the action, and the township continued to distribute service to the area for the following decades.

During the assets purchase agreement process, Aqua requested that the matter be resolved.

As a result, the council at the June 6 meeting passed a resolution authorizing and approving a settlement agreement and mutual release between the LBCJMA and Bristol Township. In addition, of the $3.4-million sale from Aqua, the township will give $74,000 to the LBCJMA.

“In return, Lower Bucks is releasing any right they may have now or in the future of any customers in the service area,” Sacco said. “That includes current customers and vacant lots that may be developed.”

He said that the LBCJMA approved its own agreement resolution on the matter, May 23.