STEWARTSTOWN BOROUGH AND HOPEWELL TOWNSHIP WATER OPTIONS ANALYSIS (Sheet 1 of 2)

 

Sell Water System to York Water Co.

Use Existing Wells – Buy Bulk Water from York Water Co.

Use Existing Wells – Build Surface Water Treatment Plant on Ebaugh Creek
Assurance of Good Water Quality Excellent with constant testing and monitoring of water quality. (Note 1) 1) Well water acceptable with periodic quality problems.
2) York water excellent.		 1) Well water acceptable with periodic quality problems.
2) Ebaugh Creek water quality problems exist -source may not be acceptable during periods of hiqh turbidity. (Note 2)
Impact on Cost to Each Residential Water Customer Vs. Current $8.40/1,000 gallons Total water bill will go down immediately to approximately $3.00/1,000 gallons plus $7.75 per month meter charge. Total water bill will probably go up since costs will increase due to additional capital investment required. Total water bill may drop ($6.40 to $7.40/ 1000 gallons) depending upon magnitude of additional capital costs.
Assurance of Long Term Water Supply Excellent. 1) Contract limits maximum consumption.
2) Contract expires after 20 years but automatically renews unless either party opts out.		 1) Near term supply appears acceptable based on flow studies.
2) Development in watershed could reduce usability.
3) Life expectancy of wells unknown.
Financial Risk to Customers 1) Low - rates have increased less than the rate of inflation and are controlled by Public Utilities Commission (PUC).
2) Expansion and/or maintenance costs will be at the expense of York Water Co. and only recoverable through PUC rate increases.		 1) Medium - Water Authority will fund system maintenance and expansion of wells.
2) Customers will pay for capital improvements through increased Rates.		 1) Medium to high - Water Authority will fund system maintenance and expansions for both plants and wells.
2) Total costs to develop plant still unknown. Customers will pay for improvements through increased rates.
Capital Investment Required by Borough None - York Water Co. will fund pipeline and other costs. Approximately $1.2 MM to build pipeline from East Tolna to Stewartstown. Approximately $1.3 MM to build water treatment plant and modify sewer plant discharge; do engineering studies, etc.
Impact on Tax Base York Water Co. will pay public utility realty taxes. No impact. No impact.