Authority-Loyalsock agreement is signed on sanitary collection

The Williamsport Sanitary Authority signed a sales and service agreement Wednesday to acquire and maintain the sanitary collection system of Loyalsock Township.

The agreement, which is meant to control costs, said authority Director of Operations Walter Nicholson, isn’t expected to result in any rate changes for customers who pay sewer bills, initially.

“Initially, the agreement won’t impact the rate of customers,” said Douglas Keith, authority executive director.

The closing on the agreement is scheduled for June 30, he said. What took place at the noon meeting was a formality and the officials signing between the entities.

Rates may be adjusted after the authority evaluates the overall costs, Keith said.

“From the time we take over and maintain the system until we need to consider raising rates we will evaluate the costs of maintaining the system,” he said.

Adjustment in rates won’t happen until Jan. 1, 2014, or after, he said.

The present average cost for a residential sewer customer of the authority is $138 per quarter, for city residents who pay water and sewer, Nicholson said.

The purpose of the agreement is to reduce administrative costs, eliminate redundant operational costs, such as equipment purchases, and allow the township officials to focus on other daily responsibilities, Keith said.

“We’re in the business of sanitary collection and treatment,” he said.

The agreement is subject to cooperation of Old Lycoming Township and Lycoming County Water and Sewer Authority, both of whom have separate agreements with Loyalsock Township that will need to be assigned to the city-based authority.

The authority anticipates transfer of permits, delivery of deeds, easements, rights-of-way and other documents as part of the agreement.

A similar agreement has been in place in Woodward Township for a year.