The legal machinations continue to swirl around the Chester Water Authority.
When last we checked in on this legal saga, the authority was up to its neck in legal actions vs. both the city of Chester and the giant utility Aqua America.
To quickly recap, this whole thing dates back to 2017, when the Chester Water Authority board rejected an unsolicited $320 million bid from Aqua. The city of Chester, which has been struggling to escape Act 47 “distressed” status, then considered a possible sale of the company. Instead, the city and CWA reached a tentative deal calling for CWA to kick in $60 million to the city coffers. In exchange the city would relinquish any right to sell all or part of the company for 40 years. In order to raise the money, CWA would hike rates 10 percent. The CWA board quickly approved the deal, but Chester City Council never signed off on it.
At that point, Aqua jumped back into the fray, going to court to block the deal as a CWA customer, say they and other customers were getting nothing out of the deal but higher rates.
The city grew frustrated with the delay in the deal and then decided to seek bids to buy Chester Water Again.
In June, CWA asked a Common Pleas judge in Delaware County to grant an injunction against Chester City and Aqua halting a proposed sale. The CWA complaint alleged a “corrupt bargain” between the city and Aqua. In early July, Judge James Bradley granted the injunction, while dismissing Aqua from the action.
Now we're starting to hear from some of the Chester County entities that are served by Chester Water Authority. Remember, in addition to 19 towns in Delaware County, CWA also serves 16 municipalities in southern Chester County along the Route 1 corridor, in addition, of course, to drawing its sparkling water from the Octoraro Reservoir on the Lancaster County border outside Oxford.
Last week leaders from both London Grove and Penn Township sent letters to the Chester County Commissioners, who are considering candidates for a new representative on the CWA Board. They urged the board to appoint Leonard Rivera, a former board member. They also stressed their towns' desire to preserve Chester Water as its own entity.
The commissioners did likewise as they continue to mull their decision.
But they also mentioned that when Aqua made its bid to buy Chester Water back in 2017, they sat in on a meeting that detailed by Aqua offer. And who might have brokered that meeting? That would be none other than Chester County lawyer and then chairman of the state Republican Party Val DiGiorgio. He of course has had issues of his own recently, forcing him to step down as GOP boss.
Commissioners Chairman Michelle Kichline said all the board did was "look, listen and learn," taking no position on the potential sale.
Interesting. Then again, just about everything about this saga is.
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