The Pittsburgh Water and Sewer Authority is set to purchase the Millvale water system for $1.55 million in an effort to cut the costs of upcoming infrastructure improvements. Mayor Luke Ravenstahl and Millvale council President James Porter made the announcement at a press conference in the Millvale council chambers yesterday.
Mr. Ravenstahl said the acquisition is part of his mission to promote collaboration between municipalities. PWSA, with its size and expertise, he said, would be able to undertake major construction projects in Millvale's system for less money than Millvale could. Millvale council is expected to approve the takeover Tuesday, and the city water authority will accept the agreement July 31. After that, the sale should be completed in 90 days, PWSA Executive Director Michael Kenney said.
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The buyout will bring 1,800 customers and $700,000 in revenue per year to the city authority. Mr. Kenney said he expects the city to start making a profit on the system in five years.
But Pittsburgh's purchase of the Millvale water system is expected to increase costs for Millvale residents, at least initially. The average Millvale resident now pays $27.50 per month for water; after the sale they will pay, on average, $5 more per month. Still, Mr. Kenney said, the rate increase would be higher if Millvale had to pay for its own construction projects.
The agreement was about 10 years in the making, officials said. Mr. Kenney said the city water authority is considering purchasing other water systems in communities surrounding Pittsburgh. Right now, though, the authority is only "communicating" with officials from these other towns, he said.
