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File #: 2010-1117    Version: 1
Type: Resolution Status: Died due to expiration of legislative council session
File created: 11/16/2010 In control: City Council
On agenda: Final action:
Enactment date: Enactment #:
Effective date:    
Title: Resolution directing the Mayor of the City of Pittsburgh to terminate the subsidization of the water rates of the Pennsylvania American Water Company.
Sponsors: Patrick Dowd
Indexes: MISCELLANEOUS
Attachments: 1. 2010-1117.doc
Title
Resolution directing the Mayor of the City of Pittsburgh to terminate the subsidization of the water rates of the Pennsylvania American Water Company.


Body

WHEREAS, on February 1, 1957 the City of Pittsburgh (the "City") entered into a contract with the South Pittsburgh Water Company for the provision of water to citizens in certain portions of the City south and west of the Monongahela River; and,

WHEREAS, in 1973 the City amended the 1957 agreement and agreed to subsidize the water rates for the successor company known as Western Pennsylvania Water Company; and,

WHEREAS, in 1995 the City amended the 1973 agreement transferring responsibility to the Pittsburgh Water and Sewer Authority (the "Authority") the responsibility and the cost for subsidizing the water rates of the successor company known as the Pennsylvania American Water Company (“Pennsylvania American”) a subsidiary of American Water; and,

WHEREAS, in the last 25 years alone the Authority ratepayers have given nearly $60 million, an average of more than $2.2 million annually, to Pennsylvania American rather than reinvesting that money in the infrastructure owned by the public; and,

WHEREAS, across the nation public officials have turned to privatization to fill budget gaps and on the local level some officials have expressed interest in privatizing the Authority; and,

WHEREAS, the board of the Authority wants to improve operations and finances in part to strengthen the Authority and better position it to defend against privatization; and,

WHEREAS, the Council of the City opposes the privatization of water treatment and distribution and supports the Authority's efforts to improve operations and finances and to reinvest in public infrastructure; and,

WHEREAS, according to paragraph 3 of the 1973 agreement, Pennsylvania American provides the Authority with a list of billings to each customer within the corporate limits of the City and the Authority in return pays Pen...

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