The sale of DELCORA remains snared in litigation. The latest salvo was by Chester City receiver Michael Doweary to make sure the city receives its share of compensation if the pending $276.5 million DELCORA sale to Aqua PA goes through.
The suit argues that a previous contract signed in 1973 says Chester must agree to a sale and the city should also be paid a portion of the proceeds. DELCORA (Delaware County Regional Water Quality Control Authority) is also required under that 48-years-old agreement to return the city’s sewer system to the city. A later agreement said DELCORA must pay the city 10 percent of any sale, the complaint said.
DELCORA serves 46 municipalities in Chester and Delaware Counties.
Doweary asks the court to impose a declaration of judgment and an injunction.
Doweary tried to intervene in the sale before, but the Public Utilities Commission (PUC) refused, telling Chester it was too late. The DELCORA sale to Aqua had been approved by Delaware County’s former Republican-controlled council. The Democrats now in control are fighting the deal and passed an ordinance to permit the county to take over the utility.
Vijay Kapoor, Doweary’s chief of staff, said the new complaint is to make sure that Chester is protected if a sale goes through or DELCORA stops operations.
“There are assets that used to belong to the city,” he said. “These would revert back to the city or the city would receive adequate compensation.” The suit will “preserve Chester’s rights.”
A spokeswoman for Aqua PA said, “Although the action was filed/dated Aug. 17, Aqua only recently received a copy and has not had the chance to thoroughly review it in order to make substantive comment. Aqua is not a named party in the action. We are aware of similar relief the receiver sought before the PUC but the PUC determined he was not permitted to participate in that process. We previously asked the receiver several times for a list of the supposed assets potentially subject to the old agreement, and the supposed valuation of those assets. To date, we have not received a response.”
Kapoor said the PUC ruled they were too late to file but did not rule on the merits of their claims.
“It’s like watching a medieval castle siege,” said Frank Catania, a lawyer for the Chester Water Authority. “If they just starve them out they will eventually yield and sell to Aqua. Harrisburg has a $4 billion surplus. Delaware County has $100 million. It’s disappointing that nobody can use some of that money to help the City of Chester.”
CWA is also a litigant because Doweary may sell that entity to Aqua for $410 million, which would help with the city’s pension obligations. However, that case is pending before the state Supreme Court.
CWA serves 49,000 customers in 33 towns in Delaware and Chester counties.
Samantha Newell, with Rudolph Clarke, the law firm representing DELCORA, did not reply to a request for comment Thursday. The politically-connected law firm has Democratic state Reps. Mike Zabel and Benjamin Sanchez and Democratic state Sen. Maria Collett and Steven Santarsiero as “of counsel” lawyers.
The Common Pleas court has scheduled a hearing on September 7th to hear arguments regarding the Order the Court will issue, in response to the Commonwealth Court’s decision on this matter.
Delaware County Solicitor William Martin could not be reached for comment.