23.07.2013 Views

May 1979 - On-Line Newspaper Archives of Ocean City

May 1979 - On-Line Newspaper Archives of Ocean City

May 1979 - On-Line Newspaper Archives of Ocean City

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

PAGE 14 — SECTION ONE IKIvVN CITY (N..I.) SKNTINEL-LEDGER THURSDAY, MAY 10.<strong>1979</strong><br />

MUA proposal angers administration, council<br />

(continued from page 1)<br />

missioners felt, it should not be located on a barrier<br />

island.<br />

Currently, Upper Township does not have sewers and<br />

is not a member <strong>of</strong> the MUA.<br />

But even if the MUA agreed to keep Upper Township<br />

out <strong>of</strong> the <strong>Ocean</strong> <strong>City</strong> sewage treatment plant, it would<br />

not be able to honor that commitment, McCarthy said.<br />

"I don't think the MUA has the authority to honor it."<br />

McCarthy explained that when the time comes for<br />

Upper Township's sewage to be treated, the decision on<br />

whether to build a separate plant on the mainland or to<br />

hook the township up to the <strong>Ocean</strong> <strong>City</strong> plant will be<br />

based solely on a "cost-effectiveness study."<br />

This means that if the same Job can be done more<br />

inexpensively by building a pipeline to <strong>Ocean</strong> <strong>City</strong> the<br />

federal government will probably decide that that is the<br />

course to take, regardless <strong>of</strong> any agreements made<br />

between the authority and <strong>Ocean</strong> <strong>City</strong>. And once the<br />

federal government decides which avenue is the most<br />

cost-effective, that is the only course <strong>of</strong> action it will<br />

provide funding for.<br />

McCarthy pointed out that the MUA already owns all<br />

the property between the 46th St. plant site and the bay<br />

necessary to run a pipeline from Upper Township, and<br />

that, according to the service agreement, the MUA<br />

would not even need <strong>Ocean</strong> <strong>City</strong>'s written permission to<br />

lay such a pipeline.<br />

$et for next Thursday<br />

McCarthy is also concerned that nowhere in the<br />

service agreement is it required that Upper Township<br />

pay for expansions to the <strong>Ocean</strong> <strong>City</strong> plant made<br />

necessary because <strong>of</strong> Upper's inclusion. This could<br />

mean that <strong>Ocean</strong> <strong>City</strong> will be put into the position <strong>of</strong><br />

"funding another municipality's free ride."<br />

The <strong>Ocean</strong> <strong>City</strong> region service agreement is not as<br />

complete as the agreements for other regions, Mc-<br />

Carthy said, because it does not specifically state in'<br />

what geographic areas the sewage to be treated will be<br />

generated. He said he is concerned with "what is being<br />

left open here for supplemental amendment."<br />

The issue has come to a head because the MUA wishes<br />

the city to sign a revised service agreement and a bond<br />

certificate, designed to make $17 million in bonds the<br />

authority intends to issue for the cutjtruction <strong>of</strong> the<br />

<strong>Ocean</strong> <strong>City</strong> plant more attractive to invWtors. The MUA<br />

has hoped to issue those bonds on <strong>May</strong> 16. By refusing to<br />

sign the agreement and certificate, the city may prevent<br />

the issuance <strong>of</strong> those bonds, and may find itself brought<br />

to court by the authority. Authority members have<br />

continually maintained that any delays to the project<br />

drive the cost up.<br />

McCarthy raised other issues Tuesday, which have to<br />

do with <strong>Ocean</strong> <strong>City</strong> being the first region to actually<br />

begin construction and, ultimately, operation <strong>of</strong> a<br />

treatment plant. It seems that rather than reap any<br />

benefits from being the first municipality "on-line" in<br />

the county-wide system. <strong>Ocean</strong> <strong>City</strong> may well be<br />

severely financially penalized for being first.<br />

The first issue concerns user fees. The MUA has long<br />

maintained that the fees will be equal throughout the<br />

county, because state statutes require them to be. But<br />

McCarthy said Tuesday, "a good chance exists that the<br />

state statute does not in fact require a uniform overall<br />

rate to be charged within all the service regions."<br />

Because construction costs continue to .escalate,.<br />

construction <strong>of</strong> the <strong>Ocean</strong> <strong>City</strong> plant will probably be<br />

much cheaper than construction <strong>of</strong> plants in other<br />

regions a few years from now. McCarthy believes that<br />

because <strong>of</strong> this. <strong>Ocean</strong> <strong>City</strong> users should pay less for<br />

sewage treatment than users in other municipalities, on<br />

a scale that more accurately reflects the cost <strong>of</strong><br />

providing that sewage treatment.<br />

"The basic question" he wrote, "is whether or not<br />

<strong>Ocean</strong> <strong>City</strong>'s future sewerage rates will experience<br />

continuing upward escalation due to the tremendous<br />

capital investment which will be required to serve the<br />

other regions.<br />

"The rate paid on a region-by-region basis should<br />

include the true cost <strong>of</strong> service also computed on a<br />

region-by-region basis."<br />

More frightening in the short-run is the possibility that<br />

the taxpayers <strong>of</strong> <strong>Ocean</strong> <strong>City</strong> alone, may find themselves<br />

responsible for every debt incurred by the county-wide<br />

authority since its inception, if, for any reason, the<br />

authority loses its solvency.<br />

Tho MITA hat, tooiuv* «»7 •> tnillinr. in

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!