Borough outlines priorities, extends deadline for bids for possible MABS sale
By Kaylee Lindenmuth | [email protected]
SHENANDOAH – Potential buyers for the Municipal Authority of the Borough of Shenandoah now have until October 30 to submit a bid.
According to a statement read at Shenandoah Borough Council, respondents to the borough’s May request for proposals “have participated in a site visit,” which included a question and answer period.
Mary Lou Buchinsky, borough secretary, read the statement aloud.
“During these question and answer periods, each respondent was informed that the borough and MABS are not solely focused on the highest possible purchase price, but instead are interested in each respondent proposing a purchase price which takes into account a variety of priorities identified by the borough and MABS during the question and answer periods,” said Buchinsky.”
As Buchinsky read, “the purchase prices should reflect the borough’s and MABS’s expectations that the winning respondent will make a significant investment in the infrastructure of the water system so that the water system can and will be operated and maintained in a manner that will assure clean, reliable, affordable, and sustainable water service to all customers and other users of the water system.”
“Purchase prices should reflect the preservation and continuity of the existing jobs of current employees to the largest extent possible for the longest extent possible,” Buchinsky continued. “Purchase prices should reflect the respondents ability to spread capital investment over a significantly larger rate base thereby protecting rate payers from the costs associated with the capital investment to the largest extent possible and for the longest period of time possible.”
The statement concluded saying the deadline for all bids was extended to October 30.
In May, council approved a motion to seek such bids, though borough officials at the time said the request would not obligate the borough to sell, nor was that their primary intention.
“Basically, what it is is a free appraisal of what our assets and the value of our plant is,” said council president Leo Pietkiewicz at the time. “Receipt of proposals will not obligate the borough or MABS to accept any offer or proposal.”
Pietkiewicz was not present at Monday’s meeting.
No information about the respondents was provided at Monday’s meeting.
Sherry Streeter contributed to this report.
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