The Daily Item, Sunbury, PA

The Danville News

May 7, 2014

Danville-Valley sewer deal progresses

VALLEY TWP. — Municipal authorities in Valley Township and Danville have reached an understanding on some of the outstanding issues in an agreement which would result in Valley Township sewage being treated by Danville’s plant.

“On other outstanding issues, we are seeking to fine-tune them before the agreement can be accepted by both the Danville and Valley Township authorities,” said Robert Buehner Jr., solicitor of the Valley Township authority.

Representatives of both authorities met Monday.

The Danville authority will discuss the agreement “and has some decisions to make and so does the Valley Township authority and they will get back to us,” he said Tuesday.

He said there are several provisions in the agreement which still need to be worked on.

Many of them are technical in nature and require consultations with engineers, he said.

Valley Township has agreed to a certain dollar amount to connect to the Danville system. “We have a tentative understanding as to the amount of the connection fee,” Buehner said.

Valley Township residents currently pay monthly sewer bills. The plan calls for a meter to be installed somewhere near the connection point of the two sewer systems with the meter to be read monthly, he said. As a result, one bill would be sent to the Valley Township authority.

He said they are looking at potential points to connect the two systems with the point to be somewhere near the Danville treatment plant.

Part of Valley Township, including businesses and homes, is connected to the township’s municipal sewer system.

The township authority, at its last meeting, approved bond counsel and a bank for a $2.4 million loan to pay off a state loan and to finance connecting the township system to the Danville plant.

Muncy Bank & Trust Co. was chosen for the loan at a fixed interest rate of 3.98 percent for 30 years for the tax-exempt bonds. Harrisburg Attorney Ben Ried was named bond counsel.

The authority expects to pay off a $1.1 million PennVEST loan which is expected to keep sewer rates low. The loan was for previous sewer extensions.

The township has been awarded a $1 million state grant to connect its system to the Danville plant.

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