City Council
City and Pittsburgh Water iron out sale of treatment plant, pipes.
For $1, Pittsburgh Water is ready to buy the city's water and sewer systems. That option came with the 1995 lease, so council can't block the sale. The deputy mayor said the bill of sale includes a charter amendment restricting any private sale. Council agreed to take up the bill at a legislative session.
Written by Amy Whipple
Pittsburgh Water is ready to buy the city’s water and sewer systems for a buck.
A 30-year lease agreement between the city and Pittsburgh Water included a $1 purchase option, which was available on Sept. 1.
Council cannot prohibit the sale since approval for it came with the 1995 lease.
Council Member Deb Gross of Highland Park described the system as a $2 billion asset with even higher stakes. “People get evicted if their water is cut off,” she said, “or lose custody of their kids.”
Several council members expressed concern that Pittsburgh Water will find a loophole in the home rule charter amendment restricting the lease and/or sale to a private company. Pittsburgh Water (formerly the Pittsburgh Water and Sewer Authority) is a public authority.
Deputy Mayor Jake Pawlak said the bill of sale explicitly includes the home rule charter amendment. Any future private sale would then also be a breach of contract.
The legislation currently before council addresses a “critical gap” in the original lease, which did not specify what infrastructure goes to Pittsburgh Water and what remains city property, according to Pawlak.
The agreement conveys to Pittsburgh Water major facilities, such as the drinking water treatment plant, as well as the majority of underground water pipes and sewage structures.
Council members also expressed concern that the sale does not address management and operations. Veolia Water managed the water authority from 2012-2015 when the chemistry was changed so that lead leached into the water. The city later sued the company for mismanagement.
Will Pickering, Pittsburgh Water’s chief executive officer, said, “There is absolutely no appetite for a management operational contract at the authority.”
Council members agreed to address the bill during a legislative session.
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