ESWA Leasing Water Production and Distribution Facilities from the City of Easton

In an effort to improve service to customers, in January 2007, Easton Suburban Water Authority, a non-profit government entity, entered into a 25-year agreement to lease the City of Easton's water system.

The Authority was created by the City of Easton in 1957 to provide water service to the growing suburbs. However, the City of Easton maintained control of the water system within City limits, including the Water Treatment Plant. Under the Lease Agreement, the Authority assumed the management and operational responsibilities, as well as all capital improvement financing requirements for the water system, including the Water Treatment Plant. There are several reasons why the Lease Agreement was approved.

First, it is crucial to the reliability of the entire Easton area water system that the facilities shared by Easton Suburban Water Authority and the City of Easton be improved and upgraded. After an unsatisfactory report on the Water Treatment Plant's Filter Performance Evaluation in 2003 by the Pennsylvania Department of Environmental Protection (PADEP), the Authority stepped in to make required improvements to the plant in order to maintain system reliability. Now, continued improvements to ensure compliance with the Federal Safe Drinking Water Act requirements and improve the aging infrastructure can be made.

Second, it was in the best interest of both ESWA customers and City of Easton customers, that the Authority manage and operate the water treatment plant and facilities to prevent them from falling into disrepair, and to make sure they meet government standards. By delegating the responsibility of operations of the City of Easton's water system and treatment plant to Easton Suburban Water Authority, all customers in the Easton area will continue to receive reliable, quality water and service at an affordable price. As a non-profit local agency, ESWA continues to reinvest all income from operations to rebuilding the aging infrastructure and meeting all federal and state safe water requirements.

Third, with a strong, integrated water system, we will be able to avoid privatization and maintain local control of our most valuable asset. We are keeping a watchful eye on the alarming trend across the country for private companies, many of them European-owned, to buy out local water companies. The result of this privatization could lead to skyrocketing water rates, water quality problems, deteriorating services, poor customer service, and loss of local jobs and local control.

Summary of Lease Agreement

History of ESWA and City of Easton

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