Municipal Authority of Westmoreland County extends contract with management firm
The private company that manages the Municipal Authority of Westmoreland County will continue to do so through 2025.
Authority board members on Wednesday unanimously approved a 10-year contract extension with Resource Development Management of Wilkinsburg to run all aspects of the utility that services more than 120,000 water and nearly 9,000 sewer customers in five counties.
The deal calls for the company to earn $13.8 million over the life of the contract. The company, which has managed the utility since 1998, was to be paid $1.05 million a year through March 2018 under its contract.
Terms of the extension call for the company to earn $1.2 million annually in 2016 and 2017; $1.3 million from 2018 through 2020; and $1.5 million for the final five years of the deal.
The company assigns four full-time workers to the authority, including Chris Kerr, a part-owner of Resource Development Management. The company, founded by former development heads for Allegheny County, manages water companies in Johnstown, Sewickley Heights, and a rural water system in Armstrong County.
Authority Chairman Randy Roadman said officials wanted to ensure that its management structure is in place to continue efforts to purchase smaller regional water and sewer systems, and to oversee plans to sell water to residents in Belle Vernon, Monroeville and Plum.
The authority earlier this year purchased the Jeannette sewer system and is now contemplating making an offer to buy the Ligonier Township water and sewer systems.
Rich Cholodofsky is a staff writer for Trib Total Media.