Oxford Area Sewer Authority takes big step toward sale of wastewater treatment system
By Steven Hoffman
The Oxford Area Sewer Authority (OASA) authorized the start of a process that could result in the sale of the wastewater treatment system to the Delaware County Regional Water Authority (DELCORA) within 150 days.
The Oxford Area Sewer Authority and DELCORA have started work on an Asset Purchase Agreement which, according to the agreed-upon framework, should be completed within 90 days. The closing on the purchase would then take place 60 days after the Asset Purchase Agreement.
DELCORA will assume the remaining USDA loan balance of approximately $27 million, which would clear the debt from all the OASA member municipalities and release them from the municipal guarantees.
OASA will continue to pursue the sales of the building it owns on Third Street in Oxford, as well as land that it owns. If those properties are not sold before the Asset Purchase Agreement is reached, they will be transferred to DELCORA to continue to pursue the sale. The proceeds will be only applied to OASA and no other DELCORA interest.
DELCORA will pay the closing costs for the transactions.
Should DELCORA discontinue the use of existing spray fields, Oxford Borough and Lower Oxford Township will have the right of first refusal to re-purchase the lands.
For residents who live in the OASA service area, one of the most important details about the potential agreement is that DELCORA will freeze usage rates for a three-year-rate. After that period, DELVORA will adjust the rates using best practices.
If the sale is completed, DELCORA will operate the OASA as a stand-alone entity, and will establish an advisory committee comprised of residents in the service area.
For employees of OASA, DELCORA will extend employment offer letters to each current full-time employee.
Any agreement would be contingent on the United States Department of Agriculture’s approval of DELCORA's loan application.