Derby is exploring whether it can score some cash by selling about seven miles of water pipes it owns in the Marshall Lane area.
The pipes, known as “East Derby Waterworks,” serves about 400 customers and is essentially owned by Derby in name only, according to Mayor Anthony Staffieri.
The Regional Water Authority maintains and operates the system — a fact that irks Derby because the city, along with Ansonia and parts of Seymour, pay higher rates than the average Regional Water Authority customer.
Staffieri has been trying for several years to convince the water company to bring down the rates — so far, they haven’t budged, the mayor said at Thursday’s Board of Aldermen meeting. City officials learned about their ownership of the water system about two years ago, as Staffieri mobilized opposition to a water rate increase.
Meanwhile, Phil Robertson, the mayor’s chief administrative officer, has been researching the city’s 38-year-old agreement with the Regional Water Authority (previously Birmingham Utilities) over East Derby Waterworks.
To add insult to injury, according to Derby officials, the Regional Water Authority is using Derby-owned waterworks to service new residential properties in Orange.
Derby has questioned the legality of the move — but hasn’t taken formal legal action against the water company.
In July, Staffieri notified the Regional Water Authority that the city intends to end its contract with the company. The contract requires a year’s notice, Robertson said.
At Thursdays’ Aldermen meeting, officials unanimously voted to authorize Robertson to “research and evaluate all the concepts of ownership and the methods of management and also the quality of service provided to the customers of East Derby Waterworks.”
Despite the nebulous wording of that motion, after the meeting Staffieri said Derby wants to see if can generate revenue — and, perhaps, better water rates — by selling its interest.
“Right now we own it. It’s a water tank, the piping, a pump station. But it’s only good on paper. They collect all the quarterly fees from their customers. From that money, they make repairs, but the rest is profit,” Staffieri said.
“We would be gaining be getting rid of it. We could put it up for sale and if (Regional) Water Authority doesn’t want to buy it, maybe another company will want to buy it,” Staffieri said.
One Robertson’s research is done, he is to report back to the Board of Aldermen.
