The Derby Board of Aldermen voted Thursday to sell the East Derby Water Works to the Aquarion Water Co. for $2 million.
The Aquarion bid for the water system was about $900,000 more than the bid from the South Central Connecticut Regional Water Authority.
East Derby Water Works is a water distribution system providing water to 500 Derby customers, including about 27 commercial customers. The pipes and pump stations are owned by the city, but the water is provided by and the system is operated by the South Central Connecticut Regional Water Authority.
The system was built in 1971 under a contract set up between the city and Birmingham Utilities. In 2008, the South Central Regional Water Authority acquired Birmingham Utilities for $40 million.
Selling the system gives the Derby budget a $2 million shot in the arm. In addition, the water system goes on the tax rolls, which adds annual revenue to the city’s budget.
Derby officials have not discussed precisely how the $2 million will be used.
Prior to the vote, Derby City Treasurer Keith McLiverty suggested the city to use the money in a way that will help Derby’s fiscal health.
McLiverty suggested some of the money be placed into the city’s fund balance account, some be used for repairs or capital improvements (large equipment purchases, for example) and that some be used for demolishing blighted properties the city is acquiring by foreclosure.
The vote Thursday was 6 – 2 to accept Aquarion’s bid. Aldermanic President Barbara DeGennaro and Steve Iacuone voted against the sale.
Iacuone said the city should have taken more time to examine their options and determine just how many Derby residents are serviced by the water system.
Click the video to watch the discussion and vote.
Click here to read the two bids the city received for the water system.
The vote means Derby now has two water companies in the city, with the Regional Water Authority servicing the vast majority of residents.
