What was once a big risk for the Schuylkill County Municipal Authority now serves as a model for the water and sewage provider in sparking economic development in the county.
Patrick M. Caulfield, SCMA executive director, said Friday that a simple land exchange in 1978 allowed the authority to expand the Mount Laurel reservoir in New Castle Township and provide water and sewer services to that area, attracting the various businesses now occupying the land.
"That single deal and handshake is now responsible for providing water to the Schuylkill Mall complex, Highridge Business Park, Wal-Mart Distribution Center, (federal and state correctional institutes), Laurel Ridge Housing Development, development along Morea Road, all the way out to the village of New Boston, which now is going to be further extended to what will be deemed the Mahanoy Business Park, all because of foresight and an agreement for the Necho Allen hotel," Caulfield said Wednesday.
It is that kind of long-term planning that made SCMA one of the oldest business operations in Schuylkill County and its largest potable water and sewer service provider. Starting as the Pottsville Water Co. in 1834, SCMA now serves more than 350,000 people in 25 municipalities.
"That one project, that one leap of faith that the municipal authority took at building a sewage treatment plant ... that led to an impact that was multiplied several times over in the community and the job creation market for the prison and Highridge Business Park," Frank Zukas, SCMA second vice chairman and Schuylkill Economic Development Corp. president, said.
That was the authority's first attempt at a sewage treatment plant and it led to several other later projects, including a well in Gordon that now supplements water supply to the Highridge Business Park area and the surrounding businesses and residents, Zukas said.
In cooperation with SEDCO and Schuylkill County Industrial Development Authority, SCMA's water and sewer services in these areas has led to the creation of more than 6,710 jobs while sustaining 4,000 jobs at local hospitals, government, school districts and industrial parks.
Since 2006, SCMA has added two water treatment facilities and two wells, and four wastewater treatment facilities, eight wastewater pumping stations and 285 individual sewage grinder pumps. The number of treatment facilities more than doubled from 5 to 11 between 2006 and 2011.
SCMA has added about 3,600 customers since 2007 by expanding its services.
Operations at SCMA currently include five wastewater treatment facilities, 14 pumping stations and 100 miles of collection lines that treat more than 1.5 million gallons of sanitary wastewater. Its drinking water operations includes six treatment facilities, six reservoirs, eight deep groundwater wells, 12 storage tanks, 14 pumping stations, 11 pressure-regulating stations and more than 150 miles of distribution piping that produces more than 5 million gallons of water a day.
SCMA currently has a staff of 38 that includes 19 certified water and wastewater operators with 22 different licenses.
While the jurisdiction of municipal authorities is limited to that municipality, SCMA can operate anywhere in Schuylkill County. Municipalities need a joint agreement with its neighbor to do that or under regulation by the state Public Utilities Commission, Zukas said.
"By having the jurisdictional capacity to go anywhere in the county, it's an advantage that really doesn't exist with any other entities as free-standing systems," Zukas said.
When SCMA acquires or enters into a cooperative agreement with another municipal authority, Caulfield said that entity is usually in financial trouble or unable to meet state Department of Environmental Protection regulations.
SCMA has acquired six failing systems in the county since 1996 and brought them all up to compliance with federal and state regulations through financial partnerships with the DEP and Pennsylvania Infrastructure Investment Authority, also known as PENNVEST.
Caulfield said operating costs can be too expensive for a local municipality. Mandated upgrades from environmental regulations make it even tougher on municipal wallets.
"Regulation requirements are only going to increase in stridency over time, both in water and wastewater, and all environmental regulations," Amy S. Batdorf, SCMA assistant executive director, said.
Prior to her time at SCMA, Batdorf was a DEP regulator for about 10 years.
"Each year, there is a number of environmental regulations proposed so it is only going to get increasingly harder to meet those regulations in the future and you have to be able to finance these new regulations and put structures in place to meet them," Batdorf said.
Regionalizing water and sewer services keep operating costs down since it consolidates professional services and staff and keeps rates lower, Caulfield said. That puts the authority in a better position for grants and borrowing funds to undertake large-scale projects, like those SCMA has recently completed and have slated for the near future.
Several dam rehabilitation projects SCMA started in 2010 are nearly completed. The project reconstructed four reservoirs to meet DEP dam safety regulations and remove them from the department's unsafe dam list. The total cost of the project was $18, which was largely funded by a $12 million grant. Only grass work remains for those projects.
Last year, SCMA started its single largest undertaking in upgrading the Deer Lake sewer system. The $21 million project consisted of a new wastewater treatment plant, three pumping stations and 12 miles of collection lines to regionalize services in Deer Lake, West Brunswich Township and Auburn. There was a $4 million grant for that project.
The project at Deer Lake should be complete by October, Caulfield said.
Recently, SCMA received a $1.1 million grant and a loan up to $2.9 million for about 20,000 feet of water line extensions and an elevated 500-gallon storage tank for customers in the 400-acre Mahanoy Business Park, village of Vulcan and Mahanoy Township.
Caulfield said the loan has been approved and the project should be put out for bid by March with construction set to start in May and complete by the end of the summer.
"All of these projects not only benefit economic development but, indirectly, there is a benefit to everyone in the county," Caulfield said. "It's a win/win for everyone. A lot of these projects are turned into tax credits for schools and municipalities."
Even though they may not be customers, Caulfield said people use and work at facilities that use the county municipal system.
"It's not just economic development and job creation that is singularly important to us, but little Mrs. Jones on Market Street benefits from us," Caulfield said.
For more information about the Schuylkill County Municipal Authority, visit www.scmawater.com.