Resolution #15-34: Resolution Endorsing the Purchase of Railroad Easement

Date of Adoption: June 18, 2015

WHEREAS, Vernon Township purchased and is the owner of the sanitary sewer assets that comprised the Vernon Township municipal sewer system;

WHEREAS, the Vernon Township Municipal Utilities Authority administers the system by collecting sewer fees and other related fees while paying all costs related to the operation, maintenance, repair, and upgrade of the sewer system;

WHEREAS, approximately 8,000 linear feet of the municipal sewer transmission pipe is located within the railroad bed owned by the New York Susquehanna and Western Railway Corporation (hereinafter “Railroad”);

WHEREAS, United Water had obtained a license to allow the placement of the sewer pipe within the Railroad property;

WHEREAS, United Water through its License Agreement was paying the Railroad more than $8,000 per year with an escalator clause that increased the cost each year;

WHEREAS, under the terms of the License Agreement between the Railroad and United Water, the license payments would continue forever;

WHEREAS, both Vernon Township and the Vernon Township MUA questioned the cost of the License Agreement over a 25, 50 or 100 year period;

WHEREAS, Vernon Township took the lead in negotiating a permanent easement with the Railroad;

WHEREAS, an agreement has recently been reached between Vernon Township and the Railroad where Vernon Township will purchase a permanent easement from the Railroad at a onetime cost of $140,000 and a payment on the current license arrears of $25,000;

WHEREAS, the Township Council has approved the purchase of the easement and the payment towards the existing arrears;

WHEREAS, the commissioners of the Vernon Township MUA have reviewed the situation and are in agreement that it makes much more financial sense on a long term time horizon to purchase the easement at a onetime cost rather than continue to pay an escalating fee every year indefinitely;

NOW THEREFORE IT BE RESOLVED by the commissioners of the Vernon Township Municipal Utilities Authority that the commissioners endorse the purchase of a permanent easement from the New York Susquehanna and Western Railway Corporation by Vernon Township for a onetime cost which eliminates escalating payments which would have to be paid indefinitely. The Vernon Township MUA recognizes that the purchase of the easement and the payment of the arrears is a cost of operating the municipal sanitary sewer system and the Vernon Township MUA authorizes the MUA’s CFO to reimburse the Township of Vernon for both the costs of the onetime easement purchase in the amount of $140,000 as well as the payment towards the license arrears in the amount of $25,000.