Michael Klein discusses a long-awaited decision by the Court of Common Pleas of Delaware County, Pa., involving the City of Chester’s request that the court declares that the city is authorized by law to convey the water system assets of the Chester Water Authority (CWA) to the city for its own use. In the case, the city requested that the court declare that the City of Chester is authorized by law to consummate the transaction to convey the water system assets of the CWA to the city for its own use. That use would be the sale of the water system assets to a third party in order to raise revenues for use by the city in meeting its financial obligations. In its decision, the court established the City of Chester, the County of Chester, and the County of Delaware as the governing body of the CWA. According to the court, pursuant to a 2012 amendment to the Municipality Authorities Act, that any conveyance of the CWA pursuant to section 5622(a) of the act be conducted and authorized by the City of Chester, County of Chester, and the County of Delaware as the governing body, which has the power to establish, maintain, or operate projects of the CWA. Therefore, the decision prevents the city from unilaterally acting to sell the water system assets of CWA.
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