PRINTER'S NO. 1136
No. 60 Session of 1987
INTRODUCED BY LANGTRY, MURPHY, McVERRY, BOOK, FARMER, CESSAR,
ITKIN, PISTELLA, FREIND, LEVDANSKY, MARKOSEK, HAYDEN AND
DeLUCA, APRIL 6, 1987
REFERRED TO COMMITTEE ON RULES, APRIL 7, 1987
A RESOLUTION
1 Directing the Subcommittee on Cities, Counties - Second Class of
2 the Committee on Urban Affairs of the House of
3 Representatives to investigate the Allegheny County Sanitary
4 Authority.
5 WHEREAS, Municipal authorities in the Commonwealth of
6 Pennsylvania exist for the purpose of accomplishing public
7 purposes that are not possible or practical through direct
8 action of counties, municipalities and school districts,
9 including the acquisition, construction, improvement,
10 maintenance and operation of projects; and
11 WHEREAS, Municipal authorities are a legal entity with the
12 power to incur debt, own property and finance activities by
13 means of user charges, direct borrowing and the issuance of
14 bonds; and
15 WHEREAS, There are at the present time approximately 2,577
16 municipal authorities operating in this Commonwealth which have
17 issued public debt exceeding $15 billion, with over $8 billion
18 outstanding; and
1 WHEREAS, The activities of municipal authorities in this
2 Commonwealth are presently governed by the Municipality
3 Authorities Act of 1945 (P.L.382, No.164); and
4 WHEREAS, The Allegheny County Sanitary Authority (Alcosan),
5 incorporated and operating under the powers granted it by the
6 Municipality Authorities Act of 1945, is presently the subject
7 of investigations by the Federal Bureau of Investigation, the
8 Allegheny County District Attorney's Office, the Allegheny
9 County Controller's Office and Pittsburgh City Council; and
10 WHEREAS, These investigations are based on allegations of
11 improper reporting and accounting of expenses, payments to
12 obtain employment, patronage and conflict of interest with
13 respect to actions involving the investment of authority
14 revenues, the awarding of contracts and the purchase of
15 insurance; and
16 WHEREAS, These investigations may establish that there were
17 improprieties and improper and/or illegal activities on the part
18 of authority board members and/or staff with respect to the
19 aforementioned activities; and
20 WHEREAS, The potential for improper conduct may exist in
21 connection with the activities of Pennsylvania's other 2,576
22 municipal authorities; therefore be it
23 RESOLVED, That in order to protect the public interest, the
24 General Assembly should consider whether there is a need to
25 amend the Municipality Authorities Act to insure tighter control
26 over specific functions and activities of municipal authorities
27 based on the findings of the current investigations of the
28 Allegheny County Sanitary Authority; and be it further
29 RESOLVED, That the House of Representatives direct the
30 Subcommittee on Cities, Counties - Second Class of the Committee
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1 on Urban Affairs to conduct, at the appropriate time, a thorough
2 investigation into the activities of the Allegheny County
3 Sanitary Authority; and be it further
4 RESOLVED, That, as part of its investigation, the
5 Subcommittee on Cities, Counties - Second Class of the Committee
6 on Urban Affairs review all findings, conclusions and
7 recommendations resulting from the current investigations of the
8 Allegheny County Sanitary Authority being conducted by the
9 Federal Bureau of Investigation, the Allegheny County District
10 Attorney's Office, the Allegheny County Controller's Office and
11 Pittsburgh City Council; and be it further
12 RESOLVED, That the committee may hold hearings, take
13 testimony, and make its investigations in such places as it
14 deems necessary in the Commonwealth and shall make a report of
15 its findings to the House of Representatives as soon as
16 possible. The report shall include, if appropriate,
17 recommendations for amending the Municipality Authorities Act to
18 further protect the public interest by preventing, to the extent
19 possible, conflicts of interest in a municipal authority's
20 activities relating to the awarding of contracts and project
21 administration, while insuring increased public accountability.
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