EVANS CITY — The Evans City Borough Council on Monday took the first step in transferring ownership of the sewer authority to Evans City Water Authority.

Council approved a memorandum of understanding between the two entities.

After a final agreement is drafted, council will vote to finalize the move. The borough would pay the authority about $4.5 million to transfer ownership, said Council President William Painter.

Painter said the authority was created by the borough in 2006.

"We decided to do this because they have an easier time getting services for people and an easier time borrowing funds," Painter said.

If the borough needed to extend service to someone in Jackson Township, approval would have to go through the state Public Utility Commission. Painter said because the authority will take full ownership of the sewer authority, that step will no longer be required.

"There are less regulations on authorities and they can focus on those issues, which takes up a lot of time for council members," Painter said.

Mike Gallagher, borough solicitor, said he will prepare a sales agreement along with an inventory of assets. Gallagher hopes to close by Oct. 31.