Possible BASA sale discussed
BUTLER TWP — The potential sale of the Butler Area Sewer Authority to Pennsylvania American Water was a hot topic during the public comment session of Tuesday's authority meeting.
Pennsylvania American, the largest water and wastewater company in the state, offered to buy the authority in April.
After the Tuesday meeting, Jerry Patterson, BASA board president, said there is no timeline or potential selling price, as the idea remains in the discussion phase.
The purchase would have to receive a majority vote by both the Butler City Council and Butler Township board of commissioners.
On Tuesday, Cindy McKnight, a former Butler Township commissioner, decried selling the 59-year-old authority to Pennsylvania American.
“I do not believe this board is helping the residents by selling the sewer authority,” she said.
She said the city and township would receive a windfall in the sale, but the authority's customers would see their bills increase.
McKnight said the residents of Center Township and East Butler are not represented on the authority board, which she believes is unfair should the sale take place.
She also said a request for proposals should be advertised to allow more companies to make offers on the authority.
McKnight said she wants to see the authority remain a local entity and not sell out to a large company.
“I just think it's a big mistake,” McKnight said.
Jordan Grady, executive director of the Butler County Chamber of Commerce, said Pennsylvania American has invested more than $1 million in upgrades to the Butler water system in the past year.
He said the company also has supported firefighter grants in the county.
“They are very active in charitable contributions here,” Grady said.
He said the chamber supports the sale of BASA to Pennsylvania American.
“They are a great, reputable company, and they are an asset to this community,” Grady said.
He said the sale would make sense due to growth in the city and township.
McKnight asked him where the sale would leave Center Township and East Butler, as the city and township would receive all of the revenue from the sale.
“What is good for Butler city and Butler Township is good for surrounding communities,” Grady said.
McKnight said she is afraid BASA customers are unaware that the authority could be sold, and there's potential for their bill to double in 10 years.
“People are really clueless on what's going to be happening,” she said.
Sam Zurzolo, who is a Butler Township commissioner, said BASA cannot continue its operations at the current rates.
“No matter what happens, the rates are going to go up,” he said.
Jeff Geibel, president of Butler Downtown, seemed concerned about the financial impact on customers should the sale take place.
He said the sale would put money into the hands of local government, but asked the board to consider the businesses, churches, nonprofit organizations and Butler Memorial Hospital when making their decision.
“If the sale is made, look beyond who is writing the biggest check,” Geibel said.
The company Aqua America of Bryn Mawr, Delaware County, also has voiced interest in buying the authority, but no representative of that company attended Tuesday's meeting.
Patterson, BASA board president, said he has concerns regarding rate increases for customers.
“We have a lot of people on fixed incomes,” he said. “Our rates are extremely low.”
Patterson said the board was told bills would double over 10 years, if the authority were sold to Pennsylvania American.
Two representatives from Pennsylvania American Water attended the meeting.
No action was taken on an agenda item for BASA to form a confidentiality agreement with Pennsylvania American to negotiate a potential sale.
