In a split vote Tuesday, the Butler Area Sewer Authority board of directors approved an agreement that gives Pennsylvania American Water Company (PAWC) 60 days to estimate the value of BASA's sewer system and assets for a potential sale.

Board members voted 3-2 in favor of a confidentiality agreement submitted by PAWC. The agreement gives PAWC the exclusive right to assess the value of the system and assets for 60 days, said Michael Hnath, BASA solicitor.

The agreement doesn't bind BASA to sell the system to PAWC, he said.After PAWC completes is assessment, the board could consider pursuing a sale to PAWC or any other interested party, Hnath said.PAWC is planning to submit confidentiality agreements to Butler City Council and the Butler Township commissioners, which formed the authority in 1962 and appoint members to the BASA board. The confidentiality agreements prohibit members of the BASA board, city council and township commissioners from disclosing the value determined by PAWC.The three board members appointed by city council — Mavrik Goepfert, Lance Calvert and Steven Braden — voted in favor of the agreement. Both township appointees — Gerald Patterson Jr. and Paul Sybert — voted against the agreement.

Patterson listed the reasons he opposed the agreement.PAWC officials have publicly stated that the utility company would double customer service rates over 10 years, he said.“The higher the selling price is, the higher they will have to raise rates to recoup their investment,” Patterson said. “It's a lose-lose.”Proceeds from a sale would not go to BASA because it no longer would exist, he said. The city and Butler Township would have to approve any sale and decide how to disperse the proceeds, he said.Center Township has no representation on the board, but comprises 13% to 14% of BASA's customer base. BASA also serves East Butler and portions of Connoquenessing, Summit and Oakland townships, and a small part of Penn Township. Seven of the municipalities contributed assets to BASA in 1974. BASA has nearly 15,000 customers in its 32.5-square-mile service area.Patterson said he proposed accepting bids to sell the system by issuing a request for proposals in a transparent process.His motion to issue an RFP was voted down in a 3-2 vote during a board meeting in October. He and Sybert voted in favor. Goepfert, Calvert and Braden voted against it.“Ironically, if we sell a $500 vehicle, we have to bid, but we can sell a multi-million dollar authority with no bid, and it's all legal,” Patterson said.

Also at Tuesday's board meeting, Aqua Pennsylvania expressed interest in acquiring BASA.Aqua representatives displayed a PowerPoint presentation to highlight the company's standing in the water, wastewater and natural gas markets. Aqua Pennsylvania is part of Aqua America, which changed its name to Essential Utilities after acquiring Peoples Gas last year.“I proposed going out for bids, but the majority of the board wants to deal only with Pennsylvania American. Aqua made a proposal, but they're not part of the discussion,” Patterson said.PAWC issued a statement following the meeting.“As the water provider for most of the Butler Area Sewer Authority's service area, we are looking forward to sharing information about the sewer system assets per the agreement approved today. We have collaborated with elected and appointed leaders over the past year and expect to continue these efforts. We will continue to work with community stakeholders with the goal of reaching a mutually satisfactory agreement of sale,” the statement says.