BASA accepts purchase deal
BUTLER TWP — The sale of Butler Area Sewer Authority to Pennsylvania American Water Company took a major step forward Tuesday morning.
The authority’s five-man board of directors voted unanimously at its monthly meeting to approve a resolution to accept the $231.5 million offered by Pennsylvania American to buy the treatment plant and sewer conveyance system.
Board members also signed an asset-purchase agreement after the meeting.
Authority officials said they are selling the plant and system because many costly updates are needed and a company such as Pennsylvania American can afford to make the necessary investments in the repairs and replacements.
Duane McKee, authority executive director, said Butler City Council members are expected to vote on the sale Thursday, and Butler Township commissioners on Monday.
“Since the beginning of this process, our board prioritized the needs of our employees and customers,” said Paul Sybert, authority board chairman. “Without BASA’s dedicated and hardworking employees, this facility would not run. They, and our customers, always remained at the forefront of our minds.”
Sybert said the sale is the right decision, and the board is confident the transition from the sewer authority to Pennsylvania American will be seamless.
An authority news release issued Tuesday reiterated many facts associated with the sale, including Pennsylvania American’s commitment to assuming the authority’s $75 million in upgrade projects and the company’s intention to carry out a pilot program that would pay for the repair or replacement of sewer lines on customers’ properties.
“We spent a lot of time analyzing how this acquisition would impact our community,” said Dave Zarnick, president of the Butler Township board of commissioners. “As infrastructure ages, it becomes more costly to maintain and repair. Pennsylvania American Water has vast resources and is equipped to make the $75 million in improvements that the (authority’s) facility requires.”
Because the city and township are considered the owners of the 60-year-old sewer system, those two entities would receive the profits from the sale once all debt is paid.
City officials held two public input meetings recently to answer customer questions about the potential sale, as did the township commissioners.
In the prospective sale, all customers would see a $2.50 monthly increase in their sewer bill, then a one-year moratorium on increases.
“We have done our due diligence, and we are firmly united,” said Butler Mayor Bob Dandoy. “For nearly an entire year, we looked at every aspect of what this sale would mean to those in (the authority’s) service territory.”
The sale has been controversial, as some agree the authority would be better off in Pennsylvania American’s hands while others fear sewer bills will increase significantly in the next several years.
Officials in the other municipalities with authority customers have been vocal about their contention that they should receive a share of the profits should the sale go through.
The authority has more than 15,000 customers over a 32.5-square-mile area.
In addition to Butler and Butler Township, the authority has customers in Center Township and East Butler in addition to parts of Connoquenessing, Oakland, Summit and Penn townships.
The system boasts 230 miles of sewer lines, 6,450 manholes, 23 pump stations and five equalization tanks.
The plant on Litman Road treats an average of 6.35 million gallons of sewage per day, with a capacity of 10 million gallons per day.
