BASA: Loss of local control questioned
The second of a three-part package examining the potential sale of Butler Area Sewer Authority to Pennsylvania American Water Company.
Shaun Brown, of Slippery Rock Township, who has 47 rental units in the Butler Area Sewer Authority service area and is former director of the Slippery Rock Municipal Authority, is staunchly against the sale of BASA.
“The community loses all ability to control anything,” Brown said.
He said the authority staff and employees live in the community and likely use the system, and on-call field workers have come out at midnight to meet him in a sewer emergency.
“You’re not going to get that kind of service from Pennsylvania American (Water Company),” Brown said.
He also said because Pennsylvania American is a for-profit company, it needs to pay its shareholders.
“So now every dollar you spend on sewer rates, that stays in the community and in BASA’s service area,” Brown said. “You don’t have some shareholder living in Texas getting a piece of that dollar.
“They want to buy it because they know it will be a very profitable asset for them and their shareholders.”
He also is concerned about the employees and staff at the authority in the event of a sale.
“They have their own billing people, accountants, attorneys and engineers that they are using on a much larger scale,” Brown said of Pennsylvania American.
He disagreed that the authority is hard up for money for improvement projects.
“BASA is not struggling financially,” Brown said.
He also disagrees that a windfall for Butler and Butler Township is a good reason to sell.
“I know people are looking at it as being good for the community because of the influx of money, but it’s not going to do anything to reduce the tax burden for the residents,” Brown said.
He added that while an authority can have a lien placed against a property when sewer bills go unpaid, a public entity cannot do so and goes after the individual who is obligated to pay the bill through the collections process.
If the sale goes through, Brown said to protect himself and his credit rating, he will require his tenants to sign up for sewer service instead of the utility being included in the rent each month.
“It’s going to make it more difficult for tenants,” he said.
Authority customers, Brown said, will be surprised when their fixed quarterly sewer bill is switched to an amount based on their water usage, as Pennsylvania American provides public water to much of the authority’s service area.
“You’re going to be paying an unpredictable amount each month based on your water usage,” Brown said. “If you have a leaky toilet, you’re going to pay.”
Sam Zurzolo, Butler Township commissioner, said he has not yet made up his mind regarding the sale.
“I’m going to get more facts,” he said.
Zurzolo is concerned for the fate of the authority’s employees in the event of the sale, as well as the sewer rates increasing.
“I’m worried about the residents,” he said. “They’re always my main concern.”
He reiterated the statements of others who said the sewer system is in need of upgrades.
“The sewer lines are in deplorable condition,” Zurzolo said.
He said certain pump stations need extensive repairs as well.
“A lot of money is going to be invested to get these sewer lines up to par, and I don’t know if the residents can withstand the increases,” Zurzolo said.
He said he will continue to gather information before he makes up his mind on which side of the fence he will fall on regarding a sale.
“I just hope if it does sell, it’s a smooth transition and the township can reap the benefit of the money from the sale to improve areas of the township where we have stormwater projects,” Zurzolo said.
Butler Mayor Bob Dandoy said while he cannot comment on negotiations due to the confidentiality agreement, he and City Council are engaged in rigorous fact-finding in order to gather the information needed to make a proper decision.
“It’s pretty intense right now,” Dandoy said. “We are rolling up our sleeves and working hard to get all the information was can possibly get.”
He said public hearings will be held to gather customer opinions on a sale before a vote is made by council.
Dandoy said he is concerned about rate increases and authority employee security.
“These are all questions we have asked from the very beginning,” he said.
The authority board voted a few weeks ago to extend the confidentiality agreement until the end of August.
Elements one and three can be read: