City council approves BASA sale
Only one more vote is needed to send the Butler Area Sewer Authority sale to Harrisburg for final approval.
The Butler City Council members at their Thursday evening meeting voted unanimously to approve selling the authority to Pennsylvania American Water Co. for $231.5 million.
If the Butler Township Commissioners approve the sale at their Monday meeting, the sale will move to the Pennsylvania Utilities Commission for approval.
In a statement from City of Butler officials after the vote, Mayor Bob Dandoy said the authority board, city council and township commissioners left no stone unturned in deciding whether selling the authority is the right move.
“We hosted four open houses, and BASA made a website available where residents had the opportunity to learn more about this proposed acquisition, as well as express their thoughts and opinions on this matter — which were received,” Dandoy said. “We also sought outside counsel, spoke with other municipalities, researched extensively and ultimately scrutinized every aspect of Pennsylvania American Water’s offer to ensure that we were getting the best outcome for our residents.”
The statement said overall, feedback received by city council from residents, local business owners and other organizations living and operating businesses within the city limits has been positive and supportive.
The process to secure PUC approval can take from nine to 12 months, the statement said.
Pennsylvania American Water Co. issued a statement when the authority board approved the sale on Tuesday.
“We are pleased that BASA and other community leaders recognized the value we provide to our water customers and are entrusting us with the future ownership of their wastewater system,” said Mike Doran, company president. “This agreement was achieved through a collaborative process between all parties and tailored to meet the specific needs of residents, BASA employees and infrastructure of the wastewater system.”
Doran said in the statement that the company is well-positioned to step in and assume responsibility for the community’s wastewater needs, which add up to about $75 million in needed upgrades.
“We are confident that this proposal offers the best long-term solution for BASA, its customers, the City of Butler and Butler Township,” he said.
Doran reiterated that the sale contract offers employment to all authority employees, maintains existing operations at the sewer plant on Litman Road for a minimum of 10 years, assumes the authority’s capital improvement projects using qualified local contractors and includes a one-year rate freeze after the deal closes.
“Since the beginning of this process, our board prioritized the needs of our employees and customers,” Paul Sybert, authority board chairman, said in the statement. “Without BASA’s dedicated and hardworking employees, this facility would not run. They, and our customers, always remained at the forefront of our minds.”
The statement said the water company will work to see that the transaction closes by the end of 2023.
