Municipalities agree to BASA settlement terms
The groups involved in the sale of Butler Area Sewer Authority to Pennsylvania American Water Company are each reviewing a settlement agreement — which comes with a confidentiality agreement effective until Aug. 14.
At BASA's meeting Tuesday, Aug. 8, the board approved both a settlement agreement as part of the Pennsylvania Public Utility Commission process and an amended asset purchase agreement.
While the agreements remain confidential as part of the sale negotiations between BASA and Pennsylvania American Water, they should become open to the public on Aug. 14, according to BASA Executive Director Duane McKee.
Butler, Butler Township, BASA, the water company, the PUC, the Pennsylvania Office of Consumer Advocate, the Pennsylvania Office of Small Business Advocate and the Pennsylvania Bureau of Investigation and Enforcement are involved in the settlement, according to Butler Township solicitor Rebecca Black.
The sale of the sewer authority’s assets to Pennsylvania American Water for $231.5 million is being reviewed by the PUC. If the sale is approved, the proceeds that remain following the payments of debts and other liabilities will be split evenly between Butler and Butler Township.
The city and Butler Township have supported the sale of BASA to Pennsylvania American Water, while Center and Summit township supervisors have previously passed resolutions opposing the sale.
Butler Township commissioners agreed to the terms at a special meeting Wednesday, Aug. 9.
“What the township is considering tonight is whether to authorize approval of that settlement agreement,“ Black said. ”That will be public information once the actual agreement is executed by the PUC, which is anticipated to be in the next week or so.“
The Center Township supervisors also unanimously agreed to the confidential agreement at a meeting Wednesday, which Summit Township supervisors accepted at a meeting Aug. 2.
Butler City Council will review the agreement at a meeting Thursday evening, Aug. 10.
Michael Gallagher, solicitor for Center and Summit townships, said the terms that each township’s supervisors agreed to include confidentiality agreements, and neither will contest the settlement.
“Center Township will not oppose or contest settlement of sale,” Gallagher said. “Summit Township passed this last week.”
The administrative law judge in the case issued an order Monday changing the deadline for the settlement and statements in support of the settlement to Aug. 14. The deadline had been Monday.
Administrative Law Judge Marta Guhl issued another order extending the deadline for written comments opposing the settlement from Aug. 14 to Aug. 21.
Eagle staff writer Irina Bucur contributed to this report.
