The Butler Area Sewer Authority, in Butler Township, is preparing to wind down its operations as its sale looms closer to approval. Butler Eagle file photo

BUTLER TWP — The Butler Area Sewer Authority is preparing to wind down its operations as the sale of its assets to Pennsylvania American Water Company looms closer to approval.

Duane McKee, executive director of BASA, said at a meeting of the sewer authority board Tuesday, Sept. 12, that the “winddown agreement” was written by a special counsel over several weeks, and outlines the responsibilities of each entity in the sale.

“We feel that we have kind of reached that point of completeness that we would ask this board to approve it,” McKee said, “then we’ll forward it on to the city and township for their votes.”

The water company and BASA recently amended a purchase agreement to adjust the purchase price to $230 million from the initial $231.5 million. As part of the settlement agreement, the water company can recoup only $228 million through customer rates. Butler and Butler Township will split the proceeds from the sale, following payments of debts and other costs.

The sale is still being evaluated by the Pennsylvania Public Utilities Commission for final approval.

The sewer authority board also approved payments for projects that may be completed before the sale is approved. The authority will pay just over $38,400 to PumpMan Pittsburgh through Commonwealth of Pennsylvania's cooperative purchasing program, to replace a pump station, which McKee said has been in place since the 1980s.

The board also voted to pay Advanced Rehabilitation Technology just over $78,600 to replace manhole lining in the Highfield area of Butler Township.

“There’s over 22 manholes we inspected, a lot of them brick, some of them precast, but in poor condition,” McKee said. “(Advanced Rehabilitation Technology) did a test manhole for us a year or so ago that’s still holding up pretty well.”

McKee said the project should be completed in November or December, which could be after the sale of BASA to the water company is approved.

“There’s clauses in each one of them that if it’s not, PA American will take over,” McKee said. “That’s a reality; supply lines are still slow.”