BASA: Opportunity and expertise cited
The third of a three-part package examining the potential sale of Butler Area Sewer Authority to Pennsylvania American Water Company.
Strongly in favor of the sale of the Butler Area Sewer Authority is engineer Joe Gray of Butler, who is owner of Arris Construction, the city engineer and owner of several rental properties served by the authority.
In his capacity as an engineer, Gray has had extensive interaction with both the authority and Pennsylvania American Water Company over the years.
“Of all the utility companies I’ve worked with, to get someone in a house, to get a business started, BASA is always the most difficult and costly,” Gray said.
He said dragging out the confidentiality agreement also has stymied him.
“I now have three projects mothballed because of BASA, waiting for (the decision on the sale) to happen,” Gray said.
He said one project a number of years ago was torpedoed altogether because of difficulties dealing with the authority.
“The guys in the field are very accommodating, but the management has made it difficult to pursue economic development in Butler County,” Gray said. “They are never friendly to businesses or project (managers) or even homeowners wanting to transfer their house to a new owner or build a house.”
He added that the water company is much easier to work with when he is pursuing a project as an engineer.
Gray said another major benefit of selling to the water company would be the low tap-in fees and in some cases, no tap-in fee at all.
“I am highly in favor of this sale. I think it will be an improvement for everyone,” Gray said. “The way the system is run and the service provided, I believe, will be better.”
He said the authority has eschewed rate increases over the years that would have paid for infrastructure upgrades to maintain the system and lines.
Now, Gray said, the state Department of Environmental Protection has mandated the system make expensive upgrades without providing any funds to make the repairs.
“Regardless of whether the system sells or not, the rates are going up,” he said.
Gray said a sewer plant must have good service and management, maintain facilities and equipment and treat customers properly to succeed.
“I believe the water company currently does that, and I don’t see the same thing with BASA over the years,” he said.
Brian White, superintendent at the Butler Area School District, said he has heard the claim that bills will double in 10 years if the water company buys the authority.
He said the district pays the authority $87,000 per year for sewer service.
“Anytime anything increases, it puts more pressure on our budget,” White said.
He said the district has seen a $12,000 increase in authority charges since 2010.
“One thing that does strike me is so many communities are going through (increases) because of mandated upgrades from the federal government,” White said. “As an entity that deals with a lot of unfunded mandates, it’s tough.”
Still, White said he is not sure BASA has the resources to perform the many upgrades that are needed throughout the sewer system.
“They might have to raise rates as much as any entity would (to complete upgrades),” White said.
Jeff Geibel, president of Butler Downtown and a Main Street business owner, agreed.
“From the information I’ve been able to gather, it seems that some necessary expenditures need to be made that BASA is behind on,” he said.
He said whether or not the authority is sold, sewer prices will need to increase to cover upgrades.
“It seems like Pennsylvania American is in a good position to make the investment,” Geibel said.
He said the water company also has wide expertise in the sewer business.
“I would like to see municipal government get out of the business and send it to folks who do this every day,” Geibel said.
He said proceeds from the sale could be used by the city and township on projects that would benefit residents.
Jordan Grady, president of the Butler County Chamber of Commerce, called the potential sale of the authority to the water company “a great opportunity for our community.”
“Not only has Pennsylvania American showed a commitment to make necessary upgrades for the betterment of its customers for 100-plus years, it has a long history of making charitable contributions to various organizations that provide vital services,” Grady said.
He said he trusts the commissioners in Butler Township and council members in Butler to properly invest the funds so that they make “profound impacts on the community as a whole.”
“The potential sale has the opportunity to be a true win-win for the area,” Grady said.
Elements one and two can be read: