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Butler Township votes to wind down BASA

Agreement drafted in case sale approved

BUTLER TWP — Commissioners approved an agreement between the township, Butler and the Butler Area Sewer Authority, laying out the responsibilities of each if the sale of BASA’s assets to Pennsylvania American Water is approved.

Butler Township solicitor Rebecca Black said at a meeting of the commissioners Monday, Sept. 18, that the agreement is a draft until all three groups approve it. The Butler Area Sewer Authority board of directors approved the wind down agreement at a meeting Sept. 12, and Butler City Council will also review the agreement.

According to Black, the agreement is necessary so each party knows what they are responsible for if the Pennsylvania Public Utility Commission approves the sale, and what they are responsible for following the closing of the sale.

“There are portions of this agreement that handle rights and obligations of each party in the interim, so from now up into the point of dissolution,” Black said. “There are portions that deal with obligations of all the parties after dissolution … For example, there is outstanding billing and potential for right to know requests.”

Pennsylvania American Water 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 Utility Commission for final approval.

On Sept. 14, administrative law judge Marta Guhl issued a nonbinding recommendation that BASA not be sold to Pennsylvania American Water Company, after being assigned by the Public Utility Commission. The opinion took into account testimonies of BASA customers; claims made by Pennsylvania American Water, Butler and Butler Township; financial data of each entity; and projected outcomes of the acquisition.

Butler Township manager Tom Knights said Monday that if approved by Butler City Council, the language for the dissolution of the sewer authority will be in place whether its assets are sold or not.

“There are several legacy items that will have to be accounted for such as current retirees’ pension, post-retirement health care, a handful of other reporting items,” Knights said, “all of which take place as the sale occurs or the agreement is negated and the sale does not take place.”

Trick or treat times

The commissioners also announced the official trick or treat time for Butler Township, which will be from 6 to 7 p.m. on Oct. 31.

Commissioners chairman Dave Zarnick said questions about the trick or treat schedule account for many calls to the township office in the fall.

“On a several year basis, we have maintained trick or treat for Butler Township to be held on Halloween,” Knights said.

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