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BASA slates bond meeting

BUTLER TWP — The Butler Area Sewer Authority board will meet with bond counsel and financial advisers on April 7 in connection with the authority's $30 million wastewater equalization tank project.

The board will meet with bond counsel firms Dinsmore & Shohl and Grogan Graffam, and financial advisers Janney, Montgomery & Scott, Concord Public Finance, and Phoenix Advisors, so the firms can make presentations to the board and have the board review their proposals.

The board members picked these firms at their March 9 meeting and approved the meeting date at Wednesday's regular meeting.

Mike English voted against the special meeting while Jerry Patterson, John Heim and Van Peterson voted in favor.

Tom Rockovich, BASA manager, said the board in February sent requests for proposals to six bond counsels and five financial advisory groups in preparation for the financing of the project, which includes installing seven holding tanks to allow for the timed release of wastewater into the sewage plant to avoid overflows.

"The board has not decided if it will have a bond issue, and will work with a financial adviser to look for other ways to finance the project," Rockovich said.

He also said requests for proposals were sent to firms recommended to the authority board members by members of municipal and other authority boards.

Bond counsels are lawyers who prepare the legal opinion for the issue of a bond, specifically a municipal bond.

Financial advisers can examine other forms of fundraising and bond issuance.

BASA received responses from all five financial firms, but only four of the six bond counsels sent back proposals. They are:

Bond counsels• Dinsmore & Shohl of Pittsburgh with a price proposal of $9,000 to $12,000• Grogan Graffam, Pittsburgh, $9,700• Houston Harbaugh, Pittsburgh, $19,500• Thorp, Reed & Armstrong, Pittsburgh, $18,000 to $25,000

Financial advisers• Concord Public Finance, Lancaster, $18,000 minimum, plus out-of-pocket expenses such as travel, meals, lodging, telephone, mail, etc.• Janney Montgomery & Scott, Pittsburgh, $12,500, no out-of-pocket expenses• Phoenix Advisors, Downingtown/Pittsburgh, $15,000, no out-of-pocket expenses• PNC Capital Markets, Pittsburgh, $56,250 to $75,000, includes underwriter's discount (an underwriter puts together bond issue)• Public Financial Management, Harrisburg/Pittsburgh. Hourly rates: managing director, $225 per hour; senior management consultant, $200 per hour; consultant, $150 per hour, plus out-of-pocket expenses.During the board's Wednesday meeting, English complained that a bond counsel he had brought to the authority's attention, Richards & Associates of Erie, failed to return a proposal to the authority.He said the reason the firm had not returned a proposal is that the RFP letter from BASA, dated Feb. 3, was postmarked Feb. 23, and wasn't delivered to the Richards firm until Feb. 26 — the day the proposals were due at BASA."Someone intentionally held that letter," English said."That's a strong accusation," Patterson said.English said his statement was not an accusation, but "the facts," and he recommended the board have Jack McMillan, Butler County controller, pick a bond counsel for BASA.If the letter was delayed, Patterson asked English, then who did it?English said he didn't know.Rockovich said someone from the Richards firm called him March 9 and said it was their fault they had missed the deadline for proposals and asked for additional time.Rockovich said he told the caller he didn't think more time would be allotted, and the board's choice of firms to meet with later that same day confirmed his thinking.He also said to English that, while "being as polite as I can be," that for himself and the BASA staff he found the accusation "insulting."When asked if he had seen the postmarked letter, English said he had not."Why would I squander my valuable time to go see a postmark?" he asked.

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