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NexTier, PNC to advise city on BASA proceeds

Butler City Council voted Thursday, Dec. 21, to put proceeds from the sale of the Butler Area Sewer Authority to Pennsylvania American Water into accounts with NexTier Bank and PNC.

An agreement made between BASA and the water company will net Butler and Butler Township $230 million for the sale, which they will split following the payment of debts and liabilities.

Butler Mayor Bob Dandoy said at Thursday’s city council meeting the money could be put in two accounts so it can be spread over a long period of time. He also said city administrators are unsure of how much money the city will actually get from the sale.

“We don’t know at this time what the final dispensation of funds would be once we get all the bills paid,” Dandoy said. “We did prefer the idea of housing the money in separate institutions with PNC handling the trust aspects of it … and NexTier handling the deposit account and the bond account.”

Dandoy said city administrators could change course with the banks if necessary. He also said the city plans to proceed with closing on the sale, even as Summit and Center townships are appealing the sale.

“We will use every tool we have to go through due process,” Dandoy said. “We’ve only just received the filing from the townships, and so now our team is reviewing them and seeing what we can do moving forward.”

Contract renewals

Council also approved several agreements and contracts at the Thursday meeting.

Council accepted a proposal from Bruce-Merrilees Electric Company for traffic signal repair services through 2025, and the cost per service request went up a few dollars, according to Councilman Fred Reese.

Council agreed to a fee increase requested by AndCo Consulting, which advises the city’s three pension plans. The cost went from $35,000 a year to $40,000, according to city clerk Mindy Gall.

“Those fees are still significantly less than what they were years ago when we had a different management of our funds,” said Butler Bureau of Fire chief Chris Switala.

The council voted to pay Vantine Heating & Cooling $824 for maintenance services to the Tier Garage for 2024.

Other announcements

Dandoy announced at the meeting that parking will be free in Butler from Friday, Dec. 22, until Monday, Jan. 1, at any street metered parking space. There are also two hours of free parking on Main Street. Enforcement will continue at the garages and parking lots. The city office will close at noon Dec. 22.

Council will reconvene at 11 a.m. Jan. 2 for the swearing-in of new councilman Troy Douthett, and returning councilman Dan Herr, which will be followed by the council’s reorganization meeting.

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