In a split vote Tuesday, Butler City Council turned down an offer to sell all of its parking assets to a private company for $10 million and an annual payment of 12 percent of gross parking revenues.

Council members voted 3-2 against the offer from PFS VIII to buy the city's three parking garages, seven lots and street meters.

The motion said the deal was contingent on negotiating a sales agreement that ensures the city's outstanding parking bonds can be paid off and the remaining cash from the sale would be deposited into a 20-year annuity. The city's parking bonds total $6.3 million.

PFS is a partnership that includes Mobile Smart City (Pango), a Florida company that provides pay-by-phone technology for parking and transit, and Duncan Solutions, a parking management company based in Wisconsin. Pango has parking installations in more than 100 cities, and Duncan Solutions has more than 2,000 clients, according to Councilman Jeff Smith.

The city received three offers for the parking system in September after advertising for requests for proposals, Smith said after the council meeting.

Two of the offers were from PFS and the third offer was only to manage the parking system for the city, he said.

During the meeting, Smith said the sale probably would have resulted in an increase in parking rates.

Even if the new owner didn't raise rates, the city still would receive more revenue from parking than it would if it owned the assets, he said. The sale also would eliminate the city's maintenance expense.

PFS' payments to the city would have increased by $1,000 to $1,500 for every dollar the company would raise the parking rates, he said.

“Revenue-wise it probably makes sense to do it,” Smith said.

He said it would take several months to negotiate the sales agreement, but the company would withdraw its offer if council voted against the motion.

“This decision should be a business decision,” Smith said.

He said maintenance of the parking assets has been largely ignored since the city's parking authority was dissolved four years ago, he added.

Councilman Fred Reese said the value of the Centre City parking garage alone is almost $10 million.

He said he wonders what would happen if the company decides to sell the parking assets in the future and there are no buyers.

“The $10 million just isn't worth it,” Reese said.

Councilman Kenny Bonus said council sets the parking rates now, but the company could double the cost of parking permits.

He said he would like a professional analysis of the city's parking system to help council decide what to do with it and said the motion to sell seems like it was rushed. He asked to delay voting on the motion.

“I do not believe we should just jump at the first offer we receive,” Bonus said.

Mayor Ben Smith said council has had plenty of time to consider the proposal, and no one called him to discuss any concerns about it.

Councilman Mike Walter also asked to delay the vote until Councilman-elect Bob Dandoy is seated next month.

Dandoy, who attended the meeting, asked council to delay voting on the proposal and all other major initiatives until after he is seated in January.

Walter, Bonus and Reese voted against the motion. Jeff Smith and Ben Smith voted in favor.

In unrelated business, council agreed to work with Butler County Community College's Community Initiatives Department to renovate Ritts Park.