City Council

Steelton Borough Joint Council and Authority Meeting October 19, 2006 The joint meeting was called to order at 6:00 p.m. by President Michael Kovach, with the pledge of allegiance, followed by a moment of silence. COUNCIL: In Attendance: Michael Kovach Absent: Jeffrey Wright Stephen Shaver Michael Albert MaryJo Szada Lisa Wiedeman-Krosnar Michael G. Musser, II Dennis Heefner Thomas Acri, Mayor Frank Leber, Solicitor Jennifer Brown-Sweeney, Administrative Assistant Kathleen D. Handley, Asst. Secretary-Treasurer AUTHORITY: In Attendance: Absent: Matthew O’Keefe Michael G. Musser, II Eileen Kovach Thomas Acri Raymond Spencer Frank Zulli, Solicitor Frank Leber, Bond Council Joseph Conjar, Superintendent of the Highway, Water Distribution, and Sewer Departments Daniel Schietrum, Superintendent of the Water Filtration System Jennifer Brown-Sweeney, Administrative Assistant Kathleen D. Handley, Asst. Secretary-Treasurer There was a quorum of both the Authority and Council present, as well as the Mayor. There were no members of the public present. PRESENTATION OF BOND ISSUE: Mr. Leber of Rhoads & Sinon stated that the joint meeting was properly advertised at the Borough Building and in the newspaper in compliance with the Sunshine Act. He then said that the Ordinances were separately advertised, posted at the Borough Building, and were distributed to all members along with their solicitors. Mr. Leber stated that the Borough Council and Authority are undertaking the approval of the Ordinance for the Bond Issue to: finance the improvements to the water system and to fund the excess portion of the storm water improvements for the Borough Council, in its own right, not covered by PennVEST funding. Mr. Leber stated that he has obtained approval from DCED, and that PennVEST has all of the necessary documents. He stated that the closing should occur on October 25, 2006, as scheduled. He stated that the Resolutions that need approval have been distributed to both Council and the Authority Board. - 1 -  Steelton Borough Joint Council and Authority Meeting October 19, 2006 Mr. Carlin of A.J. Edwards and Sons, inc. stated that Council has received a copy of the Bond Purchase Contract and went over the debt service schedules and sources and uses of funds. He stated that the Borough has entered into this with good timing, because the rates of today are at their ten year low. He stated that $4,295,000 will go to the Authority for Water System Improvements and $640,000 will go to the Borough for Storm Water Improvements, which is solely the bond funded portion not including the PennVEST component. He stated that Borough is receiving the highest triple A rating, which gives the Borough a better savings. Mr. Regal of Public Financial Management provided Council with detailed schedules and went over market conditions and the price of the bonds. Mr. Leber then went over the Resolution’s for the Authority and Council and clarified any questions. Mr. Leber then discussed the significance of the subsidy agreement which is the contract that allows water revenues to support the Borough’s Bond. AUTHORITY RESOLUTION 2006-R-3- Approving the Subsidy Agreement for the 2006 Bond Issuance. Mr. Leber stated that this agreement was needed to give both parties sufficient borrowing capacity to undertake the transaction. He stated that this agreement pertains to the $4,295,000 portion of the $4,935,000 Bond Issue. Mr. Leber then went over other portions of the Subsidy Agreement to clarify for Council and Authority Members. Mr. Leber stated that all parties have received copies of this document previously, for their inspection. Motioned by Mrs. Kovach, seconded by Mr. Spencer to approve Authority Resolution 2006-R-3 as presented. Motion approved unanimously. BOROUGH ORDINANCE 2006- 06 – Approving the Bond Purchase Proposal, Approving the Subsidy Agreement, Authorizing the Execution and Delivery of all related documents, and Approving the Preliminary Official Statement and Continuing Disclosure Agreement. Mr. Leber went over the Ordinance to clarify any questions. He stated that there is a five year call provision, which is very advantageous to the Borough. Mr. Leber stated that not all municipalities are sufficiently credit worthy to earn insurance that allows them to go into the market as AAA Bonds. He congratulated Council. Mr. Albert motioned, seconded by Mr. Heefner to approve Ordinance 2006-6 as presented. A role call vote was taken. Mr. Wright, yes, Mr. Albert, yes, Mrs. Wiedeman-Krosnar, yes, Mr. Kovach, yes, Mr. Heefner, yes. Motion approved unanimously. AUTHORITY RESOLUTION 2006-R-4 – Awarding contract to Rogele, Inc. for Water Repairs and authorizes an issuance of a Notice to Proceed at the Authority’s discretion. Mr. Leber stated that Solicitor Zulli and Engineer Navarro have already reviewed the Resolution. - 2 -  Steelton Borough Joint Council and Authority Meeting October 19, 2006 Mr. Acri motioned, seconded by Mrs. Kovach, to adopt Authority Resolution 2006-R-4, as presented. Motion approved unanimously. BOROUGH RESOLUTION 2006-R-46 – Awarding contract to Jerry Justice Excavating, Inc. for Storm Sewer Repairs in the amount of $1,412,950.00. Mr. Leber stated that Solicitor Wion and Engineer Ellinger have already reviewed the Resolution. Mr. Heefner motioned, seconded by Mrs. Wiedeman-Krosnar, to adopt Borough Resolution 2006-R- 46, as presented. A role call vote was taken. Mr. Wright, yes, Mr. Albert, yes, Mrs. Wiedeman-Krosnar, yes, Mr. Kovach, yes, Mr. Heefner, yes. Motion approved unanimously. Mr. Leber stated that the financing worked out between the Bond Issue and the PennVEST funding has saved approximately $250,000 in interest expense. He then stated that PennVEST was very helpful and intervened on the Borough’s behalf when dealing with unexpected occurances. Mr. Leber stated that he’d be leaving documents to be executed. He then stated that the PennVEST closing would not require a representative of the Borough to be present. Mr. Leber stated that the Bond Issue would be handled similarly, and that he would circulate those documents for execution at that time. Mr. Leber stated that it was a pleasure to represent the Borough. Mr. Kovach thanked all parties involved, especially Mr. Leber, for all of their work and effort. ADJOURNMENT: Authority: There being no other business before the Authority, on motion by Mr. Acri, seconded by Mr. Spencer, the Authority meeting adjourned at 6:50 PM. Council: There being no other business before Council, on a motion by Mr. Wright, seconded by Mr. Heefner, the Council meeting adjourned at 6:50 PM. Respectfully submitted, ____________________________________ ______________________________ Michael G. Musser, II Jennifer Brown-Sweeney Borough Secretary Administrative Assistant - 3 -