City Council

Steelton Borough Council Meeting October 4, 2010 The regular monthly meeting was called to order at 6:30pm. by President, Jeffery Wright, with the pledge of allegiance, followed by a moment of silence. In Attendance: Absent: Dennis Heefner Michael Albert Jeffery Wright MaryJo Szada Maria Marcinko Stephen Shaver Raymond Spencer Mayor Thomas Acri David A. Wion, Solicitor John M. DeSanto, Jr., Secretary/Treasurer Kathy I. Sosnowski, Administrative Assistant Chief Scott Spangler Michael Musser Paul Lundeen, Esq., Rhoads & Sinon Josh Haines, HRG APPROVAL OF MINUTES: None. PUBLIC COMMENT: Agenda Items Only None. COMMUNICATION: Chief Spangler – Presented correspondence from the Steelton Fire Dept., the Dept. of Justice and McCarthy Tire Service. City of Hbg, Dept. of Public Works – Possible sewage rate increase in 2011. Office of Sen. Jeffrey Piccola – invitation to attend a town meeting on blight and community revitalization – Thursday, 10/14 at 8am – Spring Garden Center, Middletown. Submit a written RSVP to Mr. DeSanto before October 8th. UNFINISHED BUSINESS: None. NEW BUSINESS: Chief Spangler – request to acknowledge several of our police officers recent training accomplishments and to have their certificates of completion added to their personnel files. -1-  Steelton Borough Council Meeting October 4, 2010 Motion to approve placement in files: Mr. Shaver Second: Ms. Marcinko Approved by All Present HRG – proposal for professional services agreement for $3,000 for the preparation of the Steelton Borough storm water management ordinance update per the Dauphin County Act 167 County-wide storm water management plan. Motion to approve: Mr. Shaver Second: Mr. Heefner Approved by All Present Paul Lundeen, Esq. – presented to Borough Council & Mayor, Ordinance No. 2010-5 determining to incur lease rental debt to be evidenced by a guaranty of a debt obligation to be authorized and issued by the Steelton Borough Authority to Penn Vest in a $3,944,190 maximum principal amount for acquisition and construction of upgrades and other improvements to the Authority’s water treatment and public water distribution system. The total project cost based on bids received is expected not to exceed $3,944,190, and the amount to be drawn and borrowed on the Penn Vest loan by the Authority will be only that amount which is actually needed for the project, which may be less than $3,944,190, if the contingency amount included in the maximum loan size is not needed. Mr. Lundeen asked that Ordinance No. 2010-5 be moved and voted upon for passage in the form presented to council at this meeting. Mr. Heefner questioned whether we are close to the top of our debt ceiling. If the loan will commence next month and payments to Penn Vest will begin, will water system revenues be adequate to offset the debt? Also, is the Borough co-signing for the Authority something new? Mr. Lundeen responded by saying that the Authority’s engineers, Navarro & Wright, will provide a report stating that the water system revenues, including revenues from any rate increase that may be necessary and approved by the Authority for implementation prior to completion of construction of the project, will be sufficient to pay the water system debt service, including the principal and interest on the new Penn Vest loan, and to pay water system operation and maintenance costs. Such report will be submitted to DCED as part of the Borough’s debt filing, and it is expected that DCED will approve the debt as “self-liquidating debt” and thus as no charge against the Borough’s remaining borrowing capacity. With regard to the guaranty, Penn Vest now requires in nearly all cases of loans to municipal authorities, such as Steelton Borough Authority, that the incorporating municipality, in this case the Borough of Steelton, guarantee repayment of the loan. This is not a reflection upon the Water System operations, the Borough, or the Authority; it is just Penn Vest’s standing loan policy. Motion to approve Ordinance No. 2010-5: Mr. Heefner Second: Mr. Spencer Approved by All Present -2-  Steelton Borough Council Meeting October 4, 2010 Roll Call Vote: Mr. Spencer-Yes; Mr. Wright-Yes; Mr. Shaver-Yes; Ms. Marcinko-Yes; Mr. Heefner-Yes. OTHER BUSINESS: Mr. DeSanto – Informing Council that an Executive Session is needed to discuss Personnel Matters, Pending Litigation and Land Acquisition Matters. AUDIENCE PARTICIPATION: None. COUNCIL’S CONCERNS: Mr. Heefner - None Mr. Wright – None Mr. Shaver – None Mr. Spencer – Asked Mr. DeSanto if Penn Vest is requesting budgetary information, and if we can meet their timeframes. Things are moving smoothly and closing should be about the 3rd week in November. Ms. Marcinko – Acknowledged receipt of the congratulations e-mail for Justin Hayman. Informed council of the recent trap/neuter/return clinic this past weekend; 61 cats were helped. Also, Ms. Dennise Hill was a tremendous help in applying for a Pets Smart Grant for $16,000. Ms. Marcinko then asked when the Felton Lofts closing would be. Mr. Musser indicated that WINN Development had an underwriting issue which will delay closing until December. Mayor Acri – The Steelton American Legion is requesting nominations for “Police Officer of the Year” and “Firefighter of the Year”. Someone from the Legion will be dropping off applications soon. Mr. Wion – None -3-  Steelton Borough Council Meeting October 4, 2010 Mr. DeSanto – Acknowledged the hard work done by the office staff individually and as a team: Ms. Kathy Sosnowski, Ms. Rose Paul, Ms. Michele Powell, and Ms. Nikki Salov. Also, Mr. DeSanto informed council of a request by Mr. Paul Wintergrass for an actuarial study of the non-union retirement pension plan. Mr. Shaver indicated that he doesn’t think we should entertain any increases in pension monies during budget time. Mr. Spencer questioned whether these studies are done every year. The mayor said one hasn’t been done in years. The information will be given to the Finance Committee. On motion by Ms. Marcinko, seconded by Mr. Shaver, the Council meeting recessed into executive session at 7:00pm to discuss personnel matters, land acquisition and potential litigation. The Council meeting reconvened at 7:30pm. ADJOURNMENT: There being no other business before Council, on a motion by Mr. Shaver, seconded by Mr. Heefner, the meeting adjourned at 7:30 pm. Respectfully submitted, _____________________________ _______________________________ John M. DeSanto, Jr. Kathy I. Sosnowski Borough Secretary/Treasurer Executive Administrative Assistant -4-