City Council

Steelton Borough Council Agenda August 7, 2017 Call Meeting to Order: Vice President Brian Proctor Pledge of Allegiance: Vice President Brian Proctor Moment of Silence: Mayor Maria Marcinko Executive Sessions between meetings: Approval of minutes from previous meeting: July 17th, 2017 Public Comment of Agenda items only: Communication: Zelenkofske Axelrod 2016 Final Audit for Steelton Borough General Fund and Sewer Fund Mr. Mendinsky Chesapeake Bay Pollution reduction Plan and Public Review Dauphin County Conservation Department 2018 Gypsy Moth Suppression Program Presentation: Mr. Jay Wenger 2012 Bond Refunding and RFP for Loan to Purchase New Fire Engine/Rescue for Steelton Borough Unfinished Business: Mr. Wion Approval of Marketing and Royalty Agreement with Utility Service Partners Private Label, Inc. New Business: Ms. Kratzer Finance Committee Recommendation: Placing Police and Non-Uniform Pensions to RFP Ms. Kratzer Finance Committee Recommendation: RFP for Purchase of Fire Truck/Rescue Engine 1 Ms. Kratzer Finance Committee Recommendation: Refunding of 2012 Bond Series Mr. Brown Resolution 2017-R- Appointing Jacob Dohmen to Steelton Borough Zoning Hearing Board Public Comments: Council Concerns: Executive Session: To Discuss Personnel Issues Adjournment: 2  Steelton Council Meeting Minutes August 7, 2017 Present: Brian Proctor, Vice President Maria Marcinko, Mayor Michael Segina, President Pro-Tem Dave Wion, Solicitor Michael Albert Douglas Brown, Borough Manager Kelly Kratzer Anthony Minium, Police Chief Ryan Maxwell Eugene Vance, Fire Chief Amrinder Singh, Codes Officer Thommie Leggett-Robinson, Exec. Asst. Absent with cause: Jeffrey Wright Keontay Hodge Call Meeting to Order: Vice President Brian Proctor called the meeting to order at 6:30 p.m. Pledge of Allegiance: The Pledge of Allegiance was led by Vice President Proctor. Moment of Silence: Mayor Marcinko led the body in a moment of silence in respect of those who lost their lives in the service of their country and other loved ones. Executive Sessions between meetings: There was no Executive Meeting between meetings. Approval of minutes from the previous meeting: August 7, 2017 Ms. Kratzer moved and Mr. Albert seconded the motion that the minutes be approved with the following corrections: Mr. Wion noted that on page 7 fifth line in first large paragraph it should read “Mr. Wion added that it is not unusual”; Ms. Maxwell noted that the footer should be corrected to read “August 7, 2017”. The motion was passed with a unanimous vote of Council. Public Comments on Agenda Items Only: Vice President Proctor instructed the body that he would allow the appropriate Department Head to address the issue presented, then open the discussion to Council members. There were no public comments. Communication: Zelenkofske Axelrod submitted written reports of the 2016 Final Audit for Steelton Borough General Fund, Sewer Fund and the Steelton Authority. Mr. Mendinsky, engineer from HRG submitted the Chesapeake Bay Pollution reduction Plan and Public Review. Steelton Borough Council Meeting August 7, 2017 1 The Dauphin County Conservation Department submitted information regarding the 2018 Gypsy Moth Suppression Program. Presentation: Mr. Jay Wenger from Susquehanna Advisors, Inc. presented information regarding the 2012 Bond Refunding and RFP for Loan to Purchase New Fire Engine/Rescue for Steelton Borough. Mr. Wenger presented two financing proposals. The first one was regarding the proposed purchase of a new Fire Truck with an anticipated cost of $ 600,000. They are recommending that the funding source comes from a bank loan which will bring the total cost to approximately $630,000. The recommendation for use of a bank loan is in hope in the Borough’s ability to repay the loan with the use of anticipated grant funds. This would be preferable since there are no penalties for the early repayment of a bank loan. The second proposal is that there be a re- funding of the 2012 Bonds. Ordinarily the recommendation would be to add the new funding request to the bond issue, however there is a five year prohibition on early payoff of a bond. There are some duplicated costs because there are two separate financings occurring at the same time, however the option to prepay the loan and lower the total debt is the best option. The Fire Truck loan would be amortized over 20 years with first principle payment in 2019. This would present an interest only component in 2018 with interest added in 2019. However, delivery of the equipment would not occur until August 2018. This situation would allow about two years to try to secure grant funds which could pay off the loan. The original bond was $7,000,000.00. The proposal is to refinance approximately $6,675,000.00. The 2012 Bonds have been called and can be paid off with a 30 day notice. The outstanding rate is about 3 ½% however, anticipating lower rates, the refinancing would be saving about 1 1/2 %. The 2012 Bond Issue was done to accommodate Water Sewer and General Fund projects. The division, Which would be allocated to each fund, is approximately 40% water, 15% sewer and 45% General Funds. There is an anticipated savings of approximately $ 175,000 during the 2017 fiscal year. If the process is delayed beyond December 31, 2017, the savings would apply to the 2018 fiscal year. It takes about 20-30 days to get the rating from Standard & Poor’s which would mean that the search for the loan would be in early to mid-September with a closing toward the end of September or early October. If authorization to proceed is given at this meeting, and interest rise and savings decline, the information will be shared and Council has the opportunity to review the decision. The only cost to be carried by the Borough prior to the point that the bonds will be offered, is for 70% of Standard and Poor’s full fee which will be about $10,000.00. Since the company operates on a contingency schedule, no cost will be incurred for their work. The company did review this information with the Finance Committee prior to its presentation at this meeting. Ms. Kratzer, Chair of the Finance Committee had no additional comments. Mr. Wion had comments on how Council should proceed. He stated that there appeared to be three documents requiring action. He recommended beginning with the agreement with Susquehanna Advisors, Inc. Mr. Albert moved that the Council accept the agreement presented by Susquehanna Advisors, Inc. The motion was seconded Ms. Kratzer. Ms. Maxwell abstained. The motion was carried by a majority vote, noting that two Council Members were absent from the meeting. Mr. Wenger called upon Mr. Timothy Horstmann representing McNees Wallace and Nurick, LLC, Bond Council to present a summary of the Parameters Ordinance. Mr. Wion asked that he introduce the Resolution authorizing the Steelton Borough Council Meeting August 7, 2017 2  Request For Proposal (RFP) to begin advertising for persons to fund the purchase of the Fire Truck, agreement to accept the proposal for service by McNees Wallace & Nurick Bond Counsel and additional professionals to complete the task set forth. Mr. Segina moved that Council approve Resolution 2017-R-27 Authorizing the Financing of the Acquisition of a New Fire Truck for the Steelton Fire Department. The motion was seconded by Mr. Albert. Mr. Wion requested Council take a voice vote on the Resolution: Mr. Albert yea, Mr. Segina yea, Ms. Maxwell nay, Ms. Kratzer yea, Mr. Proctor yea, two Council persons absent. The motion carried by majority vote. Mr. Horstmann summarized the content of the proposed Ordinance as follows: the Ordinance presented authorizes up to $8,000,000.00 in General Obligation bonds which will be used to re-fund the outstanding 2012 Bond, authorizes all appropriate action be taken to ensure the issuance bond and the process that leads to closing of the loan, pledges the Borough’s full-faith credit end taxing power as security for the bonds, and authorizes the redemption of the 2012 Bonds. Mr. Wion noted that Council has had the opportunity to review a copy of the Ordinance prior to this meeting. He stated that this should be a roll call vote. Ms. Kratzer stated that the authorization of the Ordinance is a recommendation of the Finance Committee. Mr. Albert moved that Council recommend the authorization of Ordinance 2017-5. The motion was seconded by Ms. Kratzer. The roll was called by Secretary Brown with the instruction that the vote should be yes, no, abstain. The vote was held with the following outcome: Ms. Kratzer yes, Ms. Maxwell yes, Mr. Proctor yes, Mr. Segina yes Mr. Albert yes. Two Council members were absent. The motion was carried by a majority vote. Unfinished Business: In response to a presentation made to Council at the July 17, 2017 meeting, Mr. Wion requested Council approval of the Marketing and Royalty Agreement developed with Utility Service Partners Private Label, Inc. This agreement with the National League of Cities through Utility Service Partners Private Label, Inc. allows the company to inform residents about their program which will pay the cost of repair of property owner’s portion of the sewer and water lines located in the street. It also includes a secondary pre-paid plumbing program through which area plumbers, approved by the company, are available to conduct in-home repairs. The Borough receives compensation for its support of the marketing campaign which will be conducted three times per year. Mr. Albert moved and Ms. Maxwell seconded the motion that the Marketing Agreement between the Borough of Steelton and Utility Service Partners Private Label, Inc. be approved. The motion passed by a unanimous vote of Council. Two Council members were absent from the meeting. New Business: Ms. Kratzer presented a recommendation from the Finance Committee to send out an RFP for for Police and Non-Uniform Employees’ Pension Plans. The Committee would like ensure that the Borough gets the best rates for those handling the Pension Plan. Mr. Segina moved and Mr. Albert seconded the motion to solicit bids for Pension Plans for Police and Non-Uniformed Employees of the Borough. The motion passed by a unanimous vote of Council. There were two Council members absent from the meeting. Steelton Borough Council Meeting August 7, 2017 3 Mr. Brown requested approval of what will become Resolution 2017-R-28, appointing Jacob Dohmen to Steelton Borough Zoning Hearing Board. Mr. Brown stated that Mr. Dohmen was the only person who responded to the announcement that the Board position was open. Vice President Proctor requested that Mr. Dohmen address the Council. He stated that he was a native of Pennsylvania. Mr. Dohmen informed Council that he was an active volunteer in the other communities where he has lived and desired to become active in the Steelton community. Ms. Kratzer asked Mr. Dohmen when he moved to Steelton. He moved to the Borough July 8, 2017. Mr. Brown clarified that there is no residency requirement for a position on the Board. It was also noted that Mr. Dohmen had spoken with Mr. Proctor and Mr. Segina prior to the meeting. Mr. Segina moved and Ms. Kratzer seconded the motion the Resolution 2017-R-28 appointing Mr. Dohmen to the Steelton Borough Zoning Hearing Board be approved. The motion passed with a unanimous vote of Council members present at the meeting. There were two absent Council members. Mr. Brown requested the Council approve a resolution to support Nuclear Energy in the State of Pennsylvania. Ms. Kratzer moved and Mr. Albert seconded the motion that Resolution 2017-R--29 Supporting Nuclear Energy in Pennsylvania be approved. The motion was approved by a unanimous vote of present Council members. Two members of Council were absent. Public Comments: There were no public comments made during this meeting. Council Concerns: Ms. Kratzer stated that she was out of town over the weekend but heard that Steelton was busy during her absence. She noted the Croatian St. Lawrence Day Celebration and the Opening of the Skate Board Shop with events held on Locust Street. Ms. Kratzer expressed her pleasure at knowing that new things were happening and traditions were being restored in the community. Ms. Maxwell stated that she has been on the Council for three weeks and was pleased to serve. She mentioned that she has plans to visit the Skate Board Shop and is excited about all the new things coming to Steelton. Mr. Albert complemented the Mayor, Police and Fire Department and others involved with the UGI gas leak problem. He stated that it was a learning experience for all involved. Mr. Brown, Mr. Wion and Mr. Singh expressed no concerns. Mayor Marcinko expressed how great it was that the community was out and involved in activities this weekend. She noted that on July 27, 2017 the Borough hosted The National Negro Baseball Conference which was interested in the history of Herbert “Rap” Dixon as well as the Borough. They toured the Borough, stopped at his house and visited the gravesite in Midland Cemetery. She expressed thanks to the Police Department and Mr. Proctor for their participation in the event. The Mayor thanked persons involved in resolving the UGI gas leak situation. The also stated that it was a learning experience. She mentioned that the Humane Steelton Borough Council Meeting August 7, 2017 4 Society conducted an animal vaccination clinic on Locust Street during the celebration of the Skate Board Shop opening. She noted that several persons, who were unaware that the vaccination clinic was going on returned to the site to get their animals vaccinated. Mayor Marcinko stated that the St. Lawrence Lodge 13 sponsored St. Lawrence Day Celebration. The Lodge has been in the community since 1895. The procession to the church occurred for the first time since 2004. It was an enjoyable celebration and many persons from the community participated in the event. She thanked the Police Department for their participation in the event. She announced that on August 26, 2017 there will be an Opening Celebration at the new Herbal Essence shop on South Front Street at 11:00 a.m., followed by the noon LERTA luncheon which will be held at Borough Hall. September 16, 2017 there will be a Chicken Barbeque held by the Steelton Fire Department. The Mayor asked that the community turn out in support of this event. She alerted Council Members that they will be contacted by the new Emergency Management Coordinator (EMC) regarding upcoming training. She shared the fact that she is getting letters from persons in the community regarding their concerns and she will give the letters to the appropriate Department Heads for action and resolution. Mr. Segina announced that the Fire Department’s Chicken Barbeque has been rescheduled September 9, 2017. He thanked persons for attending the meeting. Chief Vance introduced the new Emergency Management Coordinator, Mr. Joshua Sherrid, to the body. He was welcomed with applause. Chief Minium thanked the volunteers that made the National Night Out a success. He was especially grateful for phenomenal assistance of Doug Brown and Mr. Singh for their assistance helping him get the area setup. He stated that it was a wonderful event and thought it was good to see the community engaged with each other. Mr. Proctor thanked persons for attending the meeting and encouraged them to continue their participation. He thanked the Fire Department, Police Department and the other employees of the Borough for their good work. Executive Session: The Council meeting recessed to enter Executive Session to discuss personnel matters at 7:02 p.m. Council meeting resumed at 7:35 p.m. Mr. Albert moved that Chief Anthony Minium receive an immediate salary increase to bring his salary to $90,000.00 per year. The motion was passed by voice vote: Mr. Albert – yea Mr. Segina – yea Ms. Kratzer – yea Ms. Maxwell – yea Mr. Proctor – yea. Two Council persons were absent. Ms. Kratzer moved and Mr. Segina seconded the motion that the Special Counsel, Mike Miller develop a side letter making the twelve hour shift a permanent part of the agreement with the Union. The motion was passed by a unanimous vote of Council. Two Council members were absent. Steelton Borough Council Meeting August 7, 2017 5 Ms. Kratzer moved and Ms. Maxwell seconded a motion that Officer Cory Allwein be moved to permanent status effective October 1, 2017. The motion was passed by a unanimous vote of Council. Two Council members were absent. Adjournment: At 7:36 p.m., Mr. Segina moved and Mr. Albert seconded the motion that the Steelton Borough Council Meeting be adjourned. The motion carried with a unanimous vote of Council. Respectfully Submitted, Douglas Brown, Secretary Steelton Borough Council Meeting August 7, 2017 6