Gregory C. Lebold, Council President, opened the scheduled Work Session Meeting at 7:30 PM, in the Council Meeting Room, 212 Unity Terrace, Rutledge, PA.
The following Council Members answered roll call: Gregory C. Lebold, Diane McGaughey, Brian Costello, Tom Kopp, Jack Borsch, Kurt Morrison, and David Waltz
Also present: G. Guy Smith, Solicitor, Mayor Scott Shields, Jerry Connelly, Morton-Rutledge Fire Co.
PEMA/FEMA – paperwork for February 2010 snowstorm expenses approved – $1,032.62 to be deposited to the Gas Fund.
County Aid for Roads – $1,485.00 per year for five years has been approved. Total of $7,425.00 to be used for road repairs in 2010, or three years will be forfeited – $4,455.00.
Gas Fund – After $1,032.62 is received for the snowstorm expenses, there will be a carryover of $10,000.00 that can be used for road repair in 2010.
Funds for emergency repairs come from the General Capital Reserve Account.
Loan for Road Repairs- $100,000.00
Option 1: 5.75% $1,102.00/Month $13,224.00/Year 5-Yr Call
$2,276.00 less than budgeted for road repairs in 2010 – $15,500.00
Option 2: 6% $1,114.73/Month $13,376.76/Year 7-Yr Call
$2,123.24 less than budgeted for road repair in 2010 – $15,500.00
Call means rerate -not a balloon payment – the bank looks at the interest rate in 5 or 7 years to see if the interest rate is in line with what is going on in the economy at that time. The payments might change, and there would be a nominal fee.
Rutledge has $17,425.00 that can be used for road repairs- dedicated funds that can only be used for roads.
The TD Bank representative did not provide information for a $54,000.00 loan. The information for $100,000.00 was provided late in the day, and the Secretary was not able to obtain the additional information for this meeting.
MOTION by David Waltz, Second by Jack Borsch, to approve road repairs for Unity Terrace between Rutledge and Sylvan Aves., and Waverly Terrace, between Rutledge and Sylvan Aves. MOTION approved unanimously.
Mr. Walz stated that the Borough should borrow $54,000.00, and does not think that Swarthmore Ave. should be repaired. Diane McGaughey stated that the Borough should take advantage of low interest rates and low contractor bids, and borrow $100,000.00. The Borough can carry the payments for a loan of this amount. In 2009, $15,500.00 was budgeted for road repairs- we could borrow $100,000.00 and not raise taxes.
Greg Lebold stated that something has to be done as far as road repair. The Borough has no other source of revenue but taxes to residents. Smaller annual tax increases are better that one big tax increase. Mr. Lebold recommends that the Borough borrow $100,000.00.
Mr. Waltz recommends that the Borough borrow $54,000.00 and get rid of the debt. Kurt Morrison agrees that $54,000.00 be borrowed to fix the worst two streets. Brian Costello recommended that $50,000.00 be borrowed, and the proceeds from the sale of the fire truck be used for road repairs, also. Or, borrow $100,000.00, and apply the proceeds from the sale of the fire truck to the loan principle.
Mayor Scott Shields stated that the new police contract will have to be factored in – the current contract expires in 2012. Police protection will cost $70,465.00 in 2011- an increase of $7,270.00.
The majority of Council wants to borrow $54,000.00.
Solicitor Guy Smith stated that there are some unknown quantities in the bank loan conditions, such as bank counsel fee, legal fees, and appraisal fees. There is a commitment fee of 1%, and a document fee of $250.00.
The secretary will get the loan information prior to the October 4, 2010 Council Meeting.
Jack Borsch reported that he contacted 4 companies for quotes to televise the Borough’s sewer lines:
American Sewer Services – under $10,000.00
Video Pipe Services- $14,253.00
General Sewer Services – no specified amount
Pipe Services of West Chester- .55/ft. – $7,839.00 – televise and flush.
The lines were flushed in 2009.
Solicitor Smith stated that written estimates are required for work over $4,000.00 and under $10,000.00, and the numbers are to be recorded in the minutes.
CDCA sewer rates will most likely go up because the 2011 bill will be based on 80% flows and 20% EDU count.
Mr. Borsch reported that the Tree Committee cancelled the fall craft fair because of lack of participation.
The Tree Committee will plant 10 more trees, and one in memory of Edward McGaughey. Before any more trees are planted, a soil sample needs to be analyzed. A suggestion was the Soil Conservation District at Rose Tree Park.
Tom Kopp stated that he will have a report on the status of the fire truck that is for sale for the October Council Meeting. The Horseshoe Tournament was a success. The Fire Co. will have a fundraiser by Nelson’s BBQ on September 30 at Pace real estate on Rt. 420 (next to The Coffee Station).
Kurt Morrison reported that he is working on signage for the Triangle Park.
David Waltz reported that he will work with Karl Eilinsfeld on Saturdays to install the new stop signs. The County has not responded to his request for community service workers. Mayor Shields stated that he would contact Walt Ohm to try to get some help from the community service crew.
Mr. Waltz stated that $5,500.00 should be budgeted in 2011 to replace street signs.
Mr. Waltz contacted Ridley Park Police regarding the heroin presentation. Council agreed that October 27, 2010 at 7:00 PM is the best date. The presentation will be one hour, and the speaker is one who appeared on Oprah. The fee will be paid using a grant that was received by the police. A flyer will be distributed to residents, and a message sent out on the listserve. The school principal of the Swarthmore-Wallingford School district will be contacted.
Brian Costello reported that Council needs to move forward on ordinance work, and he needs assistance from people with experience. He wants to begin with zoning issues, and have discussions at the Committee Meetings.
Diane McGaughey stated that issues came up at the Building Committee Meeting regarding shed and deck permits. Greg Lebold stated that, with State and UCC requirements, the Borough cannot require surveys or architectural plans for certain permits, only residential building construction permits. The Building Committee is to check the permit to make sure there are no land use issues. Mr. Costello stated that it seems there are practices in place that have evolved over time, but he cannot find them in the ordinances. Ms. McGaughey asked for a list of items required for various permits.
Ms. McGaughey asked Mr. Morrison to get estimates to remove the tree at the Triangle Park.
Ms. McGaughey asked Council for 2011 budget requests.
The PA Association of Boroughs September Shindig is on Tuesday, September 28, 2010 at the Heritage Ballroom.
Jean Lenke, Communications Committee, reported that the September 20 deadline has passed for the Borough Newsletter. Ms. Lenke stated that there will be one large newsletter until the end of the year – expected print date is October 15.
Since there was no further business, the meeting was adjourned at 8:58 PM.
Submitted by: Gennifer Guiliano, Secretary