Diane McGaughey, Council President, opened the scheduled Work Session Meeting at 7:30 PM, in the Council Meeting Room, 212 Unity Terrace, Rutledge, PA.
After the salute to the flag, the following Council Members answered roll call: Diane McGaughey, Tom Kopp, Jack Borsch, Kurt Morrison, Brian Costello, David Waltz, and Marlaina Kloepfer
Also present: G. Guy Smith, Esq., Christine Weible, TD Bank representative
Not present: Mayor Gregory C. Lebold
Christine Weible, TD Bank spoke to Council regarding the loan application for $110,000.00 for road repairs. TD Bank had previously issued term sheets for a $54,000.00 loan for road repairs. Because of the credit markets, the way the bank lends and the amount of information required for government lending have been impacted. An executive Credit Officer must approve the loan.
Certain steps must be followed. An application must be submitted to DCED- the Solicitor handles that. Steve Maguire, Counsel has expertise in this. Ms. Weible gave the DECD package to the Solicitor.
The rate last year was approximately 6%- it will be lower this year. A term sheet will be issued, and the loan will close in 45 days. Financing terms usually go out 10 years, with a rerate in 5 years. It is not a balloon payment. It is a rerate. The rate is looked at to see if it is in line with the rates in the market at that time. The rate could go up or down. The Borough can make prepayments from cash flow with no penalty, but not funds from another lending source.
The DCED application takes the longest, usually 45-60 days. There is a November deadline for asphalt.
Diane McGaughey spoke with the Borough Engineer, who said that the longer the Borough waits to do repairs, the more expensive it will be. Terms could change if the Borough waits to accept the loan. There are a lot of regulations required for approval that were not in place last year. Bids for the work would have to be out there for 30 days. Fees include $1,000.00 legal, $350.00 document fees, and application fee to DCED. There would be no lien on the building.
Diane McGaughey stated that curbing is currently $40.00 per linear foot, and sidewalk blocks 5’X5′ are $250.00. Without curbing, the road repairs should last 8-10 years, with curbing 16-20 years. For the 3 repairs suggested, curbing would add $90,320.00 to the cost of $112,400.00. Kurt Morrison suggested that council have a contingency plan to use the accumulated County Aid this year in case we cannot get the loan in 2011. Kurt Morrison stated that Council could have some of the cracks in the roads sealed to extend the time before repairs are absolutely necessary. Jack Borsch asked if bids could be advertised during the waiting period for the DCED application. Solicitor Smith will contact Steve Maguire at TD Bank to get information.
Diane McGaughey distributed trench backfill and restoration specs that the Engineer recommended that Council approve. It states requirements that utilities must adhere to when restoring Borough streets and property after having done work. MOTION by Jack Borsch, Second by Kurt Morrison, to approve the trench backfill and restoration specs submitted by the Borough Engineer. MOTION approved unanimously.
Finance-Diane McGaughey asked for numbers for the 2012 Budget.
Ordinance-Ms. McGaughey gave Mr. Costello sample noise ordinances and ordinances that deal with alternate energy sources.
Public Safety – Tom Kopp reported that the group home at 1 E. Sylvan Ave. had three false fire alarms in two weeks due to smoking on the 3rd floor.
Recreation- Kurt Morrison is soliciting bids to have the four cherry trees on Rutledge Ave. trimmed. He has received one from Tom Jansen- $975.00. Mr. Morrison has not received any more quotes on electricity at the Triangle Park.
Trash- Gennifer Guiliano will give Jack Borsch the bid information from 2009.
Sewer- Jack Borsch reported that he will have the Borough Sewer map updated by Catania Engineering to include the 3 manholes that are not on the current map. MOTION by Jack Borsch, Second by Kurt Morrison, to approve the expenditure of $300.00 to update the Borough’s Sewer Map. MOTION approved unanimously. Mr. Borsch has been going through the DVD of the sewer system, and will give the information to Catania Engineering to get approximate prices to have the worst areas repaired.
Communication – Marlaina Kloepfer reported that she will meet with Stacy Kutish next month to discuss 2012 budget needs.
Tree Commission – Jack Borsch reported that they have been trying to save the newly planted trees, but two have died, and the one across Sylvan Ave. died, also. They were not under warranty. There will be some plantings in the fall.
Solicitor- Solicitor Smith received information from DELCORA tonight regarding the County’s Act 537 Sewage Plan. It includes a new penalty grid that applies to all municipalities. DELCORA wants the municipalities to enact an ordinance to adopt DELCORA’s regulations mandated by the Environmental Protection Agency. Solicitor Smith will look into the matter and report at the next meeting.
David Waltz stated that he poke with Joe Hackett regarding funds for sewer work.
Public Safety- Tom Kopp stated that the Morton-Rutledge Fire Co. is starting the 2012 budget.
Jack Borsch stated that Morton Borough paid the Morton-Rutledge Fire Co. $29,000.00 for its 2010 share of the fire truck reserve. Rutledge Borough agreed to pay the same percentage as Morton Borough paid, which will be $9,666.75. Mr. Borsch stated that Rutledge Borough agreed to pay the funds from the Fire Apparatus reserve Account. The Secretary will review the 2009 meeting minutes to verify this.
A non-profit organization has been created for the purpose of providing stray animal control services to the municipalities in Delaware County beginning in 2012. The Board members were appointed by County Council. The cost to provide municipal stray animal control will not exceed $250.00 per animal. The County would like to know if Rutledge Borough will contract with the newly formed organization in 2012.
Solicitor Smith reported that he has not heard from the homeowner at 7 Rutledge Ave. regarding the various property maintenance issues. No improvements have been made. The immediate problem is debris. Solicitor Smith will send another letter giving the homeowner 30 days to make improvements. After that, a citation may be issued and a fine imposed.
Since there was no further business, the meeting was adjourned at 9:10 PM.
Submitted by: Gennifer Guiliano
Secretary