Greg 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: Diane McGaughey, Tom Kopp, Greg Lebold, Jack Borsch, Kurt Morrison, Brian Costello, and David Waltz
Not present: Mayor Scott Shields, G. Guy Smith, Solicitor
Also present: Bob Hunt, Highwayman, Christina Weible and Geoffrey Branden from TD Bank, Gerry Connelly, Morton Rutledge Fire Co.
The TD Bank representatives reviewed their proposal for loans for the Borough to pay off the Fire Co. mortgage and for road repairs:
$60,000.00 – pay off mortgage
1) 60 payments, followed by 1 final payment of all outstanding principal & accrued interest 6.25% fixed rate $673.68/month
2) Tax free – 60 payments 4.31% fixed $616.35/month
Fees: $600 commitment fee, $250 documentation fee, loan document review fee, up to $850
$150,000.00 – Road Repair Loan
1) 60 payments 6.25% fixed $1,684.20/month
2) Tax free – 60 payments 4.31% fixed $1,540.87/month
Fees: $600 commitment fee, $250 documentation fee, loan document review fee, up to $850
Ms. Weible explained that residential loan rates are lower; commercial loans are tied to a different index.
Jerry Connelly stated that the Morton Rutledge Fire Co. merger was approved by the State on March 1, 2010, and would like Council to approve the new company as Rutledge’s Fire Co. Mr. Connelly distributed a summary of the merger and steps that need to be taken by Rutledge Borough Council.
Pass a resolution recognizing the Morton-Rutledge Fire Co. as the Borough’s fire and emergency provider. Diane McGaughey stated that the Borough Solicitor must review the information, and an ordinance work needs to be completed. The current ordinance recognizes the Rutledge Fire Co.
Mortgage payments need to be made payable to Morton Rutledge Fire Co.
Pay Rutledge’s 2010 appropriation of $5,500.00 by May 1, 2010
Prepare to pay Rutledge’s portion of apparatus reserve fund of $12,500.00
Cancel Rutledge’s Workers’ Compensation Policy for fire company and contact Morton Borough to pay 25% of the Morton Rutledge Fire Co. Workers’ Comp. Insurance
Transfer title of GMC Jimmy to Morton Rutledge Fire Co.
Change name on the mortgage and the lease for the Borough garage
1982 Sutphen pumper owned by Rutledge Borough is no longer in use, and the Borough needs to sell it. The new fire co. can equip it to get a better sale price, and would get reimbursed for the cost of the equipment.
Morton Fire Co. had a 20+ year tradition of riding the Easter bunny through town and handing out candy. Rutledge Borough will be included on Saturday, March 27, if Council and the residents would like.
Diane McGaughey stated that she would like a contract, as Rutledge has with Swarthmore Police, that explains what kind of services will be provided, so it can be explained to the residents.
Mr. Connelly explained that the Fire Co. Executive Board’s attorney stated that resolutions would be better than contracts. Mr. Lebold stated that a resolution would be better for the Borough, and the purpose of a contract is to guarantee a financial payment.
The cost to equip the 1982 Sutphen to sell it will be $3,500-$5,000.00. The truck could possibly sell for $30,000-35,000.
Ms. McGaughey stated that the Borough has paid out $3,480.00 so far in 2010 for Fire Co. expenses.
Mr. Lebold stated that Council must consult with the Borough Solicitor before any decisions can be made.
Jerry Connelly stated that the next Fire Co. meeting will be on April 19.
Bob Hunt reported that the Borough truck has been inspected. The push lawnmower is not working. The salt spreader on the truck needs to be removed, and needs work before next winter. A salt spreader vibrator costs $400. There is a full palette of salt in the garage. Kurt Morrison volunteered to help Mr. Hunt remove the salt spreader.
Mr. Hunt has to resign as highwayman because his business is picking up and he can’t work 20 hours a week. He will cut the grass and help train a new highwayman.
Jean Lenke will be notified so a message can go out on the listserve.
Diane McGaughey asked Council Members to complete the environmental survey associated with the greenhouse gas study. The Environmental Action Committee is meeting in Rutledge on 3/25/10 at 7:30 PM.
Ms. McGaughey reported that the Borough’s 125 anniversary is June 7, 2010, and the Borough’s Committees met to discuss activities. Mr. Lebold stated the Borough’s 100 anniversary was in 1987, so the 125th should be in 2012. The Secretary will check the date with the PA Association of Boroughs- they have the 125th anniversary as June 2010.
Brian Costello stated that the Zoning Hearing Board will meet on Thursday to discuss the new member, and updating the Borough’s ordinances.
Mr. Morrison stated that he’d like to have a Triangle Park cleanup day before the Easter Egg Hunt, and proposed it be done Saturday, 03/27/10, 10 AM -12 PM. Jean Lenke to be contacted to get the word out.
Jack Borsch reported that there was a sewer overflow in his basement on Saturday, March 13. He contacted General Sewer Service. The Borough’s lines were inspected in 5 manholes. There were no blockages, just a lot of water in the lines because of the heavy rain.
The Borough’s whole system needs to be televised; it was last done in 2000.
David Waltz stated that the Rutledge Fire Co. would match the bank’s rate to refinance the $60,000 mortgage. Mr. Waltz will bring the issue up at the new Fire Co.’s meeting to see if they will agree to a 6% rate and no closing costs. Mr. Waltz stated that the Borough may be able to borrow more for road repairs from the bank if the Fire Co. keeps the mortgage. Mr. Morrison asked if council wants to borrow $150,000 for road repairs- perhaps borrowing less money would be an option. Road repair will be discussed at the next Work Session.
Since there was no further business, the meeting was adjourned at 9:30 PM.
Submitted by: Gennifer Guiliano, Secretary