HOME RULE BOROUGH OF EDINBORO
COUNCIL MEETING MINUTES
December 19, 2005
Call to Order:
The following Council members were present: Jean Davis, Robert Cogan, Mayor H. Robert Cannell, Clifford Allen, Christopher Gillette, Greg Lucas, and Mary Ann Horne. Also in attendance was T. Jemetz, Manager; Dave Zamierowski, Zoning Officer; and Marie Lander, Assistant to the Manager. Guests included Katie Wooliscroft, Jean Lanser, Dennis & Kathy Travis, Dick Ropp, Jeff Ropp, Michael Surt, Carol Wright, Heidi Crimmill, Jeff Baer, Fred Langill, S. Houghton, Bob Healy Times News; Linda & Brandy Bronson, John Cussen, Steve Unger, Wayne Bradford, Rich & Nancy Forcucci, J. Ponsoll, Scott Wolfe, the Zahorchaks, Jacobs, Carol Yankovich, Jon Rehalino, Ryan Smith Meadville Tribune, Tracy Halmi, Mike Jara, Bill Sellers, Nancy Crawford; and Jon Foulkrod, Washington Township.
Mayor H. Robert Cannell introduced the minutes from the regular Council meeting held December 5, 2005. Clifford Allen moved for approval of the minutes. Mary Ann Horne seconded, and the minutes were approved by a voice vote of 6-0-1 with Christopher Gillette abstaining since he was absent at the December 5th meeting.
Fred Langill, 132 Meadville Street. He presented Council with a letter which he read regarding a proposal to consider a Revenue Resource Committee and Tax & Audit Review Committee for 2006. He asked Council to consider these committees for 2006.
Mr. Dick Ropp, owner of 120 Chestnut Street. Real Estate taxes are going up 82% per news papers and you have made some changes but not enough since taxes are 300% more than other Western PA municipalities. Three years ago you got a 10% increase with the change in assessment and then occupational privilege changed to EMS tax from $10 to $52 with a $1,000 income exemption. He stated he was against any tax increase at this time. He suggested instead of tax reduce work force 25%, cut police 50%, get rid of canine unit, charge the library rent of $5,000,and stop spending on lost causes. He also recommended claiming distressed city and let the state come in and help.
Carol Wright, 202 Lakeland Drive. Ms. Wright works at the college and her hours have been cut and she has fees going up and heating bills, etc. going up and would not like to see more taxes.
Mr. Zahorchak, 601 Lakeside Drive He believed taxes needed to be raised yearly by ½ or 1 mill to cover increase costs of police and fire. Mr. Zahochak would rather see taxes increased for them than to have a swimming pool that we do not need. Representative Evans grant of $250,000 could it be used for tax deficit instead of buying the property for the pool? He felt they should scrap the pool and work on the budget that affects everyone.
Mayor Cannell stated that the Borough would not be in the pool business. Representative Evans has not received or heard about the grant to purchase the pool. There will be a separate entity that will run a pool, and that it will have the responsibility to fund the pool, not the Borough.
Dr. Dennis Travis, 201 Lakeside Drive. Dr. Travis reported he was elected to take office January of 2006. He asked to speak on the solution to the problem as he sees it. First he thanked the Council as volunteers and employees who have the Borough in their hearts. Last several weeks, Dr. Travis claimed, he had received several recommendations from people who he knew for 10-50 years. People were upset with 2% wage tax; people not buying homes in the Borough because of taxes; property tax increase; workers live outside the Borough; taxes pay for three policing entities (EUP, State, & Local). There is a need to cut personnel and run it like a business; and roads are decaying. Dr. Travis stated that Council should hold line on taxes and cut personnel and take the best possible services at best costs.
Being no further public participation Clifford Allen moved to bring forward New Business to Ordinance 530 and Mary Ann Horne seconded. The motion passed by 7-0 voice vote.
Mary Ann Horne moved and Robert Cogan seconded to adopt Ordinance 530 as follows:
HOME RULE BOROUGH OF EDINBORO
TAX LEVY ORDINANCE NO 530
AN ORDINANCE OF THE Home Rule Borough of Edinboro, County of Erie, Commonwealth of Pennsylvania, fixing the tax rate for the year 2006.
BE IT ORDAINED AND ENACTED, and it is hereby ordained and enacted by the Council of the Home Rule Borough of Edinboro that a tax be and the same is hereby levied on all real property within the Borough as follows: Tax rate for general purposes, the sum of 2.85 mills on each dollar of assessed valuation and 0.50 mills for special purpose – pensions on each dollar of assessed valuation for a total of 3.350 mills.
The same being summarized in tabular form as follows:
Mills on Each
Dollar of
Assessed
Valuation
Tax Rate for General Purposes 2.850 Mills
Tax Rate for Special Purpose-Pensions 0.500 Mills
TOTAL 3.350 Mills
That any ordinance, or part of ordinance, conflicting with this ordinance be and the same is hereby repealed insofar as the same affects this ordinance.
Adopted the 19th of December, A.D. 2005
Mary Ann Horne explained that this would cover fuel increases, increases insurance and personnel, many reductions, and an increase cost of $105 per $100,000 home.
Robert Cogan stated that our budget is complex. It contains over 300 line items. We have no control over some cost increases. Back in June 2004 the former Manager showed that we used to have as much as 10 officers on the books and gave us information on 6, 7, or 8 officers. Guidance from the Local Government Services Manual showed us the size of a police force “by the book” would be 8.75 for 7,000 residents and with diligent review we increased to 8 officers. Presently we have one officer on duty and 2 on duty only a portion of the time.
Clifford Allen stated he has been on Council for 12 years and it is never easy to raise taxes. He just wanted to explain where we are at, if we live in Washington Township or the Borough. Township property tax is .81mills or $81 per $100,000 home while Borough is 3.35mills or $445.00 per $100,000 home. Sewer in the township is $504 per year or $42.00 per month while the Borough rate is $48.33 per two months or $289.98 per year. Water in the Township is $15 plus $4.80 per 1,000 or $477.60 per year while the Borough water is $193.56 per year. At this point it is $244 cheaper to live in the Borough but then people say we have higher Wage Tax. If you take the average wage earner in Washington Township he or she earns $38,500, while the Borough it is $29,000, if they are not students or retired. Earned Income tax on $29,000 would be $290 more in the Borough when taken from the $244 savings above you would be paying $36 more in the Borough than in the Township. Borough residents have sidewalks, street lights, police, and cheaper insurance being closer to the EVFD. It is great to remodel and grow in the Borough because it is a safe place to live.
Mr. Robert Hellstrom, 203 Lakeland Drive. He asked about force of 6 officers. Mary Ann Horne stated Council never intended to have a force of 6 they started with 8 police officers and 1 retired in spring and one changed jobs in May and had six until June when we hired back to 8. Mr. Hellstrom asked if college police work in our town. They do not have jurisdiction to work in our town. Clifford Allen reported that EUP was asked for four (4) officers for homecoming traffic control and EUP only sent two (2) officers. State police take an average of 45 minutes to respond if prioritized to come or may not show up because they are sent someplace else.
Mr. Frank Langill stated the increase proposed is around $100 based on value of home. Can the Borough separate residents by permanent versus owner or rental addresses and by the value of homes and earnings from residents? We need to put some of the burden on those non residents who are taking away homes and using for rentals.
Jean Davis stated that Mr. Langill had hit the nail on the head. All Boroughs are in need of tax raises this year. The tax code allows for an amusement tax but the college refused to cooperate in collecting it. The EMS tax was supposed to help with getting funds from non residents that work in the municipalities but the legislators are changing the exemptions to those who earn less than $12,000 while ours is those who earned more than $1000. Also we have non taxable properties including the Goodell Gardens, churches, and the university. Someone made a statement that we got a 10% windfall when reassessment went in. Jean Davis replied that the Borough Council instead of taking this windfall gave a reduction that year in taxes which was a mistake. Act 47 distress community is what we are heading toward. Many residents live on fixed income, including herself. We do appreciate everyone coming out and giving their input. Tomorrow we will meet with Jane Earll to see if she can get us funds.
Clifford Allen reported that he works with the PLCM support group for municipalities and our Borough is the smallest on the list but they are fighting for things that we are looking at also. You should be aware that in the police budget offenses for ARD rehabilitation has no income to the Borough any longer. We are also looking at Ordinances used by Indiana Borough and McDonald, PA that are tested and true ordinances that charge for police time during investigations. PLCM has also hired PA Economy League to do an independent study of university municipalities which we are one of the 5 being studied. Hopefully they will come back and tell us that the state should give us something such as 77% of the taxes that would be paid if taxable. House Bill 1418 gave university authority to make police agreements but not one of the fourteen universities have set up an agreement to help their municipalities. We have asked for help and we can not count on them when we ask for 4 and get 2 officers and it is too late to go get two more from somewhere else. Mr. Allen went on to say that all seven (7) Council members and staff are looking at all options.
Jean Davis stated that when we hired two police officers we did not increase the taxes. If we remove two officers the problem will not go away. Management has offered two employees early retirement and as of this date one has stated they may take it. We may still need to distribute the workforce and will lay off public works and clerks if needed. We are obligated to pay nearly $127,000 more in 2006 in our minimum municipal obligation for pensions. Many municipalities are also having similar problems since the market went down.
Robert Cogan stated that we are meeting the service standard by policing set out by the Manual, and would not have to pay more overtime and get less income by laying off two officers. The long term problem is the MMO. Tomorrow morning we will meet with Jane Earll and let her know that the problems in Philadelphia and Erie are penetrating to smaller cities and Boroughs. With police cooperation, we still want to work on with the university. The university has 585 acres with 14 officers while we have 2.2 sq miles or 1400 acres and only 8 officers. We as well as Dr. Pogue do not want to put our officers under another person’s control.
Clifford Allen reported that if you review the crime reports that under Part 1 crimes these are the real serious ones, the university reported 76 and cleared 4 or 5.3% while the Borough reported 152 clearing 67 for a rate of 44.1%. Part 2 crimes are forgery, drugs, and domestic violence. The university cleared 6.3% and the Borough 82.1%. One patrolman costs approximately $48,489 and, if layed off, would cause revenues to decline by 1/8th $15,025as well as increase over time $5,000 and decrease state aid $5,200 which would save us only $22,000.
John Cussen, 101 Dunbarton Road. There seems to be a disparity between resident and non resident. Rental property maybe needs to be taxed and the earned income tax of 2% reduced. Clifford Allen stated the property assessed value is the same, if the property is rental or not, but ordinary income if one lives in the Borough we would receive earned income tax. But if landlords live outside the Borough we do not receive any income from their profits. They only pay a $35 registration fee to cover inspections. It is approximately 30% of landlords that live in the Borough. We are business and rental friendly.
Fred Langill asked about paying fee for snow plowing or not plowing snow on sidewalks. It is a nice place to live and we need positive resolve and move to share the responsibilities.
Dr. Dennis Travis stated that we have 7,000 students and fourteen EUP police we don’t need to overlap on those residents/students. We need a relationship with EUP. Non profits have cost increases and they pass them through their budget like profit institutions and Council should cut police car, etc. We are in a crisis and we need to shake cages and get EUP to help us. Please live within your means.
Carol Wright stated that new employees should be required to live in the Borough so they know the costs. Mr. Cogan stated they would have to ask the Solicitor if this was legal. In the past Council looked for the best qualified.
Motion to adopt ordinance 530 for tax millage of 3.35 for FY2006 passed by the following roll call vote: Robert Cogan, yes; Jean Davis, yes; Christopher Gillette, yes; Mary Ann Horne, yes; Gregory Lucas, yes; Clifford Allen, yes; and Mayor H. Robert Cannell, no. Ordinance passed by 6-1 roll call vote.
Clifford Allen moved to return to the old business of the agenda and Mary Ann Horne seconded the motion. The motion passed by 7-0 voice vote. The Mayor moved back to old business.
Committee Reports:
Finance Committee:
Mary Ann Horne reported that they met with Manager Jemetz and Ms Lander as a Committee of the Whole with two additional members present. They took no action and reviewed budget as well as reviewed bills and saw no problems with the bills.
Ordinance Review Committee:
Jean Davis reported that they did not meet. At there next meeting they will discuss the garbage ordinance 526 regarding change in the time to have articles out at curb and the McDonald Ordinance.
Jean Davis moved to accept the final reading of the Ordinance 528:
CHAPTER 15 Part 2 Section 219
AN ORDINANCE OF THE HOME RULE BOROUGH OF EDINBORO
AMENDING ORDINANCE # 524 ENTITLED
“ORDINANCE PROHIBITING EXCESSIVE NOISE OR DISPLAY BY MOTOR VEHICLES.”
NOW, THEREFORE, BE IT ORDAINED by Borough of Edinboro Borough Council assembled this day of 2005.
Section 219
(1) No person shall make excessive or unreasonable noise with a motor vehicle by squealing tires or by excessive or rapid acceleration of the vehicle on any public or private way within the Home Rule Borough of Edinboro. Prima facie evidence of excessive or unreasonable noise shall be an unreasonable squealing or screeching sound emitted by the tires or throwing of sand or gravel by the tires of said vehicle, or both. Prima facie evidence of excessive or rapid acceleration of the motor vehicle shall also be fishtailing, power turns, power slides and the like. This section shall not apply to farm machinery or vehicles participating in bona fide events.
(2) No Engine Braking in Designated Areas.
(a) No person shall use an engine braking system within the designated areas: ( 6N at Darrows Creek east to Angling Road west ) and (Raspberry Lane north to Darrow Road south ) within the Home Rule Borough of Edinboro, which is in any way activated or operated by the compression of the engine of any such motor vehicle or any such unit or part thereof, except in cases of emergency or necessary for the protection of persons and/or property. Such braking system is commonly referred to as compression braking or a “jake brake.”
(b) This section shall not apply to vehicles of any municipal fire department, whether or not responding to an emergency.
(2) It is unlawful for any person operating or occupying a motor vehicle on any street or highway to operate or amplify the sound produced by a radio or other mechanical sound making device from within the motor vehicle so that the sound is plainly audible at a distance of 25 feet or so that vibrations from the sound can be felt inside another vehicle or structure at a distance of 25 feet.
(3) It is unlawful for any person operating a motor vehicle to accelerate the engine of said vehicle at a rate of speed unnecessary for safety and to a point at which the sound from the acceleration is plainly audible at a distance of 25 feet.
AN ORDINANCE OF THE HOME RULE BOROUGH OF EDINBORO ENTITLED
“ORDINANCE PROHIBITING EXCESSIVE NOISE OR DISPLAY BY MOTOR VEHICLES
(5) The provisions of this law shall not apply to motor vehicles used for political activity
which in the normal course of activity use sound making devices. Nothing in this law is intended to prevent the Borough of Edinboro from exercising its police power by enacting reasonable time, place and manner restrictions upon such use.
(6) The provisions of this law shall not apply to any law enforcement or emergency motor vehicle equipped with any communication device necessary in the performace of law enforcement or emergency duties.
(6): PENALTIES
Any person violating any provision of this Ordinance shall, upon conviction thereof before a District Justice, be guilty of a summary offense and be subject to pay a fine not to exceed One Thousand Dollars ($1,000.00) and in default of such payment be subject to imprisonment for a period not to exceed ninety (90) days.
Mary Ann Horne seconded the motion and it passed by 7-0 roll call vote: Clifford Allen, yes; H. Robert Cannell, yes; Robert Cogan, yes; Jean Davis, yes; Christopher Gillette, yes; Mary Ann Horne, yes; and Gregory Lucas, yes.
WWCT loan for infrastructure improvements of $475,000 at 4.85% from PNC bank recommended by the Municipal Authority was before Council. Jean Davis moved and Mary Ann Horne seconded the adoption of Ordinance 532 and authorize signing of acceptance proposal from PNC bank.
ORDINANCE 532
HOME RULE BOROUGH OF EDINBORO
AN ORDINANCE APPROVING THE PLAN OF THE MUNICIPAL AUTHORITY OF THE BOROUGH OF EDINBORO FOR THE ISSUANCE OF $475,000.00 GUARANTEED REVENUE NOTE, SERIES OF 2006 AND SETTING FORTH THE AMOUNT, INTEREST RATE AND MATURITY DATE; AUTHORIZING THE AUTHORITY TO PROCEED WITH THE PLAN OF FINANCING; AUTHORIZING THE EXECUTION AND DELIVERY OF A GUARANTY AGREEMENT AND THE INCURRENCE OF DEBT THEREBY; AUTHORIZING THE SPECIFIED OFFICERS OF THE BOROUGH TO PREPARE, AND TO DO ALL OTHER ACTS NECESSARY TO CARRY OUT THE PROVISIONS OF THE ORDINANCE; SETTING FORTH THE PAYMENT OF THE GUARANTEED REVENUE NOTE AND THE SOURCE OF SUCH PAYMENTS OF THE AUTHORITY; REPEALING ALL INCONSISTENT ORDINANCES AND PROVIDING THAT THE ORDINANCE IS EFFECTIVE IMMEDIATELY.
WHEREAS, the Municipal Authority of the Borough of Edinboro (the "Authority") owns and leases a sewer system (the "System") in Home Rule Borough of Edinboro, Erie County, Pennsylvania (the "Borough"); and
WHEREAS, the Authority has determined to undertake the issuance of $475,000.00 Guaranteed Revenue Note, Series of 2006 (the "Note"); and
WHEREAS, the Authority has approved the issuance of the Note as set forth in a Resolution of the Authority dated December 12, 2005, (the "Resolution"); and
WHEREAS, the design and construction of improvements to the System including collection infrastructure improvements on Maple Drive, Normal Street and Meadville Street in the Home Rule Borough of Edinboro (the “Project”); and
WHEREAS, the Authority proposes to finance the Project through the issuance of a Note to PNC Bank, National Association (the "Bank") pursuant to the terms of the proposal letter dated December 9, 2005 (the "Proposal"), and in accordance with the provisions of the Resolution; and
WHEREAS, there has been presented to this meeting the form of the Guaranty Agreement whereby the Borough will guarantee the payment of the principal of and interest on the Note to be issued by the Authority (the "Guaranty Agreement"); and
WHEREAS, this Ordinance is for the purpose of approving the Guaranty Agreement and the incurrence of the debt thereby pursuant to the provisions of the Act of the General Assembly of Pennsylvania approved December 19, 1996, Act No. 177 formerly known as the Local Government Unit Debt Act (the "Debt Act").
NOW, THEREFORE, be it enacted and ordained by the Borough Council of the Home Rule Borough of Edinboro:
Section 1 - 53 Pa. C.S.A. §8103, the Project. The proposed plan of the Authority for the Project and financing thereof as set forth in the Resolution which was heretofore approved by the Authority and submitted to the Borough is hereby approved. The estimated cost of the Project is $475,000.00. The Project has an estimated remaining realistic useful life in excess of twenty-five (25) years.
Section 2 - 53 Pa. C.S.A. §8103, the Note. The plan of the Authority to finance the Project by the issuance of the Municipal Authority of the Borough of Edinboro $475,000.00 Guaranteed Revenue Note, Series of 2006 is hereby approved. The terms of the Note, including the amount, interest rate, maturity date, and provisions for payment as set forth in the Resolution and in the Proposal are approved.
Section 3 - 53 Pa. C.S.A. §8104, Guaranty Agreement. A copy of the Guaranty Agreement whereby the Borough will guarantee the payment of the principal of and interest on the Note, in accordance with the provisions thereof, is attached hereto. The Guaranty Agreement is hereby approved and the Borough Manager is authorized and directed to execute the Guaranty Agreement, and to do or cause to be done all acts and things necessary to effectuate the purpose of this Ordinance and all such designated officers and Borough Managerof the Borough are authorized and directed to prepare, certify and file the Debt Statement pursuant to the Debt Act.
Section 4 - 53 Pa. C.S.A. §8110, Debt Statement. The Borough Manager is hereby authorized and directed to take all necessary action to comply with the provisions-of-the -Debt-Act for both the incurring of debt and the exclusion of debt as self‑liquidating debt, including specifically the authority to prepare and file, as it shall become necessary or required, both originally and annually thereafter, such statements under the Debt Act as are necessary to qualify all or any portion of the debt herein authorized to be incurred as excluded from any debt limit, either as self-liquidating debt or as subsidized debt or both. The Borough Manager is directed and authorized to prepare, certify and file a debt statement required by Section 8110 of the Debt Act. Furthermore, the aforesaid Borough Manager is authorized and directed to do or cause to be done all acts and things necessary for the purpose of carrying out the provisions of this Ordinance and the Guaranty Agreement and to facilitate the Project.
Section 5 - 53 Pa. C.S.A. §8161, Private Sale by Negotiation. The Borough hereby determines that a private sale of the Note by negotiation to Bank is in the best financial interests of the Borough. The principal amount of the debt hereby guaranteed by the Borough is $475,000.00, together with interest at the rates and payments set forth in the Proposal.
Section 6 - 53 Pa. C.S.A. §8104, Covenant. The Borough does hereby guarantee the payment of the Note of the Authority, which obligation hereby created is a general obligation of the Borough. The Borough covenants with the Bank, that the Borough shall include the amount of the Debt Service and the amounts payable in respect of its guaranty for each fiscal year in which such sums are payable in its budget for that year, shall appropriate such amounts to the payment of such Debt Service, and shall duly and punctually pay or cause to be paid the principal of the Note, and the interest thereon at the dates and places and in the manner stated in the Note, according to the true intent and meaning thereof and for such budgeting, appropriation and payment, the Borough pledges its full faith, credit and taxing power. This covenant shall be specifically enforceable.
Section 7. In accordance with the provisions of the Debt Act, the debt to be incurred hereby is lease rental debt. The existing net non-electoral debt of the Borough as determined under the provisions of the Debt Act, including the debt to be incurred hereby, does not in the aggregate exceed the limitations of the Constitution or of the Debt Act.
Section 8. The payments by the Authority for the principal and interest on the Note are set forth in the Proposal. The Borough hereby guarantees the payment of the principal and interest on the Note and the source of any such payment would be the general revenues of the Borough to which the Borough pledges its full faith, credit and taxing power.
Section 9 - 53 Pa. C.S.A. §8106, Paying Agent and Sinking Fund Depositary.
PNC Bank, National Association, Erie, Pennsylvania, is hereby designated as Sinking Fund Depositary and Paying Agent for the Note (the “Paying Agent” and “Sinking Fund Depositary”) and the Borough Manager is authorized to contract with the Paying Agent and Sinking Fund Depositary. There is hereby created a Sinking Fund with the Sinking Fund Depositary to be known as Sinking Fund, $475,000 Guaranteed Revenue Note, Series of 2006. The Borough shall pay into the Sinking Fund all amounts required under the Guaranty Agreement, and the covenant contained in Section 8 hereof. The Sinking Fund shall be maintained until the Note is paid in full. The Authority shall pay into the Sinking Fund the amounts required for the payment of principal and interest on the Note.
Section 10. The Authority shall pledge its Revenues for the payment of the Note. Such pledge shall be perfected as a security interest in favor of Bank against all creditors and third parties from and after the filing of financing statements in accordance with the Uniform Commercial Code.
Section 11. The Borough covenants to the Bank that it will make no use of the proceeds of the Note at any time during the term thereof which, if such use had been reasonably expected on the date of issue of the Note, would have caused the Note to be "arbitrage bonds" within the meaning of Section 148 of the Code, as interpreted by the regulations applicable to the Note, as promulgated for such purpose by the United States Treasury Department.
The Borough agrees to take all actions necessary to preserve and maintain the tax exempt status of the Note and of the interest thereon, under all laws currently in effect and any that may become effective. The Borough covenants that it will not intentionally use any portion of the proceeds of the Note to acquire, or to replace funds used directly or indirectly to acquire investment property with a yield materially higher than the yield on the Note as prohibited by Section 148(a) of the Code.
The Borough further covenants that it will comply or require the Authority to comply, with the "rebate requirements" imposed by Section 148(f) of the Code, to the extent that such "rebate requirements" are applicable to the Note.
Section 12. The Borough Manager is hereby authorized to execute such further documents as may be necessary to carry out the provisions of this Ordinance.
Section 13. All Ordinances and parts of Ordinances inconsistent herewith are hereby repealed to the extent of such inconsistencies.
Section 14. If any section, subsection, sentence, clause, phrase or portion of this Ordinance or its application to any person or circumstances is for any reason held to be invalid or unconstitutional by any court, such holdings shall not be construed to affect the validity of any of the remaining provisions. It is hereby declared the legislative intent that this Ordinance would have been adopted had such invalid or unconstitutional provision of its application not been included herein.
Section 15. This Ordinance shall become effective immediately.
BE IT ENACTED this 19th day of December, 2005.
Ordinance 531 passed 7-0 by the following roll call vote: Gregory Lucas, yes; Mary Ann Horne, yes; Christopher Gillette, yes; Jean Davis, yes; Robert Cogan, yes; H. Robert Cannell, yes; and Clifford Allen, yes.
Robert Cogan moved and Jean Davis seconded to authorize Attorney Cohen additional time to complete negotiations, with COAX on the Franchise Agreement, up to an additional $3,000. Jean Davis reported that they were working on having free internet which would immediately recoop $1200 through the use of Attorney Cohen. The motion passed by 7-0 voice vote.
Manager:
Manager Jemetz report non uniformed negotiations were to go for ratification at the end of December with concession on salary raises of 1.75%, 1.5% and 1.5%, while Borough would pay 100% of health care. Manager Jemetz thanked Jean Davis, Ed Skisuski, John Alcorn, Maggi Stablein, and Ms. Lander for their time negotiating. The staff is making concessions which management will live by the same rates when ratified. Tom Schruers has shown that he will take early retirements if pension ordinance amendment is adopted and Butch Shafer will step up to double duty. Vicki Coffin has also been offered the early retirement package which would reduce the clerks from 4 to 3. We have not heard of her decision from Ms. Coffin yet. We discussed cutting public works personnel as well as police and clerks. COAX agreed to compare revenues we are getting to what we are entitled to under law and return the information to us. We are working on exploring other options regarding the Defined Benefit plan. We are looking outside the box. The Normal Street bridge walkway project has problems in the design and there will be additional costs to implement changes that QES Construction and Lake Engineering are working on. Within the next two weeks we will be reviewing several engineer’s proposals for CDBG projects and the Borough to be selected in January. We met the new refuse contractor to make a smooth switch for January 2006. Mr. Robert Cogan commented that Manager Jemetz and Jean Davis had done great work on the non uniformed negotiations.
Jean Davis moved acceptance of ordinance 529 as follows:
HOME RULE BOROUGH OF EDINBORO
ERIE COUNTY, PENNSYLVANIA
ORDINANCE NO. _529_____
AMENDMENT TO THE
BOROUGH OF EDINBORO NON-UNIFORMED EMPLOYEES PENSION PLAN
(as amended and restated, effective January 1, 1997)
AN ORDINANCE OF THE HOME RULE BOROUGH OF EDINBORO, ERIE COUNTY, PENNSYLVANIA, RELATIVE TO THE ESTABLISHMENT AND MAINTENANCE OF EMPLOYEES PENSION, ANNUITY, INSURANCE AND BENEFIT FUND OR FUNDS, TO AMEND CERTAIN PROVISIONS OF THE PENSION PLAN OR PROGRAM APPLICABLE TO THE NON-UNIFORMED EMPLOYEES OF SAID BOROUGH.
WHEREAS, the Home Rule Borough of Edinboro (the “Borough”) has previously enacted an Ordinance establishing the Borough of Edinboro Non-Uniformed Employees Pension Plan (the “Plan”); and
WHEREAS, the Plan was amended and restated, effective January 1, 1997; and
WHEREAS, the Borough reserved the right to amend the Plan pursuant to
section 11.01 of the Plan; and
WHEREAS, the Borough now desires the Plan to be further amended to provide enhanced benefits to current employees and to comply with certain changes in applicable law.
NOW, THEREFORE, BE IT ORDAINED AND ENACTED by the Borough Council of the Home Rule Borough of Edinboro, Erie County, Pennsylvania, and it is HEREBY ORDAINED AND ENACTED by authority of the same, as follows:
SECTION 1. Effective December 1, 2005, the Plan is hereby modified, amended and revised, and section 5.10 shall be added to the Plan as follows:
5.10 Early Retirement Window - A Participant over the age of fifty-five (55) who is a Clerical or Public Works Employee may retire and receive their Early Retirement Benefit pursuant to section 5.04(B), as well as a choice between two (2) additional benefits, provided that election to retire and such retirement shall occur between December 1, 2005 and February 28, 2006. Such Participant shall receive a monthly retirement benefit commencing on the first of the month coincident with or following termination of Employment in an amount equal to the Participant’s reduced Accrued Benefit, payable in the Basic Form or in any of the optional forms of payment provided for under the Plan that the Participant may elect.
In addition to their Early Retirement Benefit such a Participant who shall retire under this section 5.10 will also receive an additional benefit paid from the Plan in the amount of five hundred dollars ($500.00) payable monthly to the Participant for a maximum of twenty-four (24) months. If the Participant shall die before receiving the said twenty-four (24) monthly payments, those payments shall cease and no further payments shall be payable after the death of said Participant. Instead of receiving payment of such twenty-four (24) monthly payments, an eligible Participant may irrevocably elect to receive a one-time lump sum cash payment from the General Fund in an amount equal to Ten Thousand Dollars ($10,000.00).
This Early Retirement Window under this section 5.10 shall only be available to Participants who are eligible and who retire hereunder after December 1, 2005, and prior to February 28, 2006. Any Participant who does not retire hereunder prior to February 28, 2006, shall have forever waived any opportunity to do so and shall have their retirement benefits determined under the terms of the Plan without regard to this section 5.10.
SECTION 2. Effective December 1, 2005, the Plan is hereby modified, amended and revised, and sections 5.07 and 5.09 shall be deleted in their entirety and said sections are amended and replaced by substituting the following new sections 5.07 and 5.09 in their place as follows, to wit:
5.07 Maximum Benefit Limitations - Notwithstanding any provision of this Plan to the contrary, no benefit provided under this Plan attributable to contributions of the Employer shall exceed, as an annual amount, the amount specified in Code section 415(b)(1)(A) as adjusted pursuant to Code section 415(d), assuming the form of benefit shall be a straight life annuity (with no ancillary benefits). The limitations described in this section 5.07 shall be governed by the following conditions and definitions:
(a) benefits paid or payable in a form other than a straight life annuity (with no ancillary benefits) or where the Employee contributes to the Plan or makes rollover contributions shall be adjusted on an actuarially equivalent basis in accordance with applicable regulations to determine the limitation contained herein;
(b) in the case of a benefit which commences prior to the attainment of age sixty-two (62) by the Participant, the limitation herein shall be adjusted on an actuarially equivalent basis to the amount determined pursuant to this section commencing at age sixty-two (62); however, in the case of a qualified Participant (a Participant with respect to whom a period of at least fifteen (15) years of service, including applicable military service, as a full-time employee of a police or fire department is taken into account in determining the amount of benefit), the limitation contained herein shall not apply;
(c) in the case of a benefit which commences after attainment of age sixty-five (65) by the Participant, the limitation herein shall be adjusted on an actuarially equivalent basis in accordance with applicable regulations to the amount determined commencing at age sixty-five (65);
(d) benefits paid to a Participant which total less than Ten Thousand Dollars ($10,000.00) from all defined benefit plans maintained by the Employer expressed as an annual benefit shall be deemed not to exceed the limitation of this section provided that the Employer has not at any time maintained a defined contribution plan in which the Participant has participated; however, in the case of a Participant who is not receiving a Disability Retirement Benefit pursuant to section 5.05 or a Survivor Benefit pursuant to section 7.01, with fewer than ten (10) years of participation the limitation expressed in this subsection (d) shall be reduced by one-tenth (1/10) for each year of participation less than ten (10) but in no event shall this limitation be less than One Thousand Dollars ($1,000.00);
(e) the limitations expressed herein shall be based upon Plan Years for calculation purposes, shall be applied to all defined benefit plans maintained by the Employer as one (1) defined benefit plan and to all defined contribution plans maintained by the Employer as one (1) defined contribution plan, and shall be applied and interpreted consistent with Code section 415 and regulations thereunder as applicable to government plans in general and this Plan in particular; and
(f) in the case of a Survivor Benefit under section 7.01 or a Disability Retirement Benefit under section 5.05, the adjustment under subsection (b) hereof shall not apply and the applicable limitation shall be the limitation contained herein without regard to the age of the benefit recipient.
5.09 Assignment - The pension benefit payments prescribed herein shall not be subject to the attachment, execution, levy, garnishment or other legal process and shall be payable only to the Participant or designated Beneficiary and shall not be subject to assignment or transfer unless the subject of a qualified domestic relations order, mandated by a court of competent jurisdiction, that clearly provides for proper distribution of a portion of the pension benefit payments to an alternate payee (former spouse of the Participant) and does not require any benefit to be paid in excess of the available earned and accrued under the Plan.
SECTION 3. Effective January 1, 2006, the Plan is hereby modified, amended and revise, and sections 5.11, 8.04 and 9.01 shall be deleted in their entirety and said sections are amended and replaced by substituting the following new sections 5.11, 8.04 and 9.01 in their place as follows, to wit:
5.11 Small Amounts - If the Plan Administrator determines that the value of a Participant’s Accrued Benefit is so small as to make monthly pension payments administratively impractical, the Plan Administrator may cause such payments to be made at such other periodic intervals as are administratively practical, but no less frequently than annually. If the Participant’s Accrued Benefit is One Thousand Dollars ($1,000.00) or less, the Plan Administrator shall make a single lump sum payment equal to the commuted value of such Accrued Benefit to the extent permitted under applicable law in fulfillment of all benefit payment obligations under the Plan. If the Participant’s Accrued Benefit is over One Thousand Dollars ($1,000.00), the Plan Administrator shall distribute the payment pursuant to section 8.04(b).
8.04 Direct Rollovers
(a) Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee’s election under this section, a distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an eligible rollover distribution that is equal to at least Five Hundred Dollars ($500.00) paid directly to an eligible retirement plan specified by the distributee in a direct rollover.
(b) This section 8.04(b) shall apply to distributions made on or after January 1, 2006. Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee’s election under this section, if a distribution in excess of One Thousand Dollars ($1,000.00) is made and the distributee does not make an election under section 8.04(a) and does not elect to receive the distribution directly, the Plan Administrator shall make such transfer to an individual retirement plan of a designated trustee or issuer pursuant to section 9.01. The Plan Administrator shall notify the distributee in writing, within a reasonable period of time and as otherwise prescribed by law, that the distribution may be transferred to another individual retirement plan.
(c) For purposes of this section, the following definitions shall apply:
(1) “Eligible Rollover Distribution” is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee’s designated beneficiary, or for a specified period of ten (10) years or more; any distribution to the extent such distribution is required under Code section 401(a)(9); and the portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities).
For purposes of the direct rollover provisions in this section of the Plan, a portion of the distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions that are not includible in gross income. However, such portion may only be paid to an individual retirement account or annuity described in section 408(a) or (b) of the Code, or to a qualified defined contribution plan described in section 401(a) or 403(a) of the Code that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is includible in gross income and the portion which is not includible.
(2) “Eligible Retirement Plan” is a qualified trust described in Code section 401(a), an individual retirement account described in Code section 408(a), an individual retirement annuity described in Code section 408(b), an annuity plan described in Code section 403(a), an annuity contract described in Code section 403(b), an eligible deferred compensation plan described in Code section 457(b), which is maintained by a state, political subdivision of a state, and any agency or instrumentality of a state or a political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this plan.
(3) “Distributee” includes an Employee or former Employee. In addition, the Employee’s or former Employee’s surviving spouse and the Employee’s or former Employee’s spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Code section 414(p), are distributees with regard to the interest of the spouse or former spouse.
(4) “Direct Rollover” is a payment by the Plan to the eligible retirement plan specified by the distributee or the Plan Administrator, if the distributee does not make an election.
9.01 Plan Operated Under Supervision of the Borough Council - The operation of the Plan shall be supervised by the Borough Council. The Borough Council shall have the power and authority, by a majority of its members, either directly or through a designated Plan Administrator, to do all acts and to execute, acknowledge and deliver all instruments necessary to implement and affect the purpose of this Plan.
The Plan Administrator shall keep such records as may be necessary for the determination of the status of each Participant and the presumptive share of each Participant in the Fund as determined by the Actuary. The Plan Administrator shall also select an individual retirement plan provider (either the state or a federally regulated financial institution) and invest funds in connection with the rollover of mandatory distributions as described in section 8.04(b).
The Borough Council shall have authority and shall be charged with the performance of the duties set forth in this Plan, but shall have the authority by general rule or special decision to determine and make provisions for such items necessary for the proper carrying out and enforcement thereof that are not specifically provided by the Plan at all times, however, subject to change by proper ordinance or resolution.
SECTION 4. Except as specifically modified by this Ordinance, the remainder of the terms and provisions of the Plan are hereby ratified by the Borough Council, and shall continue and remain unchanged and in full force and legal effect without change.
SECTION 5. Any ordinances, rules or resolutions, or parts of ordinances, rules or resolutions, in conflict herewith shall be, and the same are hereby, repealed.
SECTION 6. The provisions of this Ordinance are severable. If any sentence, clause, section, or part of this ordinance is for any reason found to be unconstitutional, illegal, or invalid, such unconstitutionality, illegality, or invalidity shall not affect or impair any of the remaining provisions, sentences, clauses, sections or parts of this Ordinance. It is hereby declared as the intent of the Borough Council that this Ordinance would have been adopted had such unconstitutional, illegal or invalid sentence, clause, section or part thereof not been included herein.
SECTION 7. This Ordinance shall take effect immediately upon adoption and enactment thereof.
ORDAINED AND ENACTED this _______ day of ___________________, A.D., 2005.
Mary Ann Horne seconded the motion and the ordinance passed by 7-0 roll call vote: H. Robert Cannell, yes; Robert Cogan, yes; Jean Davis, yes; Christopher Gillette, yes; Gregory Lucas, yes; Mary Ann Horne, yes; and Clifford Allen, yes.
Mayor Cannell introduced the bills for payment. Mary Ann Horne moved for approval of the submitted bills totaling $293,205.57. This amount includes the repayment of the Tax Anticipation Note for FY2005. Jean Davis seconded and the motion passed by 7-0 voice vote.
Mary Ann Horne moved, and Jean Davis seconded to approve the payroll ending December 3, 2005 paid December 9, 2005 totaling $55,692.00 and payroll of December 23, 2005. Motion was approved by 7-0 voice vote.
Police Reports:
Report was available for review.
Code Enforcement/Planning/Zoning:
Reports were available for review.
Public Works:
Monthly report was available for review. Tom Schruers, Public Works Director was asked if this was an average December snowfall. Mr. Schruers stated they were six (6) feet officials ahead this year.
Community Development/Project Coordination:
Monthly report was available for Council’s review.
Community Liaisons:
Washington Township Liaison:
Mayor Cannell reported he attended the meeting which lasted 2 hours and spend an hour on the pool committee. The Township was discussing a referendum regarding a peer to peer study.
Other Old Business:
Vacancy for alternate on Zoning Hearing Board has had no application to date.
Joint Municipal Plan was before Council for consideration. Jean Davis moved adoption of Resolution 18-2005 as follows:
Home Rule Borough of Edinboro
Erie County, Pennsylvania
Resolution #18-2005
A RESOLUTION OF THE BOROUGH OF EDINBORO, ERIE COUNTY, PENNSYLVANIA ADOPTING A MULTI-MUNICIPAL COMPREHENSIVE PLAN
WHEREAS, the Pennsylvania Municipalities Planning Code empowers municipalities in the Commonwealth to prepare a comprehensive plan; and
WHEREAS, it further empowers municipalities to prepare and adopt a multi-municipal comprehensive plan; and
WHEREAS, the Home Rule Borough of Edinboro and the Townships of Franklin and Washington have jointly prepared a comprehensive plan; and
WHEREAS, this comprehensive plan contains all necessary elements to meet the requirements of a Multi- Municipal Comprehensive Plan under the Pennsylvania Municipalities Planning Code; and
WHEREAS, this Plan offers a prioritization of projects, guidance for policies, and explanatory text for such important issues as land use, housing, community facilities, transportation, and economic developments; and
WHEREAS, a public input process has been integral to both the preparation of the Plan and its consideration for adoption; and
WHEREAS, the Pennsylvania Municipalities Planning Code requires that the adoption of a comprehensive plan is to be by a resolution, and passed by a majority vote of the governing body.
NOW, THEREFORE, be is resolved and enacted by the Council for the Borough of Edinboro, in meeting assembled, and it is hereby resolved and enacted by the and with the authority of the same as follows:
1. The Edinboro/Franklin/Washington Multi-Municipal Comprehensive Plan is hereby adopted.
2. The members of the Joint Planning Commission are to be commended for their many hours of work preparing the Comprehensive Plan.
3. The County of Erie is commended for its participation in this effort.
BE IT RESOLVED AND ENACTED THIS 19th DAY OF December 2005.
Mary Ann Horne seconded the motion and the resolution passed 7-0 by the following roll call vote: Gregory Lucas, yes; Clifford Allen, yes; H. Robert Cannell, yes; Robert Cogan, yes; Jean Davis, yes; Christopher Gillette, yes; and Mary Ann Horne, yes.
Discussion on the pool peer to peer study took place. Manager Jemetz reported that Manager Dave Anthony of Washington Township stated the position of the Township was to encourage a group to seek referendum for both communities. Clifford Allen stated the governments could put it on as a referendum. Jon Foulkrod stated he was not sure what the question was because it needed to be binding to be a question. Manager Jemetz stated with the restraints on the budget we can not afford a pool in our budget. Unless Council is serious to do more the surveys show the public 4-0% was in favor only with joint authority and 17% for with no joint authority. Manager Jemetz recommended not going through peer to peer study if they were not interested in supporting the pool. Jon Foulkrod stated their motion passed with Joint Recreation Authority and pool as secondary. Robert Cogan asked for a copy of Washington Township motion. Jean Davis moved to table the request by Washington Township for a Peer-to-Peer Study to a latter time and Clifford Allen seconded the motion. The motion passed by 7-0 voice vote.
Communications:
House of Edinboro had sent a letter. With no other communications, Mayor Cannell moved on to new business.
New Business:
Mary Ann Horne introduced Resolution 17-2005 to adopt FY2006 budget as follows:
Home Rule Borough of Edinboro
RESOLUTION NO 17-2005
A RESOLUTION OF THE Home Rule Borough of Edinboro in the County of Erie, Commonwealth of Pennsylvania, appropriating sums estimated to be required for the purposes of the municipal government, hereinafter set forth, during the year 2006.
BE IT RESOLVED AND ENACTED, and it is hereby resolved by the Council of the Home Rule Borough of Edinboro, County of Erie, Commonwealth of Pennsylvania:
SECTION 1. That for the expenditures and expenses of the fiscal year 2006 the following amounts are hereby appropriated from income for the year 2006 for the purposes set forth on the following pages.
SECTION 2. That any Resolution conflicting with this Resolution be and the same is hereby repealed insofar as the same affects this Resolution.
Total Revenues 6,182,184
Total Expenditures 6,446,435
BE IT RESOLVED AND ENACTED THIS 19th DAY OF DECEMBER, 2005
Jean Davis seconded the motion and the budget passed by 7-0 roll call vote: Jean Davis, yes; Christopher Gillette, yes; Mary Ann Horne, yes; Gregory Lucas, yes; Clifford Allen, yes; H. Robert Cannell, yes; and Robert Cogan, yes.
Mary Ann Horne motioned to adopt resolution 19-2005 regarding Tax Anticipation Note for FY2006 as follows:
HOME RULE BOROUGH OF EDINBORO
(Erie County, Pennsylvania)
NOTE RESOLUTION 19-2005
AUTHORIZING THE ISSUANCE OF A TAX AND REVENUE ANTICIPATION NOTE, SERIES 2006 WITH THE TERMS SET FORTH IN THE FOREGOING AND ATTACHED CERTIFICATE AND TRANSMITTAL; APPROVING A FORM OF NOTE; AUTHORIZING DESIGNATED OFFICERS TO EXECUTE AND DELIVER THE NOTE; AUTHORIZING AND DIRECTING THE FILING OF PROCEEDINGS WITH THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT; PROVIDING FOR THE PAYMENT AND SECURITY OF THE NOTE; MAKING CERTAIN FEDERAL INCOME TAX COVENANTS IN RESPECT OF THE NOTE; ACCEPTING THE PROPOSAL OF PNC BANK, NATIONAL ASSOCIATION FOR THE PURCHASE OF THE NOTE; AND REPEALING INCONSISTENT RESOLUTIONS.
WHEREAS, the above-named Municipality, duly organized and subsisting as a political subdivision of the Commonwealth of Pennsylvania (the "Local Government Unit") anticipates the receipt of both current taxes and current revenues during the fiscal year ending December 31, 2006; and
WHEREAS, the Local Government Unit desires to borrow for the purpose of meeting current expenses by issuing a note, to be repaid from, inter alia, those taxes and revenues, all in accordance with the Local Government Unit Debt Act (the "Debt Act"), as codified by the Act of December 19, 1996, P.L. 1158, No. 177, as amended; and
WHEREAS, as required by Section 8126 of the Debt Act, the Chief Legislative Officer (being the Mayor) and/or the Chief Administrative Officer (being the Manager), or their duly elected and acting successors on the Governing Body (being, as appropriate, the Board of Commissioners, the Council or the Board of Supervisors), with properly delegated authority (the "Designated Officers") of the Local Government Unit have, not more than thirty (30) days before the date on which this Note Resolution is being adopted and furthermore hereby confirm on this date, made an estimate, from taxes now levied and assessed and from other budgeted revenues, of the taxes and revenues to be received and the expenditures to be made during the period when such note or notes will be outstanding and have certified that estimate by a duly executed document (the "Certificate as to Collections and Expenditures"); and
WHEREAS, PNC Bank, National Association (acting either as principal for its own account, or as agent for the investment account of an unnamed principal, as it may choose) (the "Purchaser"), has submitted an acceptable proposal (the "Proposal") for the purchase of the Local Government Unit's Note;
NOW, THEREFORE, BE IT RESOLVED by the Governing Body as follows:
Section 1 -- Authorization. The Local Government Unit hereby authorizes the issuance of a tax and revenue anticipation note in the principal amount and with the specific Terms (the "Note") stated in the foregoing and attached Certificate and Transmittal to the Department of Community and Economic Development.
Section 2 -- Form. The Note shall be designated "Tax and Revenue Anticipation Note, Series 2006." The Note shall be in the form of a single instrument, in a denomination equal to the principal amount of the series. The Note shall bear interest at the applicable interest rate stated in the Terms on the principal amount thereof, payable at maturity.
The Note may be subject to redemption prior to maturity, in accordance with the Terms and the Purchase Proposal as set forth by PNC Bank, National Association, (and may be subject to the receipt by the Purchaser of the Cost of Prepayment, if any, as defined in the Note) will be in registered form, without coupons, will be negotiable and dated the date of delivery, and will be payable as to principal and interest on December 29, 2006 (unless subject to earlier redemption or prepayment), upon presentation by the owner to the Local Government Unit, in the coin or currency of the United States of America that is legal tender for the payment of public and private debts at the time and place of payment.
The exact form of the Note will contain an unconditional promise to pay the principal of and interest on the Note to the owner when due, will pledge, and grant a security interest in, the collateral identified in Section 5 of this Resolution, will recite the valid issuance of the Note under the Debt Act pursuant to proper corporate authority, will prohibit personal recourse against officials of the Local Government Unit, will certify proper achievement of all conditions precedent to the issuance of the Note and will designate the Note as a "qualified tax-exempt obligation" under Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.
Section 3 -- Execution and Delivery. The Note will be executed by the Chief Legislative Officer of the Governing Body and will have the corporate seal (or a facsimile thereof) of the Local Government Unit affixed thereto or printed thereon, duly attested by the Chief Administrative Officer. To the extent that any one signature on a Note is manual, the other signatures may be facsimile. The Designated Officers are further authorized and directed to deliver the Note to the Purchaser, upon the terms and conditions hereinafter and in the Proposal provided, receive the proceeds therefor, execute and deliver such certificates and other closing documents and take such other action as may be necessary or appropriate in order to effectuate the proper issuance, sale and delivery of the Note.
Section 4 -- Filing. The Designated Officer is hereby authorized and directed to certify and transmit copies of this Note Resolution, the Proposal and the Certificate as to Collections and Expenditures (which includes a calculation of the cumulative cash flow deficit calculated in accordance with the provisions of the Internal Revenue Code of 1986, as amended (the "Code") and United States Treasury Department Regulation §1.148-6(d)(3)(iii)(B)), the contents of which are hereby approved, with the Department of Community and Economic Development of the Commonwealth of Pennsylvania.
Section 5 -- Security. As security for payment of the Note, the Local Government Unit pledges and grants for the benefit of the owners, from time to time, of the Note, a first lien and charge on, and security interest in, all of the taxes, accounts and general intangibles, including “Total Revenues” (as defined in the Debt Act) to be received during the period that the Note will be outstanding, together with such amounts to be received during fiscal years subsequent to the year during which the Note is issued in the event that the Local Government Unit defaults on the payment of principal or interest on the Note.
The Local Government Unit hereby authorizes and directs the Purchaser to file a financing statement pursuant to the Uniform Commercial Code to perfect the security interest hereby created. All expenses of such filing shall be borne by the Local Government Unit.
In the event of any default on the Note or hereunder, the Local Government Unit agrees to pay the reasonable expenses of the Purchaser (including court costs and attorney's fees) incurred in collecting the amounts due.
Section 6 -- General Obligation. The Note issued pursuant to this Note Resolution shall be a general obligation of the Local Government Unit. The Local Government Unit hereby covenants with the owners from time to time of the Note that if funds are not available for the full payment of the Note within the fiscal year in which issued, then the Local Government Unit will either (1) include the amounts necessary to pay the Note in its budget for the next fiscal year, pursuant to Section 8125 of the Debt Act, to the extent then permitted by applicable law; (2) fund such amounts within the next fiscal year in accordance with Sections 8129 and 8130 of the Debt Act; or (3) provide for payment of the Note by any combination of (1) and (2), in all events, upon notice to and with the consent and agreement of the Purchaser, and provided furthermore that in such an event of default, if the Local Government Unit shall have executed and delivered certain credit, collateral and/or security application(s) or agreement(s) pursuant to Section 10 hereof, the general obligation pledge of payment made by this Section 6 shall include and encompass all amounts in addition to stated principal and interest due in respect of the Note by the terms of such credit agreements and shall conform to the manner and procedures for payment, if any, set forth therein, or provided at the direction of the Purchaser, either as owner or subrogee of the Note.
Section 7 -- Tax Covenants. (a) The Local Government Unit hereby covenants with the owners from time to time of the Note that it will make no use of the proceeds of the Note which, if such use had been reasonably expected on the date of issue of the Note, would have caused the Note to be an "arbitrage bond" within the meaning of Section 148 of the Code and the Regulations thereunder and that it will comply with the requirements of the Code and the Regulations throughout the term of the Note.
(b) If the principal amount of the Note, plus the principal amount of all other tax-exempt obligations issued and to be issued by the Local Government Unit, or by a subordinate governmental unit within its jurisdiction, during the calendar year in which the Note is to be issued, exceeds $5,000,000, and if the gross proceeds of the Note are invested at a yield greater than the yield on the Note and are not expended, or deemed to have been expended pursuant to in Section 148(f)(4)(B)(iii) of the Code, within six (6) months from the date of issuance, the Local Government Unit covenants that it will rebate to the U.S. Treasury, within sixty (60) days after the maturity date of the Note, that amount of investment income on the Note proceeds which exceeds the amount which would have been earned had the Note proceeds been invested at a yield equal to the yield on the Note.
(c) The Local Government Unit hereby designates the Note as a Qualified Tax-Exempt Obligation pursuant to Section 265(b)(3) of the Code and represents and covenants that the total amount of its obligations so designated and to be designated during the calendar year in which the Note is to be issued does not and will not exceed $10,000,000.
Section 8 -- Award. The Note is hereby awarded and sold at private sale by negotiation to PNC Bank, National Association, at par, in accordance with the Proposal and its Terms as set forth in the foregoing and attached Certificate and Transmittal, which, as presented at this meeting, is hereby accepted and directed to be executed by the Designated Officers. The Local Government Unit shall pay the Origination Fee, if any, set forth in the Terms.
Section 9 -- Costs. All notice, filing and legal fees (except Note Counsel to the Purchaser, if any) properly incurred in connection with issuance of the Note will be paid by the Local Government Unit. The Designated Officers are hereby authorized and directed to pay all such reasonable expenses at the time of Settlement on the Note.
Section 10 -- Letters of Credit; Guaranty of Payment; Subrogation. The Local Government Unit acknowledges the right of the Purchaser to negotiate some or all of the Note to subsequent third-party owners, from time to time, and at any time, during the term of the Note. Moreover, the Local Government Unit recognizes that the Purchaser may choose, in its absolute discretion and at its own cost, to provide letters of credit, put agreements, collateral accounts and such other and similar guarantees of payment by the Purchaser to the third-party owner as may be necessary to facilitate the negotiation of the Note to the subsequent owners. In consideration of the beneficial interest rate afforded the Local Government Unit by the increased and facilitated marketability of the Note, and in such event, the Local Government Unit agrees, and the Designated Officers are hereby directed, to execute and deliver any and all credit, collateral and security application(s) and agreement(s) as may be necessary in the reasonable discretion of the Purchaser and according to its standard business practices to provide further assurance to the Purchaser of its rights, either as owner or subrogee under a guaranty arrangement, to receive payment in full of the principal of and interest on the Note (and any other amounts due in respect thereof under the term of such credit agreement) when due. In the event any payment of principal or interest or both is made to any owner of any Note by a draw on a letter of credit issued by, or other guaranty of payment made by, the Purchaser such payment will not extinguish the obligations of the Local Government Unit under such Note; the Purchaser shall become the owner/subrogee of the Note with full rights to enforce payment of the amounts due in respect of the same.
Section 11 -- Note Resolution a Contract. This Note Resolution is a contract with the owners, from time to time, of the Note.
Section 12 -- Inconsistent Actions. All prior resolutions or parts thereof inconsistent herewith are hereby repealed.
DULY ADOPTED at, and recorded in the minutes of, a properly constituted meeting of the Governing Body of the Local Government Unit held on the date set forth in the Certificate and Transmittal.
Jean Davis seconded the motion and the resolution passed by 7-0 roll call vote: Mary Ann Horne, yes; Gregory Lucas, yes; Clifford Allen, yes; H. Robert Cannell, yes; Robert Cogan, yes; Jean Davis, yes; and Christopher Gillette, yes.
Robert Cogan informed Council that he with his wife, Manager Jemetz and Jean Davis would be going to see Senator Jane Earll tomorrow morning.
Gregory Lucas thanked Christopher Gillette for serving on the Council for the last four (4) years. All Council members wished Mr. Gillette well in the future.
Any other business, being none Mayor Cannell asked for adjournment.
Clifford Allen moved for adjournment, and the meeting was adjourned at 6:25 P.M.
ATTEST:
_______________________________ _________________________________
Borough Manager T. Jemetz Mayor H. Robert Cannell
Home Rule Borough of Edinboro Council Meeting
HIGHLIGHTS
December 19, 2005
· Payment of bills
· Minutes
· Payroll
· FINAL reading Noise Ordinance 528
· Ordinance 529 Pension Amendment
· Ordinance 530 Tax rate 3.35
· Ordinance 532 WWCT Loan 475,000
· 18-2005 Resolution – Joint Municipal Plan
· 17-2005 2007 Budget
· 19-2005 Tax Anticipation Note for 2006
POSTPONED
· Ordinance Review to review final Codification for adoption
· Cable TV Franchise extension of current contract until 12/31/05
· Pool question of Peer to Peer Study with Township tables until later date
UPCOMING MEETINGS:
· Next Council meeting January 3, 2006
· Authority Meeting January 9, 2006.
HOME RULE BOROUGH OF EDINBORO COUNCIL MEETING
December 19, 2005
4:30 P.M. Regular Meeting
I. Call to Order of the Regular Council Meeting by Mayor Cannell
II. Roll Call: Clifford “Kip” Allen __ ,Bob Cogan ____, Jean Davis ____, Christopher Gillette ____, Mary Ann Horne ____, Greg Lucas ________, Mayor H. Robert Cannell ______, Manager Taras Jemetz ___, Solicitor Marsh ___, and Marie Lander, Assistant to the Manager____.
III. Approval of Minutes
· Regularly Scheduled Meeting on December 5, 2005
Action: Motion to approve minutes
IV Public Participation Comments on the Agenda items
A. Fred Langill – Financial Proposal
B. Mr. Ropp – Budget
1. Finance Committee/Pension Committee/ Negotiation Committee - Mary Ann Horne
a) Committee met today 3:00 p.m.
b) Budget Workshop held 12/14/2005
c) Pension Meeting held 12/7/2005
2. Ordinance Review Committee –Jean Davis
a) Codification – General Code (Penns Valley)-being proofed
b) Grease Ordinance (to be introduced in March 2006)
c) Commercial district
d) Noise Ordinance – Ordinance 528 –Final Reading
3. Personnel Committee – Kip Allen -
4. Recreation/Lake/Environment – Kip Allen
5. Public Safety – Chris Gillette
6. Street, Buildings, and Grounds – Greg Lucas
7. Committee of the Whole
B. Solicitor's Report:
1. WWCT loan for infrastructure improvements $475,000 @ 4.85% - ACTION of Home Rule Borough of Edinboro that the Note will be secured by General Obligation pledge of Home Rule Borough of Edinboro & authorize signing acceptance of proposal.— ORDINANCE 532 – ADOPTION -- Attny Tim Sennett to be present with paperwork for signing
2. Cable Franchise Negotiations – Attorney Cohen
a) request for 20 additional hours – ACTION:
C. Management's Report:
1. Manager Jemetz Report
a) Amend Regular Pension –Adopt Ordinance 529
b) Non Uniform Negotiations
2. Finance
a) Authorization to approve bills to be paid December 19, 2005
Action: Motion to approve bills totaling $ ;
c) Authorization to approve payroll ---- Action: Motion to approve payroll ending December 3, 2005, paid December 9, 2005, totaling $ 55,692.00
3. Personnel
4 Public Safety
Emergency Management
Emergency Medical Service (EMS)
EVFD
d) Police – Nov Reports
e.) Employee Safety Committee
5. Code Enforcement/Planning/Zoning – Monthly Report
6. Public Works- Monthly Report
a) Sanitation
b) Building & Property
c) Streets/Storm Sewers/Signals/Signs
d) Park & Recreation
e) Lake
f) Dam
g) Recycling Leaves
7. Wastewater Collection & Treatment
8. Water System – Monthly Report
9. Community Development/Project Coordination
a) Hearing February 13, 2006 6:45 p.m. to inform Public of CDBG items
b) Monthly Report
D. Community Liaisons
1. Public Relations/Cable TV - Bob Cannell
2. Chamber of Commerce – Mary Ann Horne
3. Environmental Shade Tree Advisory Committee – Mary Ann Horne
4. Erie County Borough –- FYI
5. Erie County Planning Liaison – Chris Gillette
6. EVFD Board Liaison – Bob Cogan
7. PLCM Campus Community – Bob Cannell
8. PLCM Local Group – Kip Allen
9. Washington Township Liaison – Jean Davis
10. Authority – Jean Davis
11. EUP Administration – Bob Cannell
12. Watershed Association – Mary Ann Horne
13. Joint Municipal Planning – Chris Gillette
E. OTHER OLD BUSINESS:
1. Draft resolution by Robert Cogan 10/8/05
2. vacancy – alternate Zoning Hearing Board – advertised
3. Non Uniformed Negotiations – on going
4. Joint Municipal PLAN – ADOPTION: Resolution 18-2005
5. POOL – Request by Township for Peer – to – Peer Study
A. House of Edinboro
A) Ordinance 530 adoption of Real Estate Rate (2005 at 2.3 = 1.868 General & .432 Pension ) 3.35 mills = 2.850 general & .5 Pension (.82 of total millage will be used for MMO)
C) 2006 Budget – Adoption – See Resolution No. 17-2005, Manager’s budget memo, and executed PEL study of participating SSHE host municipalities
D) Adopt Resolution 19-2005 – authorizing Tax & Revenue Anticipation Note $250,000 @ 3.95% PNC
VIII. Public Comments
IX. Adjournment
OTHER DATES TO REMEMBER
Finance Meeting December 19 3:00 p.m.
Hearing CDBG February 13, 2006 6:45 p.m.
REORGANIZATIONAL MEETING JANUARY 3, 2006 7PM
©Copyright January 2006