Monthly Index

March 2, 2004, Council Meeting

Citizen Comments:                                                                 None

Administration:                                                                    Monthly Reports; Work Session

                                                                                                  Scheduled; Permission to Request

                                                                                                  Proposals for Borough’s Insurance

                                                                                                  Coverage; Special Event/Banner

                                                                                                  Requests Approved; Appointed

                                                                                                  John Marshall as Borough Solicitor

                                                                                                  at Retainer Fee of $125/Month and

                                                                                                  $135/Hour

Public Works:                                                                         Monthly Report; Reminder Snow

                                                                                                  Removal Ordinance Still in Affect;

                                                                                                  Permission to Advertise for Clean-

                                                                                                  Up Day Services; Permission to

                                                                                                  Order 2004 Ford Truck; Permission

                                                                                                  to Advertise to Sell 1986 Ford

                                                                                                  F-350; Thanked Department for

                                                                                                  Work During Winter

Public Safety:                                                                           Approved Hiring Jacqueline Kriebel

                                                                                                  and Amanda Spangler as Part-Time

                                                                                                  Meter Enforcement Officers; Adopt-

                                                                                                  ed Ordinance 2004-722 to Amend

                                                                                                  Chapter 205 of Clarion Borough’s

                                                                                                  Code of Ordinances Titled “Vehicles

                                                                                                  and Traffic”

Housing and Zoning:                                                                       Domino’s Pizza Letter Discussed;

                                                                                                  Reminded Residents to Number

                                                                                                  Houses; Permission to Bid Recycling

                                                                                                  Services; Discussed Draft Ordinance

                                                                                                  for Pennsylvania Construction Code

                                                                                                  Act

Recreation:                                                                               Pool Passes on Sale

Mayor’s Report:                                                                       None

Manager’s Report:                                                                       Permission for Ms. Lapinto to Attend

                                                                                                  the CDBG Conference; CDBG Grant

                                                                                                  to be Ready for April Council

                                                                                                  Meeting

Old Business:                                                                           Downtown Committee Update;

                                                                                                  Discussed Penn Dot’s Project on

                                                                                                  Route 68

New Business:                                                                                     None

Correspondence:                                                                   Letter from Clarion University

                                                                                                  Foundation Inc.’s In Re 2002 Agree-

                                                                                                  ment for Payments in Lieu of Taxes

                                                                                                  with Discussion Following

The regular scheduled meeting of Clarion Borough Council was held on March 2, 2004, in the Clarion Free Library.

President Wilshire called the meeting to order at 7:02 p.m.

Councilmembers present included Mr. Zerfoss, Mr. Crooks, Ms. Vavrek, Ms. Moore, Mr. German, and President Wilshire.   Mr. Herman was absent.   Ms. Lapinto, Chief Hall, Mr. Stutzman, and Mr. Ragon were also present.   Mayor Smathers was absent.

President Wilshire asked everyone to stand and recite the Pledge of Allegiance.

Before approving the minutes, President Wilshire offered condolences to the family of Hank Fueg, who passed away recently.   Mr. Fueg was a longtime teacher at the University, was responsible for televising the Council Meetings, was one of the originators of the I Love Clarion Day, and was married to a former Borough Councilmember Joy Dunbar.

The minutes of the January 26, 2004, Work Session, were approved on a motion by Mr. Crooks with a second by Ms. Moore.   The motion carried with a vote of six yea.

The minutes of the February 3, 2004, Public Hearing, were approved on a motion by Ms. Vavrek with a second by Mr. German.   The motion carried with a vote of six yea.

The minutes of the February 3, 2004, Public Hearing, were approved on a motion by Ms. Vavrek with a second by Mr. German.   The motion carried with a vote of six yea.

The minutes of the February 3, 2004, Council Meeting, were approved on a motion by Mr. Crooks with a second by Ms. Vavrek.   The motion carried with a vote of six yea.

Citizen Comments :   There was none.

Administration :   President Wilshire presented the appropriations for the month of March.

On a motion by Mr. Crooks with a second by Ms. Vavrek, approving the appropriations for the month of March in the amount of $36,446.66, was carried with a vote of five yea with Mr. Zerfoss voting nay.

President Wilshire then presented the Monthly Treasurer’s Report, Statement of Cash Position, Budget Analysis, and Overtime Comparison Report for informational purposes.  

Mr. German inquired if the spike in overtime in Public Works is normal or abnormal.

Ms. Lapinto stated it’s abnormal due to the bad winter.   In 2002, the figures reflect a fairly good winter.

President Wilshire informed everyone a Work Session is scheduled for March 29, 2004, at 5:00 p.m. in the Clarion Borough Offices.

President Wilshire asked Ms. Lapinto to discuss permission to request for proposals for the Borough’s insurance coverage.

Ms. Lapinto reported the Borough’s coverage expires August 10 th .   Once the packet is together, it will be mailed out.

Mr. German questioned how many different companies will look at it.

Ms. Lapinto will notify the Borough’s Association, advertise it in the newspaper, and has already received a call from a company interested.

On a motion by Ms. Moore with a second by Ms. Vavrek, giving permission to request proposals for the Borough’s insurance coverage, was carried with a vote of six yea.

On a motion by Ms. Vavrek with a second by Ms. Moore to approve the following   requests: Clarion County Farmer’s Market Association’s request for a banner to be displayed the latter part of May until mid-October; VFW Post 2145 and American Legion 66’s special event request for Memorial Day Services to be held on May 31, 2004; Clarion VFW Post 2145’s special event request for Patriot Day Services to be held on September 11, 2004; and March of Dimes’ special event request for WalkAmerica to be held on April 25, 2004.   The motion carried with a vote of six yea.

On a motion by Mr. German with a second by Mr. Crooks, appointing John Marshall as Borough Solicitor at a retainer fee of $125.00 per month and $135.00 per hour for other services, carried with a vote of six yea.

Public Works :   Mr. Zerfoss stated the Public Works Report is in the packet for everyone’s review.  

Mr. Zerfoss reminded everyone the Snow Removal Ordinance is still in affect until April 1 st .   The Department is divided in two shifts.   Despite the fact that snow is gone, the night crew is busy sweeping all the dirt from the streets.   The day crew has been using the hot box and filling the potholes.   The hot box eliminated the need to go back to one pothole twice in a day.

Ms. Moore noted the large amount of snow has twisted the direction of several one-way signs.   Anyone noticing this problem should report it to the Borough.

Mr. Zerfoss stated Clean-Up Day is scheduled for May 15 th , which is the week after graduation.   By bidding the services last year, the Borough saved a lot of money.   The Public Works employees will handle the brush all week long.

On a motion by Mr. Zerfoss with a second by Mr. German to give permission to advertise for Clean-Up Day services to be held on May 15, 2004.   The motion carried with a vote of six yea.

Mr. Zerfoss stated the 2004 Ford truck was also discussed at the Work Session.   It was included in the Budget.   The truck is smaller, which will enable the employees to take care of the alleys 100% better next year with snow removal.   The Committee wants permission to order the truck now so it will be delivered in July or August.   As a reminder, this will be purchased through the state contract, which Councilmembers received a breakdown in the packet.

Mr. German inquired how the price came in as compared to what was budgeted.

Ms. Lapinto commented it will be paid with Liquid Fuels money and will be made in payments.   The Borough’s allowed to use 20% of the Liquid Fuels allocation each year to purchase equipment.   The front-end loader will be paid off as soon as the Liquid Fuels check is received.   Using Liquid Fuels money is the best way for the Borough to purchase equipment.   By purchasing it through the state contract, the Borough doesn’t have to get involved with the bidding process.

On a motion by Mr. Zerfoss with a second by Ms. Vavrek, giving permission to order the 2004 Ford truck, was carried with a vote of six yea.

Mr. Zerfoss stated the Department is not using the 1986 Ford F-350 truck and would like permission to sell it.

Mr. German asked if there is a time frame with the bids.

Ms. Lapinto stated the bids will be due prior to the March Work Session, so Council has a chance to review them.

President Wilshire noted Council has to accept the bid.

On a motion by Mr. Zerfoss with a second by Ms. Vavrek to give permission for Ms. Lapinto to advertise to sell the 1986 Ford F-350 truck.   The motion carried with a vote of six yea.

Mr. Zerfoss thanked Mr. Stutzman and his staff for all the work this winter.

Public Safety :   Ms. Vavrek, in the absence of Mr. Herman, informed everyone the Committee interviewed five candidates for the Meter Enforcement Officer positions, which has been narrowed down to two.   The hourly rate will be $6.50 and hours will be 9 a.m. to 1 p.m. and 1 p.m. to 5 p.m.   Each one will work 20 hours a week.

On a motion by Ms. Vavrek with a second by Ms. Moore, giving permission to hire Jacqueline Kriebel and Amanda Spangler as part-time Meter Enforcement Officers at the hourly rate of $6.50, was carried with a vote of six yea.

On a motion by Ms. Vavrek with a second by Mr. Zerfoss to give permission to adopt Ordinance No. 2004-722 , an Ordinance to amend Chapter 205 of Clarion Borough’s Code of Ordinances titled “Vehicles and Traffic”.   The motion carried with a vote of six yea.

Housing and Zoning :   Ms. Vavrek stated the Committee reviewed the letter from Domino’s Pizza in reference to the solicitation permit.   If the person hanging the advertisements on the doors throughout the Borough quits before the permit has expired, Domino’s Pizza didn’t want to pay another fee to have someone else take this job over.   Ms. Vavrek commented the Committee agreed Domino’s Pizza shouldn’t have to pay the fee again in this case but would have to contact Mr. Ragon with the new information.

Ms. Vavrek reminded residents to make sure his/her house is numbered and is visible.   This will ensure emergency personnel (police, fire, and ambulance) arriving as soon as possible.   It is part of the Borough’s Code and a person could be cited for not providing these numbers.

On a motion by Ms. Vavrek with a second by Mr. German, giving Ms. Lapinto permission to bid for recycling services for 5 years, was carried with a vote of six yea.

Ms. Vavrek informed everyone a draft ordinance dealing with the Pennsylvania Construction Code Act is included in the packet for everyone’s review.   Council will have to decide whether the Borough will opt in or out of the program by July 8, 2004.   The ordinance will be reviewed by the Committee and changed so it relates to the Borough.   This will be given to Councilmembers at the Work Session and then forwarded to the Solicitor for review.

Mr. Zerfoss asked if all Councilmembers will decide to join or not.

Ms. Vavrek stated yes.

Recreation :   Mr. German announced pool passes are available at the Borough Offices.    The prices are $100 for family, $75 for individuals, and $45 for babysitter passes.

Depending on the type of pass purchased, Ms. Lapinto added Borough residents may apply for a $5 or $10 discount.  

Mayor’s Report :   Mayor Smathers was absent.

Manager’s Report :   On a motion by Ms. Vavrek with a second by Mr. Crooks, giving permission for Ms. Lapinto to attend the CDBG Conference April 4-6, 2004, at State College, was carried with a vote of six yea.

Ms. Lapinto stated the CDBG grant will be presented at the Work Session with approval at the April Council Meeting.   Ms. Lapinto recommended the grant be used to complete reconstruction of Merle Road and Ditz Place.

Mr. Crooks inquired from where to where.

Ms. Lapinto stated as far as possible.   This road is in bad condition.   If there is remaining money, Ms. Lapinto added a water problem at the fire hall will be addressed.

Old Business :   Mr. Crooks asked President Wilshire if the Downtown Committee could update Council on what’s been happening with the Committee.

President Wilshire commented yes.

Ms. Moore informed everyone she received a list of all Main Street businesses from the Chamber, which will be entered on a map.   The Committee wants to establish where the business district is and decide if it needs reduced or enlarged.   Ms. Moore stated a survey will then be sent to the businesses to find out how many people are employed by the local businesses and asking what the Borough can do to help the businesses.

Ms. Lapinto commented Ms. Vavrek provided her with some information about the Elm Street Grant, which is similar to the Downtown Revitalization Project except on side streets like Sixth Avenue.

Once the needs are identified, Ms. Moore stated the next step is to see what grants are available, which may determine what actually gets done.

Ms. Lapinto announced she’s received several calls from various engineers who are bidding on Penn Dot’s project on Route 68 from the Mall to Main Street.   One engineer mentioned downtowns that have a Wal*Mart in their area usually suffer but noticed Clarion’s is very viable.

President Wilshire stated Ms. Lapinto indicated there’s going to be a committee assigned to this project.

Ms. Lapinto reported it’s in Penn Dot’s hands right now.   The engineering firms are contacting the Borough to see the Wooster Traffic Study that included Fifth Avenue for the light.   Ms. Lapinto has answered several questions for the engineers also.

President Wilshire questioned if the width of Fifth Avenue is being considered.

Ms. Lapinto stated that was discussed and personally feels lighting and lack of sidewalks are a problem.   Approximately $1 million is budgeted for this project.   If Fifth Avenue would be widened, Penn Dot may have to remove some of the homes.

Mr. Crooks inquired if there has been any study about extending Fourth Avenue to the hospital.   It would be great to connect the Borough to the hospital.

Ms. Lapinto informed everyone she’s asked Penn Dot before for a by-pass.   If something blocks Fifth Avenue, there’s no access to the hospital other than I-80.   Penn Dot’s discussed making Third Avenue or Second Avenue a direct access route to the hospital.

If Jefferson Place could be extended, Ms. Moore commented people would have an opportunity to exit from behind his/her house eliminating the amount of traffic on Fifth Avenue.

Once the engineering bids are received, Ms. Lapinto expects Penn Dot to get in touch with the Borough to form a committee.   Penn Dot will be dealing with three entities, because Route 68 involves Clarion Borough, Clarion Township, and Monroe Township.

New Business :   There was none.

Correspondence :   President Wilshire read a letter from Mr. Charles P. Leach, Jr., President of the Clarion University Foundation, Inc., in reference to the 2002 agreement for payments in lieu of taxes.   In 2002, the Tax Appeal Board determined the property the Foundation had requested be removed from the tax rolls would be considered tax exempt for the years 2003, 2004, and 2005 but would be placed back on the tax rolls beginning in 2006.   The Foundation disagreed with this determination and filed an appeal to the decision, which Judge Arner denied meaning the Board’s ruling stood.   Mr. Leach stated the Assessor then interpreted the Judge’s ruling to mean these properties were to go back on the tax rolls for 2004.   Since the determination is different from Judge Arner’s, the Foundation is uncertain what payment should be made for 2004.   Mr. Leach stressed the Foundation fully intends to stand by its agreement to make payments in lieu of taxes.   Therefore, the Foundation has deposited funds for the 2004 payment in an escrow account at S & T Bank.   Once the payment obligation is determined, the money will be paid to Clarion Borough.   Mr. Leach informed Council the tax-exempt status of the property is now before the Pennsylvania Commonwealth Courts.   The Foundation hopes the appeal will establish the exempt status of these properties so the payment in lieu of taxes can continue.   Anyone with questions should contact Mr. Leach.   President Wilshire asked Ms. Lapinto to provide Council with some background on the previous agreement with the Foundation.

Ms. Lapinto informed Council the Borough received $3,600 from the Foundation as partial payment.   One of Ms. Moore’s first tasks when getting back on Council was to update the agreement with the Foundation.   The Foundation agreed to pay the Borough and County the full amount of taxes and the School District 50% of the taxes by March 1 st of every year.   Ms. Lapinto was surprised there was even an issue.   The Borough received an agreement and was happy with it.  

President Wilshire pointed out the County Tax Assessment Board, which is separate from the County, overruled that agreement and it is now being appealed by the Foundation before the Pennsylvania Commonwealth Courts.

Referring to the Foundation-owned property in his area, Mr. Zerfoss asked if the Foundation’s payment in lieu of taxes was exactly the same as what the owner’s of these properties paid.

Ms. Lapinto stated that’s correct.

Mr. German asked why the Foundation is only paying 50% of the taxes to the School District.

Ms. Lapinto commented the School District felt the 50% was sufficient.   This is a formal agreement and was signed by all involved parties.

If the Foundation loses this appeal, Mr. German asked if Ms. Lapinto feels the Foundation will turn all these properties over to the University.

Ms. Lapinto reported there is a similar case in Bloomsburg, which is exactly what occurred.   If so, all this property will become tax exempt.

President Wilshire pointed out what really complicates matters is that Pennsylvania law doesn’t allow the University to make payment in lieu of taxes.   Since the Foundation is a non-profit corporation, it is allowed.   President Wilshire mentioned the Foundation has tired to be good neighbors in terms of recognizing the impact on the Borough.

About 4-5 years ago, Ms. Lapinto reported a trend began where the landlords owning several properties in the Borough turned it over to the Foundation for a tax write-off.   Since only 29% of the Borough is taxable, Ms. Lapinto voiced concern to the Foundation, who agreed to continue paying the taxes.

Mr. German inquired what the purpose the Foundation has by purchasing this property.

President Wilshire stated landlords turned the property over to the Foundation, which is being used for student rentals.   The income then supports Clarion University student programs.

Mr. Zerfoss feels the Foundation should pay in lieu of taxes because a profit is still being made.

Mr. Crooks commented the Foundation is a tax-free organization.   The money is used to help a lot of students achieve a higher education.   Mr. Crooks noted the Foundation has been generous in making payments in lieu of taxes.

Mr. Zerfoss urged the Foundation has an obligation to pay taxes to the Borough.

If the taxes increase, Mr. German inquired if the Foundation’s payment does also.

President Wilshire thinks it was a standard amount.   The whole legality of the tax-exempt status has to be determined and is the reason for the appeal.

On a motion by Ms. Vavrek with a second by Mr. Crooks, the Council Meeting was adjourned at 7:49 p.m.

                                                                                                  ______________________________

                                                                                                  Carol Lapinto