March 26, 2007, Special Council Meeting/Work Session

Summary of Action Taken

Citizen Comments: None

Administration: Paul Weaver Addressed Council In RE $250,000 Loan and Answered Questions on Loan and Status of Sale; Motion Council Plans to Adopt Ordinance #2007-743, that the Borough Guarantee $250,000 Loan and Authorize to Publish Intent with Adoption at Council Meeting; Comprehensive Plan Discussed; Tour of Fire Hall; Special Event Requests Discussed

Downtown Committee: None

Public Works: Pothole Patching; Street Openings Inspected by Borough Discussed; Public Works Meeting Scheduled; Leaf/Brush Drop Off; Clean-Up at Ball Fields Scheduled

Public Safety: Crosswalk Ordinance Discussed

Housing and Zoning: None

Recreation: None

Mayor’s Report: Community Breakfast; Service Awards Banquet

Manager’s Report: Second CDBG Public Hearing Held; Application Available for Review

Old Business: None

New Business: None

Correspondence: None

Minutes

The Special Council Meeting/Work Session of the Clarion Borough Council was held on March 26, 2007, at the Clarion Fire Hall.

President Wilshire called the meetings to order at 5:00 p.m.

Councilmembers present included Mr. Zerfoss, Mr. Herman, Ms. Leonard, Ms. Vavrek, Ms. Moore, Mr. German, and President Wilshire. Mr. Stutzman, Mr. Ragon, Ms. Freenock, and Chief Hall were also present. Mayor Stroup arrived at 5:11 p.m. Solicitor French was not present.

Citizen Comments: There were none.

Administration: President Wilshire commented Council is possibly going to take action on a request by Clarion Area Authority and turned it over to Mr. Paul Weaver to discuss.

Mr. Paul Weaver thanked Council for the opportunity to address him/her and stated the Authority needs the Borough to guarantee another loan, which the Authority already acquired from the First United National Bank in the amount of $250,000. An I and I Report was completed and indicates nothing but bad news. There is 187,000 feet of pipe in the whole system. If all the water inflow could be cured, which is not feasible, Mr. Weaver commented it would only solve 50% of the problem. The other part comes from the laterals. This I and I Report was forwarded to DEP on Friday, and they will probably take a month to review it. DEP will then tell CAA what needs done. The Authority will only have 2 years to cure the problem. Mr. Weaver stated Chairman Randy Hannah is negotiating with Monroe Township, which isn’t resolved yet. The Board is hoping things will work out with Monroe Township. The Authority is pursuing a bond issue in case it’s necessary.

Ms. Freenock asked if that report is the one that Gannett Fleming prepared and if the Borough could obtain a copy.

Mr. Weaver stated yes and will drop a copy off tomorrow. It’s a serious situation. It’s getting to the point where the Authority needs to get some things done. The water company has indicated they will pay for a lot of these expenses but not all of them. As an example, Mr. Weaver used the rights-of-way for the sewers. There were 186 that were not registered, 16 of which are still not resolved. The Authority has paid approximately $300,000 to get these resolved.

Ms. Vavrek questioned what Pennsylvania-American Water Company (PAWC) is thinking at this point and if they could pull out of the deal.

Mr. Weaver commented either side could pull out, which is part of the agreement. The water company is still on board and wants to get it done.

Ms. Moore inquired if PAWC is going to purchase it or not.

Mr. Weaver stressed they will not purchase the sewer authority without Monroe Township signing the Consent Order.

Through discussions with Chuck Johnston, PAWC, President Wilshire relayed the company is still committed to buying it but do want Monroe Township to sign the agreement.

Ms. Vavrek stated if the water company backs out this is a major amount of money the Borough could possibly have to help pay back. It was $900,000 and now this $250,000.

Mr. Weaver commented that’s why the Authority is looking into the bond issue.

President Wilshire stated the Borough is only guaranteeing.

Mr. German questioned if Monroe Township or Clarion Township were asked by CAA to sign off on this $250,000 loan.

Mr. Weaver reported no, because the bank requested Clarion Borough.

If the sale doesn’t take place within 6 months, Mr. German asked if the Authority will approach the Borough again for another loan.

Mr. Weaver stated no. The Authority will be in the bond business then.

Mr. German voiced concern that both Monroe and Clarion Townships will be benefiting from this sale but they’re not taking any of the responsibility of these loans, which now total $1.2 million. Whether it’s right or wrong, Mr. German feels the Authority should have asked those two townships to take some of the responsibility.

Mr. Weaver understands that but stated when you’re dealing with banks, you do what they want. In this case, the bank requires Clarion Borough to sign off on the loan.

President Wilshire doesn’t think Monroe Township could because they’re not a member of the Authority. Monroe Township is a user.

Mr. German asked if the $900,000 loan is being used to pay expenses to upgrade the facility or for operational expenses.

Mr. Weaver commented operational expenses.

Mr. German questioned the last time the Authority made a profit.

Mr. Weaver stated it’s hard to judge because of all the unusual expenses, like the flow meters and pipe line project, but would be glad to get Council the financial statements.

Ms. Vavrek asked if Councilmembers could also receive a document outlining how the $900,000 loan was spent.

Mr. Weaver can provide that also.

Mr. German inquired if Lowell Snyder could attend next week’s Council Meeting.

Mr. Weaver believes Mr. Snyder will be back and will ask him to attend.

President Wilshire pointed out it’s important to realize these are expenses the Authority would be facing whether the system is sold or not.

Mr. German stated the bond money would have been in place.

Mr. Herman added the rates would have been raised.

Mr. German stated they have been.

Mr. Herman commented continually raised.

Mr. Weaver reported the Authority raised rates $5. Regardless of who owns the Authority, the rates will have to increase.

Mr. German questioned if CAA anticipates raising rates before the sale goes through.

Mr. Weaver commented not necessarily. The money borrowed is for capital improvements required by the Consent Order.

Ms. Moore inquired if the water company has indicated when the sale might go through. In January 2006, when this Council was seated, it was supposed to be closed by March 2006. It’s a year later and it’s not.

Mr. Weaver commented within 6 months it ought to be resolved one way or another. Hopefully, the discussion with Monroe Township will be positive.

Ms. Vavrek doesn’t think anyone could have foreseen the problems that had not been corrected.

Mr. Weaver stressed this system is 100 years or older. There are pipes where there’s no longer pipe. Storm water is leaking into the sanitary sewers.

As far as financially for the Borough, Mr. German asked Ms. Freenock for comments.

If the Borough were asked to assist in repaying the loan, Ms. Freenock reported the first resource would be the sewer rents the Authority collects and doesn’t have a clear picture on if that would be enough to operate the Authority itself after improvements or not.

Mr. Weaver believes it is.

Ms. Freenock wonders what the eventual proceeds will be, because the $1.2 million will have to come off the sale price. Mr. Weaver mentioned the water company has indicated they’ll pay for some but not all. Ms. Freenock doesn’t know what that means. If the purchase price is $2.6 million and the $1.2 million for the loans any other outstanding expenses are paid, Ms. Freenock asked what’s left for the Borough. No one can probably answer that question. Ms. Freenock asked that PAWC or their attorney sit down with the Authority’s attorney to do a draft closing statement because the math doesn’t add up.

Mr. Weaver stands by what he stated the last time that the Borough will receive $2 million. There are a lot of things Council doesn’t know and he can’t comment about. Mr. Weaver was appointed on the Board to sell the system and he’s trying to get the best deal possible.

Ms. Freenock appreciates and understands Mr. Weaver’s work. It’s a valuable service. The problem is when Council is asked to vote on this they have to be aware of all the facts just like the Authority Boardmembers do. The numbers just aren’t there.

Mr. Weaver stressed in the end the Townships and Borough are responsible for the sewer authority.

Ms. Freenock pointed out the Borough would be the guarantor on the loans and would be the ones repaying it. As far as the bond issue, that would need to be repaid from the sale proceeds before anyone else benefits.

Ms. Vavrek doesn’t understand why Monroe Township can’t see that. There are many huge issues that need to be fixed. Yet Monroe Township is still asking for a lot of money even though the Borough’s putting itself in the position of offering this money knowing full well that the Borough could have to repay all of it from the $2.6 million.

President Wilshire stated the Authority would have to repay it. The Borough wouldn’t. It may affect the final price. It’s a lot more complicated than anyone thought it would be. In discussion with Mr. Weaver and attending meetings with Mr. Johnston, the feeling is the Borough would end up with approximately $2 million. Quite frankly, it’s something the Borough has to do.

Mr. Weaver stressed the Boardmembers want the sale to go through.

Ms. Vavrek feels the Authority didn’t operate well before now. Setting up another CAA Board or finding people to put in this position would be a chore.

Mr. Zerfoss agrees. Currently, the Authority Board consists of 3 representatives from the Borough and 2 from Clarion Township that are working hard to get this sale to PAWC completed. Mr. Zerfoss feels it’s in the best interest to work with these 5 people in order to achieve that goal. Mr. Zerfoss made a motion that Council support the request from CAA on securing their loan so they can proceed.

Mr. Herman seconded the motion.

Ms. Freenock clarified the motion would be as follows: Council plans to adopt Ordinance #2007-743, an Ordinance which would authorize the Borough guarantee a $250,000 loan by First United National Bank to the Authority and further that Council gives her authorization to publish the Ordinance so that it can be adopted at the Council Meeting on Tuesday.

The motion carried after the following roll call vote: Mr. Zerfoss, yes; Mr. Herman, yes; Ms. Leonard, yes; Ms. Vavrek, yes; Ms. Moore, yes; Mr. German, no; and President Wilshire, yes.

Mr. Weaver thanked Council and added the Boardmembers don’t want to serve any longer than a year.

Mr. Herman thanked all the Boardmembers for trying to negotiate this deal. It’s been hard. Mr. Herman hopes everyone understands that if this deal doesn’t go through the losers are the people of the greater Clarion area, Clarion Township, and Monroe Township. This deal needs to be completed. Everyone needs to put the best interest of the citizens first and look at it from that perspective. If all parties do that, hopefully it can get done.

Mr. Weaver assured Council that every effort is being made to get that done.

Moving on, President Wilshire stated it’s been some time since Clarion Borough has done a Comprehensive Plan in the whole municipality. The Borough’s starting a Recreation Plan, but this Comprehensive Plan is something much broader in scope. The Borough’s facing a number of issues down the road, including the storm sewer issue and how to deal with the funding whenever the sewer authority is sold. A lot of it will need put away to fix the storm sewer problem in town, which Council will have to decide later. President Wilshire commented there are other issues on how they relate to the recreation goals in terms of setting priorities for the Borough in the future. The Comprehensive Plan may be a vehicle to map out what Council plans. As with everything, there are financial consequences.

Ms. Freenock reported Ms. Leonard attended a seminar last Friday with Denny Puko and Phil Scrimenti, who addressed Council in August. They stated all the 2006-2007 funding is gone; however, the 2007-2008 money will be available in July. Once the current administration is gone, all bets are off. This means the money that is available is short-term. It was suggested the Borough pursue this actively at this point. Ms. Freenock commented a grant application can be filed at any time even though it will not be funded until probably next fall.

Ms. Leonard added it will be read as of July 1st.

As part of the Comprehensive Plan, Ms. Freenock believes Council needs to consider how to rehab the fire hall. Mr. Dave Walters is present to give everyone a tour of the building so everyone can see the condition and need for repairs. An individual was in prior to the meeting to look at the building.

Mr. Walters provided everyone with a tour of the fire hall, beginning at 5:27 p.m.

President Wilshire reconvened the meeting at 5:45 p.m. and asked where Council goes from here.

Ms. Freenock will ask Council at Tuesday’s Council Meeting to adopt a resolution authorizing her to prepare and file a grant application for funds to develop a Comprehensive Plan. There is no cost monetarily for the Borough. The Commonwealth would accept in-kind services that would include any Borough representatives’ time working on it.

Ms. Leonard noted any help from the County Planning Department would qualify as in-kind services as well.

Mr. Herman asked if the Comprehensive Plan would involve some of the thought processes the Recreation Committee.

Ms. Leonard stated it’s possible.

President Wilshire thought a separate study was being completed.

Ms. Leonard stated that’s an open space plan. One grant is through DCNR and the other is DCED.

President Wilshire thinks that will be fine. However, the fire hall seems to be more of an immediate problem. As reported earlier, someone looked at the damages to the building.

Ms. Moore inquired when something was last done to the roof on the older section.

Mr. Stutzman commented the addition was put on in 1992 and is not sure if anything was done to the existing portion. A couple people did repair the drywall and tried to seal the roof. Bud Reinsel looked at the roof 6 years ago and commented then the shingles would need replaced within 5 years. That has not been done.

Ms. Moore feels there’s no sense fixing the interior until the roof is repaired.

President Wilshire mentioned it’s been quite awhile since a fundraiser campaign for the community was done. The department does service the entire area not just Clarion Borough. This may be a possibility to look into.

Mr. Herman suggested Ms. Vavrek could chair this fundraising group.

Ms. Vavrek agrees it’s worth looking into.

Ms. Freenock announced the Borough did file a Request of Appropriations from Congressman Peterson for 2008 for funds to help repair the fire hall. The County Commissioners provided the Borough with a support letter for this request. However, Ms. Freenock doesn’t expect the Borough to get enough to cover all of the needed repairs.

Ms. Leonard stated the Borough could start the community appeal and earmark the funds received as a match towards a grant.

Ms. Moore believes the Borough needs to find out how much this work will cost.

Ms. Freenock stated 2 individuals have looked at the roof and wall and is willing to ask more individuals if anyone has any names.

Mr. Stutzman recommends Council look into general contractors rather than individuals who specialize in roofing. Some other contractors are Fred Burns, CBF Contracting, or Delta Contractors. The work at the fire hall involves more than just roofing.

President Wilshire questioned if anyone thinks a consultant should be hired to assess what work is needed and provide Council with an estimation. Then the job could be bid to contractors.

Mayor Stroup doesn’t think it’s worth doing. There are very capable contractors in the area to do these types of repairs.

President Wilshire stated several requests are included in the packet, which Council will need to approve on Tuesday. The Clarion Area Chamber of Business and Industry has submitted the following requests: Autumn Leaf Festival to be held September 27-October 7, 2007; Customer Appreciation Day/Holiday Season for free parking on November 19, 23, and December 7-26, 2007; the Christmas Parade to be held December 1, 2007, at 6-6:30 p.m. or 12-12:30 p.m. (time to be determined); and, First Night, the second year, to be held December 31, 2007. March of Dimes submitted a special event request for their walkathon to be held April 29, 2007. Organizations are encouraged to submit these in advance.

Mr. Herman stated the Public Safety Committee reviewed all the requests and recommends the Christmas Parade be held from 12-12:30 p.m.

Ms. Vavrek noted that’s so the businesses would be open. .

Ms. Leonard commented it will be warmer at that time and better for bandmembers.

President Wilshire reported the Spring Fling request is listed under Public Safety but will also be brought up at the Council Meeting. Part of this request was already approved; however, the request for parking spaces to be bagged for the entire week was tabled until reviewed.

Downtown Committee: Ms. Moore had nothing to report.

Public Works: Mr. Zerfoss stated the Public Works Department is patching potholes. Anyone wishing to report one that has not been taken care of should contact the Borough Office.

President Wilshire asked if someone from the Borough inspects street openings that utility companies need to do for repairs to ensure the area is refilled correctly.

Mr. Stutzman commented there’s a new product available that’s called high performance cold patch. It stays in place and doesn’t come out. The Borough’s convinced the water company to use it. However, the gas company doesn’t. It is a great product and does work. Mr. Stutzman stated the Borough can control the utility cuts in the Borough streets. Mr. Stutzman and Mr. Ragon are working together to draw up specifications as to what type of material and the compaction that is necessary. It should be in place by next year.

Mr. German asked if cold patch is better than hot patch.

Mr. Stutzman stated this is not a substitute for hot patch by any means but is a great product that will work in the wintertime. The company that makes it actually gives customers a guarantee that it will stay in place.

Mr. Zerfoss reported the Department will be working closely with the Recreation Committee with the park and pool.

Mr. Zerfoss announced the Public Works Committee will meet Friday at 9 a.m. at the Public Works Building and extended an invitation to the Mayor if he wishes to attend.

Mr. Stutzman reported the leaf/brush drop off area is really being used. The Borough has already hauled material away. Residents are reminded to keep materials separated and not to leave his/her bags behind.

Mr. German asked if Mr. Stutzman is aware clean up at the fields is scheduled for Saturday and asked if water will be available to them.

Mr. Stutzman knows the times scheduled for clean up. The electricity will be turned on; however, it’s still too early to turn the water on. The volunteers are aware of that.

Public Safety: Mr. Herman asked if Chief Hall wishes to discuss the Crosswalk Ordinance.

Chief Hall stated several people have been injured in crosswalk locations. Currently, there is no enforcement mechanism in place, which is the purpose for this Ordinance.

When an accident occurs at an intersection or crosswalk, Mr. Herman commented this Ordinance could be enforced and could indicate to insurance companies where the problem lies. At this point, you can’t. This Ordinance would clean up some potential accident situations.

Housing and Zoning: Ms. Vavrek had nothing to report.

Recreation: Ms. Leonard had nothing to report.

Mayor’s Report: Mayor Stroup informed everyone the Community Breakfast held last week was very nice. Mr. Mike Ebert, with the YMCA, discussed what’s happening in the community as well as a prelude to what’s going on with the Borough’s Recreation Committee. Mayor Stroup had a great time introducing Mr. Ebert. It was very well attended. Mayor Stroup complimented the press for their coverage on the breakfast.

Mayor Stroup reminded everyone the Service Awards Banquet will be held this Saturday at the VFW. The Officer of the Year award will be given.

Manager’s Report: Ms. Freenock announced the second CDBG Public Hearing was held Friday. The application is available for inspection at the Borough Office and will remain there until next week.

Old Business: There was none.

New Business: There was none.

Correspondence: There was none.

On a motion by Mr. Zerfoss with a second by Mr. Herman, the Special Council Meeting/Work Session was adjourned at 6:00 p.m.

______________________________

Nancy K. Freenock

Borough Secretary