Before
THE TOBYHANNA TOWNSHIP BOARD OF SUPERVISORS
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In Re: Special Meeting to adopt the 2010
Proposed Annual Budget.
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Tobyhanna Township Government Center Building
State Avenue
Pocono Pines, Pennsylvania 18350
Monday, December 21, 2009, beginning at 3:30 p.m.
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PRESENT: JOHN E. KERRICK, Chairperson
HEIDI PICKARD, Vice-Chairperson
JAMIE B. KEENER, Board Member
PATRICK ARMSTRONG, ESQUIRE, Solicitor
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Panko Reporting
537 Sarah Street, 2nd Floor
Stroudsburg, Pennsylvania 18360
(570) 421-3620
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(Pledge of Allegiance.)
2 MR. KERRICK: First item on our
3 agenda, Resolution 2009-025, Appropriations.
4 MS. PICKARD: This is general
5 fund appropriations. The information is on the
6 sheet -- just to clean up accounts that were
7 slightly over.
8 So I'll make a motion we approve
9 Resolution 2009-025, Appropriations.
10 MR. KEENER: Second.
11 MR. KERRICK: Motion and second.
12 Questions or comments from the
13 board? Questions or comments from the public?
14 Call the vote. Jamie.
15 MR. KEENER: I vote in favor.
16 MR. KERRICK: Anne.
17 MRS. LAMBERTON: I vote in
18 favor.
19 MR. KERRICK: Heidi.
20 MS. PICKARD: I vote in favor.
21 MR. KERRICK: I vote in favor.
22 Motion carries.
23 Next item, consider to award the
24 equipment bid for 2010.
25 MS. PICKARD: We received bids
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1 from Locust Ridge Contractors and Papillon and
2 Moyer Construction. And I had our solicitor review
3 everything. He did have a question on the Locust
4 Ridge.
5 MR. ARMSTRONG: Bid bond.
6 MR. KERRICK: It said 10 percent
7 of whatever the bid was.
8 MS. PICKARD: Well, the total.
9 MR. KERRICK: In my world it's
10 common. Maybe not in your world.
11 MR. ARMSTRONG: I just wanted to
12 bring it to the board's attention.
13 MS. PICKARD: We sent the specs
14 out to bid as one prevailing wage and one
15 nonprevailing wage and Papillon and Moyer is
16 cheaper by 15,000 on the total of the two.
17 Bids were opened Friday at noon
18 and John and myself and Bob McHale went through
19 them.
20 MR. KERRICK: Each one at a
21 prevailing wage and general wage. Then you've got
22 to pull the tab out. That's prevailing wage. Each
23 one should be right behind it.
24 Locust Ridge Quarry was 128,066,
25 the prevailing wage. Papillon and Moyer was
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1 102,640 prevailing wage. Locust Ridge
2 nonprevailing, 94,214 and Papillon and Moyer is
3 97,298. So 215 total with the two numbers together
4 on Locust Ridge; 199,938 Papillon and Moyer. A
5 difference of 18,226 between the two, after you add
6 the two together.
7 MS. PICKARD: I'll make a motion
8 we award the equipment rental bid out to Papillon
9 and Moyer in the amount totalling 199,938.
10 MR. KEENER: Second.
11 MR. KERRICK: Motion and second
12 to award the bid. Questions or comments from the
13 board? Questions or comments from the public?
14 Call the vote. Jaime.
15 MR. KEENER: I vote in favor.
16 MR. KERRICK: Anne.
17 MRS. LAMBERTON: I'll abstain.
18 MR. KERRICK: Heidi.
19 MS. PICKARD: Vote in favor.
20 MR. KERRICK: I vote in favor.
21 Motion carried.
22 Next item on our agenda is
23 Resolution 2009-026. Adopt the budget for the year
24 2010, fiscal year 2010.
25 Any comments, Heidi?
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1 MS. PICKARD: None. Just to say
2 it's a tight budget.
3 I'll make a motion to approve
4 Resolution 2009-026, 2010 Budget.
5 MR. KEENER: Second.
6 MR. KERRICK: Motion and second.
7 Questions or comments? Questions or comments from
8 the public?
9 MR. EVANS: Taxes going up,
10 down, staying the same?
11 MR. KERRICK: Staying the same.
12 MR. EVANS: With the exception
13 of the EMS?
14 MR. KERRICK: With the exception
15 of the Local Services.
16 MR. KEENER: Certainly in these
17 difficult times, I think it is -- we don't want to
18 raise taxes, but that's one opportunity that we
19 feel if you look at the surrounding municipalities,
20 most of them have already enacted that tax.
21 Certainly we've held out as long as we could, but
22 with the revenue shortfalls we realized this past
23 year and 2009, we felt it would be something that
24 would give us a little bit of --
25 MR. EVANS: Does that stay here?
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1 The tax stays in the township? It's not like the
2 --
3 MS. PICKARD: Earned Income Tax,
4 no.
5 MR. EVANS: -- the Earned Income
6 Tax which goes back to the home municipality?
7 MS. PICKARD: No. We spoke with
8 Centax and probably half the people we're
9 collecting from are from out of the township.
10 Mostly it's the school district, American Freight
11 Ways, individuals that work here, but do not pay
12 taxes.
13 MR. KEENER: Of course, I reside
14 here and work in Pocono Township, so they are
15 getting mine and have for years.
16 MR. EVANS: And now Tobyhanna
17 Township will get it?
18 MRS. LAMBERTON: No, it's where
19 you work.
20 MR. EVANS: It's where you work.
21 MS. PICKARD: Back to the
22 question, the total millage remains at 15.19, and
23 that's three quarters of a mill for the library and
24 point 7 for the fire apparatus.
25 MR. ARMSTRONG: Jeff, do you
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1 work in the township?
2 MR. EVANS: Yes. Well, I get
3 paid in this township. Some would debate whether
4 or not I work. I'd be happy to contribute. I
5 remember when there wasn't an Earned Income Tax
6 here.
7 MS. PICKARD: That wasn't that
8 long ago. That was '94, wasn't it?
9 MR. EVANS: It was one of the
10 last townships.
11 MR. KERRICK: I think Tunk was
12 the last. We were next to the last.
13 Call the vote. Jaime.
14 MR. KEENER: I vote in favor.
15 MR. KERRICK: Anne.
16 MRS. LAMBERTON: I vote in
17 favor.
18 MR. KERRICK: Heidi.
19 MS. PICKARD: I vote in favor.
20 MR. KERRICK: I vote in favor.
21 Motion carries.
22 MS. HEIDI: One other item. Due
23 to our fund increase we had been talking what the
24 appropriate amount to carry over was. We didn't
25 have some more money in there that we felt was
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1 necessary, so we need to make a motion that we
2 appropriate 200,000 and put that into the
3 contingency reserve fund. And I'll make it.
4 MR. KEENER: I'll second the
5 motion.
6 MS. PICKARD: The general funds
7 account.
8 MR. KERRICK: To contingency.
9 MS. PICKARD: To contingency.
10 MR. KERRICK: Motion and second.
11 Questions or comments from the board? Questions or
12 comments from the public? Call the vote. Jamie.
13 MR. KEENER: I vote in favor.
14 MR. KERRICK: Anne.
15 MRS. LAMBERTON: I vote in
16 favor.
17 MR. KERRICK: Heidi.
18 MS. PICKARD: I vote in favor.
19 MR. KERRICK: I vote in favor.
20 Motion carries.
21 Board have anything else it
22 wishes to discuss? Mr. Evans.
23 MR. EVANS: I wanted to bring
24 you up to date on the pedestrian bicycle trail and
25 path. We finally did get out to bid. It's been
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1 advertised twice. We had a prebid meeting last
2 Thursday. John Kerrick and Bob McHale attended
3 that on behalf of the township. And the bids are
4 due next Wednesday. As we, you know, obviously
5 hoped, that we would get a bid that's acceptable,
6 one of the items that we were looking into in the
7 agreement that we had worked on with Patrick, we
8 were guaranteeing that the township would not have
9 any costs, and we understand that that's
10 particularly important in light of the difficult
11 economic times. As a part of that, Patrick had
12 requested that the club supply a letter of credit
13 which we were willing to do, and we are still
14 willing to do that, however, in looking into it and
15 talking with the bank, there is going to be a cost
16 of between 3 and 4 thousand dollars for us to do
17 that. And we just think that that's an unnecessary
18 cost based on the -- all the costs that we've been
19 put through by the state in dragging this on for so
20 long. Obviously, January 1st starts our 47th year
21 in operation and our auditors estimate that we have
22 30 million dollars in assets in the township in
23 land and in improvements, so we are not going
24 anywhere. We are constantly going to be coming
25 back to the township for new projects, so we are
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1 obviously not going to stiff the township. So we
2 just would like the board of supervisors to
3 consider whether or not you might be able to waive
4 that requirement.
5 Again, we are still making the
6 commitment that there will be no cost to the
7 township and that there is no way that the township
8 will get any costs for paying for even the
9 advertising for the project. But we just don't
10 particularly want to give the bank 3 or 4 thousand
11 dollars that we don't think is really necessary.
12 MR. ARMSTRONG: Here's my
13 concern, just for the board's consideration. You
14 know, we have an agreement with Lake Naomi as the
15 grant applicant and the grant funds cover or they
16 should cover a significant portion of the project.
17 I think there is an outstanding amount that's
18 probably going to be in excess of the grant. Am I
19 correct?
20 MR. EVANS: Well, no. That's
21 already been paid up front. The club paid all the
22 engineering costs to be able to get to the point of
23 going to bid. We don't know where the bids are
24 going to come in, but hopefully the bid amount is
25 going to be able to cover the costs of the bid as
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1 well as PennDOT requires an engineer be on site
2 while the construction is going on.
3 MR. ARMSTRONG: Well, my concern
4 was, as the bidding municipality, you're going to
5 be entering into a contract with whoever wins the
6 bid to construct the trail and pedestrian path and
7 bridge. The letter of credit, in my mind, was a
8 way to ensure that if for some reason you don't get
9 the grant funds or there is a shortfall, Lake Naomi
10 would then, you know -- the money in that letter of
11 credit would cover it. Because you're going to be
12 entering into a contract with the contractor for
13 this project. That was the reason behind the
14 letter of credit.
15 MR. EVANS: Right. We don't
16 fault you for recommending that.
17 MR. ARMSTRONG: So it looks like
18 now Lake Naomi is looking for a waiver or a
19 different way to secure -- I don't know if you had
20 any other ideas, Jeff. Or if the board was just
21 willing to --
22 MR. EVANS: I think the
23 agreement secures it. The letter of credit just
24 was the financial instrument.
25 MR. ARMSTRONG: Right.
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1 MR. EVANS: So I guess we are
2 trying to go on our past reputation and the fact
3 that -- I mean, just looking at it from a
4 businesses standpoint, if there were some problem
5 and the club reneged on it, obviously that would
6 cause a problem between the club and the township
7 for any future approvals or any dealings that we
8 would have and we certainly would not do that
9 regardless, but I think that the township's secure
10 in that particular -- the agreement calls that we
11 are on the lamb for the money even if you don't
12 have the letter of credit. We stand by that. We
13 are not asking you to waive that. We are just
14 asking you to waive the formality of the letter of
15 credit.
16 MR. KEENER: For the required
17 public improvement.
18 MR. KERRICK: I can't see them
19 spend another three, four thousand dollars. You
20 had an agreement there. I understand Pat's
21 position, but it's still a little different than
22 from some of the other projects we had. You have
23 to weight each one individually. And I can't see
24 it. I would rather see them put that money towards
25 a project --
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1 MRS. LAMBERTON: The contractor
2 is bonded, right?
3 MR. ARMSTRONG: No. This would
4 be for --
5 MR. KERRICK: For additional
6 costs. The contractor is bonded for the project
7 for the cost if he doesn't finish.
8 MR. ARMSTRONG: The letter of
9 credit that Lake Naomi was going to provide was to
10 ensure the contractor gets paid in the event that
11 the grant funds were not supplied to the township
12 or, you know, there was an excess charge that the
13 grant didn't apply for, so the township wouldn't be
14 on the hook.
15 MR. KERRICK: But aren't they
16 going to sign an agreement saying they are
17 responsible for all --
18 MR. EVANS: We already signed
19 that.
20 MR. KERRICK: You're looking for
21 additional insurance.
22 MR. ARMSTRONG: Right. And
23 that's my job.
24 MR. KERRICK: I understand.
25 MR. ARMSTRONG: If the board is
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1 willing to waive it, that's a decision of the
2 board.
3 MRS. LAMBERTON: The agreement
4 holds the same weight that they've already signed,
5 correct?
6 MR. ARMSTRONG: Right. I mean,
7 the difference would be -- I'm not -- you know, I
8 can't vote, so I'm just going to lay it out for
9 you.
10 MR. KEENER: Who is requesting
11 the letter of credit, the bank or --
12 MR. KERRICK: Pat.
13 MR. ARMSTRONG: It's in the
14 agreement with Lake Naomi. My understanding is you
15 went to the bank and they indicated that there was
16 going to be a charge of three, four thousand
17 dollars to get it.
18 MR. EVANS: Yeah. It's a
19 percentage of that. A percentage and a half. They
20 don't finalize that until they see the actual
21 language and that type of thing. Quite frankly, in
22 a worse case scenario, I'd rather give the township
23 the three or four thousand dollars. To give it to
24 the bank, when we know -- for something that we
25 know that, one, we are not going to renege on and
15
1 that, two, that we have the PennDOT funds. PennDOT
2 has been -- we couldn't go out for bid until
3 PennDOT says it's okay. We can't award the
4 contract until PennDOT says it's okay.
5 MR. ARMSTRONG: The difference
6 for the board's perspective is, if you have a
7 letter of credit and for some reason you don't get
8 the grant funds and you don't have enough and Lake
9 Naomi says they don't want to pay for the amount
10 due, you can go in there, take it and pay the
11 contractor. If it's not there and all you have is
12 the agreement, in the same scenario -- I'm not
13 saying it's going to happen, Jeff. Hopefully it
14 won't.
15 MR. EVANS: You don't offend me
16 by doing your job, Patrick. And hopefully I don't
17 offend you by coming here and asking you for the
18 waiver.
19 MR. ARMSTRONG: Absolutely not.
20 The difference between the letter of credit, if you
21 just have the agreement and that same scenario came
22 up, you have to get the agreement. You'd have to
23 go through the process of going to the court, you
24 know, enforcing the agreement. That's the
25 difference. The letter of credit is there. It's
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1 there. If you need it, you just take it, pay it.
2 That's the difference.
3 MS. PICKARD: You had mentioned
4 Jeff that you paid all the up-front engineering
5 costs and everything. What's this, a quarter
6 million dollar grant?
7 MR. EVANS: $380,000 and we paid
8 about $185,000 to date.
9 MS. PICKARD: Wild guess, the
10 range of the -- you're not talking like $300,000
11 worth of work is it or no?
12 MR. EVANS: Oh, yes.
13 MS. PICKARD: It is. The
14 construction part?
15 MR. EVANS: Right. Because
16 there is a 100 foot bridge that's quite expensive.
17 That could be $100,000 alone, just the bridge. So
18 we are thinking that construction costs are
19 probably in the high 200s, and then the only
20 engineering dollars that PennDOT allows to be paid
21 out of the grant if for the actual supervision of
22 the project. All of the original estimate of the
23 engineering to get to that point when we first
24 applied for the grant was like 60 or 70 thousand
25 dollars. But they have changed the requirements so
17
1 often, as you may know, just recently in trying to
2 get a DEP approval for the wetlands which they had
3 twice -- they had previously approved and then
4 renewed once. When we asked for a second renewal,
5 because of the length of time that they had dragged
6 it out, they looked back and saw where the Lehigh
7 had now been upgraded and since Tunk drains into
8 the Lehigh, we now had to go back and individually
9 permit three wetland crossings. So it's just --
10 you know, it's a great project, but obviously I
11 don't envy what you go through dealing with these
12 agencies all the time.
13 MR. ARMSTRONG: The only other
14 thing, my last two sentences, the secondary purpose
15 of the LOC is, and you know that it's a
16 reimbursement grant, which means there will be some
17 wait time between getting those reimbursed funds
18 from PennDOT, and in the interim, if there was a
19 reason for the contractor to demand payment before
20 you get those funds, that LOC was also in place for
21 you to be able to touch those as well. But if the
22 applicant is indicating that if there does come a
23 need --
24 MR. EVANS: We would front those
25 funds.
18
1 MR. ARMSTRONG: I don't know if
2 the agreement actually addressed that aspect of it,
3 but it may have.
4 MR. EVANS: I know in your and
5 my discussion, we had addressed that. I think the
6 bid documents actually say --
7 MR. ARMSTRONG: Yeah. We made
8 it clear to all the contractors bidding that it's a
9 reimbursement grant and they are subject to the
10 grant policy or procedures.
11 MR. KERRICK: What is the
12 board's pleasure?
13 MR. KEENER: I make a motion we
14 waive the letter of credit requirement in the
15 agreement with Lake Naomi Club for the pedestrian
16 walkway project.
17 MS. PICKARD: I'll second it.
18 MR. KERRICK: Motion and second.
19 Questions or comments?
20 Call the vote. Questions or
21 comment from the public? Jaime.
22 MR. KEENER: Vote in favor.
23 MR. KERRICK: Anne.
24 MRS. LAMBERTON: I vote in
25 favor.
19
1 MR. KERRICK: Heidi.
2 MS. PICKARD: Vote in favor.
3 MR. KERRICK: I vote in favor.
4 Motion carried.
5 MR. EVANS: Thank you.
6 MR. KERRICK: Anything else,
7 Jeff?
8 MR. EVANS: No.
9 MR. KEENER: I make a motion we
10 adjourn.
11 MR. KERRICK: So moved.
12 MRS. LAMBERTON: Second.
13 MR. KERRICK: Adjourned.
14 (Meeting adjourned at 4 p.m.)
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7 I hereby certify that the
8 proceedings and evidence are contained fully and
9 accurately in the notes taken by me at the hearing
10 in the above matter; and that the foregoing is a
11 true and correct transcript of the same.
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15 JOSEPHINE HOLLMAN, C.R.
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