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Pen Argyl Borough Monthly Minutes | Archive

Tuesday 26th of July 2016 - Special Council Meeting

            Pen Argyl Borough Council held a Special Meeting on Tuesday, July 26, 2016 at 7:00 P.M.

in the Fire Hall.


            The Special Meeting was held for the purpose of Council and the Pen Argyl Municipal Authority to review and take possible action regarding the enactment of Ordinance #690 authorizing the refinancing of lease rental debt and for other general business purposes.


Pledge of Allegiance:  

            Council President Michael Nasatka opened the Council Meeting with the Pledge of Allegiance.


Roll Call: 

            The following Council members were present and responded to roll call: Michael Nasatka, Charles Kandl Jr., Joseph LeDonne, Dean Minnich, Roberta Cowley and Robert O’Donnell.  Councilmen Jan Surotchak and Angelo Uliana were absent.


            Also present were Borough Solicitor Peter Layman and Borough Manager Robin Zmoda.



            Joseph Budis, Penn Morris Corporation asked to be reinstated as the contractor of the Weona Park Pavilion Project. Council did not act upon the request.


Assistant Secretary Appointment:

            Councilman Dean Minnich made a motion to adopt Resolution #2016-06 appointing Borough Manager Robin Zmoda as Assistant Secretary, seconded by Councilwoman Roberta Cowley.  Unanimous vote by roll call.


Joint Meeting with Borough Municipal Authority:

            Councilman Dean Minnich made a motion to hold a joint meeting with the Borough Municipal Authority to discuss the refinancing of the 2012 and 2013 Bonds, seconded by Councilwoman Roberta Cowley.  Unanimous vote by roll call.


            John Cuono. Municipal Authority Chairman, called their meeting to order.  In  attendance were; John Cuono, Michael Zavacky, Craig Ealey, Rose Rinker, Dale Houck, Attorney Terence Faul, Engineer Charles Myers and Secretary Ann Ealey.


Discussion of the refinancing of the 2012 and 2013 Bonds:

            Bond Consultant Kevin Reid from Sewer Authority Attorney Terence Faul’s office was present.  Reid stated that the Authority has to approve the refinancing of the bonds and also to pass a resolution to refinance the bonds and the Borough will have to adopt a new ordinance to pay off the bonds.


            Stephen Flaherty, RBC Capitol Markets, gave an overview of the refunding opportunity.  Utilizing the one time opportunity to do an advance refunding on a bond issuance and reducing debt service by two (2) years will allow for a savings of $123,058.31.  Other benefits include no trustee fees, control over reserve fund investments and flexibility to prepay loan at any time without penalty.      

           The present value of bond debt is $5,262,269.50 and the loan debt service will be $5,070,000.00.


            The Municipal Authority adopted and passed a resolution authorizing the advance redemption of the 2012 and 2013 bonds and the issuance of 2016 bonds.


            The Borough Council had to approve Ordinance #690 determining to incur lease rental debt in the maximum aggregate principal amount of $6,660,000, to be evidenced by a fourth Supplemental lease Agreement with the Borough Municipal Authority.  Councilman Dean Minnich made a motion to accept and approve ordinance #690 as prepared, seconded by Councilman Joseph LeDonne.  Unanimous vote by roll.


            Council President Michael Nasatka inquired about the centrifuge project and asked if the centrifuge was online and working.  Engineer Charles Myers stated there was an operational issue with signaling but he thought it would be smoothed out by the end of the week. There were also some construction issues that are presently being worked on.


            Borough Manager Robin Zmoda confirmed there will be a Sewer Committee meeting on Monday, August 1, 2016 at 4:30.


            The Authority Members left the Council Meeting after this discussion.


Public Works:

            On July 26, 2016 bids were received for 2016 Streets Reconstruction Project.  Bid one (1) was requested for improvements to Delabole Junction Road, Bid two (2) through four (4) included stand alone bids for improvements to W. Plainfield Avenue, South Main Street and Flory Avenue.  Only Two (2) bids were received one (1) for W. Plainfield Ave from Gaver Industries, Inc DBA as Barker and Barker, 910 14th Avenue, Bethlehem, PA.  Base bid was $223,775.00, with an add alternate bid of $9,300.00 for FORTI-FI for a total of $233,175.00.  The same company bid on Flory Avenue in the base bid amount of $56,950.00 and add alternate bid of $4,000.00 for the FORTI-FI, for a total of $60,950.00.  Borough Manager Zmoda told Council the bid for W. Plainfield Avenue was $73,000.00 more than the estimate but that the Flory Avenue was very close.  Borough Engineer Robert Cox had sent a letter to Council recommending awarding the Flory Avenue bid, but tabling the W. Plainfield Avenue bid until further analysis could be done to determine why the bid was so high.  Councilman Charles Kandl Jr. made a motion to accept Gaver’s base bid and add alternate bid for the Flory Avenue project in the amount of $60,950.00, seconded by Councilman Dean Minnich. Unanimous vote by roll call.


            Council tabled the awarding of W. Plainfield Avenue bid until further evaluation could be done.


            Discussion was held regarding the other street projects advertised and how to proceed.  Zmoda suggested that the Borough hold off and rebid these projects the same time they are bidding the B Street project next year. Council will further discussion at August Council meeting.


Ballard Spahr:

            Councilwoman Roberta Cowley made a motion to transfer the Borough’s labor and employment files from Ballard Spahr LLP to Campbell, Durrant, Beatty, Palombo & Miller, P.C. in order to continue representation by John McLaughlin and Patrick Harvey, seconded by Councilman Joseph LeDonne. Unanimous vote by roll call.



            Councilman Joseph LeDonne made a motion to approve the Minutes for the Regular Council Meeting of Tuesday, July 5, 2016, seconded by Councilwoman Roberta Cowley.  Unanimous vote by roll call.


Executive Session:

            Councilman Dean Minnich made a motion to go into Executive Session to discuss personnel issues and potential litigation, seconded by Councilman Joseph LeDonne. Unanimous vote by roll call. 


Council went into Executive Session at 7:50 P. M. and reconvened at 8:25 P. M.


PennDOT Project:

            Councilwoman Roberta Cowley made a motion to authorize Solicitor Layman to draft a letter to James D Morissey, Inc. regarding the use of the Weonamore section of Weona Park, seconded by Councilman Charles Kandl Jr.  Unanimous vote by roll call.




            Councilman Charles Kandl Jr. made a motion to adjourn, seconded by Councilwoman Roberta Cowley.  Unanimous by voice vote.  Council adjourned at 8:27 P.M


Council Meeting-Tuesday, August 2, 2016-7:00 P.M

Council Workshop-Tuesday, August 30, 2016-7:00 P.M


                                                                                                            Respectfully Submitted,



                                                                                                            Robin Zmoda

                                                                                                            Borough Manager