NEWVILLE BOROUGH COUNCIL FEBRUARY28. 2023 AT 6:00 PM WORK SESSION/REGULAR MONTHLY MEETING The work session meeting of the Newville Borough Council was held on Tuesday, February 28, 2023 at 6:00 PM: in the Newville Borough Office, 4 West Street, Newville Pennsylvania, with the regular monthly meeting at 7:001 PM. The meeting was called to order by Council President Scott Penner. The invocation was given by Solicitor Marcus McKnight III, followed by the Pledge of Allegiance. Oni roll call, the following members were present: Robert Darius, Joey Diehl, Jack Ericksen, Pastor Joe Kindon, Also present: Borough Secretary Jody Hoffman, Solicitor Marcus McKnight, Police ChiefTodd Koser, Code/Rental Inspector JeffLine, Mayor Michael Croutch via Zoom, Sentinel reporter Maddie Seiler, another journalist, Jonathan Cox with Eckert Seamans, Jim Burkholder Public present: Tom Brink, Carmine Sciccuimno, Linda Over, Bob Over, Sharpe Over, Terry Over, Jody Roberts, Natalie Hutchinson, Bob Kanc, Vicki Witter, and Lucy Jansema. Finance and Manager's Report: Mr. Penner started the meeting with reporting the transactions for January 2023 oft the General Fund account. A list ofbills was presented that designated help for payment from the Water and Sewer Authority. They included payroll of. January 25, February 16 and February 22. Also included was. Highmark health insurance for January and February as A listofoutstanding bills was presented that will: need to be addressed in the near future. Those bills included insurances, PPL electric, maintenance, Saylor's, and the tax collector bond. Mr. McKnight suggested a committee be formed toj prioritize al list ofbills to bej presented to Mid Penn Bank moving forward with a loan. He would like to discuss this further during the business discussion of the regular meeting. Mr. Ericksen showed concern over the amount due for street lighting. He asked if the borough was in jeopardy ofhaving services discontinued. Mr. McKnight replied that the bills that would not be canceled, are probably the highest. Ms. Hoffman explained that the bills presented for PPL and Saylor's show multiple months and delinquencies. She also differentiated between monthly and quarterly insurance bills. She stated her confusion that there are sO many insurance policies and questioned ift there is an overlap and duplication of coverage between them. Mr. McKnight suggested this be investigated by the new Edward Sinkovitz, and Scott Penner. with WEMA and Andrea Greene, chair oft the EDA. well as Comcast for the Borough office and the maintenance building. committee and speak with the agents representing the coverages. Pennsylvania State Association of] Boroughs Municipal Retirement Trust pension plans ending on January 31, 2023 were: Non-uniform $453,116.61 Police $274,123.36 The monthly bank statements for. January were presented as follows: Mid Penn Bank: Highway Aid/Liquid Fuels Fire Tax Street Lighting Tax Anticipation Loan General Fund Expense $4,386.51 $1,878.50 $646.79 $117.50 $313.03 F&MTrust: Page 1of8 General Fund Payroll Recreation Joint Veteran Council Newville Area Events Police Department Expense Police Grant $6,944.66 $19,597.47 $7,119.71 $846.63 $1,461.91 $82.02 $156.89 Mr. Penner added to the regular agenda to appoint Mr. Ericksen, Mr. Sinkovitz and Ms. Hoffman to form the committee of prioritizing the bills and presenting them for payment. The bills will also be emailed to Mr. Penner, Mr. McKnight and Mayor Croutch. Mr. Penner stated that approval was received today oft the STMP grant application of $200,000 from DCED. Discussions will bel held further during the regular meeting at' 7:001 PM. Administration: Pastor Kindon had nothing to report. Public Safety /Public Works: Mr. Darius reported that the street light at 54 and 561 East Main Street is out and would like tol know the procedure of reporting it. Ms. Hoffman stated ifthe pole Economic Development: Mr. Ericksen reported that the Prospect Hosting Committee had a meeting on February 7,2023 and Liz Knouse was appointed as the new chair. Bob Kanc has also joined the committee. There will be two events for 2023. The Water Wheel 5k will be held on May 20 and a business mixer combined with the annual meeting will bel held sometime ini the fall. A Big Spring High School intern will be working on web-based advertising and promotions. Mr. Ericksen voiced his concerns oft the. EDA meeting and Mr. McKnight's presentation to them concerning the situation with the borough. Mr. Ericksen would like to know what the risks would be to the EDA. He would like to have the bond counsel meet with the EDA directly at their next meeting. Mr. McKnight stated that bond counsel will be meeting with borough council during the executive session of the regular meeting. Mr. McKnight explained that the borough cannot enter into any mortgages. A mortgage cannot be placed on any oftheir properties. He explained that was. why a short-term loan to cover the months lacking in real estate: revenue was obtained with Mid Penn Bank. That can: no. longer happen and why bond counsel was obtained sO the borough can move forward and have a long-term solution. Mr. Ericksen reported the board members oft the EDA will conduct a fundraising platform. Last year they raised $30,000 and Mr. Ericksen credited Mr. Kenn Tuckey for their success. In closing, Mr. Ericksen updated the council on the trailhead project moving forward on the paving and expansion of the parking lot as well as pouring aj pad for the potential ofbicycle rentals. A CDBG grant ini the amount of $77,600 was obtained for the project. Mr. Ericksen has Ouality ofLife: Mrs. Diehl is requesting the use oft the Community Park for the PA Wounded Warriors Car Show on September 16, 2023. She reported that the Fire Company will be number could be obtained, she would report it to. PPL. He stated that the members will be attending more: mixers in the area. been in contact with the engineer, Tim Cormany, for the bid and materials. sponsoring raffle tickets for a gun safe that has been donated. Page 2of8 Recreation: Mr. Sinkovitz reported the Recreation Commission met on February 17 under new chair Mr. Matthew Kump. No events have been finalized as yet, but Mrs. Brymesser isi in the process. Two letters ofinterest have been submitted for membership. Mr. Penner suggested moving the appointments to the March 28th meeting'sa agenda. Mr. Sinkovitz asked ift the grant for the splash pad will be affected by the current situation. Mr. McKnight responded that the grant has been approved by the county and the matching funds would be a good item tol be placed on the list of the new committee. Mr. Penner stated that DCED recommended going ahead with the splash pad project as well as the improvements at the trailhead. Mr. Sinkovitz asked about the status of5 501c3 status. Mr. McKnight stated that he has put that on hold for the moment because offees that are involved. Mrs. Diehl asked ifthere would be money available this year for an assistant for Mrs. Brymesser for the summer programs. Ms. Hoffman will look at the cost from last year. The installation oft the scoreboard has been put on hold. Mayor: Mayor Croutch reported the police bank accounts at Belco for the month of. January were as follows: K9 Checking Account $3,128.67, Calendar Fund $11,524.19, Police Association $5,124.53. The Auxiliary Police Account at. ACNB has been depleted to $0 due to fees. He reported the Cumberland County Clerk of Court was $274.44 and the Magisterial District Court 09-3-02 was $661.60. Mayor Croutch stated that some bills had tol be paid from ChiefofPolice: ChiefKoser: reported 185 calls for service for the month of January. There were six traffic citations issued, four parking violations and one warning issued for traffic enforcement. Chief Koser stated that traffic enforcement had not been aj priority this month due to one less offiçer and a surge ini major cases incurred in the last month. The total for patrol mileage in January was 1,892. There are a fourteen outstanding warrants. Chief] Koser was in possession of a memorandum from the police union in regards to the staffing clause oft the police union contract. Part oft the clause states that there has to be an active civil service list at all times. Due to the current financial situation of the Borough and due to the department staffing asi iti is, ai memorandum was sent by the union to Council waiving the staffing clause in the police contract. There currently is no active civil service list at this time. Chief] Koser explained that there will be a consortium in March to interview ten to fifteen people, however with the staffing asi it is, he and the officers do not have the time toi interview or the Lt. Henneman with the PSP had reached out to ChiefKoser regarding coverage and case load after reading the article in the paper. Chief Koser explained that PSP will cover every Sunday and Monday evenings. Chief Koser will make the request through Mayor Croutch. Mrs. Hutchinson asked ChiefKoser ifat traffic survey has been done near her residence on North High Street. Chief] Koser replied that the box they use does better in warmer weather. WCCOG: Mr. Sinkovitz reported that Baker Engineering had conducted ai traffic study of the intersection ofroutes 233 and 11 to survey the increase oft traffic due to the warehouses. He also stated that PA State Rep. Barb Gleim spoke about stormwater management and the environmental impact. The concern was that when DEP and the Chesapeake Bay survey a stream, they both get different analysis. Mr. McKnight further explained that in the townships it the calendar fund and hopes to get that account reimbursed soon. ability tol hire anytime soon. He stated he would start in late March with the study. Page 3 of8 is about the environmental impact of animal waste that comes up from Virginia and Maryland. He stated that those states won'tallow the waste to be placed on: fields but DEP has not done regulations yet. Townships on their own cannot prohibit it because it is a states responsibility. Code Enforcement: Mr. Line reported that seven door hangers have been placed, has had eight verbal conversations, has received three complaints which led to two notice of violations. Hei has spoken with Southampton township regarding bulk trash pickup. Southampton has responded that the trash company is under staffed and to continue to call their office ini regards ofl large Mr. Line reported that ten! letters have been mailed regarding rental inspections. One has been completed with the next occurring in March. A notice of violation, written by Chief Koser, Legal Matters: Mr. McKnight stated that DCED has approved $250,000 grant with an exception ofaj plan for recovery. Mr. McKnight provided council with a RFP and al list ofnames ofrecommendations to execute thej plan which would be funded by the grant. Mr. McKnight introduced Jonathan Cox, Bond Counsel with Eckert Seamans. Mr. Cox has been brought in to advise the Borough on how to meet their short-term financial needs and to deal with a short-term loan that should have been paid off, into al longer-term loan along with some finances that would help restore liquidity that was lost due to these issues. Mr. McKnight further explained that municipalities cannot finance their long-term debt with mortgages. There are limited ways for boroughs to transform short term debt into long term debt and that is the purpose ofbond counsel who are experts in doing that. Mr. Cox explained that his definition oft bond is public finance counsel. He represents municipalities, public school districts and counties all over the commonwealth, specializing in municipalities with financial Mr. McKnight has spoken with DCED and the next step will be an RFP for an individual Rep. Gleim is trying to get DEP to adopt regulations toj prevent this. items remaining curbside. was delivered to 20 Fairfield Street regarding an abandoned vehicle. transactions. who would set up aj plan to meet all aspects of the financial situation right now. The Regular Monthly Meeting of the Newville Borough Council began at 7:02PM Citizen Comment: Mr. Bob Over commemorated how the gourmet club became the Fountain Festival and how the borough manager (Fred Potzer) was an integral part of founding the Fountain Festival. He also gave the history ofhow trees were brought into Newville and how Mr. Potzer was also al leading member ofthe Shade Tree Committee. Mr. Sharpe Over stated that Mr. Fred Potzer has done a lot for Newville and is sorry that this has happened. Mr. Sharpe Over commented that he had heard that the Water and Sewer Authority is paying all oft the Borough bills. He asked if that is true and ifc Council can inform the audience of what is going on. Mr. Penner stated that there is a police investigation and some of the information cannot be disclosed att this time. Mr. Penner did state that there is a: forensic audit being conducted. Mr. McKnight stated that at the end ofthat audit the Borough will be able to see where those funds went and that any speculation on amounts ofmoney is entirely premature at this time. Mr. McKnight explained that the Water and Sewer Authority has transferred some money to pay joint bills, primarily payroll and insurances. The monies transferred has been documented and as: soona as money becomes available through bond counsel, that money will be reimbursed to the Authority. Page 4 of8 Mr. McKnight clarified any rumors ofthe Authority being insolvent are completely untrue. Mr. McKnight stated that real estate taxes will be coming in and will be able to repay the Authority. Mr. McKnight reported that when Fred (Potzer) went into the hospital, accounts that both the Borough and Authority were told by Fred had balances; in reality did not. That set off alarm bells. Mr. McKnight stated that he then had to contact Mid Penn Bank to cancel the tax loan for this year. It was then discovered that no principal had been paid on the tax loans for the past three years. In moving forward, there is enough information known that things were done Ms. Jansema asked for a definition ofa forensic audit and that the District Attorney is conducting one. Mr. McKnight clarified that when the problem was discovered the District Attorney's 's office was immediately called. They arranged for the forensic audit to be conducted for the Borough and Water and Sewer Authority to see where the funds went and ifa any laws were broken. Mr. McKnight stated that a forensic audit is more detailed and show exactly where the funds went. Ms. Roberts questioned how the bills are being prioritized. Mr. McKnight stated that the: main priority right nowi is the employees and insurances. Hei reported that at the same time water and sewer started receiving payments for the fourth quarter of 2022. The. Authority stepped in to cover some of the payrolls for the Borough and those payments have been logged A question was asked as to why these discrepancies were: not detected sooner. Mr. McKnight replied that Fred (Potzer) was: never questioned because ofhis warm personality and involvement with the community. Mr. McKnight stated that as far as managing the finances of both the Borough and Authority, Mr. Potzer was never questioned. Mr. McKnight stated that one ofthel biggest tell was that Fred: never took a day off. The day Fred went to the hospital, it was soon after that things started to appear that couldn'tbe explained. Ms. Witter asked ifo other people were: involved. Mr. McKnight replied that that is not something that can be discussed at this time during the investigation however, he pointed out that all the council members are here and not running away from the situation. He also remarked that all the employees are also committed to continuing with business and ongoing events and activities. Mr. McKnight explained that both the Borough and the Authority were told untruths by Mr. Potzer and that is the definition of willful misconduct which caused him to be fired. A question was asked concerning the yearly audits that were required. Mr. McKnight stated that the person responsible Andrea Greene, chairman ofthel Economic Development Authority, thanked the Borough Council, Mr. McKnight and the Borough secretary for their hard work moving forward. She relayed that on May 20th, the EDA will be hosting their second annual Waterwheel 5k with the Cumberland Valley Rails to Trails at the trailhead. On behalf oft the EDA, she is requesting a waiver for the open container ordinance for the event. She stated the time frame for the event will be approximately 8:30 AM until 3:001 PM. The area for beer and wine will be served in a sectioned off area, open to only those who are 21 years or older and designated with a wrist band. Mr. McKnight requested her to make this a written request that can be presented for vote at the next meeting. Mr. Penner thanked Ms. Greene for the great job she is doing with the EDA. Jim Burkholder with Western Emergency Management (WEMA) stated that he was here due to there building is located int the Borough and their truck isi insured by the Borough. In light ofwhat is happening, he would like assurance that everything is in order concerning WEMA. He iso offering a waiver to the Borough of dues this year. WEMA is planning a marathon with Big Spring High School in 2024 from the cross-country course to the rail trail and into Shippensburg inappropriately and thati is why he (Fred) is no longer the manager. and will be reimbursed back to the Authority. for obtaining the audits was Fred (Potzer). Page! 5of8 Borough and back. He explained that he will be starting the EOP this year because oft the expanse ofthe operation. There are seven intersections that will need patrol with fire police on the trail. He estimated that this will be sometime in September (2024) and has already contacted Shippensburg, South Newton, Newville Firehouse and EMS, as well as other local fire companies. The command center will be located at Oakville since it is the center point ofthe trail. Mr. Penner thanked Mr. Burkholder for every thing WEMA does for the community. Mr. Tom Brink asked council ifthere would be any interest in having an e-waste day on a Saturday afternoon for the Borough. Mr. Brink would like tol have aj place to set up and also advertise the event on1 the website. He is unable to take CRTtelevisions. Mr. Brink would not charge for this service. Mr. McKnight asked that Mr. Brink get county approval. He explained that he sets up with North Newton Township twice a year and takes their electronics. He also stated that Staples takes small printer for free. Mr. Penner asked that Mr. Brink submit aj proposal Consent Agenda: The consent agenda consists oft the approval oft the minutes of. January 31, 2023, approval ofthe list ofbills for. January 2023, approval oft the Treasurers report for January, A1 motion was made by Mr. Sinkovitz, seconded by Mr. Darius to accept the Consent Agenda. All were in favor. Motion carried with six (6) affirmative and zero (0) negative votes. Legal Matters: Mr. McKnight requested an Executive Session to discuss information required and date for the next meeting. and all the reports oft the department heads. prior to the vote of Council. Old Business: There was nothing to discuss regarding old business. New Business: a. Amotion was made by Mrs. Diehl, seconded by Pastor Kindon to close the appropriate streets for the Fountain Festival Parade on June 16, 2023 and the Fountain Festival on June 17,2023. All were in favor. Motion carried with six (6) affirmative and zero (0) Amotion was made by Mr. Sinkovitz, seconded by Mrs. Diehl to approve a rest stop at the Newville Trailhead on Sunday, September 17,2023 from 7:00. AM to 3:00 PMI by the Harrisburg Bicycle Club. All were: in favor. Motion carried with six (6) affirmative and d. A motion was made by Mrs. Diehl, seconded by Mr. Sinkovitz to authorize Meg Feaser ofthe Big Spring Post Grad Committee to place a banner advertising their Spring Fling car and craft fundraiser on the bridge coming into Newville Borough. All were: in favor. An motion was made by Pastor Kindon, seconded by Mr. Sinkovitz to approve the use of the Community Park on Sunday, April 2, 2023 from 11 PM to 5F PM: for the #ForNewville annual egg hunt. All were in favor. Motion carried with six (6) affirmative and zero (0) f. A motion was made by Mrs. Diehl, seconded by Pastor Kindon to approve the use oft the Community Park on Fridays for Summer Faith and Fun Days, starting on. June 16, 2023 negative votes. b. Item will be discussed during Executive Session, prior to voting. zero (0): negative votes. Motion carried with six (6) affirmative and zero (0): negative votes. negative votes. Page 6 of8 and concluding on August 11, 2023. All were in favor. Motion carried with six (6) Amotion was made by Mrs. Diehl, seconded by Pastor Kindon to approve a committee of. Jack Ericksen, Ed Sinkovitz and Jody Hoffman to review and prioritize bills to be paid by the Borough. All were in favor. Motion carried with six (6) affirmative and zero (0) h. An motion was made by Mr. Sinkovitz, seconded by Mr. Ericksen to approve the use of the Community Park for the PA Wheels for Warriors Car Show on September 16, 2023 with ai rain date of September 23, 2023. All were in favor. Motion carried with six (6) affirmative and zero (0) negative votes. negative votes. affirmative and zero (0) negative votes. Correspondence: Ms. Hoffman reported that Representative Barb Gleim had called giving an update on two items she has proposed. Both are. in memory of SFC Randall Shugart. She would like the bridge at the mill be named after him and also aj portion ofPA 641 from Springfield to Executive Session: A motion was made by Pastor Kindon, seconded by Mrs. Diehl at 7:551 PM to discuss financial and legal matters. All were in favor. Motion carried with six (6) affirmative Amotion was made by Mr. Sinkovitz, seconded by Mr. Darius to return to Regular Session at 9:29 PM. All were in favor. Motion carried with six (6) affirmative and zero (0) negative votes. Mr. McKnight stated that during the Executive Session, legal and finançial b.A Ai motion wasi made by Mrs. Diehl, seconded by Mr. Ericksen to approve the Council President to sign the Forensic and Consulting Accounting Services Engagement Letter with Boyer and Ritter contingent on1 the approval oft the STMP grant from DCED, to be paid for with funds from the STMP Grant when those funds are released. Aller were in favor. Motion carried Green Hill. Both are in the preliminary stages with PennDOT. and zero (0) negative votes. information was discussed and no decisions were made. with six (6) affirmative and zero (0) negative votes. Amotion was made by Mr. Sinkovitz, seconded by Mrs. Diehl to move forward with the Newville EDA on al lease transaction for 4 West Street. All were in favor. Motion carried with Adjournment: With not further business to come before the Newville Borough Council, the meeting was adjourned at 9:33 PM on ai motion by Mr. Sinkovitz, seconded by Mrs. Diehl. All were in favor. Motion carried with six (6) affirmative and zero (0) negative votes. six (6) affirmative and zero (0) negative votes. Minutes recorded by: duonan Jody Hoflman Borough Secretary/Ireasurer Upcoming Meetings: Newville Borough Planning Commission March 8, 2023 at 7:00. PM Page 70 of8 Newville Borough EDA March 15, 2023 at 7:001 PM Newville Borough Water and Sewer Authority March 20, 2023 at 7:00 PM Newville Recreation Commission March 21, 2023 at 7:00 PM Newville Borough Council March 28, 2023 Work Session 6:001 PM- - Regular Meeting at 7:00. PM Page 8 of8