BOROUGH OF BRIDGEPORT COUNCIL MEETING MINUTES FEBRUARY 24, 2009 Borough of Bridgeport Council Meeting Minutes Tuesday, February 24, 2009 Bi-monthly meeting (Business Meeting) convened at 7:45 PM on Tuesday February 24, 2009 in the chambers of the Bridgeport Borough Hall. Council President Jack Kowal led the Pledge of Allegiance to the Flag. ROLL CALL PRESENT President J. Kowal Vice President T. Pruskowski Council Members: J. Gadzicki J. Galleo J. Pizza P, Kohut ABSENT J. Foley K. Frymoyer ALSO PRESENT Mayor J. Nicola Borough Manager A. DiSanto Solicitor Rep. S. Bello Borough Engineer E Woyden Admin. Assist. M. Dickinson Executive Session: Mr. Bello: reported there was an Executive Session from 7:00 PM to 7:45 PM to discuss personnel issues and the acquiring of real estate in the Borough. Agenda: 1.State Representative Tim Briggs,D-149th District Mr. Briggs thanked Council for inviting him here tonight to meet with them and advised Council he has opened his office in King of Prussia for all of the residents in the District and will also open satellite offices throughout the District. The Bridgeport Borough Hall location for the time being will be used every other week and this will be advertised in the Times Herald. Mr., Briggs said his office telephone number is 610-768-3135. Mr. Briggs said he is looking forward to working with Council and the residents in his district that need assistance to call his office so he could try to help meet their needs. 2. Keystone Opportunity Zone Mr. Edward Campbell: representing O’Neill Properties Mr. Campbell: told Council this was a follow-up to the meeting two weeks ago to ask for the request for the Borough of Bridgeport to participate in the designation of the non residential portion of the property to be designated as a KOZ district. This designation provides for the incentive for business owners to come to the property and invest in the property and to support people in that property. It is a significant catalyst for that type of development. The State law requires that all three local taxing entities adopt a resolution or ordinance opting for in certain pieces of properties in their jurisdictions. The three entities are the local municipality (Bridgeport) the local school district (Upper Merion Area School District, and the County (Montgomery). All three are required to adopt a resolution opting in or recognizing a piece of property within their district and it regulations subject to KOZ. If all three do this, we as a property owner in conjunction with the three entities make an application to DCED and we are prohibited from asking Council to adopt a resolution that doesn’t mirror or follow what the state code requires. The state code requires that the local municipalities waive in particular earned income tax from those individuals who reside within the KOZ district. Mr. Campbell said it was not the intention of the developer to develop the KOZ district as residential. The statue does not require the collection of the KOZ tax from people who work there. If you were to adopt the resolution, the people who work there would not be exempt from paying EIT, only if this were built as residential. The current approval for the eastern or southern end of the property is for 250 multi-family residential units. It will take a good 18 to 24 months to WWW.BOROUGHOFBRIDGEPORT.COM BOROUGH OF BRIDGEPORT COUNCIL MEETING MINUTES FEBRUARY 24, 2009 build it and market it. Mr. O’Neill sent a letter to Council which expresses his desire to work with the Borough, that should market conditions develops, the developer expresses his intention of not building residential under the KOZ district. Mr. Bello: acknowledges that the Borough would work together in that event, however, we acknowledge that it may not be something that can be waived by the Borough and or the developer. Mr. Campbell: the developer will work with the Borough in everyway that is reasonable to give every assurance of that. This is different then what was brought before Council two weeks ago. It is better to do it correctly, to do what is consistent with the DECD and case law requirements.. Mr. Campbell: If we get approval tonight, it is the first step of several steps to be taken to make this a reality and we will go to the School district next. Mr. Campbell presented to Council a conceptual layout of what would be built and Council and audience had an opportunity to view what is proposed to be built on the Riverfront. Mr. Bello: (referred to a letter dated 2/23/2009), this letter is relied upon to consider application this evening and there were two clarifications that were going to be forthcoming. Mr. Bello said he anticipates receiving a letter tomorrow. Mr. Campbell: Yes, the price of EDU in Mr. O’Neill’s letter. The price of the EDU’s will be the earlier price on the EDU’s and the balance of the EDU’s will be what you set, currently $4200.00. The intention of the letter is to pay what is required to be paid at the time they are required to be paid. Mr. Bello: For clarification, there is no attempt by O’Neill to lock us in to a price, rather a reflection of what is being charged by the Borough in the event there is a reassessment of the rate at some future rate would be the actual rate for EDU’s at the time of commercial construction. Mr. Campbell: This is true, with one caveat; this thought that the cost would be locked in for the next three years. Mr. Bello: If this is permissible by law. If the Borough is inclined to favorable rule tonight, that would be included. Mr. Campbell: It is a value to client that when they go to their lenders that the (EDU’s) cost would be identified. As the building permits are issued, we will pay for EDU’s. Mr. Bello: The grandfathered EDU’s will be used last, so the income to the Borough will be maximized before the EDU’s are utilized by O’Neill in that development Questions: Council – None Audience- None 1. Motion to adopt Resolution 2009-003, Keystone Opportunity Zone the Borough of Bridgeport Motion made by Council Member Pizza and seconded by Council Member Kohut. Questions- None – Council approved 6-0 2. Motion to accept the resignation of Council Member Summer Keirsey with regret as of February 24, 2009 Motion made by Council Member Kohut and seconded by Council Member Pizza Questions: None- Council approved 6-0 Council President Kowal announced that Council will accept application for the vacant seat in the First Ward until March 6, 2009. Applications should be sent to the Borough Manager and received by that date. 3. Motion to adopt Ordinance 2009-004 Agreement with Lafayette Ambulance to provide service to the Borough of Bridgeport Motion made by Council Member Pizza and seconded by Council Member Galleo Questions: Mr. Bello commented that this is continuation of the existing service that the Borough is using now. Council approved – 5-1 with Mr. Pruskowski recuseing himself because he is on the Board at Lafayette Ambulance 4. Motion to adopt Resolution 2009-005 repealing Resolution 2007-026 Regarding condemnation of properties at 57 and 59 West Fourth St Motion made by Council Member Pizza and seconded by Council Member Gadzicki Council approved 6-0 5. Motion to approve Minutes from January 27th and February 10th, 2009 Minutes Motion made by Council Member Kohut and seconded by Council Member Pizza Questions- None -Council approved 6-0 WWW.BOROUGHOFBRIDGEPORT.COM BOROUGH OF BRIDGEPORT COUNCIL MEETING MINUTES FEBRUARY 24, 2009 6. Motion to pay all Bills and Salaries Motion made by Council Member Pruskowski and seconded by Council Member Pizza Questions- None – Council approved 6-0 7. Other Business from Council None From the Public Mr. Dave Cantello, 128 W. 5th Street, regarding the tax increase for Borough ‘s real estate tax and said his taxes were increased by 41% and asked about the letter sent to tax payers there was an increase in taxes to cover the additional cost that the Borough will have to face for the new year. Mr. Cantello asked about the salary increase of 9% and asked who salary was it that caused the increase in taxes? Mr. DiSanto- the 9% increase was the addition of a new laborer and the money that the Borough had to pay to the Police for their 2008 contract. Mr. Bello: -That was not a per person increase, it was a comparable to 2008 and 2009 salaries and the addition of employees rated 9%. Mr. Kowal: There are contracts that had to be met also. Mr. Kowal: ten years the Borough Council agreed to a consent order with DEP for a sewer project costing $6 million dollars and there are grants that will reimburse us up to 80%, but the Borough needs to have the money up front to pay for these things. Mr. Kowal: This was not an easy thing for Council to do, but it had to be done. Mr. Cantello: This was a shock to the community to see this increase. Ms. Pat Watson: why did council have to jump this up all at one time, why not a little at a time, because there are people in the Borough who are having a rough time? Did every one vote yes to the increase? Mr. Kowal: There was one no vote. The person who voted no for the budget also voted yes for all the projects in the budget. Ms. Watson: there should have been a small percentage at a time. Ms. Watson said she is very disappointed. Mrs. Marlene Mastercola, 518 Prospect- Why was this a surprise that taxes were going to be raised 41%? Why could this have been advertised that the taxes were going up? Mr. Kowal: The Borough advertises that there is a budget meeting hearings are advertised in the paper and all council meeting s are advertised as required. Mr. Jim Falcone-421 Prospect Avenue- expressed his concern about the increase is caused with the cost of a $6 million project, why wasn’t taxes increased before, along the time? It would have been easier to manage the taxes. Mr. Kowal: Because there were no tax increases before, there was no escrow money set aside for this cost. Mr. Falcone: Is there any way for people to pay this in installments? Mr. Kowal: I am not sure if this is a legal issue? Mr. Bello: This can be looked up and answered. Ms. Grace Crescente, 425 Prospect Avenue- asked about the Homestead Act that was applied for about 3 years ago. Did Bridgeport follow thru with this? Mr. Bello: This was a County program and it is not available to the Borough’s tax base. Mr. Kowal: It was a reduction in the assessment. Mr. Pruskowski: This was something that each individual had to opt into. Mr. Kohut:: This is because UM Township has so much revenue from the businesses in the township; their taxes are the lowest in the state. The Homestead Act has to do with the school district. Miah McCall, 427 Prospect Ave.- regarding grants and funding, would like to hear more about this and can we tie in with the stimulus money to get some of our money back. Mr. Woyden: The Borough has a combined sewer overflows; this is a very undesirable system that water overflows into the river with sewage.. WWW.BOROUGHOFBRIDGEPORT.COM BOROUGH OF BRIDGEPORT COUNCIL MEETING MINUTES FEBRUARY 24, 2009 The Borough has secured originally a $2million grant from the state, which is almost unheard of, and that is what has funded the majority of the work over the last 5-6 years. There is still a million and a half to be applied to the project. Borough Council went to Washington to secure $400,000 and then an additional $200,000 with a total of $600,000 in federal money. Mr. Bello: we are required to do this within the time frame now, or the DEP can begin assessing damages against the Borough for not having done it. So while we can continue to get money there is no guarantee that we will get money, we have to demonstrate to the DEP that we have the money to do the job or suffer consequences Mr. Woyden: for years the Borough Council has tried their best to negotiate with the DEP and the EPA, but there is a legal document called an Consent Order and Agreement, if you do live up to the agreement you can be fined $2000.00/day. By July under the current calendar we are suppose to be building sewer lines. To do that, it was necessary to go out and borrow money and if we get some grant money, we can borrow down. Ms.McCall: The money if it had been done earlier the money would have gone further and will our next year tax bill lower next year if we get some of this money from the federal money? Mr. Pruskowski: given to the state of the economy and the projects that are planned come through, The Borough may be in a position to issue a tax credit, but at this time we are not. The Council has cut where they could to keep the increase as low as possible and many things were hard cut to save money. Mr. Falcone- the EIT that may not increase this year, there is a problem that needs to be addressed because there are people living in the Borough who do not pay the fair share of their taxes and something needs to be done to collect the funds from residents in the Borough who do pay their earned income tax because they go unreported. Gina Plisiewicz, 104 W., 5h Street, where we had the salary increase, did anybody say they didn’t want the increase, turn back the money? Mr. Kowal: not to my knowledge. Ms. Plisiewicz: Did anyone on council give back their money? Mr. Kowal: Council gives one month’s salary for the scholarship fund. Mr. Plisiewicz: felt the increase that administration received should have been given back. Ms. Plisiewicz: thanked the two police officers who assisted at her home when her family needed assistance. Mr. Cantello: asked about the trash service and why couldn’t the Borough get someone cheaper? Mr. Bello: The Borough and West Norriton are only two local governments that are not tied into the trash to steam plant and we are in better situation that other local governments that must use the trash to steam plant. Mr. Cantello: If my taxes are not paid what would happen? Mr. Bello: In general, the property is liened; this is a county wide process. Mr. Pruskowski: There is a contract for the trash service and this will go up yearly by contract. Ms. Watson: asked about the time that JP Mascaro built their plant, we were not to pay for trash service, doesn’t anyone remember this? Mr. Kowal: Mr. Chuck Volpe told the Borough this, not JP Mascaro, they did not build this plant. Mr. Volpe went bankrupt. Mr. Bello: there were some representations made by Mr. Volpe, but however, there was a bankruptcy filing and in the context of the bankruptcy, the contracts can be rejected, and there was an understanding reached with Mascaro that was the most favorable agreement at the time that could be obtained, and Mr. Bello was not involved, but believes it was a favorable agreement, but as a fact were able to get out of going to the trash to steam plant when our existing contract is gotten out of and did not know if it was advisable to get out of the contract. Mr. Bello replied he did not feel comfortable discussing the trash to steam contract. Ms. Gadzicki: told the audience that about two weeks ago she met with Congressman Sestak and Governor Rendell and spoke about the H2O moneys and they are well aware of Bridgeport’s financial situation and Ms. Gadzicki said she is confident that we will get money back. Mr. Falcone: would like to know when we are going to get the fair share of tax dollars from every resident in the Borough. Mr. Kowal: we are all aware there are ordinances that need to be enforced and will get the Borough Manager to see that they are enforced. We have investigative parties and employees that will see to that. Mr. Falcone: who are suppose to do this? Mr. Kowal: we have a code enforcement officer and we also have police officers who are to enforce the ordinances. WWW.BOROUGHOFBRIDGEPORT.COM BOROUGH OF BRIDGEPORT COUNCIL MEETING MINUTES FEBRUARY 24, 2009 Mr. Bello: If anyone as a citizen sees something that needs to be looked into, they should inform the Borough. Mr. Kowal thanked everyone in attendance and informed all that Council meets on the 2nd and 4th Tuesday of every month and all are welcomed at these meetings. Adjournment: Motion made by Council Member Pizza and seconded by Council Member Galleo to adjourn this meeting at 8:55 PM. Questions- None – Council approved 6-0 Respectfully submitted, Mary Jo Dickinson Recording Secretary WWW.BOROUGHOFBRIDGEPORT.COM
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