Borough to receive money from Cal U’s SAI
CALIFORNIA – California Borough Council Thursday approved an agreement with the California University of Pennsylvania student association that will bring $650,000 to the borough over the next 35 years. The payments will be made in lieu of taxes for two new residence halls that will be constructed at the university. Clyde and Stanley Halls are being torn down this year to make room for the construction of two new dormitories.
The construction of the housing units, dubbed Phase IV, is being built on state-owned property leased by Student Association Inc. (SAI) that is exempt from property taxes.
Solicitor Keith Melenyzer explained that instead of getting into litigation to challenge the legality of SAI not paying property taxes, the agreement has been reached that payments will be made to the borough beginning Oct. 1, 2006, and continuing through 2040.
The two new dorms are slated for completion in the fall of 2006.
Melenyzer said the payments begin at an amount of $12,000 per year in 2006 and increase and become larger by 2040.
In recommending approval of the agreement, Melenyzer said it guarantees some money for the borough.
“We’re not getting money from anything on the state property. This gives us something,” he said.
The borough has similar agreements with the university regarding the two Jefferson at California off-campus student housing complexes to receive payments in lieu of taxes, but does not receive any money for the three new dormitories that opened in August 2004.
In other business, council voted to send borough police officer Aldo Filoni, the School Resource Officer, to a DARE (Drug Abuse Resistance Education) instructor training class May 2nd to 13th in Elizabethtown.
Although the Masonic Lodge has proposed paying for Filoni’s lodging, if that is not approved, the borough will pay for the lodging.
While council discussed using DARE money to pay Filoni’s salary while he attends the class, it was decided to use borough funds to pay Filoni and keep the DARE money to use for the program.
A motion was approved to keep the compensation rate for the borough tax collector at 3 1/2 percent for the next four years. The tax collector also receives 5 percent for delinquent collection, and that will remain unchanged.
As a part of the motion, council voted to continue paying for the supplies of the tax collector.
Municipalities have until Feb. 15 to change the tax collection rate for the next four-year period.
Following a suggestion by Patsy Alfano, council voted to enter into a purchasing agreement with the state for the purchase of salt for next year.
Although the state contracts run from August to August, the borough is already in another agreement until January 2006. However, Alfano said he believes the borough will realize a substantial savings, since they are currently paying $47 per ton and the state price is $33 per ton.
The agreement is for 200 tons, and 60 percent of that amount must be purchased, and the borough can purchase up to 40 percent over the proposed amount. Alfano said the borough generally uses 500 tons of salt in a normal winter season.
Alfano also agreed to look into options for a new fuel tank. Melenyzer said the current tank is an environmental hazard.
Alfano also mentioned there still remains a vacancy on the recreation authority, as not one letter of interest has come in.
“We’re looking for a motivated person who cares about making improvements to recreation opportunities,” he said.
Harris mentioned that individuals from the Acacias fraternity have been volunteering to shovel snow for the elderly in the neighborhood, and they should be commended for it.