Connellsville authority maneuvering to obtain needed funding
By a unanimous vote, the board members directed authority secretary Kim Petko to notify local financial institutions that the authority will now seek a $500,000 line of credit instead of a $1 million credit line it had sought in July. The reduction came after Scottdale Bank and Trust Co. had requested collateral be posted by the agency if it were to provide a $1 million line of credit. The lending institution had provided the lowest interest rate for the short-term loan needed to cover interim costs tied to a proposed $3.4 million project.
However, board members did not favor a proposal from the bank that it mortgage its property.
Board member Rod Gunderson recommended that all local banks be provided with the new information and ask to submit loan interest rates for the reduced amount.
The infrastructural project, meanwhile, is moving forward, said Widmer Engineering Inc. engineer John Tomaro.
“Our survey crews are out collecting data,” he said. “We’ve got a lot of work done.”
The project is tied to federal mandates to remove combined sewer overflows (CSOs) that collect and transfer excess water from drains, broken pipes and other sources.
The board has agreed to apply for a PENNVEST low-interest loan to fund the project. Prior to the application, however, the authority is required to obtain a permit from the state Department of Environmental Protection to undertake the project.
Turning to unrelated matters, the board again tabled action to replace 17 windows and a door in one of the authority facilities.
Last month, after reviewing a lone bid of $36,500 for the project the board opted to have the bidder again look at the building to see if the cost could be reduced.
Tomaro said that after meeting with the representative, the bid “was fair.”
“You’re getting a good product for the money you are spending,” he said.
The replacement was to curtail heating costs for the 48-year-old facility.
Board member Walter Scheller proposed the board consider installing storm windows instead of replacing the current windows, speculating the cost would be reduced to approximately $15,000 with the purchase of a door and installation by plant employees.
The board requested Tomaro and plant superintendent Gary Pennington provide utility cost savings and warranty information for the two proposals.
In other action, the board conducted the following business:
Approved the $48,730 UPMC insurance rate for employee health insurance for 2009.
Learned that the 2009 minimum municipal obligation rate for the employee pension plan is $31,516.