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HomeMy WebLinkAbout2023-06-14 Commissioner Minutes WEDNESDAY, JUNE 14, 2023 The Franklin County Commissioners met Wednesday, June 14, 2023, with the following members present: David S. Keller, John T. Flannery and Robert G. Ziobrowski. Chairman Keller presided and after calling the meeting to order, a Moment of Silence, and the Pledge of Allegiance, proceeded with the business of the day. The meeting was live streamed. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved to adopt the agenda. There was no public comment. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved all bills presented and ordered paid. The minutes of the June 7, 2023 meeting were reviewed. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved the minutes. The Board reviewed Agreements, Contracts and Reports. Chairman Keller asked John Boozer, Project Manager, to explain the two change orders for the Courthouse Annex project that are on the action listing. Mr. Boozer explained that board action item two is a deduct in the to take advantage of as we get a better product for this at a reduced cost. He worked with the engineering team and the contractors to take advantage of this opportunity. He continued that we used the aquatherm product very successfully at the Administration Building we are currently sitting in and there is a good track record here. Chairman Keller asked Mr. Boozer to explain aquatherm. Mr. Boozer explained that aquatherm is a manufacturer of a PVC based product that is used for the water recirculation system for the heating and air conditioning system. Mr. Boozer explained that item three is a change in the sewer ejector pump in the basement at the Courthouse Annex. This is upgrading a pump from a $6,000 pump to $11,000 pump to allow us to have less potential problems when we have products going through our system that need to be ground up and ejected more rapidly. He is highly recommending this as a good investment issues are all taken care of and if they are proceeding in earnest with the construction? Mr. Boozer responded that they always believe that hazmat is gone and taken care of and to the didn't know were there originally and did find in the course of the demolition but th some of those areas. At this point they are ahead of the schedule that he looks at every day. He is pleased with all the contractors and things are progressing very well with the project. The items will be decided upon in the afternoon session. The Board met with Charles Martin, Human Resources Generalist, and Second Deputy Controller Donna Bonebrake for Salary Board matters. Also in attendance was President Judge Shawn Meyers in person. Court Administrator Mark Singer and Chief Probation Officer Doug Wilburne both attended virtually. John Frey from PFM Financial Advisors, LLC, was present to provide an update and to discuss the continued financing plan for the court facility improvement projects that the County is undertaking. Commissioner Ziobrowski asked the Chairman to put into context what the County is borrowing the money for. Chairman Keller said this is entirely for the Courthouse Annex renovation project which is the last phase of the Court Facilities Improvement Project. John Frey explained the interest rate chart to give an update on the market and market Continued on page 2 commentary. He stated that it remains a good time to borrow on a long term basis which is what he is proposing the County do in the next several months. He explained that over the last year the feds have continued to raise the short term rates to try to slow down inflation and the economy. That does increase the short term rates relative to historical averages but as they can see they will be borrowing on the long end of the curve which is below average which is good news because the long term borrow rates have come down since that peak time. So the federal reserve is doing what it needs to do on the short end of the curve but the long end of the curve is still attractive. In summary, it still remains a important as their financial advisor to know this because this is how they structure new bonds to fit nicely into the existing debt portfolio. He provided a summary of the continued financing plan and in May of 2018 the County settled on $55 million of bonds which was the largest financing the County has undertaken for the Judicial Center Complex and for the Administration Building. Then in 2021 towards the end of the year $7 million was issued for deposit into the project fund to finalize the Judicial Center and Historic Courthouse. He continued that currently work is focused on the Courthouse Annex and any other residual costs that may arise from the improvement project. As far as timing, it does look like things are progressing nicely and moving along with speed. The cash is dwindling so there is a need for financing an estimated projects are scheduled to be completed which is scheduled for approximately April of 2024. Mr. Frey provided the two step financing plan that he put together to try to get approximately $15 service payments. He explained the two step financing plan would be to do $10 million this fall and then next spring or early January the County can borrow and settle in March for $5 million. The two step financing plan is something the County has taken advantage of in the past; the IRS gives certain tax benefits for investors on $10 million and under a year. If we do the $10 million this year and $5 million, or under $10 million, next year you get a lower interest rate on the bond as well as a more beneficial refinancing call day so we can refinance sooner than if we did a nonbank qualified bond issue. In addition, with the step two plan the county can work with project folks over the winter to come up with exactly what is needed and try to right size that last bond issue This is basically a placeholder for what $5 million would look like and we can adjust accordingly depending on the project needs and timing. The plan is to try to lock in the interest will start to get together the financial documents needed for the bond issue and work with the His office would need to proceed with the credit rating process. The County is rated double A County has been doing over the past couple of years and all the financials as well as a call with them to go over the documents. They then would be in a position to come here at the August nd 2 board meeting. He explained that during the lunch hour there would be a competitive internet auction to actually find investors where the lowest bid would win providing the lowest rates then he comes back in the e vote to approve the series 2023 bonds and at that point the rates would be locked in with their acceptance that night. Then it takes time to settle on the bonds via the state timeline and they th estimate the County would have the funds in the project fund by September 12 which would be and then in the fall and winter discussions will continue with the County to be prepared as early as January to have another bond sale if funds are needed that quickly to get the last amount needed. If there is more time we could adjust into February and have continued dialogue on that. The debt service estimates are well within what were estimated by the Fiscal Department so the current millage rate would not be impacted by this financing plan. Chairman Keller from the very beginning to borrow dollars as needed both because of the timing of various phases of the project but also as a hedge against interest rate movements. He likes the two step plan for all the reasons that Mr. Frey mentioned, in particular the earlier option to refinance Continued on page 3 decade and doing so has helped us maintain that strong bond rating and financial position so he that the renovation of the Courthouse Annex will allow us to finally consolidate all the court related operations in downtown Chambersburg. When we started this whole project we had some experts look at what the impact would be to our operations over time by establishing that one stop shop and the expectation at that time was because of reductions in travel of court related employees going back and forth to downtown and other related expenses we would conservatively save about $400,000 a year. He thinks this is going to improve our financial position going forward and give the County some breathing room in terms of operational expenses so that is something that we should all be proud of and it should be noted for the Chairman asked for a motion to authorize staff to work with Mr. Frey to move forward with the plan as presented. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved as stated. Chairman Keller said that Teresa Beckner, Fiscal Director, today but the Board thanks her and Carrie and her team for their efforts as well. The Board recessed and will reconvene at 2:00 p.m. for final approval of the items that were reviewed. The Board reconvened at 2:00 p.m. There was no public comment. The Board reviewed Aging Office matters. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved for the Chairman of the Board to execute the Senior Community Center Grant Agreement between the County of Franklin and PA Department of Aging for a grant award in the amount of $35,000.00 to be used to replace the The Board reviewed Commissioners Office matters. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved for the Chairman of the Board to execute the Change Order #001 from Stouffer Mechanical Contractor, LLC for the Franklin County Courthouse Annex Renovation Project mechanical construction for the difference between specified material and aquatherm for a decreased amount of $53,913.84. The Board reviewed additional Commissioners Office matters. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved for the Chairman of the Board to execute the Change Order #001 from Stouffer Mechanical Contractor, LLC for the Franklin County Courthouse Annex Renovation Project plumbing construction for a reduced pump rate for SSP-1A and SSP-1B for an increased amount of $5,211.78. The Board reviewed Community Connections matters. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved the lease between the County of Franklin and Terra Seco 2 LLC for the HUD Permanent Supportive Housing Lease Program (SHP I/II) that covers the total rent plus any landlord covered utilities for their program participants. The lease is at a cost of $10,300.00 for the period of June 1, 2023 through August 1, 2024. The County holds the Lease with the landlord and the program participant subleases from the County. Program participants are responsible for utilities that are not included in the adjusted gross income for the year. Participants are linked with Supportive Services and case management to assist them with maintaining permanent stable housing. Continued on page 4 The Board reviewed Grants Management matters. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved Professional Services agreement between the County of Franklin and United Way of Pennsylvania for the County to be the subcontractor of the Eastern PA Continuum of Care Grant to pay for staff salary and benefits during the grant period of five (5) months in the amount of $12,000. In addition, funding for administration costs of $1,000 is included. Financial assistance funding of $7,000 will be used to aid homeless families. These funds will be used to pay for rental application fees, PennDOT IDs, and security deposits for apartments when other support resources are not available. The Board reviewed Sheriff Office matters. On a motion by John T. Flannery, seconded by Robert G. Ziobrowski; unanimously approved for the Chairman of the Board to execute the quote from McCandless Ford for purchase of a 2023 Ford Police Interceptor for an amount of $38,779.00 and a quote from Utilitac Equipment and Upfitting for purchase and installation of a specifically designed K9 up-fit package in the vehicle at a cost of $24,684.81and a quote from Motorola Solutions for purchase of an emergency radio for inside of the vehicle at a cost of $9,807.76. The total of $73,271.57 will be paid for through the Local Share Grant the County Support grant in The meeting was adjourned at 2:03 p.m. with a motion by John T. Flannery; seconded by Robert G. Ziobrowski. Carrie E. Gray County Administrator/Chief Clerk FRANKLIN COUNTY COMMISSIONERS ____________________________________ David S. Keller, Chairman ____________________________________ John T. Flannery ___________________________________ Robert G. Ziobrowski