Montrose Boro working with municipal authority

BY PAT FARNELLI

Montrose Borough Council, which decided to co-sign on a bank loan for the Montrose Municipal Authority at a special meeting July 14, heard progress reports on meetings and correspondence between the two organizations Monday night.

Councilman Sean Granahan reported that he and the borough treasurer had visited the municipal authority office, and that the accounting records were very much in order.

“The records were very neat, organized, clear, and available,” Granahan said.

He recommended that the authority obtain a newer version of Quickbooks, as the authority’s computer programs for billing are not compatible with Quickbooks, and if they used a compatible program it would simplify their accounting.

He also recommended that they work out a system to accept credit card payments, and make it possible for borough residents to pay their sewer bill by credit card at the Montrose municipal building.

Granahan said that several council members will attend the MMA’s August meeting next Monday night at 7 p.m.

The council has met with the Montrose Municipal Authority several times over the last month, and worked out an agreement regarding the borough’s co-signing of a bank loan for the sewer company’s construction project. The upgrade is necessary because the sewer is presently out of compliance with Department of Environmental Protection standards.

The council stipulated that as a condition for co-signing on the loan, every piece of correspondence regarding the loan, Fulton Bank, and the USDA funding must be copied and sent to the council without waiting for a meeting.

The contractor for the borough building, Smith Caterson, has been adjudged sales tax for the building, because it is a prefabricated modular structure and is considered housing.

Craig Reimel countered that the council has maintained that it is a government building and not used for sleeping, and is not housing. “They are quoting PA code saying that this is housing, and if they looked at the next section in the code, it deals with our situation. I am saying that it is not housing- we are a subdivision of Pennsylvania government, and not taxable.”

One visitor asked if the building had a functioning kitchen, which it does not, although there is a refrigerator and a microwave in the building.

Reimel said, “If they are successful in calling this building housing, then every township or borough using a prefab building is taxable.”

Granahan said, “It seems that they are trying to establish that anything prefabricated is housing.”

The sales tax would amount to 60 percent of the cost of the building multiplied by six percent, or $3,800 plus interest and penalties.

The borough solicitor, Marian O’Malley, said that she would write a letter on the council’s behalf as well as the contractor’s,  to the Department of Revenue concerning the borough building’s status.

A letter was received from the Restoration Committee concerning a grant received by the committee in 2006 for the painting of facades in the borough. Some residents only have credit card receipts or cancelled checks to document their paint expenses, and therefore did not properly invoice the committee. There is a question of whether these residents will be reimbursed.

The committee’s lighting plans need to be submitted to PennDOT as part of a grant application for hazard mitigation.

Reimel was appointed as Chief Administrative Officer for Pension Plans. Tom LaMont was appointed to the street committee. Policeman James Smith was appointed zoning officer, with the stipulation that he serve at both positions no more than 37.5 hours total.

Surface treatment bids were opened, and Vestal Asphalt was awarded for their low bid of $53,746.25. It was noted that SuitCote did not bid on the road paving job, as it was too busy at present.

The municipal parking lot paving bids were opened, and the low bid was awarded to Broome Bituminous for $29,740. Paris Paving was the other bidder, at $39,800. The two bids were in different units, feet and yards, so some quick math calculations had to be performed.

The borough will advertise its earned income tax for the September regular meeting. The county central tax bureau will be collecting the EIT.

During the street department report, it was noted that Ken DiPhillips had requested two loads of topsoil for pipe installation work, at $390.22, and 210 new locks for parking meters. These requests were both approved. DiPhillips received mulch/compost turning equipment back from Forest Lake, which included a tractor and turner.