Two Scranton city councilmen Thursday expressed alarm and shock at revelations about the city’s distressed pension system reported by The Times-Tribune this week, and called for immediate review of pension ordinances and revisions where applicable.
Councilman Wayne Evans found the newspaper articles “both enlightening and disturbing.” He restated various pension reforms that he has been calling for since Nov. 20, including: that new hires go into a hybrid pension plan similar to a 401(k); transfer of all nonunion employees into a hybrid plan; and that future payments of the landmark arbitration court award overdue to police and fire unions go into their pension funds.
The newspaper’s finding included that: around 50 percent of the city’s police and fire retirees are on disability pensions, as compared with a fraction of that percentage for comparable cities; the city pension ordinance does not preclude disabled retirees from taking other jobs, even ones similar to the position from which they were deemed to be permanently disabled; the ordinance does not allow the city to re-examine disabled retirees to ensure they remain disabled; and the city does not enforce an ordinance that allows it to reduce pensions of certain disabled retirees who become re-employed.
“We have a systemic problem that must be fixed immediately through ordinance,” Mr. Evans said. “After thoroughly reading the information presented (in The Times-Tribune series), if anything it is my goal that we can finally agree the goose that laid the golden egg, like Elvis, has left the building. Only drastic, radical change in the way we do business will change our future.”
Mr. Evans continued: “We are paying $5.2 million (a year) toward the disability pensions and comparable cities are paying approximately 10 percent or less of that amount is absolutely shocking. I would hope to see an ordinance from the administration that addresses and corrects the deficiencies in the current system, and must include among other things a re-examination clause.”
Councilman Bill Gaughan said council and its solicitor should immediately review all policies, protocols and ordinances to identify any revisions that can be implemented. Council then should present its revisions to the mayor to get them enacted.
“I am extremely alarmed and concerned over decisions and abuses in the past that have greatly contributed to our pension distress. It is very clear that we must act immediately to reform our pension ordinances,” Mr. Gaughan said. “Stringent safeguards must be put in place to avoid cases of fraud and abuse.”
In other matters:
• Council unanimously adopted, on an emergency basis, an ordinance authorizing the city’s borrowing of a $13 million tax-anticipation note for 2015. Because the loan proceeds are needed to fund payrolls in January, and Thursday was council’s final regular meeting of 2014, council introduced, advanced and adopted the TAN ordinance all at Thursday’s meeting, instead of handling the ordinance the usual way through three separate meetings. Council President Bob McGoff and members Joe Wechsler, Pat Rogan, Mr. Evans, and Mr. Gaughan all voted in favor of the TAN ordinance during each step of the process. In a caucus before council’s regular meeting, city Business Administrator David Bulzoni explained that the TAN from Amalgamated Bank of New York has better terms than last year’s TAN from capital markets firm IFS Securities of Atlanta. The total cost of the 2015 TAN to the city will be $471,685, as compared to the total costs of the 2014 TAN of $787,149, he said. That means the city will be paying $315,464 less in costs for the 2015 TAN, a sign of improvement, said Mr. Bulzoni and council members. Council members noted that city solictor Jason Shrive and council solicitor Amil Minora also will not receive fees from TAN proceeds. Former city and council solicitors received fees from two prior recent TANs.
• Mr. Gaughan also asked council to go on record with the state Department of Environmental Protection opposing the proposed 47-year expansion of Keystone Sanitary Landfill straddling Dunmore and Throop. Council members agreed to send a letter from council stating its opposition to the landfill’s proposed expansion.
• Council voted 4-1 to adopt an ordinance rezoning the former Audubon school to benefit Geisinger Community Medical Center that’s buying the property from Scranton School District. Mr. Evans cast the lone dissent, because he believes the rezoning is akin to spot zoning. Residents Ozzie Quinn and Bob Bolus agreed. Mr. Rogan said the property is better off developed than vacant, and Mr. McGoff noted the school had never been residential. Council initially approved the rezoning in May, but GCMC sought a do-over to correct a city deficiency of public notices posted too late for that prior rezoning. Before council’s regular meeting Thursday, council held a public hearing on the rezoning, and this time had posted notices on the property in a timely manner. Resident Edmund Scacchitti who lives near the school and opposed the rezoning in May restated his opposition, calling the rezoning a city “giveaway” expansion of hospital’s footprint. Downton resident Paul Narcoonis also opposed the rezoning and expressed concern about nonprofits expanding in city.
• Council voted 4-0-1, with Mr. Gaughan abstaining, to adopt an ordinance to sell for $2,500 a tax-delinquent, vacant, nonbuildable property at 94 Crane St. in Minooka to Mr. Gaughan’s parents, John and Marie Gaughan of 99 Crane St. The lot is assessed at $1,800 and was appraised at a fair market value of $2,500. The tax-delinquent property was involved in a city treasurer’s tax sale in 2012, and its sale to the nearby residents comes under a mechanism known as the Pittsburgh Plan for getting such lots back on the tax rolls.
In other matters, council voted 5-0 on each of the following:
• To adopt a “quality of life” ticketing ordinance regarding property maintenance nuisances, such as littering, unmowed lawns, using indoor furniture outdoors and junk and abandoned vehicles, to name a few. Residents Marie Schumacher, Dave Dobrzyn and Tom Ungvarsky expressed various concerns about this ordinance and urged council to table it for further review. Council members noted that the violations covered in the ordinance already exist and it only streamlines enforcement. The ordinance will allow for the equivalent of a parking ticket for nuisances, instead of the lengthier citation process.
• To adopt an ordinance dedicating the greenway along Leggett’s Creek in North Scranton to be known as “Donald and Edith McLane Leggett’s Creek Greenway.”
• To adopt an ordinance amending a prior ordinance on dog licenses, to increase the dog license fee from $20 to $35, and keeping the fee at $20 for senior citizens age 65 and older.
• To adopt an ordinance amending a prior ordinance on contractor permits and fees, increasing permit fees under a new fee schedule.
• To advance on second reading and then adopt an ordinance to increase annual license and test fees.
• To adopt a resolution authorizing the city to contract with Valero Fleet Services for the purchase of gasoline and diesel fuel for city vehicles during 2015.
• To adopt a resolution authorizing the city to contract with Santarelli and Sons Oil Co. Inc. for the purchase of low-sulfur diesel fuel for the Department of Public Works on Poplar Street during 2015.