Meeting Minutes Jan. 13, 2010

I. Call to Order
The Wednesday, January 13, 2010 meeting of the Centre County Tax Collection
Committee (CCTCC) was called to order at 7:00PM with Randy Brown, Chair, presiding.
The meeting was held in the Bellefonte High School Library. The Pledge of Allegiance
was taken.

Mr. Brown mentioned that we have attempted to establish an environment through a
change in seating location for the delegates. We ask that the voting delegates for each
meeting sit in the designated location. Alternates and those from the public in
attendance should be seated in the other seats available. As voting delegates will be
located in designated area, exchange of comments, discussion and recordkeeping by
the secretary will be aided. Other individuals in attendance will be provided with a
public comment period.

II. Roll Call
Mr. Bean conducted the roll call. All taxing authorities were represented except Burnside
Township, Howard Township, Miles Township, Port Matilda Borough, Snow Shoe
Borough and Union Township. Mr. Bean stated that a quorum was present.

III. Election of Assistant Secretary
Mr. Brown stated that the officers suggested to elect an Assistant Secretary. Secretary
Tom Fountaine had a professional commitment and can’t attend this meeting. The
Assistant Secretary would help with meeting minutes, preparation for meetings, etc.
Randy opened the floor for nominations. John Gribble nominated Ralph Stewart
(Bellefonte Borough). Mr. Wall (Penns Valley SD) seconded the motion. Mr. Kunkle
moved that nominations be closed. Bill MacMath seconded the motion. Mr. Stewart
was approved as Assistant Secretary.

IV. Approval of Minutes
A motion was made for approval of minutes by Mr. Kunkle (Ferguson Twp), and
seconded by Mr. MacMath (Spring Township). Mr. Leary (Gregg Twp) referred to page
2 and stated that Acts and parts thereof referenced were erroneous. It was pointed out
that the minutes reflect what the discussions were and the discussions were as stated
in the minutes whether or not erroneous. Mark Kunkle made a motion for approval of
the minutes. Amy Farkas seconded the motion. The minutes were approved.

V. Executive Committee Report:
Mr. Browns stated that the officers did meet. They discussed the bylaws and have
three comments. 1) Article I, Section 1 – consider language allowing for second
alternate. Committee solicitor Brian ? suggested the following language – at the end of
the paragraph “Taxing authorities may appoint a 2nd alternate delegate who will be
considered the voting delegate in the absence of the primary voting delegate and the
first alternate delegate.

The second item – Article II, Section II, page 6 – Bob Long (College Twp) clarify/add
language to appoint CPA to audit both TCC and Tax Collector. Consider adding DCED
language.

The third item – Article V, Section IV – allocation of costs – Ken – Expenses should be
shared in direct proportion to the amount of EIT collected by each entity. Concern –
taxing authorities that do not collect or have not sent a delegate should also pay their
proportionate share of the expenses.

Minority Report on bylaws – Mr. Leary (Gregg Twp) stated that the taxing authorities
are defined as Political Sub-divisions and should be referred to as such throughout
bylaws. Political Subdivisions should be listed in alphabetical order - in the interest of
good government, we should not have a weighted vote system – Article 14 of the U.S.
Constitution, equal protection of the law – each political subdivision should have be
equal. Quorum, Section 2 on page 3 – where it reads “A qourom shall consist of the
presence of voting delegates holding a 2/3 super-majority of the sum of all taxing
authority weighted votes….” Mr. Leary – having 29 entities be a quorum is insane and
ludicrous. Seventeen plus one or 18 should be a quorum.

Mr. Leary stated that in Section 1, each vote should be in concurrence with each
political subdivision’s governing board.

Mr. Leary referenced Section 6 Board General Powers and Duties, D. “The Board will
always have the right to direct TCC action on any matter by policy, resolution, directive,
or other measure, including a direction that reverses prior action of any committee or
officer. Any reversal of a prior action shall not negate any contract rights acquired by a
third party pursuant to a contract properly approved before the Board action reversing
the prior decision”. He stated that reversing decisions and entering into contracts or
negating them should require political subdivision approval.

In Section 7. d., Mr. Leary is against borrowing money or otherwise incurring debt
unless political subdivisions concur.

In Section 8 Mr. Leary is asking to eliminate the weighted vote system. Under section a.
“(3) Approval of purchase or sell real estate.” He believed this should require
concurrence of the political subdivision governing boards.

In Article II, Section 3. Officer Term of Office, Mr. Leary suggested taking out
“Thereafter, each officer shall hold office for a term of one (1) year” and beginning
sentence with “Starting January 1….

In Article IV, Section 5. Meeting Place – Mr. Leary stated the Committee can’t convene
a meeting without a quorum – need to have a quorum, should have a majority voting
system – this would be fair, equal – principle of good government,14th Amendment to
the U.S. Constitution

Mr. Brown asked if there were any comments. Ms. Farkus (Harris Twp) stated that no
one likes the process, but this is what has been legislated to us. Mr. Leary stands by
his minority report recommendations.

Mr. Leary made a motion to approve the bylaws with the changes he has outlined. Mr.
Thomas Sharer (Potter Twp) seconded the motion. Mr. Erickson (Patton Twp) stated
the TCC is a separate entity separately enabled and doesn’t need governing body
backing to borrow money or incur debt. What Mr. Leary is proposing would require all
governing boards to approve debt.

Mr. Marshall (solicitor) stated that the TCC could by itself borrow money, however, the
lender may require more backing from the governing bodies.

A roll call vote was taken. Mr. Bean recorded the results, which were 96.41% against
to 3.59% in favor.

Mr. Long (College Twp) suggested that under Section 8. Major Decisions should include
“approval to dissolve”.

Mr. Brown summarized the proposed changes – 1) include language in bylaws allowing
for second alternate delegate; 2) both TCC and Tax Officer are to be audited; 3)
change wording in Article V, Section 4 so that all expenses will be paid by each taxing
authority proportionate to the amount of income tax collected whether or not they are
represented by voting delegates; 4 In Section 8 under Major Decisions – include
approval to dissolve the TCC. Mr. Kunkle (Ferguson Twp) made a motion to approve
the changes to the bylaws as stated. Mr. MacMath (Spring Twp) seconded the motion.
The motion was approved by 98.21% in favor to 1.79% against.

VI.Goal Setting for CCTCC
Mr. Brown stated at the December 10th meeting, the topic of goals for the TCC was
discussed. A document was provided in the email distribution for this meeting as well as
tonight, which provides a summary of the prior discussion. Tonight we are open to
further discussion of this list in order to give a basis of evaluation of TCC decisions. He
mentioned that on the goals were falling into two categories – organizational and tax
collection process. Page one has goals for the organization and page two has goals for
the tax collection process. It was suggested that we include “investment standards
under Act 72” for the tax collection process goals. It was also suggested that we
include a well designed website under the Organizational goals. This may be covered
under the electronic filing goal.

VII. Other Business
TCC Insurance – Mr. Brown reported that the Executive Committee along with
our solicitor has continued to research the appropriate level of insurance for our group.
We have been reviewing various policy proposals and will continue to do so. A
recommendation will be brought to the group at a future meeting.

Future Presentations - The York/Adams County Tax Bureau is scheduled to make a
presentation at the February 18, 2010 meeting.

Additional presentations include a municipal collector and a third party. State College
Borough will make a presentation at the March meeting. In addition, the Executive
Committee is accepting names of third party tax collectors to contact for making a
presentation as well. Ideally, both of these presentations would be scheduled for the
same meeting.

Educational opportunity – Mr. Brown stated that DCED will present a webinar
titled “Act 32, EIT Best Practices Report” on February 23, 2010 at 2 p.m. The State
College Borough Municipal Building at 243 South Allen St., State College, PA. Please
RSVP to Sharon Ergler at sergler@statecollegepa.us by January 15, 2010. Session
materials will be provided.

Data Request – Mr. Brown explained that in order to prepare for the upcoming
RFP process and to prepare for other TCC decisions, a document requesting tax
revenue, taxpayer and employer data was distributed earlier this week. Please return
the completed data document to his attention, electronically rlb21@scasd.org or
papercopy to 131 W. Nittany Ave., State College, PA 16801.

VIII. Public Comment
There was no public comment.

IX.Future Meeting Dates
The following dates have been selected based upon a survey completed since the last
meeting.
Thursday, February 18, 2010
Wednesday, March 24, 2010
Thursday, April 22, 2010

Mr. Brown asked if there were any additional items for the good of the order. Some
questions were made relating to making amendments to the bylaws and submitting
them to the TCC. Article VIII Bylaw Amendments states that proposed amendments be
given to all delegates at least ten (10) days prior to the Board meeting.

X. Adjournment
A motion was made for adjournment by Mr. Kunkle (Ferguson Twp) and seconded by Mr. Wall (Penns Valley SD)