PML June Board Packet

Section 2. COMPOSITION OF COMMITTEES. No standing committee of the League shall have less than five (5) members and shall not have an even number of members. Section 3. CREDENTIALS COMMITTEE. The credentials committee shall have the power to determine the right of any member municipality to be represented at the annual convention of the League, as well as the right or qualification of any person to act for or on behalf of a qualified member municipality at such convention. Section 4. FINANCE AND BUSINESS DEVELOPMENT COMMITTEE. The committee shall review the budget prepared by the executive director, and submit for approval of the board of directors, a budget appropriating such sums as may be proper within the purpose of the League, to be used throughout the ensuing year for the proper expenses of the League. The committee shall also review any proposals for development of League business programs submitted by the executive director and recommend such actions by the board of directors as the committee deems appropriate. SECTION 5. LEGISLATIVE COMMITTEE. The committee is charged with the responsibility to review policy issues confronting local government, and implementing the goals/objectives of the League's legislative program before the State General Assembly and administration, as well as the Congress and Federal Government, when necessary. The committee also serves as a committee of the whole working with the League's 'key' legislative contact network to coordinate the 'grassroots' lobbying effort on legislative issues. The committee shall have the following responsibilities, and any others, as may from time to time be directed by the board of directors and/or executive director. a. Participate to such extent as may be necessary in connection with legislation proposed or existing before the state and national legislative assemblies for the purpose of promoting the objectives of the League, or to safeguard its interests and activities and those of its members. b. Interpret and/or develop recommended League policy in regard to policy issues and/or existing or proposed legislation. Where no policy exists, make recommendations to the board of directors for the necessary policy changes. c. Prepare or supervise the preparation of proposed bills implementing those policies approved by the League. d. Do such other things and perform such other duties as are within the scope of the committee, whether specifically enumerated herein or not. The general control of the committee shall be determined by the board of directors. SECTION 6. BYLAWS COMMITTEE. It shall be the duty of this committee to review the bylaws from time to time as may be required, and to make recommendations for amendments that would enable the affairs of the League to be handled with greater ease and efficiency. ARTICLE VIII - ANNUAL CONVENTION Section 1. ANNUAL MEETING. The League shall hold an annual meeting at least once in each year, in the summer, to be held at such place and time as the board of directors may fix. a. At the annual meeting of the League, the order of business shall be as follows: (1) Roll Call (2) Reports of Officers (3) Reports of Executive Director (4) Reports of Standing Committees (5) Reports of Other Committees (6) Addresses, papers, and discussions (7) Election of Officers and Directors-at-Large (8) Other Business (9) Adjournment b. PARLIAMENTARY AUTHORITY. Robert's Rules of Order (revised) shall govern and control the actions and deliberations of the League assembled in convention. Section 2. REPRESENTATION. Each member municipality shall be entitled to representation at the annual convention by its elective and appointive officers and employees. Section 3. QUORUM. The presence of the appointed delegates representing a majority of the member municipalities registered at the annual convention shall constitute a quorum. 5

Section 4. VOTING. Each member municipality shall be entitled to one vote by its legislative body, except in a mayor-council form of government where the delegate shall be appointed by the mayor. Where there is more than one nominee for office, the voting shall only be by written, printed or typed ballot. All other voting shall be by showing of hands; except that upon request of one-third (1/3) of the delegates present a roll call vote or if so stated in the request, a weighted roll call vote shall be had upon any question. Upon any vote, a majority of delegates present and voting shall prevail, except upon questions which require more than a majority vote under any of the provisions of these bylaws. Section 5. CONVENTION COMMITTEES. The president shall, at the appropriate time, appoint a convention program committee, a resolutions committee, a nominating committee and such other committees deemed necessary to handle matters in connection with the annual convention. a. CONVENTION PROGRAM. It shall be the duty of the executive director, with the approval of the convention program committee, to prepare a program of the business sessions for the convention, secure speakers, arrange topics for discussion and in all respects to work in close cooperation with the local convention committee in the municipality in which the meeting is being held, in order that a complete schedule for the business activities of the convention may be worked out. b. RESOLUTIONS COMMITTEE. The resolutions committee shall be appointed at least 90 days prior to the convening of the annual convention. At least one (1) member of said committee shall be a municipal solicitor. The resolutions committee shall meet on the opening day of the convention to consider submitted resolutions. Resolutions shall be submitted for the committee's consideration at the district meetings or to the League office at least forty-five (45) days prior to the convening of the convention. Resolutions so submitted shall be forwarded by the League under the signature of the chair of the resolutions committee to each member municipality at least 30 days prior to the convening of the convention. The report of the resolutions committee shall be submitted to the convention at the time called for in the convention program. Resolutions which are favorably reported by the resolutions committee shall be adopted upon the approval of a majority of the appointed delegates present and voting. At the request of a sponsor of a resolution not favorably reported by the resolutions committee, such resolution, following a reading in full, and co-sponsored by seven (7) appointed delegates present and voting, shall be put to a vote and shall be adopted upon the approval of the two-thirds (2/3) majority of the appointed delegates present and voting. The rules and procedures governing adoption of resolutions may be temporarily suspended by a two-thirds (2/3) vote of consent of the delegates present and voting for the purpose of considering a resolution of extraordinary importance to League policy. Such resolution shall be typewritten and be co-sponsored by ten (10) appointed delegates present and voting. Such resolution shall be adopted by the affirmative vote of two-thirds (2/3) majority of the delegates present and voting. c. NOMINATING COMMITTEE. The nominating committee shall be appointed by the president not less than sixty (60) days before the annual convention and written notice of its appointment shall be given to all member municipalities within ten (10) days after such appointment. Any suggestions by member municipalities of nominees to be considered by the nominating committee shall be submitted by member municipalities in writing to the League office not less than fifteen (15) days prior to the annual convention of the League. ARTICLE IX - AFFILIATIONS Section 1. AFFILIATIONS. The League may become affiliated with such other organizations, and may participate in conference or conferences, as the board of directors may authorize. Section 2. REPRESENTATIVES. In affiliating with or participating in such organizations or conferences, the president, together with such other representatives as the board of directors may select, shall be representatives of the League thereto. ARTICLE X - AMENDMENTS Section 1. AMENDMENTS. These bylaws may be amended by a two-thirds (2/3) vote of the appointed delegates present and voting at an annual convention, provided, however, that the proposed amendment or amendments is, or are, first approved by the board of directors or by the voting delegates of at least five (5) member municipalities and thereafter favorably reported by the bylaws committee not later than the day before such amendment or amendments is, or are, submitted for a vote to the member municipalities. ARTICLE XI - SEVERABILITY Section 1. SEVERABILITY. If any of the provisions of these bylaws are held invalid, the remaining provisions thereof shall not be affected thereby, but shall remain in full force and effect. 6

Attachment to the PML Bylaws #1 Procedure: Upon the request of one third (1/3) of the certified delegates present and voting at the annual business meeting, a weighted vote shall be taken in accordance with the weighted voting system. The secretary/treasurer shall announce the votes for each member municipality voting and upon a roll call determine and report on a final tabulation of the question. PML ALTERNATE WEIGHTED VOTING SYSTEM Annual Dues Votes 60,000 or above 8 55,000-59,999 7 50,000-54,999 6 40,000-49,999 5 20,000-39,999 4 10,000-19,999 3 5,000-9,999 2 1,500 - 4,999 1 AMENDMENT RECORD: As Amended July 1, 1975 As Amended May 23, 1979 As Amended June 3, 1981 As Amended June 12, 1982 As Amended June 28, 1986 As Amended June 6, 1987 As Amended June 25, 1988 As Amended June 24, 1989 As Amended June 30, 1990 As Amended June 29, 1991 As Amended July 11, 1992 As Amended June 24, 1994 As Amended June 21, 1996 As Amended June 27, 1997 As Amended June 26, 1998 As Amended June 25, 1999 As Amended June 23, 2000 As Amended June 15, 2001 As Amended June 22, 2004 As Amended June 23, 2006 As Amended June 27, 2008 As Amended June 26, 2009 As Amended June 24, 2011 As Amended June 22, 2012 As Amended June 27, 2013 Print date July 31, 2013 7

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Pennsylvania Municipal League BOARD ACTION BRIEFING SUMMARY SUBJECT: Nominating Committee Report I. Action To Be Considered By Board of Directors Mayor Richard P. Vilello, Jr., Chair The Board needs to take action to approve the Nominating Committee Report. II. Reason Why This Issue Needs Board Consideration Board action. III. Current Policy or Practice The Board approves the nominating committee report annually. IV. Other Background Information V. Impact on League Budget/Finances None VI. Staff Recommendations Staff recommends approval. ATTACHMENTS: Nominating Committee Report 06/17/14

Present: NOMINATING COMMITTEE MINUTES CONFERENCE CALL JUNE 5, 2014 Rick Vilello, Mayor, Lock Haven, Chair Kip Allen, Councilmember, Edinboro Eugene Pacsi, Councilmember, Farrell Sal Panto, Mayor, Easton Absent: Sandra Green, Mayor, Kutztown Brian O’Neill, Councilmember, Philadelphia Wanda Williams, Council President, Harrisburg Staff: Rick Schuettler, Executive Director John Brenner, Deputy Executive Director The meeting was called to order at 11:07 a.m. and a quorum recognized. The committee acknowledged receipt of Altoona Councilmember, Bruce Kelley’s request to be considered for Second Vice President. Staff reported that there were no other candidates at this time. The committee expressed an interest in interviewing Councilmember Kelley whether or not other candidates came forward. The committee also reviewed the At-large candidates. Staff indicated that all current At-large directors desired to remain on the Board. A motion was made by Councilmember Allen, seconded by Councilmember Pacsi, to recommend as follows: President: Michael Nutter, Mayor, Philadelphia First Vice President: J. Richard Gray, Mayor, Lancaster Second Vice President: Bruce Kelley, Councilmember, Altoona At-large Board of Directors: Carolyn Comitta, Mayor, West Chester Elizabeth Goreham, Mayor, State College Sandra Green, Mayor, Kutztown George Hood, Mayor, Indiana Kathy Kane, Controller, Wilkes-Barre Mark Kunkle, Manager, Ferguson Motion carried unanimously. A motion was made by Councilmember Allen, seconded by Councilmember Pacsi, to adjourn the call at 10:35 a.m. Motion carried unanimously.

Pennsylvania Municipal League BOARD ACTION BRIEFING SUMMARY SUBJECT: Credentials Committee Report I. Action To Be Considered By Board of Directors Approve credentials report by the Chair Ed Pawlowski, Mayor, Allentown, President. II. Reason Why This Issue Needs Board Consideration Board policy matter. III. Current Policy or Practice Same IV. Other Background Information V. Impact on League Budget/Finances None VI. Staff Recommendations Approval Credentials have properly been filed for the Resolutions Committee and for the Voting Delegates to the Annual Business Meeting by the membership. A file of the credentials filed by the membership is available for your review upon request. 06/17/14

DEPUTY EXECUTIVE DIRECTOR REPORT June 2014 The Business Leader’s Network (BLN) stands at 23 outstanding members, the highest number since the program’s inception. The current list of Business Leaders and their contact information is included in your packet and Business Leaders are linked at www.pamunicipalleague.org. Since the November Board meeting a coordinated effort with First Vice President Mayor Michael Nutter, and follow up assistance from his assistant David Tusio, has led to 3 new firms joining the Business Leaders Network. The International City/County Managers Association’s Retirement Corporation, ICMA-RC, the international engineering, design, operations and program management firm CH2M HILL, and Wells Fargo (who happens to be our bank) have joined the BLN. We are also pleased to inform you that a tax collection firm, Linebarger Goggan Blair & Sampson, LLP and our own PennPRIME Insurance Trust have both joined the BLN. Picking up on Mayor Nutter’s lead, we have prepared a short list of firms and contact information for each Board member to personally contact. The lists were sent to each Board member in April. An updated list will be distributed during the June Board meeting. Upon direction from the ED, assisted with Director’s Meetings and general League operations including advocacy, personnel, membership and marketing. Attended and participated in each of the six district meetings in April. Assisted with member visits and prospective member visits this quarter including, Millersville, Monroeville and Whitehall Township. Also participated in Local Government Day activities including a special program held at Middletown Borough. Orchestrated the final details of the Clayborn & Lewis Playground project. The League assisted the city in receiving a $50,000 grant from the Pennsylvania Department of Conservation and Natural Resources. The City of Philadelphia coordinating volunteers for the June 17th playground improvements at 1101 North 38th Street, right around the corner from the Philadelphia Zoo. Although this is a smaller site than years past, we will have over 50 volunteer on hand including local officials and Business Leaders. Volunteers will clean up, plant trees, paint and help spruce up the playground. Registration the day of the event beings at 8:30 AM and the kick off will be at approximately 9:15 AM. A shuttle will be available from the Philadelphia Marriott to the playground and back. Join us for this rewarding community service project. Over the past several months, another playground project is starting to take shape with our KaBOOM! Partners for later this year. For the 5th year in a row, Highmark has agreed to help sponsor the project. A design day and build day are being planned in coordination with the City of Harrisburg for a September project at Emerald and Fourth Street playground. Stay tuned for registration details.

PA Municipal League Board of Director’s Legislative Update June 2014 Prepared by: Amy Sturges, Director of Governmental Affairs, [email protected] Karey Molnar, Legislative Analyst, [email protected] www.fixthenumbers.com We launched the media campaign on June 2 and will provide an update at the Board meeting on how it has been received. Coalition for Sustainable Communities The Coalition continues to press forward. We have shared our media campaign tools and asked our partners to help spread the word to their networks. The June 3rd Lobby Day provided one last opportunity to line up House Local Government Committee support for HB 1581. The Committee meeting is scheduled for June 11 and at this point we are working to amend the bill to address most of the issues raised during the January 15 hearing. At this time, we do not believe the Committee will do anything more than amend the bill on June 11. There is the possibility of further action in June based on House Republican support to keep the bill moving. A lot rests on what happens with the state pension proposals for reform and how strong the House members can be with union opposition. A hearing has been scheduled for June 12 on Act 111. This will be a joint hearing of the House and Senate Local Government Committees on HB 1845 and SB 1111. Through our newsletter, the Legislative Locator, we have encouraged the membership to pass resolutions supporting all three bills. Recently Enacted Legislation Act 42 of 2014 House Bill 1513 (PN 2492) Signed: May 6, 2014 Effective: Immediately Act 42 of 2014 amends the Local Tax Enabling Act by adding a new subsection to Section 301.1 relating to taxing powers and restrictions. Act 42 is intended to clarify the 2007 State Supreme Court decision Rendina v. The City of Harrisburg. The Act authorizes collection on the privilege of doing business if the business is conducted for all or part of 15 or more days in the calendar year, or if the privilege is otherwise exercised through a permanent, physical base of operations in the jurisdiction of the levying authority. 1

Any gross receipts subject to taxation through a base of operations shall not include receipts from transactions subject to the tax via the 15-day rule stated above. Act 42 applies to taxable years commencing on or after January 1, 2014. Legislation of Interest Municipalities Financial Recovery Act – Act 47 House Bill 1773 (PN 3553) and Senate Bill 1157 (PN 1560) are the result of the Local Government Commission’s task force to review and offer amendments to Act 47 which passed the twenty-five year mark last year. Major provisions include:  Codification of the Early Intervention Program in Act 47. Allowing matching grants of 50% by the municipality unless DCED determines a lesser amount is warranted. Matching grants can be no less than 10% of the total grant amount.  The EIP is still voluntary, but via required financial reporting to DCED, the Department may now recommend entrance into the Program.  Distressed municipalities will continue to receive priority funding through DCED and the Department would be required to notify all state agencies of the priority funding status. Additionally, the Act is amended to provide limited waiver of regulatory mandates by state agencies if requested by an Act 47 coordinator or receiver.  Authorization is provided to petition the court to increase the rate of the Local Services Tax up to $156 a year or levy a Payroll Preparation Tax. Each tax, if authorized by the court would require annual re-authorization to continue. Furthermore, the Earned Income Tax must be suspended if an LST is levied. The Business Privilege Tax/Mercantile Tax must be suspended if the Payroll Tax is levied and the revenue from the Payroll Tax must match the revenue generated by the Business Privilege Tax/Mercantile Tax.  A five-year limitation on staying in Act 47 is imposed. In the fifth year of a distressed municipality’s status the coordinator is charged with recommending one of the following: that the distressed status be rescinded; that the municipality be dis-incorporated; that the municipality enter receivership because of non-compliance with the plan; or that the municipality adopt a three-year exit strategy.  A disincorporation process for non-viable municipalities is established, as well as a process for establishing an unincorporated service district which would provide for essential services through a service assessment on property owners. The following must be found in order for the Secretary to determine non-viability: the municipality is unable to provide essential services and function has a municipality, there has been a collapse of the municipal economy and tax base that reasonable efforts have not restored, and merging or consolidating with another municipality is unachievable or will not solve the problem of non-viability. Municipalities that provide police service or fire service through their own employees are not eligible for disincorporation.  The amendment broadens the receivership status of distressed municipalities to all except Philadelphia. 2

The full House amended HB 1773 removing authorization to levy an increased Local Services Tax and adjusting the declaration of disincorporation to a governing body or voter driven action only, rather than authorizing the secretary of DCED to make the decision. Location: House Bill 1773: Passed the House 156/44 on June 3, 2014 Senate Bill 1157: Senate Local Government Committee; hearing held April 10, 2014 Local Use of Radar House Bill 1272 (PN 1622), introduced by Representative Harry Readshaw, and Senate Bill 1340 (PN 1972), introduced by Senator Randy Vulakoich amend Section 3368 of Title 75 (Vehicles) authorizing the local use of radar. The bills are broad expanding the use of electronic speed timing devices to any police officer. A sample resolution has been placed on the PML website for adoption. The House Transportation Committee held a hearing on May 22 and Senate Transportation has announced a hearing for June 17. Location: House Transportation Committee, April 29, 2013 Senate Transportation Committee, April 21, 2014 Restrictions on Cash Gifts Two bills amending Title 65 (Public Officials) which restrict public officials from accepting or soliciting a cash gift have been introduced. Senate Bill 1327 (PN 3364), introduced by Senator Lisa Baker, adds an extensive definition of cash gift which enumerates what constitutes a cash gift and who may offer and receive one. The Bill also sets forth penalties for those public officials or public employees who accept or solicit for cash gifts. The penalties for a cash gift under $250 constitute a misdemeanor and are punishable by a $1,000 fine and/or imprisonment of up to two years. Cash gifts over $250 constitute a felony and are punishable by a fine of up to $10,000 and /or imprisonment of up to five years. All fines and penalties shall be paid into the General Fund. House Bill 2165 (PN 3364), introduced by Representative Daryl Metcalfe, restricts public officials, public employees, and nominees or candidates for public office from soliciting for or accepting cash gifts. HB 2165 defines cash gift as U.S. currency and coin and foreign currency and coin. The bill also sets a penalty for violating the provision at a felony, upon conviction, punishable by a fine up to $10,000 and/or imprisonment for up to five years. Location: Senate Bill 1327: Passed the Senate 49/0; House State Government Committee, April 10, 2014 House Bill 2165: House State Government Committee, April 9, 2014 Executive Sessions House Bill 1671 (PN 2297), introduced by Representative Rick Saccone (R-Allegheny), amends Title 65 (Public Officers) regarding executive sessions. The bill narrows discussion of personnel and employment in executive session to individual employees, rather than personnel in general. General personal matters, not related to an individual person, would be required to be held in open 3

session. The bill authorizes review and discussion of plans related to security and emergency preparedness to executive session. The cost of implementing a security plan and the equipment needed would be required to be discussed in open session. In terms of procedures, the bill requires executive sessions to be recorded and for the agency to maintain the recording for one year. Furthermore, agencies would be required to obtain the advice of a solicitor as to whether a matter may be discussed in executive session. Agency members are provided immunity from criminal liability if a member makes a good faith report to the appropriate authority of a violation. Location: House State Government Committee; hearing March 12, 2014 Tax Collection Records House Bill 2166 (PN 3550), introduced by Representative Rick Saccone, amends the Local Tax Collection Law to require that tax collection records be turned over to the newly elected or appointed tax collector within 60 days of the new person taking the oath of office. If the records are not turned over within the 60 day time period, a taxing district or the newly elected or appointed tax collector may bring a civil proceeding against the former official who possesses the records, to compel the turnover. Location: Received First Consideration in the House, May 7, 2014 Local Tax Collection Law – Mandatory Training of Tax Collectors House Bill 1590 (PN 3543), introduced by Representative Mario Scavello, amends the Local Tax Collection Law to require that all tax collectors complete DCED’s training, testing, and certification program to become a qualified tax collector before taking the oath of office. Special provisions are outlined in the bill for existing tax collectors and individuals appointed to fill the office in the event of a vacancy. Further, the bill requires that anyone who runs for the office of tax collector must submit a completed criminal history check to the Board of Elections along with their nomination petition. If the individual’s criminal history check documents a conviction of certain crimes enumerated in the bill (crimes relating to burglary, robbery, theft, forgery, crimes against public administration, hacking, or similar federal or out-of-state offenses), the person would be ineligible to run for the office. The County Board of Elections is not responsible for qualifying a nominee’s eligibility based on the criminal history check. The report would be a public record, subject to the provisions of the Right-to-Know Law. If enacted, this legislation will take effect in one year. Location: Received First Consideration in the House, May 7, 2014 Mixed-use Development House Bill 2045 (PN 3532), introduced by Representative Stern, establishes the Tax Exemption and Mixed-use Incentive Program. The bill authorizes a local tax abatement program for economic development projects focused on encouraging mixed-use development of blighted and abandoned properties. The program runs for ten years exempting the assessed value of improvements and new construction in areas designated as deteriorated areas in economically depressed communities. 4

From years one to three, no taxes would be levied on property improvements. Years four through nine would see an annual 15 percent increase in taxes levied; and in year ten the increase to full taxation would be ten percent. After year ten, the abatement would terminate. Passage of a local ordinance is required, as well as a public hearing to determine the boundaries of the deteriorated area. The bill provides an application process for property owners to receive an abatement, as well as exclusions for certain properties including those receiving other property tax abatements. Location: Received First Consideration in the House, May 6, 2014 Community Development Authorities House Bill 2141 (PN 3297), introduced by Representative Gillespie, amends Title 64 (Public Authorities) and Title 72 (Taxation). The legislation authorizes the establishment of Community Development Authorities (CDA) that would acquire abandoned, blighted and delinquent property with the plan to lease that property to microenterprises which are defined in the bill. A CDA may make loans from monies received from the Community Small Business Development Fund, a revolving loan fund under DCED. The legislation establishes the power and duties of a CDA; the make-up of a CDA board; and the requirements of loan issuances. Location: Received First Consideration in the House, May 6, 2014 Eminent Domain Reimbursement Senate Bill 1096 (PN 1846), introduced by Senator White, amends Title 26 (Eminent Domain) regarding property reimbursement rates. It clarifies that a property owner shall be reimbursed up to $4,000 per property acquired via eminent domain. This reimbursement is for reasonable attorney fees, appraisals and engineering fees. Current law does not specify reimbursement on a per property basis. Furthermore, the bill clarifies that the reimbursement for an easement related to underground water and sewer infrastructure is limited to $1,000. Location: Passed the Senate 49/0; House Local Government Committee, April 10, 2014 Local Firearm Regulation – Penalties for Lost or Stolen Firearms Ordinances House Bill 2011 (PN 2987), introduced by Representative Mark Keller, amends Section 6120 of the Uniform Firearms Act within Title 18 providing relief to a person adversely affected by a local ordinance, resolution, regulation, rule or practice promulgated or enforced regarding firearms. A person adversely affected may seek declaratory or injunctive relief and actual damages. A court shall award reasonable expenses to a person adversely affected if a final determination is granted in favor of the person affected or if the regulation in question is rescinded after the suit is filed, but before final determination by the court. Reasonable expenses include attorney fees, expert witness fees, court costs and compensation for loss of income. The bill defines a person adversely affected as a resident of the Commonwealth who may legally possess a firearm under Federal or State law; a person who otherwise has standing to bring an action for relief; or a membership association in which a member is a person as described above. 5

Location: Received First Consideration in the House, March 18, 2014 Protection for Victims of Crime from Nuisance Ordinances House Bill 1796 (PN 3107), introduced by Representative Todd Stephens, amends Title 53 (Municipalities Generally) by adding a section entitled: Protection for victims of abuse or crime. This legislation prohibits municipal ordinances from penalizing a resident, tenant or landlord for contact made with police or emergency assistance by or on behalf of a victim of abuse, a victim of a crime or an individual in an emergency, if the contact was made based on the reasonable belief that intervention or emergency assistance was necessary to prevent the perpetration or escalation of the abuse, crime or emergency or if the intervention or emergency assistance was actually needed in response to the abuse, crime or emergency. The bill includes a policy declaration ensuring all victims of abuse or crime and individuals in an emergency are able to contact police or emergency assistance without penalty. It also declares the intention to protect residents, tenants and landlords from penalties levied by municipal ordinance for police or emergency service responses. Finally, the bill states that it is not the intention to prohibit municipalities from enforcing an ordinance against a resident, tenant or landlord for emergency responses that do not involve assistance to a victim or abuse, crime or emergency. If a municipality attempts to enforce such an ordinance upon enactment, the bill provides remedies to the resident, landlord or tenant including an order to cease unlawful enforcement, compensatory damages, reasonable attorney fees, court costs, and reinstatement of rental license or permit. House Bill 1796 was amended in the Senate to include language prohibiting a municipality from mandating that employers provide vacation or other forms of leave not required by federal or state law. The language also prohibits a mandate on employers to pay employees for leave not required by federal or state law. The prohibition invalidates ordinances passed after the effective date of this act. This prohibition does not include a municipality or its employees. Location: Passed the House 197/0; Received First Consideration in the Senate, March 17, 2014 Local Government Debt Senate Bill 901 (PN 1734), introduced by Senator Eichelberger, amends the Local Government Unit Debt Act (LGUDA). A new section is added to LGUDA requiring local governments to get preliminary approval from DCED before incurring most general obligation bonds or notes or guaranteed revenue bonds or notes constituting non-electoral debt or any lease rental debt. The new section requires a local government unit to file a certificate with DCED signed by two officers of the local government stating the intention to incur debt and providing a basic description. As part of the filing process, DCED may require evidence of the following:  proof that the local government unit is current in filing its annual financial statements with the Commonwealth;  information regarding the type and amount of financial security proposed;  information showing up-to-date municipal securities disclosures; 6

 if the proposed debt is to be subsidized or self-liquidating, evidence that the debt shall qualify as subsidized or self-liquidating;  if the local government unit currently has existing subsidized or self-liquidating debt, evidence that it will continue to be categorized as such;  if the local government unit intends that the debt to be issued shall be refunding debt, schedules estimating the net debt service impact and certification that the local government has adopted a plan to use taxes or other revenues to pay the debt service;  the debt statement required under the Act and a statement of the intended manner of sale of the bonds or notes; and  a project cost estimate detailing the uses of the debt proceeds. In terms of the approval process, the bill amends the definition of self-liquidating debt. Debt for which debt service payments have been made under a guaranty of the debt will no longer be considered self-liquidating. Furthermore, working capital is defined in the bill as the cost of the day-to-day operations of the project plus a proper allowance for contingencies. Reimbursements under a guaranty or amounts to address budgetary deficits or other purposes not related to a project do not constitute reasonable working capital. After receiving the filing and related information, DCED may request and the local government unit shall provide additional information which the department deems necessary to understand the structure and purpose of the proposed borrowing, including:  justification for costs of issuance exceeding 2% of the principal amount of the proposed debt;  justification for the use of more than 10% of the proceeds of the debt for working capital; and  if the bonds or notes are to be sold at private sale by negotiation, the basis for the finding that the borrowings are in the best financial interests of the municipality. DCED has 30 days to review and issue an approval or disapproval, and the local government unit may not take any action to incur the debt until it receives preliminary approval. If DCED is satisfied by the proposal, it shall issue the approval and the local government unit shall have one year to incur the debt. If DCED is not satisfied, it shall issue a denial. All determinations by DCED are subject to judicial review. If the debt has received preliminary approval, final approval through DCED shall be expedited. Small borrowings, amounts not to exceed $250,000, are exempt from the preliminary approval process (this is an increased amount, current law allows for the aggregate amount of $125,000). In addition to the preliminary approval process outlined above, Senate Bill 901 alters the current practice of municipal loan guarantees to authorities. Municipal guarantees may be issued at the discretion of the local government unit; however, only after the local government unit has conducted its own due diligence to assess the risk and where the transaction has been the subject of an open meeting where the local government unit has disclosed the foregoing due diligence, the local government unit’s governing body must then vote on the guaranty. A local government unit may not issue a guaranty for sums due under a qualified SWAP or for projects which involve untested technology or experimentation. 7

This legislation also limits what constitutes the costs of a project. Costs paid before the issuance of new debt, reimbursements under a guaranty or amounts used by local government units to address budgetary deficits or other purposes not related to the project do not constitute a cost of the project in terms of incurring debt. DCED’s filing fees are increased to $250 plus 1/32 mill on each dollar of the aggregate principal amount of debt related to the filing. The fees will be deposited in the Local Government Unit Debt Act Administrative Account established by the Act and used to defray the costs of reviewing filings. Fees are waived for borrowings connected with a recovery plan under Act 47. Further, fees paid at the preliminary approval level shall constitute payment at final approval. The bill extends DCED’s records retention of any debt proceeding, including all applications and statements, from four months after the issuance of its approval to five years after the debt has been paid in full. All submissions, determinations and records of DCED concerning debt filings and qualified interest rate management agreements shall be considered public records. A new subchapter is added regarding the duties of attorneys, financial advisors, and local government officials with regards to local government unit debt transactions. The bill requires a disclosure for each attorney or financial advisor involved in each transaction covered under LUGDA be submitted on behalf of the party being represented, stating the source of compensation, and whether or not the compensation is dependent on the local government unit issuing debt. Attorneys and financial advisors representing a local government unit shall have fiduciary duty to act in the best interests of the local government unit. Officers or members of a governing body, attorneys or financial advisors may not knowingly participate in an ultra vires act, which the bill defines as when the local government unit is without the authority to perform, or the act is not explicitly prohibited but is in excess of the authority granted. Additionally, officers or members of a governing body as well as attorneys and financial advisors, may not knowingly file a materially false or misleading certification or statement with DCED. Senate Bill 901 provides a penalty for local government officers, members of governing bodies, attorneys and financial advisors who knowingly violate either provision. The penalty is set at a misdemeanor of the second degree and upon conviction, the offense is punishable by a fine of not more than $5,000, imprisonment of not more than two years, or both. A local government unit may seek civil redress for violations that result in damage to the local government unit. A local government unit shall prohibit or restrict the future participation of an individual attorney or financial advisor or a firm that employs the individuals who violate these provisions for a period not to exceed two years. Location: Senate Appropriations Committee, January 29, 2014 Investment Options to Expand for Local Governments Senate Bill 1207 (PN 1637), introduced by Senator Dominic Pileggi, amends the 1973 Act which authorized First and Second Class Cities to invest public funds in certain commercial paper. 8

Commercial paper is short-term unsecured promissory notes issued by companies or corporations. Senate Bill 1207 expands these opportunities to all other local government units and municipal authorities and also allows for them to invest and reinvest in the following additional financial products under certain terms:  High-quality commercial paper;  Bankers’ acceptance;  Highly rated negotiable certificates of deposit; and  High quality corporate notes. Location: Senate Local Government Committee, December 9, 2013 9

Pennsylvania Municipal League Board of Directors Meeting – June 17, 2014 Group Business Programs Update Submitted by: Jean Pugh, Director of Group Business Programs Public Employer Labor Relations Advisory Service (PELRAS) The 32nd Annual Training Conference, held March 19-21, 2014 at the Penn Stater Conference Center Hotel in State College, was attended by 457 registrants, including 117 first time attendees. This represents an increase of 40 registrants from the 2013 Conference, a record attendance that reflects the importance of this premier labor relations training despite tighter municipal budgets. Continuing marketing efforts have resulted in an increase of 11 new PELRAS members since the 2013 Conference, for a total of 261 PELRAS members. The staff continues to promote member participation in the online Wage and Benefit Survey (SurveyNavigator) to expand the number of municipalities in the database. An online tutorial that demonstrates the features of the survey, and how to input and access data, is available as a benefit to PELRAS members. Municipal Utility Alliance (MUA) In conjunction with MUA consultants Utility Solutions, Inc., the staff continues to actively promote the MUA Electricity Procurement Program to municipalities and authorities across the state. Due to various marketing efforts, over 250 municipalities and authorities have purchased approximately over 1.58 billion kilowatt hours of electricity through the MUA program, resulting in an estimated savings of over four million dollars. Current marketing efforts have focused on renewals with municipalities whose contracts expire within the next 18 months, resulting in a 90% renewal rate. Staff continues to work with Constellation Energy to identify additional markets and develop promotional materials. Local Public Procurement Program (L3P) The staff continues to send subscribers the quarterly L3P Checklist that provides a list of current state contracts available for piggyback purchasing, including information on the U.S. Communities Purchasing Alliance. Staff also assists subscribers in utilizing Commonwealth of Pennsylvania commodity and service contracts through toll-free access. Pennsylvania Local Government Investment Trust (PLGIT) The staff continues to work with PFM to market the various services available through the PLGIT Trust, including promotion of the Procurement Card Program among PML members. PFM has requested that all sponsoring associations support Senate Bill 1207 that would amend investment codes to allow for expanded investments for municipalities.

Pennsylvania Municipal League Board of Directors Meeting – June 17, 2014 Member Services Update Submitted by: Jean Pugh, Director of Group Business Programs  Dues have been received from 68 members. The Cities of Connellsville, Monessen, New Freedom Borough, and Municipality of Monroeville informed us that they will not be paying dues for 2014. Staff has contacted these members to request attending a meeting to discuss the benefits of League membership. In a continuing effort to recruit new members, staff met with the managers in Whitehall Township and Norristown Borough.  The Spring edition of the PML Reporter has been mailed to: the PML, PSATC, and APMM memberships; the legislature; state departments; and various elected and appointed officials.  The Annual District Meetings were held in April and included a sixth meeting under the new district realignment. Attended by over 250 elected and appointed officials representing 44 municipalities, meetings included training by members of the Business Leaders Network.  Staff finalized the planning for the 115th Annual Convention in Philadelphia on June 17th – 20th at the Pennsylvania Convention Center.  A new PML Membership brochure highlighting the League’s services, programs, affiliations, and partnerships has been developed.  The membership continues to utilize the Research and Inquiry Service with requests for information including housing inspections, nuisance calls, performance reviews for police chiefs, and shopping cart ordinances.  Secretariat services to the Association for Pennsylvania Municipal Management Association (APMM) continue according to the Agreement. Staff planned and coordinated the Annual Managers Conference at Nemacolin Resort on May 20th – 22nd.  The University Communities Network continues to serve as a resource for communities with colleges and universities to share their experiences and provide information on a variety of related topics.

Pennsylvania Municipal League Board of Directors Meeting – June 17, 2014 U•COMP Operations Update Submitted by: Jean C. Pugh, Director of Group Business Programs Marketing  We exhibited at the Government Finance Officers Association of Pennsylvania (GFOA-PA) Conference to present information on the U•COMP program. GFOA has requested that we provide articles on our products for their newsletter.  Information on U•COMP was provided to over 250 municipal officials representing 44 municipalities at the PML District Meetings in April.  Advertisements and articles were placed in the PML Municipal Reporter and PAHRA Monitor.  Staff attended the monthly meeting of the Butler Township Commissioners to present information on the U•COMP program. The Township voted to join the program effective for 2014. Operations  The staff continues to work with representatives from Equifax to monitor claims against the Trust and to provide information to U•COMP employers to assist them in managing current and future claims.  Staff met with personnel from Bristol Township to review detailed information on the U•COMP program, including claims reports, contribution reports, the Equifax Insight System, account balances, and the benefits of belonging to U•COMP.  Staff continues to work with the Department of Labor and Industry to verify claim charges and correct improperly assessed interest charges for all bills since the third quarter of 2012.  The total of all negative balances owed to the Trust as of December 31, 2013 is $131,668.33. Staff has recovered the entire balance.

Pennsylvania Municipal League Board of Directors Meeting – June 17, 2014 MEABT Operations Update Submitted by: Jean C. Pugh, Director of Group Business Programs Marketing  Advertisements were placed in the Spring PAHRA Monitor and Spring PML Municipal Reporter. An article on U-CARE will be run in the next PAHRA Monitor. A Friends of PAHRA Sponsorship has been purchased also, allowing ads to be printed in the Monitor and Conference programs as well as in the PAHRA Directory.  Staff exhibited at the Government Finance Officers Association of Pennsylvania (GFOA- PA) Conference to present information on the U•CARE Health Plan.  Information on the U•CARE Health Plan was provided to over 250 municipal officials representing 44 municipalities at the PML District Meetings in April.  Staff has updated the U-CARE marketing materials. Operations  Staff will continue to work with the Delaware Valley Health Insurance Trust (DVHIT) in 2014 to market U•CARE.  Staff has renegotiated the Service Agreement between the MEABT and the Delaware Valley Municipal Management Association (DVMMA) to remove the clauses establishing a separate health trust and to provide for compensation for new membership.  Staff is working with the Allentown Parking Authority and the Bucks County Redevelopment Authority to collect data in order to prepare U•CARE proposals.

PML Training Report June 2014 32nd Annual PELRAS Training Conference State College Moving into the 32nd year of the PELRAS labor program brought another record attendance, continuing its tradition of being the League’s signature training event. Over 435 attendees and 25 speakers attended over 23 training sessions and meeting with peers throughout the Commonwealth. Rick Schuettler, PML Executive Director, opened the conference discussing the record attendance, a new and more comfortable, set up for the general sessions and an overview of the PELRAS business program. In addition to invited arbitrators, and invited attorneys speaking on legal ethics, attorneys from Ballard, Spahr, LLP and Campbell Durrant Beatty Palombo & Miller, P.C. generously completed the complement of speakers throughout the 3 days. As has become customary, The Year in Review was offered as the lead-off general sessions, highlighting the latest developments in municipal labor and employment law. This was followed by a session titled The Ripple Effect of DOMA Decision, which provided a detailed analysis of the implications of the U.S. Supreme Court’s decision in United States v. Windsor. Back again this year was the Ask the Arbitrators session where audience members were able to interact with a panel of arbitrators as they ruled on real life grievances. The very popular Back to Basics track ran throughout most of the Conference offering the topics Employment Law 101, Job Applications: What Should You Ask (and not ask!), Drug and Alcohol Testing and Effective Discipline Without Liability. All of the sessions were heavily attended and everyone came away with a solid understanding of some of the more basic issues. Break-out sessions also included the topics Public Employers Living in an E-World: The Do’s and Don’ts of Social Media in the Workplace; Healthcare Essentials in the Workplace; Presenting Your Story in Act 111: Building a Comprehensive Case; Elected Officials: How to Avoid Being Named in the Lawsuit; Dust Off Those Police Department Policy and Procedure Manuals…Your Overdue Revisions Exposed!;Five Important Decisions from the PLRB and What They Mean for You; Act 111 Strategies and Solutions for 2014 and Beyond; EEOC “Hot Button” Issues Under the ADA; Criminal History in Hiring – Defensible Policy; The Ultimate Guide to Loudermill Meetings; Wage and Hour Landmines; Work & Worship: Religion in the Workplace; Depression, Anxiety, PTSD: Managing Mental Health Issues Under the ADA; If You Had a Dollar for Every Time the

Union Says “Past Practice”…Yes, You Would be Rich; and Workplace Investigations: Finding the Facts Without Liability. Understanding the EEOC and How to Avoid Liability for workplace Discrimination brought everyone back together for the last general session of the day. A special session was offered this year where representatives from each law firm stayed to answer questions privately from registrants. The Conference ended on Friday with three important general sessions. Legislative Update, How Your Words Come Back to Haunt You: Technology and the Impact of Statements Made on Email and Cell Phones and Off Duty Misconduct: Can We and Should We Discipline? For the second year, attendees had an option of receiving their course material electronically. Over 200 registrants took advantage of this option and brought their IPads, and netbooks to follow along in the material. The material was over 800 pages in addition to the Back to Basics book. We will continue to enhance the electronic version next year and hopefully many more will take advantage of this option. All in attendance are looking forward to the PELRAS 33rd Annual Training Conference at the Penn Stater Conference Center & Hotel, State College, March 17 – 20, 2015. PML District Meeting Training The 2014 PML District Meetings, once again, offered an hour of training presented by representatives of our Business Leaders Network. Presentations included An Update on the Affordable Care Act, Pennsylvania Local Government Investment Trust Market Update, Understanding the Mobile and Broadband Future: Closing the Technology Gap Among Your Residents, A Study of Electricity Procurement Strategies, Initiating Public-Private Partnerships and Storm Water Authorities – A Vehicle for Managing Storm Water Effectively. In addition we presented a Legislative Update. Attendance for these pre-meeting sessions were higher than last year and everyone was pleased to have an opportunity to learn something new. PELRAS Marketing Seminar In early May, our Eastern PA PELRAS attorneys from Ballard Spahr LLC, presented a session titled Southeastern Municipal Labor Costs Solutions. Presented for free at the Upper Merion Township building, managers and human resource officials from counties surrounding Philadelphia were invited to participate. This was a great opportunity to promote the PELRAS business program, as well as give Southeastern Pennsylvania municipalities information and suggestions for controlling labor costs. Additional PELRAS marketing sessions are planned for Western Pennsylvania as well as more in the east. APMM Managers Conference Nemacolin Woodlands Resort, Farmington Nemacolin Woodlands Resort was the location of the 2014 APMM Managers Conference where everyone enjoyed the sprawling facility with many amenities and sunny weather. The new format for 2014 placed the golf tournament at the beginning of the conference. About 70 members, sponsors and exhibitors participated on the Mystic Rock Golf Course, while others enjoyed the fabulous spa and other activities available at the resort. A welcome reception for all ended the first day. Wednesdays sessions were well attended and included Hot Hot Success: Implementation and Public Private Partnerships in Sunnyside, “The Attack of the DAS” How to

Protect Your Municipality from New Wireless Facilities, Establishing a Storm water Management Program and User Fee: The Meadville Experience, Public Meeting Security: Balancing Public Safety and the First and Second Amendment and Identifying Your Municipal Management Role: David or Goliath. APMM members John Nagel, Finance Director, Whitpain Township and Ryan Eggleston, Manager, South Fayette Township joined those who have completed Capstone presentations. Jennifer Kimball, the ICMA regional Vice President and Rita Ossolinski, ICMA liaison to APMM presented an update and Rick Schuettler presented a legislative update. President Steve Morus, Manager, Forest Hills Borough, handed the gavel to incoming President Stephanie Teoli Kuhls, Manager, Middletown Township. We all wish Stephanie luck in her new position as well as the 2014-2015 new officers, Kevin Flannery, Sewickley Borough, John Barrett, Baldwin Borough, David Pribulka, Ferguson Township and Carolyn McCreary, Plumstead Township. Thanks are due to the Pennsylvania Conference Committee Chair Kevin Flanner, and Committee Chris Lochner, Paul Cornell, Jamie Gwynn, John Nagel, Tom Vernau, Amy Rockwell, Ryan Eggleston, John Holman, Greg Primm, Roger Dunlap and Mark Mansfield for all of their hard working in making this a great conference. Plans are underway for the 2015 Annual Conference at which is a joint conference with the NJMAA and will be held at the Ocean Place Resort in Long Branch, NJ.

Pennsylvania Municipal League Center for Municipal Development Training History 3/1/2014-6/1/2014 3/19-21/2014 PELRAS Annual Conference Penn Stater, State College 496 4/2/2014 North Central District Ebensburg 19 Meeting Training 4/3/2014 Northwest District Meeting Bradford 26 Training 4/9/2014 Northeast District Meeting Pittston 22 Training 4/10/2014 Southeast District Meeting Phoenixville 11 Training 4/15/2014 Sustainable PA Presentation Hershey 20 4/23/2014 Southwest District Meeting Washington 20 Training 4/24/2014 South Central District Chambersburg 12 Meeting Training 5/15/2014 PELRAS Marketing Program Upper Merion Township 67 Building 520-22/2014 APMM Annual Conference Nemacolin Woodlands, 89 Farmington

Professional Development Opportunities 115th PML Annual Convention APMM Winter Workshop June 17 - 20, 2014 January 23, 2015 Philadelphia Marriott and PA Convention Center Comfort Suites, Carlisle Philadelphia Elected Officials Professional PennPRIME Annual Meeting and Development Training Risk Management Conference February 6, 2015 September 18 – 19, 2014 Hilton Harrisburg Nittany Lion Inn, State College APMM Executive Development Conference University Community Update February 12 - 13, 2015 Friday, October 10, 2014 Omni Bedford Springs Resort & Spa State College Borough Municipal Bldg. State College 33rd Annual PELRAS Conference March 18– 20, 2015 APMM/PELRAS Fall Managers Meetings Penn Stater Conference Center Hotel October 17, 2014 State College Doubletree by Hilton, Monroeville 2015 APMM/NJMMA Managers Conference October 24, 2014 May 19-21, 2015 Ocean Place Resort and Spa Comfort Suites, Carlisle Long Branch, NJ October 31, 2014 Upper Merion Township Building PML On-line Training Library • Advanced Budgeting • How Much Do You Want to Know? What Information • Affordable Care Act Essentials Can You & Should You Know About Your • Bargaining Checklist Employees • Basic Budgeting • Military and Veterans Personnel Issues • Basics of Bargaining Units: What do they do? • Modified Duty: Getting Employees Back to Work Who does it include? • Negotiations & Act 111 in a Tough Economy • Before You Hit Send: How E-mail Can Get Employers in • Pensions 101 Trouble • Personnel Policies: You’re Not Small Enough to • Building Your Successful Discipline Case Hide • Civil Service Legal Issues in Testing & Hiring • Personnel Records and Administration • Do No Harm: How to Manage Disabled • Sexual Harassment Employees Without Creating Additional Liability • Social Media & E-Technology: Employment Law in • Elected Officials Leading Communities the Electronic World • Elected and Appointed Officials: Roles, Responsibilities & • Unfair Labor Practices Relationships • Update on the Right-to-Know Act: • Ethics for Municipal Solicitors and Labor Counsel One Year Later • Family Medical Leave Act: Year in Review • Wage and Hour Payouts: Learn from the Mistakes • Guide to Local Government Purchasing of Others • Heart and Lung Claims • When Your Employment Action Turns • Hiring and Promotion Interviews Into Litigation

Prepared by: Bob Anspach, Director of Insurance Services Prepared for: PML Board of Directors Meeting Report date: June 17, 2014 General Operations: Seaton & Bowman have paid the principal owed for contributions for the Borough of Brownsville and the Brownsville Municipal Authority from 2006 to 2009 to PennPRIME. The payment was brought about by freezing of their bank accounts. Additionally, the Insurance Department is looking at them and was going to propose a settlement agreement. They paid PennPRIME $87,680, which was the principal owed. The judgment against them allowed for attorneys’ fees and interest and we have negotiated an additional payment of $15,000 before the judgment is satisfied. The final agreement calls for a $5,000 payment in April 2014, which has been made, with additional $500/month payments, beginning in July 2014, until the debt is paid. The $15,000 will be divided between the Trusts. Recruitment/Retention Strategies: Jodi continues on Active Duty and we expect her potential return in October 2014. Kingston Township (Luzerne County) joined the PennPRIME Trust in March 2014. Kingston came to the Trust direct and we now have their Property, Auto Liability, Auto Physical Damage, and General Liability. We will be working with them to bring their Public Officials Liability and Law Enforcement Liability to the Trust, all of which expire in July 2014. We are working with Greater Lebanon Refuse Authority (potential new member) and New Holland to bring their Packages to the Trust. We held our annual PELRAS dinner, which was well attended. . We also attended the PML District Dinners and provided a short presentation on Cyber threats and marketed the PennPRIME answer to this threat. Claims Activity: To enhance PennPRIME staff’s understanding of the Agility Recovery program, we held a staff training session for better comprehension of the package. The Claims Coordinator continues to meet with Members and provide assistance in resolving their claims and developing internal policies. The Claims Coordinator visits appear to be well received by the Membership. The Claims Coordinator continues to remind members of the requirement for accident investigations when a claim is submitted. Loss Control Activity: PELRAS scholarship recipients were asked to select a topic from the provided training and use it in their municipality. This proposal was well received by the recipients. We have contracted with CMI to conduct Loss Control Standards Audits and provide support in writing various loss control related sample policies/SOPs. We have received several, positive comments regarding their work from Members.