FAMA seeks portion of state funds

Author: LESLIE RICHARDSON; STAFF WRITER

Article Text:

FRACKVILLE — There is $800 million in state funding available now, with the possibility of an additional $400 million,
and the Frackville Area Municipal Authority would like a share.

“Someone is going to get this money, it might as well be us,” FAMA solicitor Paul Domalakes said during a special
FAMA board meeting held Wednesday to discuss pursuing the grant money.

Currently, Pennsylvania’s Act 63, passed by both the House and Senate and approved by the governor in July,
provides for the allocation of money in the Pennsylvania Gaming Economic Development and Tourism Fund for
funding water or sewer projects, storm water projects, flood control projects and high-hazard unsafe dam projects.

It provides grant money with a 1:2 match, meaning for every $2 in grant money given, the authorities conducting the
projects must raise $1.

Additionally, there will be a referendum on the ballot Nov. 4 asking voters if they favor the commonwealth incurring
debt of $400 million to pay for water and sewer improvements.

Gov. Ed Rendell is urging support, saying the measure is needed to improve the environment, maintain public health
and create jobs.

The funding would provide some of the estimated $20 billion in maintenance work needed for aging drinking-water
systems and sewage-treatment facilities.

FAMA was notified that its system is already in compliance with Chesapeake Bay regulations that must be in place by
2010.

According to Domalakes, funding that the authority may receive would upgrade the system with 21st century
equipment and processes to meet environmental needs in the Frackville area.

Since the project is still in development, a cost has not been established.

On Wednesday, FAMA hired McCullough Consulting Group, Reading, to prepare the application to the
Commonwealth Finance Authority, a seven-member board appointed to review applications and approve grant
money.

According to John W. Espenshade, director of McCullough Consulting Group’s State and Local Government
Group, the application will not be able to be submitted until the end of the year since the form has yet to be released.

Espenshade said the firm will begin collecting data in anticipation of the form’s release in early December.

Espenshade said priority is given to authorities that are currently efficient and those that serve multiple municipalities.

Since FAMA already complies with the Chesapeake Bay regulations and serves the borough as well as sections of
West Mahanoy Township and Butler Township, its project may be accepted for funding, although there are no
guarantees.

Espenshade said that the application can be submitted and processed regardless of the authority’s future.

Frackville Borough Council announced its intention in July 2007 to disband FAMA and create a new authority to run
sewer operations in the borough as well as sections of Butler and West Mahanoy townships. The Greater Frackville
Sewer Authority was created during a Jan. 9 council meeting, and a board was appointed. No representatives from
West Mahanoy or Butler townships were named.

Since the new authority, The Greater Frackville Sewer Authority, would assume all of FAMA’s assets and debt, the
grant process would also become its responsibility.

Contacted after the FAMA meeting, Frackville Borough Council President Gerard Jankaitis said he did not know
FAMA was pursuing the funding.
“I did not anticipate them doing this and I’m not sure what upgrades would be needed,” Jankaitis said. “I am open to
discussion about it, but I am opposed to them making a decision and the Greater Frackville Sewer Authority taking
over.”

FAMA board president Paul Malinchok said FAMA sent a letter to Frackville Borough Council requesting a meeting to
discuss several issues. He said the grants would be one of the topics discussed.

Jankaitis acknowledged receipt of the letter but said it was not specific as to the subject matter to be discussed. He
said a letter to FAMA asking them to be specific and did not receive a response.