The Scranton Parking Authority has agreed to liquidate a surplus in a 2007 bond-reserve fund to pay most of an $813,400 bond payment that is due Dec. 1.
Of that total, the city and a court-appointed receiver each have agreed to pay $150,000 toward the bond payment, and the $513,400 remainder would come from SPA excess debt-reserve funds, SPA solicitor Joseph O'Brien said during the board's meeting Wednesday.
The board also agreed to transfer $190,000 from the 2007 excess bond reserve fund to a 2006 debt-reserve fund to pay a 2006 bond payment that will come due early next year.
A surplus of more than $800,000 had accrued in the 2007 bond reserves that were invested in a U.S. Treasury bill, Mr. O'Brien said.
In other matters:
nâMr. O'Brien said former SPA Executive Director Robert Scopelliti has a hearing Tuesday in Harrisburg before the state Civil Service Commission regarding his furlough in September from the authority.
The city defaulted on a June 1 SPA bond payment, and the council refused to pay that SPA debt unless a receiver was appointed to run the SPA, Mr. O'Brien said. A receiver, Mike Washo, was appointed by a court and then declined to hire Mr. Scopelliti, said Mr. O'Brien. However, even if Mr. Scopelliti wins his case on the merits, the now-stripped-down SPA has no job for him to fill, Mr. O'Brien said.
"The (civil service) issue is whether we had a right to furlough him," Mr. O'Brien said. "He's asking for reinstatement and back pay. If he gets reinstated, we don't have any job for him; we don't have any work for him."
nâAn arbitrator has been appointed to hear a grievance by six former SPA parking-garage maintenance employees. The members of Teamsters Local 229 lost their jobs when Mr. Washo contracted with an outside firm to run the garages, and the employees were not retained. It could take nine months until a hearing is held on the grievance, Mr. O'Brien said. These union members are in a similar situation as Mr. Scopelliti, said Mr. O'Brien.
"If they prevail in the arbitration and get reinstated with back pay, we don't have any work or money for them. So they're going to face the same issue Bob (Scopelliti) does," Mr. O'Brien said.
Contact the writer: jlockwood@timesshamrock.com