Costs of the Market House project - Who pays for what?

[NOTE: CHI-SJCH referred to below stands for Catholic Health Initiative-Saint Joseph Catholic Health, a Pennsylvania non-profit organization.]

The current Columbia Market House project is estimated to cost $2.1 million. There is a Professional Services Agreement between Columbia Borough and CHI-SJCH for costs of the project, but who pays for what? 

Let's break it down. Of the $2.1 million allocated for the building renovation, half comes from the borough's municipal bond (basically a loan) and half from a RACP grant. RACP stands for "Redevelopment Assistance Capital Program," and is a state grant requiring dollar-for-dollar matching funds. Columbia Borough was awarded the $1.75 million grant funds last August, approximately $750,000 of which will go towards parking projects. The remaining $1 million (approximately) will go towards the Market House. Since the RACP is a matching grant, Columbia Borough (We, the Taxpayers), will need to pony up a total of $1.75 million, which, again, comes from the bond.

Once the renovation is complete and the Market House operation is underway, "CHI-SJCH agrees to provide up to $65,000 annually in funding beyond revenue generated by activities and programs at the Market House for costs associated with the maintenance of the Columbia Market House," according to the agreement. CHI-SJCH will also provide up to $100,000 to equip the Market House. More information on costs (and responsibilities) are detailed in the excerpts of the Professional Services Agreement, shown further down in this article.

The Market House project was put into motion by the previous borough council, which accepted CHI's proposal in November 2018. The previous borough manager, Rebecca Denlinger, was largely responsible for obtaining the RACP grant. Denlinger left Columbia in January of this year to take a position as Elizabethtown's borough manager. The Professional Services Agreement was signed by Denlinger and Philip Goropoulus, president of CHI St. Joseph Children's Health, in March 2019.

Here a few excerpts from the agreement pertaining to project costs:

3. SCOPE OF SERVICES & RESPONSIBILITIES

A. Renovations - CHI-SJCH and the Borough shall mutually agree upon renovations, construction, and updates to the Columbia Market House pursuant to this agreement.

B. Equipping the Market House - CHI-SJCH shall equip the Market House with appropriate furnishings to support market activities including stands for vendors and seating for patrons.

a. The style of furnishings will be mutually agreed upon by the Borough and CHI-SJCH.

b. CHI-SJCH will provide up to $100,000 in funding from the organization's Healthy Columbia Project to support the equipping of the Market House. This includes but is not limited to:

i. Vendor Stands

ii. Tables and Seating for patrons and community members

c. At the time of installation into the Market House, all furnishing purchased for use in and to support the operations of the Market House are assets of the Borough.

d. CHI-SJCH is responsible for the maintenance of all furnishings as a part of the professional services agreement.

C. Building Maintenance and Utilities -

The responsibilities of CHI-SJCH:

• Provide year-round, regularly scheduled interior custodial services to maintain the interior of the building in a clean and presentable condition for staff, visitors and other users. The Borough authorizes CHI-SJCH to enter into service agreements for such services as needed.
• Shall be responsible for the maintenance and repair of any equipment provided by CHI-SJCH for the use of staff, partners or the general public in the Market House.
• Oversee renovation and construction projects related to the revitalization of the Colombia [sic] Market House.
• Maintain electric, heat utilities.
• Secure pest control for the Market House (interior and exterior)

The responsibilities of the Borough:

• Maintain water, sewer and trash for the building.
• Provide non-custodial building and window cleaning, and snow removal from roadways, parking areas, sidewalks, steps, and ramps and decks that provide public access to the facility.
• Conduct regularly scheduled preventive maintenance on building systems, such as adjusting. lubricating, inspecting, and testing procedures designed to prevent equipment failure, equipment downtime, and to verify good operating condition of the building and its equipment, including public rest rooms.
• All such maintenance shall be done and performed in the Borough's sole discretion provided, however, that the Borough shall maintain the building in a workmanlike and operable condition at all reasonable times.
• The Borough shall maintain proper building and liability insurance coverage at all times in satisfaction of Section K.1, as set forth hereinafter.

The Borough shall also provide building keys to CHI-SJCH for the facility.

E. Staffing Structure and Management Costs - CHI-SJCH shall be responsible for recruiting, selecting, training, scheduling, supervising and compensating full and part-time employees assigned to the ongoing management and operations of the Columbia Market House as necessary for CHI-SJCH to satisfy its responsibilities according to the terms of this Agreement. CHI-SJCH shall also provide administrative support capabilities for those employees and associated services, including budgeting, accounting, payroll, benefits, and personnel management.

All such employees shall be employees of CHI-SJCH and not employees of the Borough. CHI-SJCH shall maintain all applicable workers compensation insurance as set forth hereinafter. CHI-SJCH shall not charge an annual management fee to the Borough as a part of this agreement.

F. Funding Sources - CHI-SJCH agrees to provide up to $65,000 annually in funding beyond revenue generated by activities and programs at the Market House for costs associated with the maintenance of the Columbia Market House. The Borough is responsible tor identifying supplemental funds necessary beyond the maximum funding allocated by CHI-SJCH for Market House operations.

If overruns are anticipated or occur, a financial plan is to be approved by both the Borough and CHI-SJCH. An overrun occurs if the cost of operations and maintenance of the Columbia Market House exceed the combined revenue generated by activities and programs at the Market House and the $65,000 in annual funding. At that time, CHI-SJCH shall invoice the Borough for the remaining balance on a monthly basis until the overruns are eliminated. During period of overruns, financial reports shall be provided on a monthly basis.

L. Insurance and Liability - Insurance and liability coverage related to management and operation of The Columbia Market House shall be provided by each party to this Agreement as follows:

1. Borough: Covenants and agrees that from and after the date of this Agreement, and during the entire term hereof, it shall, at its sole cost and expense, carry and maintain: (i) property insurance with respect to the Columbia Market House building and the Borough's furnishings, fixtures and equipment within the building; and (ii) commercial general liability insurance, with contractual liability coverage, with respect to the use and occupation of the Columbia Market House in the minimal amounts of one million dollars ($1,000,000.00) each "occurrence" limit and two million dollars ($2,000,000.00) general aggregate limit. The Borough may maintain any of its required insurance under blanket policies of insurance covering the Columbia Market House and any other premises of the Borough, or companies affiliated with CHI-SJCH, provided that the coverage afforded will not be reduced or diminished by reasons by the use of such blanket policies of insurance and that such blanket policies meet the other requirements set forth herein. The foregoing minimal limits of insurance coverage to be maintained by the Borough shall in no way limit or diminish the Borough's liability hereunder. All such policies of insurance hall name CHI-SJCH as an additional insured and/or loss payee.

2. CHI-SJCH: Covenants and agrees that from and after the date of this Agreement, and during the entire term hereof, it shall, at its sole cost and expense, carry and maintain: (i) commercial general liability insurance with contractual liability coverage with respect to the use and occupation of the Columbia Market House in the minimal amounts of one million dollars ($1,000,000.00) each  "occurrence" limit and two million dollars ($2,000,000.00) general aggregate limit; (ii) al risk, property insurance, vandalism and mischief, for the full replacement value, of any and all of CHI-SJCH's property, including, but not limited to trade fixtures and equipment; and (iii) workers compensation or similar insurance to the extent required by law. CHI-SJCH may maintain any of its required insurance under blanket policies of insurance covering the Columbia Market House and any other premises of CHI-SJCH, or companies affiliated with CHI-SJCH, provided that the coverage afforded will not be reduced or diminished by reasons by the use of such blanket policies of insurance and that such blanket policies meet the other requirements set forth herein. The foregoing minimal limits of insurance coverage to be maintained by CHI-SJCH shall in no way limit or diminish CHI-SJCH's liability hereunder. All such policies of insurance shall name the Borough as an additional insured and/or loss payee.


[The complete Professional Services Agreement can be downloaded HERE.]

Spring forward - Daylight Saving Time begins Sunday, March 8

Daylight saving time in the United States 2020 in Pennsylvania will begin on

Sunday, March 8

and ends on

Sunday, November 1

Columbia Borough Police Department Report - February 2020

Lancaster County Delinquent Tax Report - March 2020

Download the report HERE.
(Amounts are NOT certified. Total due is subject to change. Interest
accrues monthly on the first day of a new month.)

Agenda - Columbia Borough Council Meeting - March 10, 2020

Download the council packet HERE.

Columbia Market House project runs into problems, repairs and upgrades needed

The Columbia Historic Market House, 15 South 3rd Street

The Columbia Market House project has run into some unpleasant surprises on its journey forward. A leaky roof, leaky windows, a cistern, and upgrades for the dungeon are some of the issues that cropped up recently and were not part of the original renovation plan. Council now has to resolve those issues to keep the project on track.

The roof, which is a little over 10 years old, is leaking and needs urgent attention. Officials don't think it is under warranty. The roof was replaced in 2009 as part of an $873,928 market house repair project that included repointing of exterior mortar joints and installation of an infrared gas heating system, according to a former borough official.

Council is looking at several options including a rubber roof and spray-on coating. The entire roof could be replaced or just parts of it. No cost was given for any of the options. Although roof replacement was not in the plans, the leaks have been known about for several years, at least since "the market was still kind of operating," according to Mayor Leo Lutz at this week's borough council work session. [NOTE: The market house closed at the end of 2017, as Columbia Spy reported HERE.] Lutz recalled that trashcans had to be placed under leaks during a heavy rain. Council President Heather Zink asked, "If we knew it was leaking, why wasn't it put into the original plans?" Lutz replied, "That I can't tell you." The roof project might also entail installation of new gutters and downspouts. Windows, too, are leaking and need to have caulking removed and replaced.

Fran FitzGerald, the lead councillor of the Public Works and Property Committee, said the dungeon will need upgrades to bring it up to code, including an exhaust fan for better ventilation, a new circuit for lights and convenience outlets, new fire extinguishers, an inside door requiring a crash bar, and exit and occupancy signs.

FitzGerald also said that an existing concrete slab near the bathroom needs to be removed. Although installation of a new slab was accounted for in the plans, the removal was not. The cost for removal was initially estimated at $27,000 but was reduced through negotiation to $8,421.18. Councillor Eric Kauffman said that since the architect was paid to develop the contract, the borough should not be responsible for the oversight. "Why are we paying for it?" he asked.

Borough Solicitor Evan Gabel replied, "In situations like this, you've got to think long-term about some of this stuff, as far as you're going to have to work with this architect for the remainder of this project." [NOTE: The opposite is also true.] Gabel continued, "If an $8,000 change order is the worst thing that happens on a $2.3 million dollar project, then you're doing pretty good."

The borough currently has an "owners allowance" of $25,000, which is a contingency fund for unforeseen issues, often involving change orders. Gabel said $250,000 would be more appropriate for a project of this scale, however, noting that $25,000 seemed small. After discussion, council voted unanimously to approve the change order for East Coast Contracting to remove the slab. Finally, a cistern located near stairs to the dungeon must be filled in. The cistern is five feet wide and nine feet deep. The highway department will provide fill.

On the advice of the borough engineer, council discussed forming an ad hoc committee to examine peripheral projects such as improvements to adjoining streets, parking lots, and sidewalks, and gutters and downspouts for Borough Hall. The committee will consist of representatives from the borough and CHI.

Costs of the changes and improvements were not discussed, except for that of slab removal. The projected cost of the market house project is about $2.1 million, with half coming from a state grant (RACP) and half from borough funds (bond proceeds). Columbia Borough was approved for the $1.75 million grant in August 2019. About $750,000 of that amount will be used for parking projects (including a study). According to the Lancaster County Tax Assessment Office, the market house building is currently assessed at $301,400.

Driver who hit several cars at AAG Auto Sales charged with DUI and Reckless Driving

On 2/18/20 at approximately 10:11pm Stephen Michael Horner, age 66, of Columbia, PA was driving a white Oldsmobile sedan that left the roadway in the 1200 block of Lancaster Avenue and struck two trees, a street sign, a stop sign and numerous parked vehicles that were in the AAG Auto Sale lot in the 1300 block of Lancaster Avenue.  While trying to remove Horner from the wrecked vehicle, first responders noticed a strong scent of alcohol coming from both Horner and the vehicle.  An Officer with the Columbia Borough Police Department filed charges for driving under the influence (Highest Rate) and reckless driving.  Horner is considered innocent until proven guilty in a court of law. 

Arrest Date:  Tuesday, February 18, 2020

Sourced via CRIMEWATCH®: https://lancaster.crimewatchpa.com/columbiapd/10552/arrests/horner-stephen-michael-driving-under-influence-and-reckless-driving