Tube City Almanac

October 31, 2011

Mayoral Election: 12 Questions for Ray Malinchak

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Ray Malinchak is an independent candidate for mayor of McKeesport in the Nov. 8 election. The city controller for eight years, Malinchak has also served on the McKeesport Area School Board, McKeesport Industrial Development Authority, and McKeesport Zoning Hearing Board.

He is a registered consulting engineer in the nuclear and power engineering industry with a masters degree in mechanical engineering from the University of Pittsburgh and with the U.S. Army for two years in the Signal Corps as a cryptographic technician.

(To read Mike Cherepko's answers to the same questions, click here.)


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1.) Almanac: If you were trying to convince someone to move to McKeesport --- either a family or a business --- what would you say?

Malinchak: McKeesport provides good access to Pittsburgh business and cultural districts, professional and collegiate sports facilities, shopping centers, universities, hospitals and the airport.

The MASD's $84 million building program has been progressing at a rapid rate. In the near future, MASD will have three of among the best, state-of-the-art elementary school buildings in the county. MASD administration has recognized the challenges in education --- performance, grades --- and is dedicated to making improvements.

The concentration of religious, medical, sports, shopping, educational, cultural, historical and recreational opportunities in the Renzie Park region and City are exceptional. Each opportunity offers an abundance of free or reasonable cost parking.

Residential housing and commercial building offer a wide price range and are relatively affordable with respect to other bedroom communities. The waterfront property is shovel-ready for development.

The short-term financial stability of the City is assured with a recent collection system sale for over $24 million. The City has about $19 million in cash reserve and has reduced its long term debt over $5 million.



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2.) Almanac: McKeesport currently provides police service to Dravosburg, ambulance service to Port Vue and Dravosburg, and (through the MACM) sewerage to several municipalities. What other services might McKeesport market to surrounding municipalities to generate revenue and lower expenses?

Malinchak: The public services of fire protection, code enforcement, police protection, community development and municipal services should be made available to others, if cost effective, and only if requested by the neighboring municipality.

One consideration would be to offer packaged services to other municipalities such as the purchase of services or materials to take advantage of large quantity procurements. These packaged services could possibility include such entities as trash collection, recyclable material disposal, tires, vehicles, insurance, accounting software, communications, salt and fuel.

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3.) Almanac: The so-called "Delta report" singled out code enforcement as a major complaint of residents. As mayor, what steps would you take to enforce property maintenance codes and clean up blighted neighborhoods?

Malinchak: Code enforcement entails first the notification to a property owner of a code infraction. Then there is a process to permit the owner some time to bring their property up to code standards. The challenge is when owners reside out of state or cannot be located or disregards a legal summons to comply with the code. Code enforcement officers need the services of law enforcement personnel to pursue code violators, and this could become a cost prohibitive endeavor to find out-of-state property owners.

As mayor, I would get the attention of non-compliant out-of-state property owners by placing immediately a lien on their property, and then proceed with the execution of a sheriff sale in accordance with the law. Also, a resident of the property should have their rent attached as another code enforcement mechanism.

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4.) Almanac: One of McKeesport's assets is low-priced, affordable housing. Is there a role for McKeesport to play as a "bedroom community" for people who live in Pittsburgh? If so, as mayor, what would you do to market McKeesport as a bedroom community?

Malinchak: I assume you mean for people who work in Pittsburgh? Refer to question 1 for part of this response. In addition, I would work to try to restore train service to Pittsburgh. If plans include completing the Mon-Fayette Expressway, that certainly would be a significant benefit to McKeesport. The park-and-ride concept has been working well for some time along with the mid-town bus terminal.

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5.) Almanac: What, if any, role should new housing play along McKeesport's riverfronts? If housing plays a role, then as mayor, how will you encourage this?

Malinchak: This opportunity is worthy of a study by experts such as the Pennsylvania Economy League.

The underlying question is how could the value of riverfront property be best optimized? Should it be developed for light industrial, heavy industrial, river port to exploit adjacent train tracks, residential complex, private homes, office space or commercial buildings? This study would also include marketing schemes, and implementation and financial plans for an optimum configuration.

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6.) Almanac: As mayor, how will you work to rebuild the communication lines between the city and the McKeesport Area school board?

Malinchak: The communication lines have always been there. I believe it is their position on various issues that are not communicated. I, as mayor, would do what I have been doing since the late Dr. Faulk was superintendent in the early 1970s --- that is, attending their meetings and studying the MASD budget and knowing the school directors. I would invite the superintendent and all MASD board members to attend every council meeting.

Conversely, the mayor and council members should attend school board meetings. I have attended many school board meetings since 1975 and recall rarely seeing any elected City officials in attendance. Superintendent Gabauer and his staff recently attended a council meeting. In fact, the former mayor attempted to discourage me from participating in school board meetings because I was the City Controller.

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7.) Almanac: What do you see as the future direction of Downtown --- particularly the Fifth Avenue-Shaw Avenue corridor?

Malinchak: With the recent renovations to Fifth Avenue, the new Social Security building, UPMC McKeesport hospital, and other new businesses, a foundation has been established. This is progress to build from.

However, significant marketing is required that could be augmented with the completion of the flyover ramp. I would consider a study to try to understand the reason why some of our surrounding municipalities with similar demographics to the City have numerous thriving main street businesses.

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8.) Almanac: McKeesport has several different development agencies (RACM, MIDA, MDC, etc.) and housing organizations (MHA, MNI, MHC, etc.). What do you see as the future role of these agencies and groups? What, as mayor, will you do to shape their direction?

Malinchak: As mayor, my first action would be to use every legal remedy available to remove every elected official from serving on boards or authorities prohibited by the third-class city code. This continuing violation of the state code has been overlooked by this and previous administrations.

The authorities and boards should be staffed with interested individuals that have experience related to the entity. In my opinion, a state senator has many pressing matters in Harrisburg and may not be available to serve effectively on the MHA and other City entities, such as chairing the International Village committee.

Every candidate or provider of services for any board or authority must be current with every obligation to the City.

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9.) Almanac: About 31 percent of McKeesport residents are African-American, yet many city authorities and non-profit organizations are run by whites. What can we do to improve minority representation and participation in local civic life?

Malinchak: Unfortunately, almost all of the jobs that are funded with our tax dollars are controlled by elected officials. Typically, these unadvertised jobs go to their relatives, close friends, or persons capable of delivering the most votes to endorsed candidates. A case in point is the six or so MACM recent jobs that were given to those well-connected to the political family.

Minority representation can be improved by publicly advertising open jobs and prohibiting nepotism. That is exactly one of the first policy changes I accomplished in 1980 when I was appointed to the MASD school board. Unfortunately, this policy was revoked by those elected officials who followed to benefit their relatives and friends.

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10.) Almanac: Help for municipalities from the state and federal government is drying up. As mayor, what are some new sources of revenue that you think can be tapped for McKeesport?

Malinchak: The City will be impacted by significant increases in MASD property tax due to the dubious $85 million building program. The City has a 1.7 percent earned income tax that makes it difficult to compete with neighboring communicates for new businesses or families. (Editor's note: The city's 1.7 percent income tax includes 0.5 percent for McKeesport Area School District and 1.2 percent for the city.)

One possible source of one-time revenue is to attempt to collect or sell the some $8 million in delinquent property taxes.

Another option for government-funded operations is for each to become a self sustaining profit center.

In general, government seems always to focus on revenue generation but neglects trying to contain the demand side. For example, the salaries of a former City solicitor of $120,000 and the mayor's authorized salary of $80,325 are outrageous and unreasonable. As announced previously, I will not accept any salary or vehicle if elected mayor. My opponent can legally retain his teaching position and be a part-time mayor at full pay.

A 30 percent spike or $20,000 increase in the cost of vehicle tires is a potential cost-saving line item. I would immediately prohibit the use of City resources for the retail sale of tires to any person affiliated with the City.

As you may know, I personally financed a $5,700 private investigation that provided insight about the sources of a 19 percent or $170,000 increase in trash collection. This is presently a matter very much in progress.

As mayor, I would order that all transactions with salvage firms be by check or electronic money transfer for the disposal of scrap material and vehicles.

Also, I would order gate accountability at International Village using numbered two-part tickets for entry.

Unfortunately, the City did not fully evaluate the consequences of the MACM $24 million cash payoff due to the depressed interest rate market.

Thus, City council must suffer the consequences of acting in haste steered by Council President Cherepko. A perfect example of haste makes waste is this "illegal" $24 million loan payoff from MACM. MACM was paying the City 4 percent interest but now the City is earning less than 1 percent on the money. This is a significant loss of revenue to the City of over $65,000 per month or $250,000 for this year.

I urged council to have a third, independent party evaluate the proposed transaction but council rejected my suggestion. This is an inexcusable waste of taxpayer money and will contribute significantly to this year's deficit. This has all the characteristics of abuse of discretion and misfeasance.

This transaction was expedited and supported by the Council President over my objections. This resulted in Council President Cherepko ordering the McKeesport Police Department to eject me from a Council meeting.

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11.) Almanac: What are McKeesport's three biggest assets and/or strengths?

Malinchak: A significant asset is the public safety services provided by our paid fire, police, rescue team, medical transport professionals, and UPMC McKeesport. They are well trained and equipped, and fast responders.

The concentration of religious, medical/health facilities, shopping, educational, cultural, historical, and recreational opportunities in the Renziehausen Park and adjacent areas are exceptional and offer an abundant free parking.

The balance sheet for the City has been significantly strengthened with the sale of the City owned sewage collection system to MACM for $30 million. The City received a $24 million "cash" payoff for the balance due to the City. Part of this payoff will be used to reduce part of the $31 million bond debt and to provide annual capital to balance future budgets. Council must be prudent and optimize on this windfall for the long term benefit of the City.

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12.) Almanac: Allegheny County has 130 municipalities. Are you in favor of consolidating some of these municipalities with each other, or into Allegheny County? Why or why not? Would you pursue a merger of McKeesport with another municipality? Why or why not?

Malinchak: Municipal consolidation or merger is the thrust of Senate Bills 1429 and 1357. I favor Senate Bill 1429 because it provides for an improved voluntary process for mergers. This bill gives choices to municipal leaders and their citizens to decide for themselves the size and the type of their own local government.

I would pursue the will of the people in accordance with Senate Bill 1429 when and if it becomes law and only if the citizens have a choice to consider merger or to remain status quo.

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