HONESDALE BOROUGH, PA — In a split vote, the Honesdale Borough Council chose Keystone Municipal Solutions (KMS) as a consultant for the borough's capital plan. Borough councilors split between favoring KMS and favoring the Pennsylvania Economy League (PEL), with discussions touching on the cost and specifics of each proposal, as well as on the council's past experience with each. 

A capital improvement plan lists a municipality's capital assets (like buildings, equipment and stormwater infrastructure), identifies what needs to be repaired or replaced and creates a multi-year budget and timeline for repairs and replacements. A municipality without a capital improvement plan—like Honesdale—deals with capital needs on a case-by-case basis as problems arise, which limits long-term planning and can make operations more expensive overall. 

KMS and PEL both submitted proposals in response to a Honesdale Borough request for consulting services to help the borough create a capital improvement plan. Honesdale previously worked with KMS to hire an interim borough manager, Kevin Kundratic, who served in that role from April 2024 to the spring of 2026. It has also worked with PEL, which created the borough's Strategic Management Plan in 2025. 

The KMS proposal came in at $32,000, plus out-of-pocket expenses capped at $1,000. The PEL proposal came in at $60,000. 

Finance committee chair William McAllister suggested the borough go with the KMS bid. "There is no need to spend $27,000 for the consulting services that the firms are equally providing," he said. 

McAllister told the River Reporter after the meeting that he looked forward to working with KMS Senior Advisor Dan Connelly on the project. 

"Their original estimate when this first came up was $40,000," said McAllister, explaining the $27,000 difference. "But he [Connelly] knows I'm a CPA. I've already got a capital improvement plan in the budget, and we're going to be adjusting what I created to substantiate why I created it."

Borough councilor James Hamill preferred the PEL bid. He argued that, while PEL's proposal cost more, it gave the borough more, too. 

"It's my understanding that their proposal, while more, will do a lot of the work beyond the initiation of the capital improvement [plan]... I think it does maybe require maybe just a little bit more time—if possible, considering it is August—if we're looking to determine if this is apples to apples or not," he said. 

McAllister pushed back on that argument. "Besides the $27,000 difference, the functions of both consultants are comparable and will entail all of the items that you perceive are needed to develop the appropriate plan," he said. [See sidebar for a summary of each plan's elements.]

Hamill also brought up the borough's prior experience with KMS. Kundratic and Hamill evidenced friction during Kundratic's time as interim borough manager, with Hamill questioning the amount the borough paid KMS for Kundratic's services. 

"Having dealt with KMS and not having a great taste left in my mouth… I think my biggest concern here is that KMS has provided services that are lacking in our immediate history with the borough," he said. 

The borough council split 3-3 on a vote to hire KMS, with McAllister, Kim Fisch and James Brennan voting yes, and Hamill, Pat Resti and Larissa Llewelyn voting no. Jason Newbon was absent. Mayor Derek Williams voted in favor of KMS, breaking the tie.