Harrisburg attorney Kenneth Lee, one of at least four attorneys retained by Mayor Linda Thompson to represent her, said Senior Judge James Kelley today indicated a decision would be made quickly in the appointment of public finance expert David Unkovic.

Unkovic appeared in court today to testify about his qualifications, which include 32 years of municipal finance experience, and to dispel reports of conflicts related to past employers that have connections to Harrisburg's debt crisis.

He spent 27 years at Saul Ewing LLP in Philadelphia. The firm represents Assured Guaranty Municipal Corp., the primary bond insurer of the city's incinerator debt along with Dauphin County. That debt is said to be $317 million, according to city officials.

Unkovic also worked for PFM Asset Management LLC in Harrisburg from 2006 to 2008. PFM represented the county in incinerator debt financing.

In addition, he previously represented RBC Capital Markets, a subsidiary of the Royal Bank of Canada, based in Toronto. RBC was an underwriter of the incinerator debt.

Prior to his July appointment as chief counsel at the state Department of Community and Economic Development, Unkovic worked at Cozen O'Connor, the Philadelphia-based law firm the state hired to fight Harrisburg's recent bankruptcy petition.

Unkovic today said in court he has no connections to any of the financial deals involving Harrisburg's incinerator. In the case of Saul Ewing, he said he left prior to AGM retaining the firm.

In 2001, he represented Dauphin County as bond counsel on a general obligation bond issue, he said. That deal had nothing to do with the incinerator.

If appointed to the post, he said, he will do what needs to be done to get the capital city back on the right financial track, even if it adversely impacts former employers.

"It's going to be difficult, very difficult," he said about crafting a recovery plan. "I intend to do what is in the best interest of the city and the state. I'll do what the receiver needs to do."

Kelley was given up to 60 days to make an appointment following the filed nomination petition, which occurred Nov. 18. Lee did not oppose the appointment.

Unkovic collects a salary of $125,008 as a so-called "unassigned" state employee. He said that would remain his salary if appointed. The Montgomery County resident resigned as chief counsel at DCED upon being nominated as receiver.

Last week, a federal bankruptcy judge dismissed Harrisburg's Chapter 9 petition, setting up what city and state officials expected to be an expedited takeover by the commonwealth.

The City Council in mid-October filed for bankruptcy protection after a majority of its members in August and September rejected recovery plans created by a state-sponsored Act 47 team and the mayor.

State receivership was added to the equation about a week later with the passage of Senate Bill 1151, a piece of legislation crafted by Sen. Jeffrey Piccola, R-Dauphin County, and later amended by Cumberland County Republican Rep. Glen Grell.

The latter altered the bill to give the governor power to declare a fiscal emergency to ensure a third class city's vital and necessary services are funded should its officials fail to approve a recovery plan under the Act 47 distressed municipalities program.
Gov. Tom Corbett on Oct. 24 declared the fiscal emergency.

SB 1151 also calls for the creation of a four-member advisory panel that would comprise the mayor, the City Council president and representatives appointed by the county commissioners and the governor. That panel would have no ruling power on the city's fiscal matters.

At an afternoon news conference, Thompson said she will not be relegated to the sideline under a receiver.

She said she will continue to meet with state officials to discuss possible solutions and hopes the receiver will use her recovery plan as a starting point in creating a new blueprint.

The mayor also said she will continue to advocate that only the incinerator and city parking garages be considered as part of the debt solution.

Editor's note: This item was modified from its previous version to update throughout.