Township of Mahwah s16

TOWNSHIP OF MAHWAH BUDGET WORK SESSION MEETING MINUTES WEDNESDAY, FEBRUARY 13, 2013

The meeting was called to order at 8:00PM by Council President Williams who read the Open Public Meeting Act Statement as prescribed by law. Notice was advertised in The Record on February 2, 2013 stating this meeting would be held on Wednesday, February 13, 2013 at 8:00PM at the Richard J. Martel Municipal Offices at 475 Corporate Drive, Mahwah, New Jersey.

Notice of this meeting is posted on the Municipal Bulletin Board. The minutes of this meeting shall be available in the Municipal Clerk’s Office.

SALUTE TO THE FLAG.

MOMENT OF SILENCE FOR VETERANS AND THOSE SERVING IN THE MILITARY Moment of Silence was observed for those who have served and those who are serving in the military.

Present: Councilmembers DiGiulio, Jandris, Larson, Roth, Sbarra, Spiech and Williams.

Also present were the Mayor William C. Laforet, Business Administrator Brian Campion and Deputy Municipal Clerk Janis Fox.

PUBLIC PORTION On a motion by Roth, seconded by DiGiulio, the meeting was opened to the public at 8:05PM. All in favor. Motion carried.

On a motion by Roth, seconded by DiGiulio, the meeting was closed to the public at 8:06PM. All in favor. Motion carried.

Department of Public Works Director of Public Works Keith Hallissey and Superintendent of the Road Department Ed Sinclair were present.

Mr. Hallissey said his Budget is lean but he feels comfortable with what they need for the coming year. The Business Administrator interjected and stated that the Budget on Salary is premised on a wage freeze, continuing the pay rates that were in effect in the year 2012, and continuing in the year 2013.

The Business Administrator mentioned that the Budget is the plan presented to the Council, awarding the outsourcing of Recycling effective April 1, 2013, with the elimination of five maintenance workers. He said if there is no award of a Recycling or private pick up, a few things would be reversed.

1 Budget Work Session Meeting Minutes February 13, 2013

Roth mentioned on permanent full time salaries there is a 4% increase over last year’s actuals. The Business Administrator explained there are step and anniversary step increases and with a wage freeze the salary rate in December is frozen for the full year of 2013. He stated that this increase depends on when employees received their anniversary steps and works differently in each department. He further added that a step increase could be more than 2 1/2%.

Account #CO2-202; Equipment Spiech questioned the amount of $550. The Business Administrator said the amount of the $550 actual expenditure does not include the final invoices. This he stated would make the final actual amount $1,109.

Account #C02-201; Materials & Supplies Roth said since last year’s actual expenditure, the amount has gone up significantly to $40,000. Roth asked if this is an estimate. Mr. Hallissey answered that this is an estimate and their prediction for 2013. Roth asked why this 12% is higher than last year. Mr. Hallissey answered that he is comfortable with this number to operate unforeseen things in the Road Department.

Account #CO2-203; Repairs & Maintenance Roth asked if they can reduce this recommended amount. Mr. Hallissey stated the actual number is higher than what the Budget numbers were on January 17, 2013.

The Business Administrator stated he is confident the Township will get a reimbursement for storm damage from FEMA.

Building and Grounds Account #CO3-203; Repairs & Maintenance The Business Administrator stated the actual appropriation is $44,854.

Williams asked why the significant increase in 2012 versus what was spent in 2011. He stated the amount is not consistent with the historical record.

Mr. Sinclair stated that they are running into heating problems at the Commodore Perry Annex Building and the Museum. He said he feels confident in leaving the amount the way it is.

Sbarra made a motion to take $3,000 out of this appropriation making the recommendation $49,000. Straw poll vote: DiGiulio, no; Jandris, no; Larson, absent; Roth, yes; Sbarra, yes; Spiech, no; Williams yes. The Motion failed.

Council decided to reduce the appropriation on Account #C03-203 by $4,000 for a total of $48,000.

Account #CO3-205; Training & Seminars Spiech asked for an explanation as a Budget is a management tool. He said it seems there is a small amount of money in various accounts and the money is not being used. The Business Administrator answered that the money should be in these accounts in case an employee goes to a training class. He stated if the money is not used it goes into surplus.

Account #CO3-236; Repairs & Maintenance-Police Roth questioned why this Line Item is not in the Police Department Budget. The Business Administrator answered that all Municipal Buildings should be in the Building and Grounds Account and this item was broken out in the DPW’s Budget.

DiGiulio asked if they knew why the Police Department is anticipating $7,000 more to spend for the Police Building. Roth asked why the appropriation went up 30% and what it represents. The Business Administrator said he will find out from the Police Department.

Parks and Playgrounds Account #CO4-203 Williams asked if there was any changes to this account as a tree fell at Memorial Field. Mr. Sinclair said the amount for that repair is not reflected in this Budget. The Business Administrator answered no. Mr. Sinclair said money has to be added to the $22,000 initial request due to the storm damage from Hurricane Sandy at Riverside Park, Memorial Field and Continental Soldiers Field

The Business Administrator said there has been a recommendation to put up netting at two playgrounds that has raised the recommended appropriation to $28,000.

Mr. Sinclair mentioned he has a quote of $23,450 to repair the fences and damage at the three fields making the appropriation an additional $24,000. The Business Administrator mentioned that what the Insurance Company does not cover, FEMA may cover as they may reimburse at least 75%.

Roth asked if there was a safety issue at the three Township fields. Williams answered that the fields are unsafe and unplayable and have to be repaired.

Mr. Sinclair said the fields can be ready by April 1, 2013 but may need additional quotes. The Business Administrator suggested putting money in the Temporary Budget. Mr. Hallissey said they would prioritize fixing the fields from the least repairs to the worst. Mr. Sinclair commented that if the Township was reimbursed from FEMA it would be after the sports season starts.

Williams recommended raising account, #C04-203 up $20,000 to $48,000. Straw poll vote: DiGiulio, yes; Jandris, yes; Larson, yes; Roth, yes; Sbarra, yes; Spiech, yes; Williams, yes. 3 Budget Work Session Meeting Minutes February 13, 2013

Williams made a second recommendation of reducing Account #C03-203 by $4,000. Straw poll vote: DiGiulio, no; Jandris, no; Larson, yes; Roth, yes; Sbarra, yes; Spiech, no; Williams, yes.

Account #C04-214; Rental Maintenance Agreements Sbarra said $11,800 is the recommended appropriation but questioned never using that much over the past three years. He asked if this can be reduced to $3,800. Williams said he is confused about the amount paid out for contracts and the figure being $11,800. Williams has concerns about taking $3,800 out of this account.

Mr. Hallissey said he will have to look into this and find out the correct number.

Sbarra mentioned, due to historical data, he stands by his request for a $3,800 reduction in this account. Williams mentioned he would rather reduce this account by $2,000. Williams made a motion to reduce Account #C04-214 by $2,000. Straw poll vote: DiGiulio, no; Jandris, no; Larson, yes; Roth, yes; Sbarra, yes; Spiech, yes; Williams, yes.

Williams said at this time, we are now plus $16,000.

Recycling Account # CO5-101; Permanent Fulltime Roth said he needed clarity on the headcount as he thought we were going to lose three employees. The Business Administrator explained seven employees will be paid for the first three months. The top two employees will be paid for the full year based on the change of April 1, 2013. The Business Administrator explained that this budget is proposing eliminating five maintenance positions. Two employees can go to an open spot in the Water Utility Department and three would be laid off.

Roth feels this is not the time to talk about this part of the budget as the Council does not know what is going to happen nor do they know answers to important questions on Recycling.

Larson requested tabling this until the Council hears the alternative proposal.

DiGiulio said she feels the budget should be the same if we maintained the status quo. DiGiulio further stated we should have a comparison of both options on the Recycling Budget before proceeding.

Spiech agreed with DiGiulio and also proposed to put the budget back as if the status quo remains.

The Business Administrator said the budget should remain the same. Roth asked how long it will be to have some resolution. The Business Administrator said they could have resolution at the next Council Meeting to mitigate some of the issues. 4 Budget Work Session Meeting Minutes February 13, 2013

Williams stated if the Recycling issue is not on the next Council Meeting Agenda will they have to deal with one of three options to put in this budget.

On a motion by DiGiulio, seconded by Sbarra, it was decided that the numbers on this budget will be kept at status quo and change #C05-101, #CO5-211 and #CO5-214. Straw poll vote; DiGiulio, yes; Jandris, yes; Larson, yes; Roth, yes; Sbarra, yes; Spiech, yes; Williams, yes.

Motor Pool Account #CO6-236-; Repairs and Maintenance - Police Roth asked if this number for repairs came from the Police Department. The Business Administrator said these repairs are all due to the age of the vehicles. The Business Administrator stated all department vehicles are in the Motor Pool account.

Roth questioned the recommendation is up $7% from 2012. The Mayor stated that repairs exceeded the value of the cars so they got rid of the cars.

Williams suggested revisiting this item during the Police Department Budget Hearing.

Snow Removal Account #CO7-000 The Business Administrator mentioned this winter is a lot different then last year. Mr. Hallissey stated they bought a lot of salt last year so are not asking for more in the budget for 2013.

Emergency Services Building & Grounds Account #CO9-203; Repairs and Maintenance Williams questioned the actual appropriation of $34,000 and for 2013 the recommended appropriation is $41,000. It was decided to leave this appropriation at $41,000.

Capital Budget The Business Administrator handed out a sheet showing a table of the DPW roads. He said there are two items which are West Airmount Road and Macarthur Blvd., north side. The Business Administrator said they are suggesting that the 2013 Budget would be $990,000 but are anticipating a $150,000 grant.

Spiech asked if we do not outsource recycling are new trucks needed. Mr. Hallissey said they do not need new trucks.

The Business Administrator said the DPW is requesting $35,000 in the Capital Budget for the roof at Company #1 and $849,000 for roads.

Williams said he has concerns about the roads. He said last year they approved a new fire truck and does not understand why the Township should put off roads every year. Williams stated the roads are in a deplorable state. Williams said there has to be a plan for roads. Williams said if the Council is in favor of spending $700,000 on a new fire truck the capital budget will have to be raised more.

Water Utility Superintendent of Water/Sewer Paul Scherer was present.

Roth said there has been a great job building the surplus. The Business Administrator stated we do not have to look at rate increases at this time.

The Business Administrator said we will be funding Ford Well 18A out of the surplus. He said there are several hoops to go through to get permits for Well 18A. The Business Administrator said we have to get a firm handle as to what is going to be done on Well 18A in the next few years.

Spiech mentioned if we need additional water we have to get it from United Water which is double the price and we have many projects coming in the future.

The Business Administrator handed out a five year Capital Plan on Water Utilities.

DiGiulio as where the Township stands with repairing or replacing main breaks. Mr. Scherer said most everything is done. The Business Administrator interjected and said Skytop Drive will need some work in the near future.

Capital Budget The Business Administrator said the Capital Request is one vehicle in the Water Department and one in Sewer Department. The Business Administrator said Mr. Scherer and himself have been meeting with companies about the rehabilitation of the Campgaw Water Tank. This will be a major task, he stated, and will be getting a proposal back this week. The Business Administrator said there are four or five cell carriers on this tower which complicates things and they will have to coordinate taking these off the tank onto another tank. The Business Administrator stated they are looking to put a permanent monopole up for the leased antennas. Mr. Scherer said the tank also has to be painted.

Williams since there is a great reserve in the Capital Improvement Budget can the truck be bought out of this reserve. The Business Administrator said the truck can be bought in cash. Williams asked the Superintendent to prepare a replacement plan for the vehicles.

Account #3-50-101-209; Water and #3-60-101-209; Sewer: Printing & Advertising Roth asked why the appropriation of $3,550. was recommended when this amount was never spent. Roth questioned how much it is to do the mailings as water and sewer have 6 Budget Work Session Meeting Minutes February 13, 2013

the same amount recommended. A motion was made by Roth to take $550 out of this account and the sewer account and reduce the recommendation to $3,000. Straw Poll vote: DiGiulio, yes; Jandris, no; Larson, yes; Roth, yes; Sbarra, yes; Spiech, no; Williams, yes.

Account #3-50-102-105; Overtime The Business Administrator recommended reducing this account to $66,000

Account #3-50-102-107: Stand-by Pay; Water Utility The Business Administrator recommended reducing this account to $45,000

Williams said when he compared 2012 salary list of personnel versus 2013 he saw the same names and asked who left in 2012 that created two open spots. Mr. Scherer said these positions are open. The Business Administrator stated that the two positions are funded and open.

Account #3-50-102-201; Materials and Supplies and #3-50-102-103 Sbarra asked if the recommended amount of $135,350 is needed as this much was never used in the past few years. The Business Administrator said Repairs and Maintenance is under budgeted and Materials and Supplies were over budgeted. The Business Administrator interjected and said there is a lot of work that hasn’t been done, namely hydrants and other repairs on the property the Township owns. Council recommended reducing Materials and Supplies to $121,350 and Repairs and Maintenance increasing to $135,000.

Account #3-50-102-212: Water Testing The Business Administrator recommends that the recommended appropriation be reduced from $18,650.to $13,000.

Account #3-50-102-225; Meters The Business Administrator suggested that the recommended appropriation be reduced to $10, 000 from $17,000.

Account #3-50-102-216; Gas, Electric, Water Utility The Business Administrator commented that a majority of this expense is purchasing water from United Water. He stated they try to keep this amount on the high side in case we have to purchase water.

Spiech asked about the generators. The Business Administrator said that they have applied to FEMA for the purchase of new generators and we have a Capital Budget set aside for generators. Mr. Scherer stated most all of the stations have generators.

Sewer Utility Roth said the sewer revenue shows a reduction of 1%. The Business Administrator said sewer rates are based on winter usage. Roth suggested looking at how sewer usage is charged. The Business Administrator said sewer usage is pretty constant over the year.

3-60-102-107: Stand-by pay: The Business Administrator said they are reducing this account by $5,000 to $20,000

3-60-102-201: Materials & Supplies The Business Administrator said they are reducing this account by $5,090 to $11,000

3-60-102-202: Equipment The Business Administrator said they are reducing this account by $1,900 to $4,000

3-60-102-203: Repairs & Maintenance: The Business Administrator said they are increasing this account from $24,000 to $30,000 due to the lift station that is having problems.

3-60-103-219: Auditing/Engineering/Legal Williams questioned the recommended appropriation or $60,000 and asked if this is for legal fees. The Business Administrator said there may be experiencing some additional legal as there is a lawsuit on the horizon with Northwest.

Williams suggested there should be a replacement plan for the vehicles.

On a motion by Roth, seconded by DiGiulio, the meeting was adjourned at 11:45PM. All in favor. Motion carried.

Respectfully submitted,

Kathrine G. Coletta, RMC/CMC/MMC Municipal Clerk

Meeting Minutes prepared by Jan Fox, Deputy Municipal Clerk.