MINUTES OF THE HANOVER BOROUGH FINANCE & PERSONNEL COMMITTEE MEETING. November 20, 2018

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1 MINUTES OF THE HANOVER BOROUGH FINANCE & PERSONNEL COMMITTEE MEETING Chairman Rupp called the Hanover Borough Finance & Personnel Committee meeting to order Wednesday Evening, at 7:00 PM at the Hanover Municipal Building, 44 Frederick Street, Hanover, P A, as advertised. Attendance: In attendance were Council Members Mr. Baumgardner, Mr. Chesney, Mr. Hoover, Mr. Lockard, Mr. Noble, Mr. O'Neill, Dr. Rupp and Mr. Shea; Mayor Ojo; Solicitor Shultis; Staff Members Manager Bowersox, Fire Chief Clousher, Secretary Felix, Library Director Kane, Police Chief Martin, Finance Director Miller, MS4 Coordinator Morningstar, and Administrative Asst./ Asst. Secretary Musselman. Approval of the Minutes: It was moved by Mr. Chesney, seconded by Mr. Shea to approve the minutes of October 17, 2018 as written. Motion carried. Approval of the Bills: Chairman Rupp addressed the payment of the monthly bills. Chairman Rupp asked for questions or comments, and there were none. It was moved by Mr. Lockard, seconded by Ms. Chesney to move the item to the Council agenda for approval. Motion carried. Liquid Fuels Bills: It was moved by Mr. Shea, seconded by Mr. Hoover to approve the payment of the Liquid Fuels bills. Motion carried. Monthly Financial Statement: Finance Director Miller's review was ed and is attached in this evening's packets; recommended to review subsequent to meeting and approve at following week's Council meeting. As always, if there are any questions or concerns, please contact Finance Director Miller or Manager Bowersox. Monthly Investments: Finance Director Miller noted the variable rate percentage for November was at 2.60%, which will generate just over $40,000 in interest for the month Budget Amendments: Finance Director Miller discussed the proposed budget amendments relating to (1) change in contracted terms developed subsequent to the execution of the 2018 operating and capital budgets, (2) change in project scope and plans in relation to coordinating infrastructure work within the Borough and its surrounding, water-serviced municipalities, and (3) year-end timing in relation to approved projects anticipated to see additional progress and/ or completion in the next fiscal year(s). Amendments focus on significant budget-to-actual differences in relation to expenditures, offset with any corresponding revenue sources available or use of reserves, as applicable.

2 Page2 ~ General Fund Library- To account for Council-approved architectural design/ engineering consultation services in relation to continued assessment on Guthrie Memorial Library construction deficiencies, and services in relation to mediation with project parties, offset with partial mediation rewards received from those project parties. Public Works/Business Privilege Tax - To account for Council-approved expedition of replacement of Public Works T40 replacement (1999 Dodge Ram 2500 with plow); offset of tax revenues in excess of anticipated amounts. Fire & Rescue Commission- To adjust classification of expenses in relation to the Hanover Area Fire & Rescue Commission establishment, and segregated employee contract structure negotiated. Refuse Disposal Fees/Transfer Station - To account for increased volume of refuse disposal fees and transportation charges, in relation to increased Transfer Station usage. Street Reconstruction/Business Privilege Tax - To record Council-approved street reconstruction program for East and West Chestnut Street (300,000 Highway Liquid Fuels, and $30,000 General Fund); offset of tax revenues in excess of anticipated amounts. Santa's Cabin - To record Council-approved construction bid for Santa's Cabin, fully funded through private donations ($1,000 from reserves from 2018 donations). ~ Market House Fund - To account for Council-approved HV AC installation contract (in2017) for Market House, based on use of Warehime Foundation funding received in 2017 (from reserves). ~ Highway Liquid Fuels Fund- To record Council-approved street reconstruction program for East and West Chestnut Street ($300,000) Highway Liquid Fuels, and $30,000 General Fund); from carryover reserves. ~ Water Fund - To record Council-approved cash purchases (versus budgeted leases) for 2019 Case 590SN Backhoe ($112,953) and 2019 Western Star 4700SF Dump Truck and Bed ($188,234); offset with lease cost removal and use of carryover reserves.

3 Page3 Storage Facility Project at LBS Dam-To record Council-approved construction for a new storage facility at the Lawrence Baker Sheppard Dam to replace existing facility ($5,000 labor and $80,000 materials and outsourced construction) (original budget approved for roof repair: $13,000); offset with use of carryover reserves. West Hanover and West Middle Streets Project- To record Council-approved project for West Hanover and West Middle Streets - approximately 4,500' water line total: (1) downsize of 10" main (from 1941) on West Hanover Street (from Baltimore Street of South Forney Avenue) to 8". (2) upgrade of 4" line (from 1898last line in 1997) on West Middle Street (from Doss Alley to Centennial Avenue) for fire protection and improved flow, as identified in Water Hydraulic Model. Total project estimate of $905,285 with $268,821 projected for 2018 (10% of primary contract, and $65,000 estimated engineering costs for project planning/ administration); offset with use of carryover reserves. Carlisle Street/Baltimore Street Project- To remove budgeted grant funding and related project expense for Carlisle/Baltimore Street main line cleaning project, due to anticipated 2018 project completion where relating requirements for grant recognition were met in late );> Guthrie Memorial Library Fund- To correct budgetary classification of quarterly funding from the Hanover Public Library Association's endowment to benefit the operations of the Library (originally budgeted as interest, not Fundraising/ Donations). Chairman Rupp thanked Finance Director Miller for the detailed information. Finance Director Miller commented that as the year moves on, the projections change Projections/ 2019 Budget Updates: Finance Director Miller ed the information out on Friday, November 16th to the Committee for review. He has been updating the projections since the October meeting. The Chestnut Street project was well under initial projections for Police Chief Martin explained that the County is moving forward with a records management service upgrade project asking the municipalities within the County to commit at the onset, which will be an approximate savings for the Borough of $8, as well as savings over time. The Sheriff's department recommended the project to be implemented by all municipalities. The Borough's cost would be approximately $42,000.

4 Page4 If the Borough would choose to move ahead at a later date, it could cost upwards of $50,000. The Committee approved of same to be expedited in Manager Bowersox reviewed the following items for the 2019 General Fund budget, utilizing funds that were placed in reserves over the past two (2) years: Part Time Public Information Coordinator $ 33,000 Police Officer $113,000 Codes Officer $ 73,000 Reduced scale wash bay $198,000 The Committee agreed to the expenditures for the 2019 budget as presented. Mr. Noble asked for budget projections through Finance Director Miller noted they are still in preparation, and discussed the potential impacts of various changes projected in the next five (5) years. Positive impacts are expected from Benecon for the joint municipal consortium administering the Cobra and retiree insurance coverages; the switch from in-house tax collections to Y ATB which has gained significant revenue; and the decrease of office staff due to automation. The integration of the Fire Commission also has a major impact on the budget. Mr. Noble asked for a master plan of Borough operations and suggested restructuring. Manager Bowersox noted that this concept could be addressed in Phase II of the EIP analysis. Chairman Rupp noted it would be prudent to schedule a work session with Committee members, Manager Bowersox and Finance Director Miller for a more in-depth discussion on the budget, so all Committee members have a chance to review, analyze and voice their concerns. She asked the Committee to respond to her with dates and times; same will need to be advertised as a public meeting. The Committee discussed the need for, pricing, and various concepts for the construction of a Public Works Wash Bay. The Committee directed Manager Bowersox to request the architect he had originally received pricing from in 2017 to draw up a basic facilities concept plan, so the Committee could make a more informed recommendation. The wash bay item shall remain in the 2019 budget as a marker in the meantime. It was moved by Mr. Shea, seconded by Mr. Chesney to place the motion to advertise the 2019 budget for public inspection to the November 28, 2018 Council agenda. Motion carried.

5 PageS Disabled Veteran Tax Exemption: A request was received from the Pennsylvania Department of Military and Veterans Affairs for a real estate tax exemption for Mr. Jeremy S. Jacoby, 932 Broadway. It was moved by Mr. Shea, seconded by Mr. Hoover to move the item to the November 28,2018 Council agenda. Motion carried. Fire Drivers Pension Plan Ordinance Amendment: The purpose of the ordinance amendment is to change the pension benefit formula from 1.75% to 1.90% of average monthly compensation multiplied by the total number of complete years of benefit service, effective January 1, The change was prepared by Borough's Pension Actuary, Conrad Siegel, based on the adopted Fire Drivers contract. It was moved by Mr. Shea, seconded by Mr. Noble to move the ordinance to the November 28, 2018 Council agenda. Motion carried. Rental Uniform Bids: Three (3) bids were received and opened on November 16, 2018, as advertised. Unfirst Corporation, Hummelstown, P A was low bidder in the amount of $ per week for a three (3) year contract. The current provider for uniforms is Cintas. It was moved by Mr. Shea, seconded by Mr. Hoover to move the approval to the November 28, 2018 Council agenda. Motion carried. Sunshine Law - Legal Advertisement for 2019 Meeting Dates & Times: The item will remain on the agenda for the next Finance & Personnel Committee meeting. The Facilities Committee may merge into the Public Works Committee. Chairman Rupp asked the Committee members to review and discuss any anticipated changes at the next meeting on December 12,2018. The 2019 meetings must be advertised before December 31,2018. Fee Resolution and Equipment Rental Resolution Changes: The changes for 2019 were sent to the Committee for review, and there were no comments or concerns. It was moved by Mr. Shea, seconded by Mr. Chesney to move the Equipment Rental Resolution and Fee Resolution as presented to the December 19,2018 Council Agenda. Motion carried. Tuition Reimbursement Policy: Manager Bowersox drafted the changes and incorporated changes suggested by Council meml?ers. The changes will be incorporated into a Council resolution to clarify guidelines for the budgeting process. There is a $300 per semester hour equivalent for undergraduate study; and a $600 per semester hour equivalent for graduate level study. There is a $4,500 per individual per calendar year cap, and a total of $15,000 annual maximum for all Borough employees to be disbursed on a first-come, first-served basis. It was moved by Mr. Shea, seconded by Mr. Chesney to move the item to the November 28,2018 Council Agenda. Motion carried. Administrative Salaries: Manager Bowersox proposed a 2.5% increase for 2019 salaried positions.

6 MINUTES OF THE HANOVER BOROUGH FINANCE & PERSONNEL COMMiTTEE MEETING Page6 OLD BUSINESS 229 Carlisle Street: Manager Bowersox noted the Sherriff's sale is scheduled for December 3, The Committee agreed on a max upset price of $25, If there are no offers of $25, or more, the property reverts back to the Borough. Manager Bowersox and Solicitor Shultis will attend. NEW BUSINESS Manager Bowersox noted the first meeting of the Hanover Borough Stormwater Authority is scheduled for Tuesday, December 4, 2018 at 6:00PM. The leaf collection and street sweeping budgets have been segregated out of the garbage and refuse budget and into the stormwater fund, resulting in lower garbage and refuse rates from $73.50 to $ The lea collection and street sweeping budgets will now be incorporated into the stormwater fee. Manager Bowersox explained the 75% industrial & commercial charges will be removed from the sewer billing resolution beginning in (Removing the allowance to charge 75% of the highest of the last four quarterly sewer billing charges if that amount was higher than the present quarter's charge.) Library Director Kane noted the Library Board of Governors approved a motion to work with Hanover Borough Council on library use and optimization, and would like to discuss payment options for building maintenance. Manager Bowersox reiterated every option is on the table, and Ms. Himmelberger from Warehaus is working on alternate proposals for repairs and maintenance. The Library maintenance issues may be addressed under current Council Committee level, presently the Facilities Committee. Adjournment: It was moved by Mr. Chesney, seconded by Mr. Lockard to adjourn the meeting at 8:53 PM. Motion carried. Respectfully submitted, 12~~eC)-~ Borough Secretary