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1 BOC B udget W orkshop, 6P Novem ber 6, Page 1 BOARD OF COMMISSIONERS BUDGET MEETING AGENDA MINUTES MONDAY, NOVEMBER 6, CALL TO ORDER 6:00 p.m. Attendees: Christina Tori Morgan, President Glenn Block, Vice President David Bond, Commissioner Thomas Johns, Commissioner Matthew Mulqueen, Commissioner Renee Bickel, Township Manager Randy Cope, Director of Twp. Operations Brooke Neve, Director of Finance Tracy Fehnel, Executive Assistant 2. PLEDGE OF ALLEGIANCE 3. NOTIFICATIO ON: All public sessions of the South Whitehall Township Board of Commissioners are electronically recorded. The electronic record is kept until the minutes of the meeting are approved, and destroyed if a request is not made to retain the electronic version at that time. 4. MINUTES: October 30, 2017 Budget Workshopp Meeting Minutes TABLED until next meeting so that BOC have a chance to review. All in favor; none opposed. 5. COURTESY OF FLOOR: None BUDGET: Finance Manager Brooke Neve thought it would be a good idea for each of the Department Managers to come before the BOC so that they could discuss any items they want to present to the BOC, with regard to their operating budgets/capital budgets (with accompanying justification handouts). During each presentation, BOC can then ask any questions they may have.
2 November 6, 2017 Page 2 a. Community Development Review 6:00 p.m. Director of Community Deveopment, George Kinney George Kinney explained that he feels the budget is fairly straight forward, with a few little plus and minuses here and there. The only thing he had, was a request for an additional line item in the amount of $15,000 to be added, which is for design, improving gateways, corridor planning, and those types of things. There is a Program run by the University of Pennsylvania, called Penn Practices, which is a design group, who engages their students in land planning activity, particularly the architectural design end of things. LVPC has used this group. Penn Practices will use their students, and often it is free, and will help us with certain corridors, and various projects. They will do as little or as much as you want. George explained that he has three projects/corridors that he feels they could be involved in: Walbert Road Corridor The Kmart site The King George Gateway Ellen, with the Penn Practices Program, has committed to come here as soon as she can. George feels that for $15,000 we could look at all three of these corridors. Commissioner Morgan said that the three of these could also then link into the Hamilton Boulevard Project as well. George said most definitely. Director of Finance Brooke Neve said this $15,000 was added to the Professional Services Line in Operating. This was the only additional item that George had for the BOC. The Code Enforcement Person This is a full time position, which will be replaced in the near future. Administrative Assistant Position This position is still open at the present time. Summary Community Development Budget is up $55,000 due to wages. Brooke said that overall it is very consistent. (The CD presentation ended at 6:18P.) b. Public Works Department Review 6:20P Jeffry Clapper, Public Works Manager Jeff Clapper, Public Works Manager, started off by talking about the Operating Expenses for Public Works. Fuel and General Government Materials were two large numbers he really looked at. PWs Operating Expenses Fuel increased from $150,000 in 2017 vs. $175,000 in 2018 General Government Materials increased from $285,000 in 2017 vs. $310,000 in 2018 Contracted Services For 2018 Budget $223,500. The one big number in this is the lawn cutting. Hoping this number will be quite a bit less.
3 November 6, 2017 Page 3 Major Machinery and Equipment This number has been adjusted some. $33,500 in 2017 vs. $44,500 in Traffic Maintenance This depends on how many times they are called. Storm Water Management Several Items were moved from this account to Liquid Fuels Salary & Wages Seasonal Staff Proposed three part time summer employees. In 2017 $22,500 vs. $0 in Standby went up a bit due to changes in contract. In 2017 $6,500 vs $12,990. Overtime Pay Went down $25,000. Rental of Street Sweeper $65,000, for eight weeks, which is earmarked out of refuse. Cost of a Street Sweeper is $220, ,000. Commissioner Morgan said the question is what does it cost to maintain? Jeff said they can be very expensive to maintain. Brooke clarified that the actual cost of renting the sweeper is $15,000, which comes out of the $65,000. PWs Capital The BOC went down the Capital List with Jeff Clapper, Manager of PWs. The 2018 Capital Total was $1,909,116 and was reduced by $1,209,116, for a Final 2018 Capital Total of $700,000. The items removed from the Capital List are as follows: Storm sewer construction 34 th Street (Moved to State Highway Aid) $54,000 Storm sewer project with Allentown PA Street (Moved to State Highway Aid)$15,000 Roadway improvements 15 th Street $250,000 Roadway improvements South Area Paving $490,269 Roadway improvements South Area Slurry Seal $126,847 Replace Wood Chipper $75,000 Used Hyundai G7M 5 Ton Forklift $18,000 (2) F 250 4x4 s & plows $73,000 F 150 4x4 with a cap $30,000 Replace Parts Washer in Garage $12,000 Property Improvements Surge Protection for Building $25,000 Property Improvements Landscaping Island Upper Level $40,000 Total of items removed from Capital List $1,209,116 Commissioner Bond feels we need to set aside some money for paving. It needs to be discretionary for repairs, things that just cannot be put off any more, etc. These other big amounts need to be put on hold, and placed in the Master Plan. Financing options will be much better for us in 2019, at which time we need to do a lot of homework. Commissioner Bond and Block both agreed that we need to have a plan so that we are financing the roads over a period of time that makes sense based on the useful life of
4 November 6, 2017 Page 4 the road. Commissioner Bond said the more you can spread overhead out, you will have better pricing. Commissioner Block asked Director of Finance, Brooke Neve, if she felt we would be in a good place one year from now everything together and completed, and to the accountant, in order for us to move forward with the necessary Financing for these Capital Projects. Brooke said she thought it was realistic to get everything done up to 2015/2016. Commissioner Block said to coordinate with accountants now to let them know what the goal is. Commissioner Mulqueen asked if there are any roads that are critical at this time? Jeff Clapper went over all the roads in the Township, along with the condition of each. He came up with a rating system. He presented a very telling map. The top 20% of the roads in the Township are in pretty decent shape and really require no maintenance at this time. The next step down are roads that we spent a lot of time this summer sealing up the cracks, slurry sealing, which will get us another 6 8 years out of the roads. (These were the roads which you would not want to waste any blacktop on.) However, the next step down, the targeted streets, which are the northern country area, and two additional pocket areas the Greenawald s area, and in the area which we will call the south. Then, we have one more tier below that. These are really a reconstruct, and/or when the subgrade is so bad Burch Street, Americus Street, Union Street. Jeff explained that this is a very telling map as to where he should go. He said that he wants to work his way through these areas. He said that before we begin our work on these roads, we will dig some test holes, just to see how bad they really are exactly what state the road is in. You really do not know what is under the road unless you do these things. Commissioner Bond said that he is counting on Jeff to do all of this in 2018, so that he has all his ducks in a row, and then present to the BOC the 5 year, 10 year plan, with the life expectancies of roads. At this point it was 7:25P, and Commissioner Bond suggested we stop with PWs and do the other departments present, and then come back to PWs to finish up. The board came back to this at 7:39P. Roadway Improvement 15 th Street Jeff said he feels this is in the worst shape and is traveled the most (from LA Fitness to Mauch Chunk). Commissioner Bond said that this road is getting ready to be torn up by the Route 22 improvements the widening project, which will happen sometime in the next three years. The board was in agreement that this line item should come off, because they want to put the focus on the neighborhoods. However, they said to leave the Clifford Park Paving Project on. Public Works end numbers: Started at $1,909,116, cut $1,209,116 = $700,000.
5 November 6, 2017 Page 5 At 7:47P, the Board jumped back to Water. c. Water and Sewer Fund Reviews 7:25P, Jerry Charvala, PWs Utilities Group Leader Jerry Charvala started off by going over the Capital Expense Items he felt could be put on hold. He said that the Sewer Pickup Truck $41,000 could be taken off for The Backhoe, which is a portion to both Water and Sewer ($71,242 Water & $71,242 Sewer), and he said they do have some options (a tamper and a pecker) with regard to this. He said perhaps we could get the backhoe, without the options (approximately $25,000). Brooke said there is another option: It was previously mentioned that Water and Sewer would get their own backhoe. If we stop the whole lease process, which we historically have done in the past for Water & Sewer, we would have to spend the $222,000, but you would lose the amount of money that Water and Sewer are paying in into your revenue, but that would only equate to $75,000. Commissioner Bond clarified by saying so take it over to Water and Sewer, and then they wouldn t pay us any lease payments. Brooke explained that you will lose a slight amount in your Sewer Unappropriated, but it is at $2.3M. Brooke explained Water would not change at all, Sewer Unappropriated will decrease slightly. This means Water & Sewer can still buy those two things Valve Exerciser Vacuum Trailer (100% Water) and the Backhoe. Everyone was in favor of this. At 7:47P, the Board jumped back to Water and Sewer. Water will not change at all per Brooke for the lease payback change. Instead of budgeting that amount as a payback to you, it will be used to buy equipment per our earlier discussions. Lastly, the Unappropriated Reserve went up slightly because of the changes we made related to health insurance. The Board was good with the operating expenses. Brooke said this will leave $260,000 at the end of Commissioner Block said that if you look at Water & Sewer in its entirety, cash wise, we are really in the hole. He said we need to keep this in mind. Township Manager said Brooke has presented 2018 and is making it work; however, once budget is over, we will be focusing on Water/Sewer s long term sustainability. Brooke confirmed that BOC was good with Water as presented. Regarding Sewer, it will go down approximately $37,000 with Water and Sewer buying the backhoe. Sewer is in much better shape than Water. d. Human Resources
6 November 6, 2017 Page 6 Regarding the Township Manager Vehicle Replacement Request, Commissioner Bond suggested that we take the EMA Vehicle (Expedition), which is unmarked (Jim Balliet uses it occasionally); let s put this in service since we own it, it is a 4 wheel drive, let s use this by Administration just to buy us some time for now. It is equipped with EMA stuff, and it can be used as a multi purpose vehicle vs sitting in the garage. Commissioner Bond instructed Brook to take off for now the Vehicle Replacement $27,950. e. IT Commissioner Bond said to leave as is. Board was in agreement. f. Police Farro 3D Scanner was removed $77,722. Board was in agreement. g. Emergency Management None. h. Parks & Recreation Randy Cope, Director of Township Operations, said that the Basketball Courts at Covered Bridge Park is a project they did not get to this year, so it will be carried over to next year. Fernwood Park Exercise Station $30,000 would be something that could be cut. Would like to keep Bungalow Park Playground Improvements ($60,000) in, because that is a very old park system. This is approaching its end of life, since it is from the 90 ies. We have to start taking a look at some of these parks. We need to do at least one a year, if not two, so that we are not kicking the can we need to start going in the right direction. Randy explained that the Mill House Improvements listed as $425,000 is really $250,000, but it is offset with the anticipated DCNR Grant Monies $175,000. We need to budget this until we actually get the grant. We have four years to do this project, and could push it off this year if we have need to. Dave said can you temporarily change the $425,000 to $250,000, and then take out the $60,000. Randy said that if we do get the grant for Mill House, we will eventually have to budget for it; it may not have to be in Randy said the application for the grant is already in. He does not know what the outcome will be at this point. Randy said they could come back and say we are not going to give you the $175,000. They may only give us $100,000, or even $50,000 he does not know. Commissioner Morgan said that if this comes off, we just need to remember next year to budget this item accordingly. Board agreed that Mill House will come off for now.
7 November 6, 2017 Page 7 In Closing Commissioner Bond said we do have a clean budget, without a lot of options. Staff has a Master Plan, and next year we will have to take a real close look at all our options. He thanked the Staff, Brooke and Renee for a doing such a great job on the budget and getting us through Commissioner Morgan, as well as the rest of the Board also commended them on a job well done. 7. ADJOURNMENT: At 7:54P, a MOTION was made by Commissioner Block, which was seconded by Commissioner Bond. All in favor; none opposed. 8. APPROVED: November 15, 2017 On November 15, 2017, a MOTION was made by Commissioner Bond, which was seconded by Commissioner Mulqueen, to approve the November 6, 2017, 6P Budget Workshop Meeting Minutes. All in favor; none opposed.
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