MINUTES OF MEETING
MONTGOMERY TOWNSHIP BOARD OF SUPERVISORS
JULY 25, 2011
Chairman Robert Birch called to order the executive session at 7:00 p.m. In attendance were Supervisors Candyce Fluehr Chimera, Jeffrey McDonnell and Joseph Walsh. Supervisor Michael Fox was absent. Also in attendance were Lawrence Gregan and John T. Dooley, Esquire. Two matters of personnel and potential litigation were discussed.
Chairman Robert Birch called the regular action meeting to order at 8:05 p.m. In attendance were Supervisors Candyce Fluehr Chimera, Jeffrey McDonnell and Joseph Walsh.
Supervisors Michael Fox was absent. Also in attendance were John T. Dooley, Esquire, Lawrence Gregan, Richard Brady, Bruce Shoupe, Kevin Costello, Ann Shade, Shannon Drosnock, Vicki Zidek, Stacy Crandell, Richard Grier and Deb Rivas.
Following the Pledge of Allegiance, Chairman Robert Birch called for public comment from the audience and there was none.
John T. Dooley, Esquire, announced that the Board met in an executive session earlier in the evening at 7:05 p.m. Mr. Dooley reported that a personnel matter and two matters of potential litigation were discussed.
Chairman Robert Birch made a motion to approve the minutes of the July 11, 2011 Board meeting and Supervisor Jeffrey McDonnell seconded the motion. The minutes of meeting were unanimously approved as submitted.
Chairman Birch presented the annual Township donations to the following organizations: The Visiting Nurse Community Association - $1,500, and the Montgomery County Norristown Public Library - $9,000. Richard Cirko and Cathy Arnold Yerger were present to accept the donations on behalf of their organizations.
Chairman Birch announced the appointment of Richard Lesniak as the new Director of Fire Services, Fire Marshal and Emergency Management Coordinator for Montgomery Township. Chairman Birch reported on Mr. Lesniak's extensive background in municipal government, emergency management and fire services. Mr. Lesniak was selected from an impressive group of candidates who had applied for the position. The Board stated that they were looking forward to working with Mr. Lesniak. Resolution #1 unanimously appointed Richard Lesniak to the positions of Director of Fire Services, Fire Marshal and Emergency Management Coordinator for Montgomery Township effective Monday, July 25, 2011. Chairman Birch then administered the Oath of Office to Mr. Lesniak.
Chief Richard Brady introduced two new Police Recruits, Brandi McCoy and Timothy Woch. Chief Brady reported that Police Recruits McCoy and Woch were identified as the top two applicants after the extensive recruit testing process was completed. Resolution #2 unanimously authorized the hiring of Brandi McCoy and Timothy Woch as Police Recruits with the Montgomery Township Police Department effective Friday, July 29, 2011. Chairman Birch administered the Oath of Office to each recruit.
Chairman Birch reported that Dennis Cooney, a member of the Zoning Hearing Board, would be appointed to the 300th Anniversary Committee. Resolution #3 unanimously appointed Dennis Cooney to serve on the Montgomery Township 300th Anniversary Committee.
Chairman Birch reported that volunteer Nick Fortune has resigned from the Environmental Advisory Committee and the Open Space Committee as he will no longer be a resident in the Township. Chairman Birch stated that Mr. Fortune served on the Environmental Advisory Committee since 2007 and the Open Space Committee since 2008. Mr. Fortune was a strong advocate for environmental issues in the Township and was instrumental in promoting environmental initiatives over the years. The Board thanked Mr. Fortune for his time and efforts and presented him with a Certificate of Appreciation. Resolution #4 unanimously accepted the resignation of Nick Fortune and thanked him for his dedication and service to Montgomery Township over the past several years.
Public Information Coordinator, Stacy Crandell, reported that the Business Development Partnership (BDP) is sponsoring their second Business Card Exchange on Tuesday, October 18, 2011 from 5:00 p.m. to 7:00 p.m. at the Township Building. Ms. Crandell stated that the purpose of the Business Card Exchange is to inform business owners of the services that the Township. The BDP is requesting approval to mail post cards announcing the event to each Township business in order to promote the event. Resolution #5 unanimously authorized the advertising of the Business Card Exchange expenditure not to exceed $450.
Bruce Shoupe reported that the Keystone Fellowship Church has submitted a request to waive the fees for a special event permit. In the past, it has been the policy of the Board to waive permit fees for non-profit and religious organizations. Resolution #6 unanimously approved the waiver of permit fees for the Special Event Permit for the Keystone Fellowship Church cookout to be held at the William F. Maule Park at Windlestrae.
Public Works Director, Kevin Costello, reported that as part of the 2011 budget, $20,000 was allocated for Curb and Sidewalk concrete work throughout the Township. Mr. Costello stated that inspections have identified curbs and sidewalks that have the potential for tripping hazards or have significant deterioration. Mr. Costello stated that the work would be performed under the current contract with Laffredo Construction, based on unit prices in their approved contract. Resolution #7 unanimously authorized the expenditure of an amount not to exceed $20,000 to perform repairs/replacement of sidewalks throughout the Township under the contract with Laffredo Construction.
Technology Manager, Richard Grier, reported that the Board had directed staff to investigate the possibility of using Social Media tools such as Twitter and Facebook as additional tools to provide information about Township news and activities. Mr. Grier stated that the staff had researched sample policies and prepared a draft for the Board's consideration. Mr. Grier reported that the proposed policy includes guidelines for the use of Social Media outlets and covers topics such as purpose, relationship to the website, approval for posts, as well as other specific standards for use these media types. Resolution #8 unanimously approved the Social Media Use Policy dated July 21, 2011 and authorized staff to proceed to setup and utilize such sites as specified in the policy.
Finance Director, Shannon Drosnock, reported on the 2011 Second Quarter Budget. Mrs. Drosnock stated that the fund balance for the General Fund at the end of the 2"d quarter is $5,329,589. This represents an increase of $543,000 over the same period in 2010 and an increase of $994,000 over the 1st Quarter of 2011. Mrs. Drosnock reported that the two most significant revenue streams contributing to this increase are the Merchantile Tax returns of $1.9 million, currently 4% above budget, and Building Permit revenues of $301,000, currently 10% above budget. Mrs. Drosnock summarized her report by stating that the Township revenues have been strong for the 2nd Quarter of the year, combined with expenses that are reporting 3% under budget. The Business Privilege and Merchantile Taxes combined are reporting approximately 7% above 2"d Quarter 2010 and Building Permit revenues are reporting 40% above 2nd Quarter 2010. Mrs. Drosnock stated that assuming that there are no extraordinary circumstances that arise during the second half of the year, the Township's fiscal year is expected to end strong with a larger than budgeted increase to fund balance of the General Fund.
Township Manager, Lawrence Gregan, reported on the request for an amendment to the second quarter budget for 2011. Mr. Gregan stated that a budget amendment is required for internal and external reporting purposes and for proper budgetary control. Mr. Gregan reported that there are three amendments proposed for the Board's consideration. The first two amendments are proposed adjustments to the Capital Reserve Fund for Designated Reserves. The Board has previously designated a reserve balance of $2,909,937 for open space in the Capital Reserve Fund. Mr. Gregan stated that there is a need for expenditures for consulting services, including legal and engineering fees, for the condemnation of the Zehr Tract property. The budget amendment proposes to make available $100,000 of this reserve balance to cover all of the 2011 costs associated with the condemnation. Mr. Gregan also stated that there will be two additional expenses incurred by the Police Department, including the conversion of radio systems as well as equipment expense to allow for the conversion of the police dispatch to move to the Montgomery County radio system. The Board has previously designated a reserve balance of $385,543 for this project in the Capital Reserve Fund. The budget amendment proposes to make available $42,000 of this reserve balance to cover the 2011 costs association with these two items. Mr. Gregan reported that the third proposed budget amendment is an adjustment due to increased costs for asphalt materials. As required by State regulations, the Township's asphalt contract with Glasgow, Inc. contains an escalator clause which provides for the price of paving materials to be adjusted up (or down) monthly based on the fluctuation of the asphalt price index. This index is currently increasing, causing the road paving plan to cost more than the allocated amount in the 2011 budget by approximately $61,000. Resolution #9 unanimously approved the 2011 2"d Quarter Budget Amendments to the Capital Reserve Fund as noted.
Finance Director, Shannon Drosnock, reported that during a recent Finance Committee meeting a discussion was held on the topic of interest rates and cash management. The Finance Committee asked staff to research investment rates for CDs at the Township's current bank and various other banks. Mrs. Drosnock reported that various quotes were obtained and options were discussed. Of the $18 million that is available for investment, the Finance Committee recommended two possible options for the Board's consideration. The first option would be to invest $13 million in a one year CD at Univest Bank at an interest rate of .60% and transfer $5 million into a Sovereign Bank Money Market account earning an interest rate of 50%. This option would generate approximately $103,000 in interest for a 12 month period. The second option would be a $16 million dollar investment in the Univest one year CD and leave $2 million liquid for 2012 operational needs in the Univest Money Market Account. Mrs. Drosnock stated that either option would increase annual interest revenue by an estimated $40,000. After a brief discussion, the Board was in favor of the first option and also asked Mrs. Drosnock to check with Univest National Bank to see if they would match the interest rate quoted by Sovereign Bank on the money market account.
Deputy Chief Scott Bendig reported on the pending transfer of the Montgomery Township Police Dispatching Services to the Montgomery County Department of Public Safety. Previously, the Board authorized this transfer as it was to result in a significant cost savings to the Township. Deputy Chief Bendig stated that the commitment from the County was that the transition would be at no cost to the Township and that the County would provide the necessary radio equipment to affect the transition. Since that time, it has been learned that the transition will require Montgomery Township to purchase six mobile radios for command staff/detective vehicles at an approximate cost of $35,000. Montgomery County is unable to provide this equipment to Montgomery Township. All other anticipated costs of transitioning are to be incurred by Montgomery County. Deputy Chief Bendig also reported that if the Township opted not to transition its dispatching service to the County, the County will implement a yearly charge estimated to be $43,000 for 2012. Montgomery County also indicated that they may attempt to recoup the 2010 and 2011 suspended fees if the Township chooses to continue to self dispatch beyond January, 2012. The Board expressed disappointment that the County did not follow through on their presentation that the transition of dispatching services would be at no cost to the Township. None the less, the Board had no recourse but to approve the purchase. Resolution #10 unanimously reaffirmed the decision of July 26, 2010 to transition the police dispatching services to Montgomery County and to approve the expenditure of $35,000 from the Capital Reserve Fund for the purchase of six mobile radios for command staff/detective vehicles.
Deputy Chief Scott Bendig reported that Montgomery County police departments recently met with County representatives regarding the proposed upgrade of the County's radio system and a proposed cost sharing arrangement wherein the County would incur the costs of upgrading the backbone of the system and purchase the portable radio equipment for the municipalities. Municipalities could then lease/purchase the equipment over a ten-year period or purchase the equipment outright. The County would like 75% to 80% of the municipalities to agree on such an arrangement before the County commits their resources to this project.
Deputy Chief Bendig stated that the additional expenditures could cost between $190,000 and $240,000 for future radio equipment if/when the Montgomery County radio system upgrade does occur. After a discussion, the Board unanimously agreed to endorse the County's proposed upgrade of its radio system by Resolution #11.
Chief Richard Brady requested that the Board consider the approval of a training request for two officers who would need to travel to Cherry Hill, NJ for a seminar in September. The seminar course is titled "Objective Pre-Employment Interviewing - Dealing Effectively with Applicant Misrepresentation". Resolution #12 unanimously approved the request for an out of state training seminar.
Chairman Birch made a motion to approve the payment of bills. Supervisor Walsh seconded the motion. The payment of bills was unanimously approved as submitted.
There being no further business to come before the Board, the meeting adjourned at 9:05 p.m.