MINUTES OF MEETING

MONTGOMERY TOWNSHIP BOARD OF SUPERVISORS

DECEMBER 18, 2017

 At 7:00 p.m. Chairman Candyce Fluehr Chimera called to order an executive session. In attendance were Vice Chairman Robert J. Birch, and Supervisors Michael J. Fox, Jeffrey W. McDonnell and Richard E. Miniscalco. Also in attendance were Township Manager Lawrence Gregan and Township Solicitor Robert J. Iannozzi, Esquire.

Chairman Candyce Fluehr Chimera called the action meeting to order at 8:00 p.m. In attendance were Vice Chairman Robert J. Birch and Supervisors Michael J. Fox, Jeffrey W. McDonnell and Richard E. Miniscalco. Also in attendance were Township Solicitor Robert J. Iannozzi, Esquire, Township Manager Lawrence Gregan, Police Chief J. Scott Bendig, Director of Fire Services Richard Lesniak, Director of Finance Ami Tarburton, Director of Administration and Human Resources Ann Shade, Assistant to the Township Manager Stacy Crandell, Director of Planning and Zoning Bruce Shoupe, Director of Public Works Kevin Costello, Director of Recreation and Community Center Floyd Shaffer, Director of Information Technology Richard Grier and Recording Secretary Deborah Rivas.

Following the Pledge of Allegiance, Chairman Candyce Fluehr Chimera called for public comment from the audience, requesting that anyone who was present to comment on the Conditional Use Application for Higher Rock Partners to wait as they will be given time during the hearing to comment.

Under public comment, Tom Harker of 130 Bayhill Drive inquired about an update on the Cutler Group matter of completing the site improvements. Township Manager Lawrence J. Gregan responded that the 60-day Notice to Cure expired at the end of November. While some improvements were worked on, there are still a number of items that are not complete. The Township’s Engineer is preparing the cost of the remaining improvements so that the Board of Supervisors can best determine its next steps. A meeting will be scheduled with the Cutler Group’s attorney and other representatives to determine their plans for completion of the remaining improvements. At the same time, the Township is evaluating an alternate plan which may include competitively bidding the remaining work if the Cutler Group does not complete it. There is still time to consider the options as paving work cannot be completed now because of the weather. Mr. Harker inquired if the Township would be giving the Cutler Group the opportunity to do the paving. Mr. Gregan stated that it would be the Township’s preference to have the Cutler Group complete the paving and all of the remaining improvements.

Township Solicitor Robert J. Iannozzi, Esquire announced that the Board had met in an Executive Session at 7:00 p.m. prior to this meeting to discuss four legal matters including the Cutler Development matter, the business tax appeal for Neptune Pump, the Police arbitration update and a Police grievance update. Two additional personnel matters were also discussed. Mr. Iannozzi stated that these matters are legitimate subjects of executive session pursuant to Pennsylvania’s Sunshine Law.

Supervisor Michael J. Fox made a motion to approve the minutes of the November 27, 2017 Board of Supervisors meeting, and Supervisor Richard E. Miniscalco seconded the motion. The minutes of the meeting were unanimously approved as submitted.

Director of Recreation and Community Center Floyd Shaffer reported that the Community Center’s Athletics and Recreation Coordinator Matt Reimel has submitted his resignation effective December 31, 2017. Mr. Reimel joined the Township on April 1, 2015. Mr. Shaffer stated that Mr. Reimel will certainly be missed. He brought a unique skill set to the center with a positive attitude, high energy and a passion for helping people. Resolution #1 made by Supervisor Michael J. Fox, seconded by Chairman Candyce Fluehr Chimera and adopted unanimously, accepted the resignation of Matt Reimel from his position and thanked him for his commitment to public service during his employment with Montgomery Township.

At 8:12 p.m., Chairman Candyce Fluehr Chimera opened the Public Hearing for a proposed Conditional Use application for Higher Rock Partners LP, #C 66, located at Bethlehem Pike and Stump Road. Notes of testimony were taken by Court Stenographer, Mark Manjardi. Township Solicitor Robert J. Iannozzi, Esquire, explained that what is before the Board for consideration is a Conditional Use Application. The applicant bears the burden of establishing compliance with the Conditional Use criteria explicit to the proposal, and if they meet that burden, then they are entitled to their use by right. Mr. Iannozzi stated that everyone will be given ample time to express their statements in favor or against the application at the appropriate time. Mr. Iannozzi introduced the Township’s exhibits and the legal notice into the record. Township resident Leslie Dinapoli of 123 Clover Leaf Lane requested to be made a party to the application for purposes of questioning the applicants and her request was approved.

Wendy McKenna, Esquire, representing the applicants, Higher Rock Partners LP, introduced George Hartman, P.E. of Bohler Engineering and Joe Baron, P.E. of Bohler Engineering, John Antonucci on behalf of himself and his mother, Mary Anne Antonucci, and Higher Rock Partners, LP, and Jim Kahn on behalf of Higher Rock Partners LP. She stated that the property is situated at Route 309 and Stump Road in the Limited Industrial and HI Highway Limited Industrial Overlay District. The property consists of six tax parcels and the combined total acreage is approximately 18.7 acres. The present use of the Antonucci parcels is for Sal’s Nursery & Landscaping Retail Garden Center, which has operated in the Township for over 50 years. The proposal calls for the development of the properties as a commercial and retail mixed use development, which is permitted by Conditional Use, and would include a Wendy’s Restaurant with drive-through, a Wawa convenience store with gasoline, a Citadel Credit Union, continuation of the Sal’s Nursery & Landscaping Garden Nursery Center, a three-story office building and a 6,000 square foot retail building. Witnesses called to testify by Ms. McKenna included George Hartman, P.E. of Bohler Engineering, John Antonucci of 401 Upper Stump Road and owner of Sal’s Nursery and Kevin Johnson, P.E. of Traffic Planning and Design, Inc. Questions and comments were made regarding the definition of HLI Highway Limited Industrial Overlay Districts, traffic studies and traffic planning and redevelopment and empty buildings in the Township as well as comments both in opposition to and favorable to the proposed development. Public comment was provided by Mike Kochanski of 104 Kent Drive, Leslie Dinapoli of 123 Clover Leaf Way, Vince Tulio of 101 Glasgow Circle, Pam McKernan of 108 Kent Drive, Rose Ellen Dinapoli of 163 Polo Drive, Greg DiSantis of 214 Hemlock Drive, Tracy Law of 102 Hancock Court, and Alan Nappen of Nappen Associates, One Corporate Drive. Chairman Candyce Fluehr Chimera and Board members Michael J. Fox, Jeffrey McDonnell and Robert Birch expressed their support for the development. Chairman Candyce Fluehr Chimera closed the hearing at 10:00 p.m. Resolution #2 made by Supervisor Michael J. Fox, seconded by Chairman Candyce Fluehr Chimera and adopted unanimously approved the Conditional Use application #C 66 for Higher Rock Partners LP.

Director of Planning and Zoning Bruce Shoupe reported that an application has been received for LDS#694 Preliminary/Final Subdivision Land Development Plan for Higher Rock Partners, LP for a mixed use commercial and retail development at the intersection of Stump Road and Bethlehem Pike. The development would include the present Sal’s Nursery adding onto the existing design center building and constructing a new retail center, a Wawa with fuel dispensary, Citadel Bank, Wendy’s Restaurant, a strip retail building and a three-story office building along with associated improvements, such as parking, green space and site amenities. Mr. Shoupe also reported that significant road improvements along Bethlehem Pike and Stump Road would be constructed and that Witchwood Drive would be extended through the property creating two new signalized intersections at Stump Road and Witchwood Drive and Bethlehem Pike and Witchwood Drive. The existing traffic signal at Stump Road and Bethlehem Pike will be upgraded with the addition of two left turn lanes on the east side of the intersection for southbound Bethlehem Pike traffic. Mr. Shoupe reported that the applicant has already received relief from the Zoning Hearing Board and prior to this agenda item, the Board of Supervisors approved a Conditional Use application for the uses proposed in the plan. The proposed plan has been reviewed by the Township and County Planning Commissions as well as the Township Planner, Township Engineer, Township Landscape Architect and Township Traffic Engineer. The applicant has agreed to comply with all comments and recommendations in their reports. A proposed resolution has been prepared that outlines all the review comments raised by the consultants, along with 15 other conditions. The applicant is requesting the Board’s consideration for a waiver of 28 technical deficiencies, as noted in the resolution, all of which have been recommended by the consultants. The applicant’s attorney, Wendy McKenna, Esquire, confirmed the applicant’s acceptance of the resolution as noted and willingness to comply with all stipulations.

Under public comment, Leslie Dinapoli of 123 Clover Leaf Way commented that there are too many variables mentioned in the application and she believes that there is no reason to rush through this approval. As such, Ms. Dinapoli recommended that the Board consider holding off on the approval all together or at the very least, only consider the preliminary approval at this evening’s meeting. Chairman Candyce Fluehr Chimera stated that as the Board liaison to the Planning Commission, this plan has been before the Planning Commission many times, and all of the information provided by the consultants has been reviewed and changed over this process. The developer has done everything that the Planning Commission and Township Consultants has asked of it. Chairman Chimera stated that she sees no reason for holding up the approval. Resolution #3 made by Supervisor Michael J. Fox, seconded by Chairman Candyce Fluehr Chimera and adopted unanimously, approved the Preliminary/Final Land Development Plan for Subdivision Land Development – Higher Rock Partners, LP – LDS#694.

Director of Finance Ami Tarburton presented the 2018 Sewer Authority Budget. The Budget is balanced and does not propose a rate increase again for 2018. Board of Supervisors approval of the Authority Budget is required in accordance with Section 3 of the Operating Agreement between the Township and the Montgomery Township Municipal Sewer Authority. Resolution #4, made by Supervisor Michael J. Fox, seconded by Vice Chairman Robert J. Birch and adopted unanimously, approved the Montgomery Township Sewer Authority Budget for the fiscal year 2018.

Director of Finance Ami Tarburton reported that the operating agreement between the Township and the Authority requires Board approval of all Tapping Fee Agreements entered into by the Montgomery Township Municipal Sewer Authority during 2017. Resolution #5, made by Supervisor Michael J. Fox, seconded by Vice Chairman Robert J. Birch and adopted unanimously, approved the following Montgomery Township Municipal Sewer Authority’s Tapping Fee Agreements with Residential Unit 1102 Horsham Road, 1 EDU, Eureka Basin and Montgomery Retirement Residence, 60 EDUs, Hatfield Basin.  

Director of Finance Ami Tarburton presented the final 2018 Montgomery Township Budget. She reported that the Board had held four public workshop meetings on the budget and approved the Preliminary Budget on November 13, 2017. Mrs. Tarburton presented the final budget information and stated that no revenues or expenses in the proposed Final Budget have been increased more than ten percent in the aggregate or more than twenty-five percent in any major category over the approved Preliminary Budget. Resolution #6, made by Chairman Candyce Fluehr Chimera, seconded by Vice Chairman Robert J. Birch, and adopted unanimously, adopted the 2018 Montgomery Township Budget as presented on November 13, 2017. Resolution #7, made by Supervisor Michael J. Fox, seconded by Chairman Candyce Fluehr Chimera and adopted unanimously, approved the Tax Levy Resolution with a total of 1.49 mills, and establishes the Homestead Exclusion amount for 2018 at $30,000. Resolution #8, made by Chairman Candyce Fluehr Chimera, seconded by Supervisor Michael J. Fox and adopted unanimously, established the street light assessment rates for 2018.

Director of Finance Ami Tarburton reported that each year the Board of Supervisors adopts a resolution denoting the categories of the fund balances as required by the government Accounting Standards Board (GASB) Statement No. 54 are to be reported on the annual audited financial statements. Resolution #9 made by Supervisor Michael J. Fox, seconded by Chairman Candyce Fluehr Chimera and adopted unanimously, classified the Township’s fund balances in accordance with the Governmental Accounting Standard Board Statement No. 54 as described in attached Exhibit A.

Director of Finance Ami Tarburton reported that several circumstances and adjustments have occurred during 2017 that require amendments to the 2017 budget in order to accurately reflect these revenues and expenditures. The proposed amendments include: 1) Police and Fire Union Arbitration Proceedings - the Township has experienced higher than expected legal fees due to the Act 111 Interest Arbitration Hearings for both the Montgomery Township Professional Firefighters’ Association and the Montgomery Township Police Officers Collective Bargaining Unit. A 2017 budget amendment is necessary to accurately reflect the additional legal fees that were required to support these actions; 2) Under-budgeted Police Post-Retirement Medical Expenses – the budget for the Township’s portion of Post-Retirement Medical expenses did not factor the higher number of officers who retired in 2017 (5 officers in total). A budget amendment is necessary to accurately reflect the annual cost of Post-Retirement Medical expenses for all eligible retirees; and 3) Real Estate Transfer Tax Revenue – the Township has received higher than expected real estate transfer tax revenue, stemming from an unexpected number of commercial real estate sales. To offset the above increases in expenses, and to accurately reflect the Township’s revenue stream, a budget amendment will be recorded. Resolution #10 made by Supervisor Michael J. Fox, seconded by Supervisor Robert J. Birch and adopted unanimously, approved the 4^th Quarter 2017 Budget Amendment to the General Fund.

Director of Finance Ami Tarburton reported that in 2014 the Board had authorized the Township to execute a three year contract through the Pennsylvania Municipal League’s Municipal Utility Alliance Program (“MUA”) with Constellation for electric energy service for both Township buildings and Township street lights. The current contracts will expire at the end of 2017 and staff has researched various electric generation companies and brokers to secure new pricing for the Township’s electric accounts. Once again, Constellation, through the MUA program has provided the best option for the Township with rates lower than the PECO default rates. Resolution #11 made by Supervisor Michael J. Fox, seconded by Chairman Candyce Fluehr Chimera and adopted unanimously, approved a contract with Constellation Energy to supply electrical energy for a three year period at a maximum rate of up to $.07/kwh for the Township building accounts and a maximum rate of $.045/kwh for the Township street light accounts.

Director of Finance Ami Tarburton reported that as a political subdivision of the Commonwealth, Montgomery Township has a choice of two methods through the state to finance Unemployment Compensation (UC) coverage for its employees. The first is a premium based Contributory Method by which the Township pays contributions based on a specified rate and taxable wage base paid to each employee each year. The second is a Reimbursable Method by which qualified government employers may elect to reimburse the UC Fund for the amount of UC benefits charged to their account and billed to the employer dollar-for-dollar on a quarterly basis. Since 1982, the Township has elected to be a member of the Pennsylvania State Association of Township Supervisors (PSATS) UC Group Trust, wherein the Township filed quarterly returns with the Trust at a contribution rate lower than that specified by the state. In return, the Trust was responsible for paying any UC benefits charged to the Township. Since 2010, the Township has paid $277,400 to the Trust for its quarterly UC Contributions. During that same time period, the Township had UC Benefits paid in the amount of $51,400, a difference of $226,000. The Township could save almost $30,000 per year by electing the Reimbursable Method through the state’s Office of UC, rather than maintaining membership in the PSATS UC Group Trust. Resolution #12 made by Chairman Candyce Fluehr Chimera, seconded by Supervisor Michael J. Fox and adopted unanimously, approved the election of the Reimbursable Method of UC coverage through the Pennsylvania Office of Unemployment Compensation.

Director of Planning and Zoning Bruce Shoupe reported that bids were opened on December 13, 2017 for the Ash Tree Removal Program at Spring Valley Park. The Township received seven bids which ranged in price from $29,600 to $91,245. The lowest responsible bidder was ProMark Tree Service in the amount of $29,600. Resolution #13 made by Chairman Candyce Fluehr Chimera, seconded by Supervisor Robert J. Birch and adopted unanimously, awarded the bid for the Dead and Diseased Tree Removal Program – Spring Valley Park Area as submitted by ProMark Tree Service in the amount of $29,600.

Resolution #14 made by Chairman Candyce Fluehr Chimera, seconded by Supervisor Michael J. Fox and adopted unanimously, approved the construction escrow release #11 for LDS#630 – Firefox Phase 1.

Resolution #15 made by Chairman Candyce Fluehr Chimera, seconded by Supervisor Michael J. Fox and adopted unanimously, approved the construction escrow release #8 for LDS#639 – Maple Dr/Crystal Rd.

Resolution #16 made by Chairman Candyce Fluehr Chimera, seconded by Supervisor Michael J. Fox and adopted unanimously, approved the maintenance period escrow release for LDS#656 – Flynn/Derck Minor Subdivision.

Resolution #17 made by Chairman Candyce Fluehr Chimera, seconded by Supervisor Michael J. Fox and adopted unanimously, approved the maintenance period escrow release for LDS#593 – Indian Lake Farms Subdivision.

Resolution #18 made by Chairman Candyce Fluehr Chimera, seconded by Supervisor Michael J. Fox and adopted unanimously, approved the maintenance period escrow release for LDS#660 – Wegmans Supermarket.

Resolution #19 made by Chairman Candyce Fluehr Chimera, seconded by Supervisor Michael J. Fox and adopted unanimously, approved the maintenance period escrow release for LDS#676 – Sprint Store – 770 Bethlehem Pike.

Chief of Police J. Scott Bendig reported that in the past the Township has disposed of surplus vehicles and other assets through the firm of J.J. Kane Auctioneers by an auction process. J.J. Kane charges a consignment fee to the buyer of 10% and charges the Township a fee between 4% - 20% based on the overall sales revenue plus a share of certain expenses such as advertising costs. The Township has three police vehicles available to be sold at auction this year. Resolution #20 made by Supervisor Michael J. Fox, seconded by Supervisor Richard Miniscalco and adopted unanimously, authorized the sale at auction of three police vehicles, two 2011 Ford Crown Victoria Police Interceptors and one 2006 Chrysler 300 sedan.  

Director of Administration and Human Resources Ann Shade reported that Article 5 of the American Arbitration Association Award between Montgomery Township and Montgomery Township Professional Firefighters’ IAFF Local 4890 provides that, to the extent permitted by state and federal law, the Township would amend the Pension Plan to allow qualified firefighters to retire at age fifty (50) and not be subject to the 10% Penalty provision of the IRS Code 72(t). In order to comply with this provision, it is proposed that the Montgomery Township 401(a) Money Purchase Pension Plan Document and 401(a) Summary of Plan document be amended to add the necessary language. Resolution #21 made by Chairman Candyce Fluehr Chimera, seconded by Supervisor Richard Miniscalco and adopted unanimously, approved the amendment to the Montgomery Township 401(a) Money Purchase Plan Document and 401(a) Summary of Plan Provisions document as noted.

Township Manager Lawrence J. Gregan reported that the Second Class Township code requires municipalities to reorganize on the first Monday in January of each year. If the first Monday is a legal holiday, the meeting shall be held on the following day. This year, the reorganization meeting will be held on Tuesday, January 2, 2018 at 7:00 p.m. The Township is required to advertise this meeting. Resolution #22 made by Chairman Candyce Fluehr Chimera, seconded by Supervisor Michael J. Fox and adopted unanimously, authorized the advertisement of the Board of Supervisors’ Reorganization meeting for Tuesday, January 2, 2018 at 7:00 p.m.

A motion to approve the payment of bills was made by Chairman Candyce Fluehr Chimera, seconded by Supervisor Michael J. Fox, and adopted unanimously, approving the payment of bills as submitted.

Under other business, Chairman Candyce Fluehr Chimera recognized and thanked outgoing Supervisors Robert J. Birch and Richard E. Miniscalco for their years of service and commitment to Montgomery Township. Both Mr. Birch and Mr. Miniscalco thanked the residents, staff and consultants for assisting them in their duties as Supervisors.

There being no further business to come before the Board, the meeting adjourned at 10:45 p.m.