TOWNSHIP OF SALISBURY
LEHIGH COUNTY, PENNSYLVANIA

MINUTES FROM THE BOARD OF COMMISSIONERS
SPECIAL REGULAR MEETING – 7:30 PM
NOVEMBER 23, 2009

The Public Meeting of the Salisbury Township Board of Commissioners was held on the above date at the Township Municipal Building located at 2900 South Pike Avenue, Allentown, Lehigh County, Pennsylvania.

Members attending:
Larry Unger, President
James Brown, Vice-President—Excused
Robert Martucci, Jr.
Norma Cusick
Dominic Giles—Arrived at 7:50 p.m.

Staff attending:
Randy Soriano, Township Manager
Cathy Bonaskiewich, Assistant Township Manager, Finance Director
John Andreas, Director of Public Works
Allen Stiles, Chief of Police
Cynthia Sopka, Director of Planning and Zoning
John Ashley, Township Solicitor
David Tettemer, representative of the Township Engineer.

CALL TO ORDER
Commissioner Unger called the meeting to order at 7:30 P.M.

PLEDGE OF ALLEGIANCE

NOTIFICATION
Mr. Soriano informed the attendees that all sessions of the Salisbury Township Board of Commissioners regular meetings are electronically recorded for the purpose of taking the Minutes. All public comments on agenda items would be taken at the time of the vote. All public comments related to non-agenda items will be taken after the agenda has been satisfied.

Mr. Soriano announced that the Township does archive its tapes and are available pursuant the Right-to-Know Law.

Mr. Soriano reminded everyone of the 3-minute rule and asked that everyone should sign in and announce themselves and speak in the microphones.

APPROVAL OF FINANCIAL REPORT AND BILLS PAYABLE
On motion by Commissioner Cusick, seconded by Commissioner Martucci, the Board of Commissioners voted 3-0 to accept the October 31, 2009 Financial Report and approve the Bills Payable for the period 11/08/2009 through 11/20/2009.

MINUTES
November 12, 2009
Commissioner Unger declared the November 12, 2009 Board of Commissioners Meeting Minutes approved as presented.

OLD BUSINESS
None.

NEW BUSINESS

ORDINANCES
Mr. Soriano noted that the ATV Ordinance discussed at the last work session was not on the Agenda because of insufficient time to advertise it. The Ordinance will be duly advertised for the next meeting.

RESOLUTIONS
Consideration of a Resolution indicating the Township’s intent to follow the schedules and procedures for disposition of records as set forth in the Municipal Records Manual approved on December 16, 2008.

Mr. Soriano noted that the Chief has requested that some old police records be destroyed. Mr. Soriano noted that a Resolution is required by the PA Municipal Records Act. Mr. Soriano stated that the Act mandates that public records may be disposed if the disposition conforms with the schedule promulgated by the PA Local Government Committee created by the Act.

Mr. Soriano noted that the Chief used the schedule promulgated by the Committee to assemble his list. Mr. Soriano stated that in reviewing the Township records, the original Resolution required by the Act that indicated the Township’s intent to follow the schedule and procedure was not originally passed. Mr. Soriano indicated that the Township is curing this defect by adopting this Resolution.

“RESOLUTION NO. 11-2009-1334

A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE TOWNSHIP OF SALISBURY, LEHIGH COUNTY, PENNSYLVANIA, DECLARING ITS INTENT TO FOLLOW THE SCHEDULES AND PROCEDURES FOR DISPOSITION OF RECORDS AS SET FORTH IN THE MUNICIPAL RECORDS MANUAL APPROVED ON DECEMBER 16, 2008.

WHEREAS, a Local Government Records Committee was created by Act 428 of 1968 and empowered thereby to make rules and regulations for records disposition; and

WHEREAS, the Municipal Records Manual was approved by said committee on December 16, 2008; and

WHEREAS, the Township of Salisbury desires to dispose of records according to statutory requirements.

NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Township of Salisbury, Lehigh County, Pennsylvania, that it intends to follow the schedules and procedures for disposition of records as set forth in the Municipal Records Manual approved on December 16, 2008.

APPROVED AND ADOPTED this 23rd day of November, 2009 at a regular public meeting.”

Motion by Commissioner Cusick to adopt a Resolution indicating the Township’s intent to follow the schedules and procedures for disposition of records as set forth in the Municipal Records Manual approved on December 16, 2008. Commissioner Martucci seconded the motion. Motion was approved 3-0.

Consideration of a Resolution authorizing the disposition of the certain public records in accordance with the Municipal Records Manual approved December 16, 2008.

“RESOLUTION NO. 11-2009-1335

A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE TOWNSHIP OF SALISBURY, LEHIGH COUNTY, PENNSYLVANIA, AUTHORIZING THE DISPOSITION OF THE CERTAIN PUBLIC RECORDS IN ACCORDANCE WITH THE MUNICIPAL RECORDS MANUAL APPROVED DECEMBER 16, 2008.

WHEREAS, by virtue of Resolution No. 11-2009-1334, adopted November 23, 2009, the Township of Salisbury declared its intent to follow the schedules and procedures for the disposition of records as set forth in the Municipal Records Manual approved December 16, 2008; and

WHEREAS, in accordance with Act 428 of 1968, each individual act of disposition shall be approved by resolution of the governing body of the municipality.

NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of the Township of Salisbury, Lehigh County, Pennsylvania, in accordance with the above-cited Municipal Records Manual, hereby authorizes the disposition of the following public records:

Police Department –
• Closed cases 1979-1989
• 1981-1982 Traffic citations and parking tickets
• Incident Reports –1983-2004
• Daily Officer Logs—1991, 1992, 1993, 1994, 1995
• Civil Service Records—1993, 1994, 1995, 1996, 1997, 1998
• Cops Grant Information—1997-1999
• Chief files—1994, 1995, 1996, 1997, 1999, 2000
• Traffic Citations (paid) 1999-2006
• Accident Reports – up to 2006
• Traffic Citations forms not used (old type/outdated format)
• Old Police employment application forms (unused case)”

Motion by Commissioner Cusick authorizing the disposition of certain public records in accordance with the Municipal Records Manual approved December 16, 2008.

Commissioner Martucci seconded the motion. Motion was approved 3-0.

MOTIONS
Consideration of a motion to authorize the Assistant Township Manager/Finance Director to execute the lease agreement with Municipal Capital Corp. for the acquisition of software and hardware relating to the Police Station Addition/Renovation Project.

Mr. Soriano noted that in anticipation of upgrading the computer hardware/software for the new Police Station, the Finance Director has considered a lease/purchase arrangement to cushion the impact of the cost on next year’s budget. The Township has received quotes from the vendor Stratix Inc. (Costars) and two other Leasing companies: Municipal Capital Corporation and Lehigh Capital Leasing. Municipal Capital Corporation quoted the lowest rate for a three-year lease/purchase in the amount of $4,359.90 (5.9% APR).

Motion by Commissioner Cusick to authorize the Assistant Township Manager/Finance Director to execute the lease agreement with Municipal Capital Corp. for the acquisition of software and hardware relating to the Police Station Addition/Renovation Project.

Commissioner Martucci seconded the motion. Motion was approved 3-0.

Consideration of a street tree removal request for 914 S. Hays Street.

Mr. Soriano stated that the property owner is requesting the removal and replacement of a street tree in front of 914 S. Hays Street. Mr. Nicolo has reviewed it and recommended that the request be honored. Mr. Soriano noted that the type of shade tree to be replanted should be of a species conducive to the planting island located on the property.

Commissioner Cusick asked the Zoning Officer if she had reviewed this request. Ms. Sopka noted that the tree is split in half and does pose a hazard.

Commissioner Martucci inquired if the resident will have to replace the tree. Ms. Sopka confirmed that the tree would have to be replaced.

Motion by Commissioner Cusick to authorize the removal of a street tree in front of 914 Hays Street. Commissioner Martucci seconded the motion. Motion was approved 3-0.

[Commissioner Giles arrived at 7:50 p.m.]

Consideration of a Motion to approve the first reading of the proposed 2010 Budget and authorize its advertisement for public inspection.

Mr. Soriano stated that in order to start the review clock on the 2010 Proposed Budget, he would like the Commissioners to hold the first reading of the proposed Budget. Mr. Soriano noted that his earlier memo provided some general background on next year’s budget. He also noted that the Budget would be discussed during the work session. Mr. Soriano stated that the administration is not recommending a tax increase, but have separated the operating budgets from the capital budgets. Mr. Soriano stated that this format will give the Commissioners a better understanding of the over-reliance of the past few years on balancing operational budgets with prior year reserves. Mr. Soriano advocated the development of a Fund Balance Reserve Policy to guide the Administration on prudent uses of these fund balances. Mr. Soriano noted that if operating funds cannot always be balanced from the derived revenues, at some point, the Township needs to either increase taxes or decrease services. Mr. Soriano noted a few highlights:

“2009-END OF YEAR PROJECTIONS—We have estimated the end of the year Revenues and Expenditures for all operating funds. The General Fund projected Revenue is expected to be approximately $6.74M or $57,000 less than budgeted. Of concern are two sources of revenue streams that were budgeted and have been directly impacted by the current economic downturn: Real Estate Transfers ($251,000) and Interest ($150,000). Combined, this represents a substantial amount of shortfall on the Revenue side ($410,000). However, another revenue stream that was conservatively or not anticipated will be received to offset the loss and we are expecting to end the year with mediocre excess revenue over expenses of $21,700. This may be less if something unforeseen happens between now and the end of the year. We do expect to carry over any of the surplus derived from 2009 to offset next year’s expenses if needed.

PROPOSED 2010 BUDGET:
REVENUES—Preliminary estimates will show that our revenue stream will remain at 2009 levels. We estimate to receive approximately $ 6.68 M in total Revenue. This represents only a modest increase in Revenues of $56,606 (0.84%) from projected 2009. Real Estate Taxes remain at 2009 levels. The current millage rate of 3.09 (GF alone) will not change and this represents on an Average Assessment Value-$77,376- a yearly payment of $272 to the Township.

EXPENDITURES—Total spending for next year is estimated to increase by 8.3%. With all the Departments requests unfettered, the total expenditures are anticipated at ($7.48M), for an initial $854,000 deficit. Carrying over the $21,000 surplus from 2009, we are still looking at an $833,000 deficit. After the initial review of their respective budgets, we were able to trim the deficit to $654,400. If we decide to balance the budget without increasing revenues, the Fund Balance for the end of 2010 will decrease from $6.59 M to $5.94 M. If we continue to use Fund Balance reserves to budget operating budgets, we will deplete the total reserves (Capital and Operating Reserves) in ten years. The alternative is equally unpalatable, that is to increase taxes. Just for the sake of argument, if the BOC would decide to balance the budget by increasing revenues through Real Estate Tax, the millage increase necessary to balance the budget would equate to approximately 1.5 mills, the tax rate would then be 5.06 mills or a 42% increase.

Unfortunately, the bulk of expenses that directly impact on the deficit comes from contractual salary costs associated with Police, Public Works Department and other benefits such as Health, Life, Disability, Insurance and Pension costs. In order to make a dent in the proposed deficit, cuts in personnel for police and Public Works would need to be made and the result is that services would suffer. A detailed analysis of the various departments follow:

GENERAL -GOVERNMENT:
We have actually decreased the cost by 4.5% by shifting the cost of a salary employee that was doing primarily Planning and Zoning work and Police Secretary to their respective departments. If we take this shift in consideration, the increase would have been 0.8%.

PUBLIC SAFETY:
POLICE—The bulk of the increase of the $1.47 M proposed budget is associated with wages. The total Wages budgeted is $1.24 M or $183,425 more than projected. Several factors attributed to this. One, we promoted a new Sergeant last year and we now have three (3) Sergeants and one (1) Detective. This amounts to a $77,000 increase. The additional FT Secretary adds another $18,900. In 2009, we added two additional Police Officers (currently 12) which will impact the budget by a $98,700 increase. Part-Time shows a $5,700 increase. Total increase in Wages is $183,425 or 17.3%. Under the “Other Police Services” category, we have increased the budget by $26,000 from the 2009 Budget, but decreased it by $14,304 from Projected 2009 levels. Budgeted are two new cruisers and an update to the Incident Command Unit and additional minor equipment (which includes bullet-proof vests, pistols, shields, masks, tasers, gas meter, & ammunition). Animal Control services are budgeted at $10,000.

Overall, the total Police expenses, without factoring in wages, are down $4,304 from actual projected 2009 levels. The total 2010 Police budget has increased by 13%. Fire Relief stayed at prior year levels, which is a pass-through of funds received from the State (Fire Relief Contribution). Code Enforcement is a self sufficient department that the revenue derived from fees should be enough to balance out the expenses. The Budget shows a 1.3% decrease from projected 2009.

PLANNING AND ZONING (PZ) has shown a substantial increase of $89,480, mostly attributable to the shift of the salary of the secretary that was under the Executive budget to this department ($39,800). The other costs is attributed to hiring a consultant to update the Comprehensive plan ($50,000) which is partially offset by the County Main Street grant of $23,000. Overall, PZ shows a 7% increase. The last component of Public Safety is the Emergency Management budget that will increase by $3,000 or 130%. The total increase in Public Safety amounts to $275,721 or 17%.

SANITATION—The cost reflects Year 2 of a 3 year contract with Waste Management. This represents a 3.5% increase or $50,950. We do not anticipate any increases to the rates and will concentrate on more education to divert more garbage from the landfill into the single stream recycling. It is anticipated that the EAC will take a strong lead on this and will also continue to pass on more information through the newsletter.

PUBLIC WORKS—Although Public Works negotiations are continuing, we have budgeted a 3% increase across the board in total wages. We anticipate the same level of work on in-house road repairs ($140,000). The end-of-the year projections are estimated at $1.2 M and we are budgeting $1.27M or an increase of $45,870 or 3.7%. However, if we compare last year budget of $1.30M this reflects a decrease of $30,000.

RECREATION—Budgeted is $23,000 more for park maintenance primarily because 2009 end of year projections are expected to be only $2,000. The budgeted amount will be able to maintain parks and playgrounds and achieve many maintenance items long overdue and that were put off this year. Although it is an increase of 153%, the $49,000 budgeted is actually $10,000 less than last year’s levy. Recreation staffing which includes a Director and Assistants remain at last year’s level of $23,300. Total recreation is 74% more than projected but is actually $1,000 less than the 2009 budget.

COMMUNITY DEVELOPMENT—This is a new expense item that accounts for a $2,000 expense for the Environmental Advisory Council.

CONTRIBUTIONS & MISCELLANEOUS—The level of contribution remains at a modest
$65,000 or $3,000 (4.5%) less than the projected 2009.

INSURANCE AND BENEFITS—We anticipate insurance costs to increase slightly in the range of 2.6% or $3,000. However, Employee Benefits are expected to increase by 15.3% or $187,483. Leading the way is the perennial Health Insurance which is expected to rise by 10.3%. Pension costs, as I discussed during the preparation of the MMO, will hit the Township hard. For Police alone, the increase is approximately $107,890 or 83% from projected 2009. The current contract does provide that the BOC, by Resolution, eliminate the pension contributions to 0%, if it is shown that the reduction does not impact the pension plan.

A case can be made that the reduction is not warranted. For example, if we assume 5% employee contribution, $50,000 could be used to offset the cost of the MMO. For PW, the contract has historically contained a clause that employees would not contribute towards their pension. It is unlikely that this will change in this round of negotiations. However, the increase for the Township for the Non-Uniformed pension is $19,000 or 9.8%.

The above analysis is not an exhaustive one and considers only operational budgets and does not take into account Capital Expenditures. So when we talk about Fund Balance, the $6,594,583 starting number is the total money (cash) available for all operating expenditures, including Capital. The BOC should develop a Fund Balance Reserves Policy to guide the Township in understanding its uses. In 2010, we intend to follow the following theme: Prudent use of Fund Balance reserves accumulated over the years to offset operational shortfalls, without raising additional revenue through a tax increase.

Mr. Soriano noted that more specific highlights will take place when he prepares his final Budget Message.

Motion by Commissioner Cusick to authorize the Township Manager/Finance Director to advertise the 2010 Proposed Budget in accordance with the Township Code.

Commissioner Martucci seconded the motion. Motion was approved unanimously.

PUBLIC COMMENT
Mr. David Bray of Jena Engineering and Attorney Michael Corriere were present on behalf of Emmanuel Sossiadis, the owner of the Daisy Hill Gas Station at 1854 E. Susquehanna Street. Mr. Sossiadis is proposing to build a machine-less car wash, a laundromat and possibly a police sub-station on his property adjacent to the gas station. This property is currently in the R4 zoning district and he will be requesting that it be changed to the C2 district as well as vacate some surrounding paper alleys.

Attorney Corriere explained that they are coming before the Board initially to get some feedback and that they are aware they will have to comply with Planning and Zoning requirements, but believes that the changing of the zoning district is ultimately up to the Board of Commissioners. Mr. Bray clarified that Mr. Sossiadis would like to get the Board’s reaction before they spend a lot of time and money on the project if it is something the Township would be against.

Commissioner Unger stated that in regards to the vacation of paper alleys, the precedent has been to have the adjourning land owners agree on the matter and, at their cost, re-deed it. He stated that since Mr. Sossiadis owns both sides of the alley, there seems to be no issue with the vacation.

A brief discussion ensued on whether the residential section of East Emmaus Avenue is able to be turned into commercial uses. Ms. Sopka noted that the area is presently zoned for “light business” use. Commissioner Unger questioned whether it would be easier to have an Exception for Use, to which Ms. Sopka responded that there is a process that Mr. Sossiadis would have to follow which has not been started yet.

Mr. Bray commented that since it appears that no Board member seems to be totally against the project, they will be moving forward and going through the proper channels.

Mr. Soriano noted that the presentation is premature and that the Board is not obligated to make any decision at this point.

Mr. Dave Tomcics of the Eastern Salisbury Fire Department announced that there are potential buyers for the ambulances and inquired what the Board wanted to do with the equipment.

Commissioner Unger stated that the Board could not tell the Department not to sell the equipment.

Mr. Soriano noted that disposing of the ambulances would not impact the three different vendors the study recommended.

Mr. Soriano stated that the BOC should formalize the Agreement with St. Luke’s Hospital and have the PA EMS Council guide the BOC in their decision making. He would facilitate a meeting for the next BOC Meeting December 10, 2009.

Commissioner Unger thanked the Department for waiting on the sale of the ambulances.

OTHER BUSINESS
The Commissioners briefly discussed scheduling the groundbreaking ceremony for the Police Station on December 4, 2009 at 1:00 p.m.

ADJOURNMENT
As no other business was presented, Commissioner Unger adjourned the meeting. The Commissioners later reconvened for the monthly Workshop. The time was 8:45 p.m.