2 Finance & Personnel Committee

MINUTES OF THE HANOVER BOROUGH FINANCE & PERSONNEL COMMITTEE MEETING January 16,2019 Chairperson Rupp called the Hanover Borough Finance & Personnel Committee meeting to order Wednesday Evening, January 16, 2019 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, Ms. Pranses, Mr. Reichart, Dr. Rupp and Mr. Shea; Solicitor Shultis; Staff Members Manager Bowersox, Fire Chief Clousher, Secretary Felix, Finance Director Miller, and Administrative Asst./ Asst. Secretary Musselman; Main Street Manager Trucksess. Approval of the Minutes: It was moved by Mr. Noble, seconded by Ms. Pranses to approve the minutes of December 12, 2018 as written. Motion carried. Approval of the Bills: Finance Director Miller noted that the checking account fund structure has changed effective the beginning of 2019. The checks from December are written from the individual segregated fund accounts. Beginning 2019 the checks will generate from an all-purpose fund checking account; there will be a new report that will no longer be fund-segregated. It was moved by Mr. Shea, seconded by Mr. Chesney to move the payment of the bills to the Council agenda for approval. Motion carried. Liquid Fuels Bills: It was moved by Ms. Pranses, seconded by Mr. Noble to approve the payment of the Liquid Fuels bills. Motion carried. Monthly Financial Statement: Finance Director Miller reviewed the preliminary totals for December 2018 and summarized annual fund comparisons. A final report will be provided at a later date once official year-end close and audit progress is attained. Final audit presentation to the Committee should occur at the April Finance & Personnel Committee meeting. Monthly Investments: Chairperson Rupp noted monthly investments for December are at 2.65% interest which will generate just under $38,000 in interest for the month. Cable Franchise Fee - Discussion: Manager Bowersox explained that most municipalities of comparable size collect a cable franchise fee from the cable provider who utilizes public infrastructure; a 5% fee is allowed by law. The fee was not negotiated by past administration into our current contract, which does not expire until 2027. If a franchise fee were charged by the municipality to the cable provider, the Cable provider normally passes the fee onto the customer and lists as a "franchise fee" on the customer's MINUTES OF THE HANOVER BOROUGH FINANCE & PERSONNEL COMMITTEE MEETING ]a11uan1 16, 2018 Page2 invoice. Manager Bowersox contacted a law firm who specializes in cable franchises to investigate. The law firm was able to negotiate a 3% franchise fee for the remainder of the contract with Council's approval. The fee is for cable use only; not internet. President Reichart would like to know if it is possible to charge a fee or tax for internet use. The Committee asked for staff to provide more information, i.e., how many households utilize cable, how much revenue, etc. before making a decision. The Committee felt it would also be beneficial for Comcast to provide free cable service for the Borough facilities and the School District, but same may have to wait until a ·new contract is negotiated in 2027. OLD BUSINESS );> Communications Position: Ms. Pranses asked when the new position will be filled. Manager Bowersox responded that the position will be advertised at the end of January. );> KVS Software Upgrade: Finance Director Miller has been researching new ERP software on a regular basis, looking for new upgrades, best options, etc. );> EIP Presentation: Mr. Baumgardner is concerned that the EIP analysis predicts increasing expenses. Manager Bowersox noted that for the last 2 years the Borough's overall expenses have decreased, citing health care with the Benecon consortium as an example. The health care increase was negotiated down from 27% to 9% by participating in the Benecon consortium. ~ Garbage & Refuse: The Committee discussed the pros and cons of in house vs. privatization of garbage and refuse service. The EIP analysis did not recommend outsourcing the service, but to continue to monitor same. It was moved by Mr. Noble, seconded by Mr. O'Neill to have an independent firm conduct a study of garbage and recycling. Mr. Chesney and Ms. Pranses were opposed to an independent garbage and refuse study, noting costs for an independent study are not allocated for in the budget. Mr. Reichart would like to see a comparison with other municipalities, and the comparison should show the portion of allocation for tipping fees within the costs for a better analysis. It was moved by Ms. Pranses, seconded by Mr. Shea to contact the Pennsylvania Economy League through the EIP process for a recommendation to conduct a garbage and refuse study and investigate funding options for the proposed study. There were no votes in opposition to the motion. Motion carried. ~ Committee Agendas: An item for individual committees to review the EIP analysis should be placed on all February committee agendas for discussion of MINUTES OF THE HANOVER BOROUGH FINANCE & PERSONNEL COMMITTEE MEETING January 16, 2018 Page3 relevant items within each Committee. The approval of the EIP study could be placed on the February Council agenda for approval after each Committee has reviewed same. Adjournment: Chairperson Rupp thanked all for their attendance this evening. It was moved by Ms. Pranses, seconded by Mr. Shea to adjourn the meeting at 8:10PM. Motion carried. Respectfully submitted, D~~~Gfx4 Borough Secretary