2 Finance & Personnel Committee

MINUTES OF THE HANOVER BOROUGH FINANCE & PERSONNEL COMMITTEE MEETING September 18, 2019 Chairperson Rupp called the Hanover Borough Finance & Personnel Committee m eeting to order Wednesday Evening, September 18, 2019 at 6:00PM at the Guthrie Memorial Library, 2 Library Place, Hanover, P A, as advertised. Attendance: In attendance were Council Members Mr. Chesney, Mr. Hoover, Mr. Lockard, Mr. Noble, Mr. O'Neill, Ms. Pranses, Mr. Reichart, and Dr. Rupp; Mayor Ojo; Solicitor Shultis; Staff Members Water Distribution Supervisor Ault, Fire Chief Clousher, Code Enforcement Officer Curtin, Secretary Felix, Fleet Supt. Forbes, Public Works Supt. Grimm, Library Directory Kane, Police Chief Martin, Water & Wastewater Treatment Supt. Mayers, Finance Director Miller, MS4 Coordinator Morningstar, Administrative Asst. / Asst. Secretary Musselman and Meter Dept. Supervisor Sheely. Approval of the Minutes: It was moved by Mr. Lockard, seconded by Ms. Pranses to approve the minutes of August 21, 2019 as written. Motion carried . Approval of the Bills: It was moved by Mr. Noble, seconded by Mr. O'Neill to approve the bills for payment. Motion carried . Liquid Fuels Bills: It was moved by Mr. Lockard, seconded by Ms. Pranses to approve the payment of the Liquid Fuels bills. Motion carried. Monthly Financial Statement & Investments: Finance Director Miller em ailed the m onthly Financial Statement for August 2019 & Investments for September 2019 prior to this evening's meeting. If anyone has any questions, or concerns, please let Finance Director Miller know and he will address same. Budget Presentation: Finance Director Miller noted that the Police Department and Fire Dep artment budgets were presented at the Public Safety - Public Service Committee meeting on Monday, September 9th and referenced in the attachments for this evening's overall budget presentation, (as directed by The Finance & Personnel Committee at last month's meeting). Dr. Rupp urged the Committee members to please jot down questions during the presentation and submit to Finance Director Miller for discussion at the October Finance & Personnel Committee m eeting. Finance Director Miller noted this is the third year the presentation has been held at the Library and the format will be consistent with prior years for comparison purposes. A copy of tonight's presentation will be placed on the website for accessibility and review, as transparency is key in the process. MINUTES OF THE HANOVER BOROUGH FINANCE & PERSONNEL COMMITTEE MEETING September 18, 2019 Page2 Finance Director Miller thanked all for their presence and began the detailed PowerPoint presentation, major points including: • An overall projection of where we are to date, the projections for 2019 year-end and a proposed 2020 budget were outlined. • Four of the five labor conh·acts are currently in negotiation. • There are no tax or utility rate changes for 2020. • The water rates inside and outside the Borou gh need to be analyzed to move forward in 2020. • Earmarked for bond purchase in 2020 (Water): purchase and implementation of "smart water meters;" Sheppard Myers Dam rehabilitation; and investigation of additional water sources. • Timeline: o October 161h Finance & Personnel Committee Meeting - Narratives on any significant 2019 projection and 2020 proposal changes, can occur due to shifting in timing of projects, or additional information gathered. o November 20th Finance & Personnel Committee Meeting- Narratives on any significant 200190 projection and 2020 proposal changes. o (Tuesday) November 261h Council Meeting- Motion to publicly advertise the 2020 budgets. o (Monday December 23rd Council Meeting - Formal adoption of the 2020 budgets and related documents through resolutions/ ordinances. Finance Director Miller asked for public comment on the budget. None was presented. Please reach out to Finance Director or present questions and concerns at the October 16,2019 Finance & Personnel Committee m eeting. Finance Director Miller thanked all for their attendance. On behalf of the Committee, Chairperson Rupp thanked Finance Director Miller for his hard work on the budget and an excellent presentation. Non-Uniform Personnel - Compensation & Health Insurance Subcommittee: The subcommittee will consist of Mr. Noble, Mr. Reichart, Dr. Rupp, Finance Director Miller and Borough Administrator O'Rourke, and will report back to this Committee with recommendations. MINUTES OF THE HANOVER BOROUGH FINANCE & PERSONNEL COMMITTEE MEETING September 18, 2019 Page3 Borough Credit Cards Increase Total Limit: Finance Director Miller noted that more items are being purchased with credit cards, due to increased acceptance and online purchases. The request is to increase the total limit from $10,000 to $20,000. It was moved by Ms. Pranses, seconded by Mr. O'Neill to move the item to the Council agenda. Motion carried. COSTARS Purchase of Paver: Public Works Supt. Grimm explained that the old paver is now out of commission, and it would be beneficial to the Borough to purchase a paving machine to cut costs, as compared to outsourcing. The total cost of the paver and trailer is $209,180.00, which can be lease-purchased through Liquid Fuels, $44,000 per year in a 5-year plan. The paver is needed to complete various patching work, cost share with Columbia Gas, conduct alley paving and take care of smaller paving jobs. Supt. Grimm intends to pursue a more aggressive paving program, instituting a "Network Neighborhoods" program where paving work can be done in coordination with other utility work, so that all infrastructure improvements can be implemented at the same time in a "neighborhood." This process was implemented in York City and it worked well. H e stressed that pavers and snow plows are among the most n eeded pieces of equipment in municipalities. The life cycle of the paving machine is 25-30 years. Supt. Grimm confirmed no additional staff would be required to operate the machine (6-8 personnel); and the new machine will be easier to operate. After discussion, it was moved by Mr. Lockard, seconded by Ms. Pranses to move the item to the Council agenda. Motion carried. Water & Sewer Committee Items )> Request for Reduction of EDUs for Villas on West Elm Avenue Sewer Connection Property Owner Trone Rentals asked for the tapping fee calculation for Equivalent Dwelling Units (EDU' s) to be based off of actual waste flow in regard to the sewer connections. It was moved by Mr. Noble, seconded by Mr. Reichart to deny same, and move to the Council agenda. Motion carried. Ecological Assessment Long Arm Dam Mr. Noble explained that the Water & Sewer Committee asked Gannett Fleming for a plan to remediate erosion, improve recreational areas and promote wildlife habitats. It was moved by Mr. Noble, seconded by Mr. Hoover to move the approval of the ecological assessment plan in the amount of $8,665 to the Council agenda. Motion carried. Ms. Pranses further noted having the plan in place will h elp with acquiring grant funds. Proposed Maryland Property Sale The Committee agreed that there should be a clause in the proposed property sale for the property to remain undeveloped. Solicitor Shultis noted that the Borough cannot convey the property without going through the public bid process, but Maryland could get preapproval to bid on the land. The Borough is obligated to sell to the high bidder, but a reserve amount can be set and restrictions on future MINUTES OF THE HANOVER BOROUGH FINANCE & PERSONNEL COMMITTEE MEETING September 18, 2019 Page4 use could be stipulated. The possibility of selling d evelopment rights was also discussed. In addition, Maryland has their own laws for compliance in the process that must be addressed . Mr. Reichart asked Solicitor Shultis to pursue the option to sell development rights, and the Committee agreed it was prudent to investigate same. Minimum Municipal Obligation (MMO): It was m oved by Mr. Lockard, seconded by Mr. Hoover to move the approval for the 2020 MMO to the Council agenda: ~ Employees Pension Plan $359,784 ~ Fire Drivers Pension Plan $165,976 ~ Police Pension Plan $595,778 Motion carried . SPCA Contract: It was moved by Mr. Hoover, seconded by Mr. O'Neill to move the approval of the SPCA contract for 2020 in the amount of $7,874.35 to the Council agenda. The Committee agreed the SPCA provides valuable services in the community. Motion carried. PUBLIC COMMENT: None was presented. 8:20 PM: Executive Session: The meeting temporarily adjourned to an executive session to discuss legal & personnel ma tters. 8:35 PM: The Finance & Personnel Committee meeting reconvened. A motion was made by Mr. Chesney, seconded by Ms. Pranses to forward the revised AFSCME white collar con tract to the Hanover Borou gh Council agenda. Motion carried. ADJOURNMENT: Ch airperson Rupp thanked all for their attendance this evening. It was moved by Mr. Hoover, seconded by Mr. Ch esney to adjourn the meeting at 8:37PM. Motion carried. Respectfully submitted, £~1r~x74 Borough Secretary