Council of the Municipality of Murrysville

Regular Voting Meeting – Wednesday, November 4, 2015 Council of the Municipality of Murrysville held a Regular Voting Meeting on Wednesday, November 4, 2015 at 7:00 p.m. in the Municipal Building. Present at the meeting were Council members Dave Perry, Jeff Kepler, Loren Kase, William Vance, Joan Kearns, and Josh Lorenz. Councilman Regis Synan was absent. Also present were Mayor Robert Brooks, Chief Administrator James R. Morrison, Finance Director Diane Heming and Recreation Director Carly Greene. MUNICIPAL PENSION PLAN UPDATES BY FRANK BURNETTE Frank Burnette of Morrison Fiduciary Advisors explained that the Municipality’s pension plan is one of the largest moving financial processes and is a significant financial cost to the Municipality, depending on the performance of the fund. He advised that he met with the fund actuary and learned that the most recent financial update of the plan assets indicates that the plans are within a few percentage points of being fully funded. He said the state regulates plans and audits them; subsequently labeling plans with a “level of distress.” Murrysville’s plan is leveled at a zero level of distress, which Mr. Burnette said is exemplary. He spoke about the rate of return over the past eleven years and noted that in the past five years the plan value has increased from $10.5 million to today’s value of $20.2 million and discussed how the funds are invested. He said the committee has been well served by Councilman Vance and John Cardwell and thanked them for their contributions to the finance committee to get the job done. Mr. Morrison advised Council that Mr. Burnette has reduced his management fee for the coming year and thanked him for that. There were no questions from Council on Mr. Burnette’s presentation. PUBLIC HEARING/2016 MUNICIPAL BUDGET WORKSHOP A Public Hearing for citizen input on the proposed Resolution No. 654-15, 2016 Municipal Budget, began at 7:10 p.m. Finance Director Diane Heming gave a summary of the budget, indicating total estimated revenue of $13,841,432, which included a little over $2,000,000 of interfund transfers (i.e., liquid fuels money has to go into the State Fund and then transferred to the Capital Reserve to pay expenses for overlay projects). Total proposed expenses are $14,101,436, including the same interfund transfers. She advised that the budget is balanced with no anticipated tax increase and total mills remain at 12.15 mills. Revenue and expenses are estimated to increase approximately 1.3%. Ms. Heming explained that, because the Municipality had a lower pension obligation for 2016 than experienced in past years, it is proposed to set aside $400,000 into a “pension reserve” fund, which will be part of the unfunded reserve balance in the general fund and will be reserved for pension costs that may increase when the next actuarial report is completed. She discussed the interfund transfers and proposals for how the money is to be used, including repairs to the Municipal and Public Works Buildings and the Community Center. Money has also been set aside in a reserve for future land acquisition. Ms. Heming discussed the sources of revenue and noted that, while real estate taxes previously accounted for approximately 50% of revenue, the trend is reversing and she believes that earned income revenue will be more than real estate revenue in the near future. While real estate is becoming level, there is a growth in earned income. She explained that 42% of expenditures go toward personnel costs (i.e., salaries, wages, benefits, pension costs, etc.). car 11/17/15 Regular Voting Meeting – Wednesday, November 4, 2015 In the General Fund, revenue from new development is not expected to be at prior levels, so fees & permitting costs were adjusted to reflect less developments; it is estimated that 30 new homes and 2 commercial developments will be completed in 2016. Fees for use of the park pavilions and fields have increased and field fees are used to cover the costs of maintaining the fields. It is expected that the same level of income will hold in 2016. She explained some of the increases in expenses in detail, and noted that funds for electricity were increased due to the new method in which West Penn Power is billing for transmission costs – she explained that billing method to Council. For example, since the change in July, the billing for the Municipal Building has increased between $200-$400 per month. Staff is planning an energy audit on the Municipal and Public Works Buildings. It has already been suggested that LED lights in the Community Center will decrease the demand in that building. There has also been an increase in the cost for lights along Route 22 and Streetscape. IT costs were increased to account for sending e-mails into the cloud, a second server for website storage, and internet costs involved for light signalization along Route 22. She said that the Capital Budget (CIP) formerly presented in August was changed to reflect the current budget and was increased $273,600. The Branthoover Cutoff project was increased by $100,000 and will become part of the overlay project; $96,600 was added for updates to the Municipal Building (roof, carpeting & landscaping; cell benches, bars & heaters in restrooms; lobby floors & back hall restrooms; library lobby flooring). In the Public Works complex, the door on the salt bin needs replaced; circulating fans in garage bay to remove moisture; exhaust fan in welding bay. She said there is only one outstanding bond issue, which will be paid off in 2022. The Special Purpose Fund, which includes dedicated millage for the library and Medic One, will bring in approximately $327,000 - $262,000 will go to the library, with $65,000 to Medic One for a vehicle purchase. Mr. Morrison thanked Ms. Heming for her work and said he believes the Municipality is in a good fiscal position as projected over the next five years. There were no questions from Council on the budget. The Public Hearing was closed at 7:30 p.m. REGULAR VOTING MEETING AGENDA UNISTED AMENDMENTS: Under Workshop Items – Remove Item No. 10A – Discussion of Proposed Updates to the Transportation Capital Improvements Plan and Traffic Impact Fee per Chapter V-A of the Pennsylvania Municipalities Code (presenter could not attend); Under Council Action Items – Add Item 19A Executive Session – Personnel Issue. Mr. Kepler moved to approve the agenda as amended. Mr. Perry seconded. All present voted aye. Motion approved. CONSENT CALENDAR ITEMS: A. SEPTEMBER 24, 2015 MEETING MINUTES TO BE APPROVED car 11/17/15 Regular Voting Meeting – Wednesday, November 4, 2015 Mr. Kepler moved to approve the Consent Calendar items. Mr. Kase seconded. All present voted aye. Motion approved. COMMUNITY INPUT: None. WORKSHOP ITEMS ADMINISTRATION: 12A. DISCUSSION OF PROPOSED ORDINANCE NO. 929-15, PERTAINING TO PRIVATE FIRE HYDRANTS. Mr. Morrison said there has been no change since this item was discussed at a prior meeting and it is on the voting agenda at tonight’s meeting to advertise the ordinance. 12B. DISCUSSION OF PROPOSED POLICY REGULATING SMOKING IN ACTIVE RECREATION AREAS IN MUNICIPAL PARKS. As a follow-up to a discussion at a prior meeting, Mr. Morrison said he wanted to make sure Council understood that the proposed policy as written does not regulate vaping or tobacco products. He said that after he wrote the agenda briefing, he had a conversation of a Young Lungs at Play representative and Mr. Morrison advised him that the policy, if passed, would not regulate all tobacco products – only smoking. The representative indicated that he did not believe it would be a problem but the decision would be based on a review of the policy as passed by Council. If the organization does not believe the policy covers the intent of the program by only covering smoking, the Municipality may have to purchase the signs as opposed to YLAP providing them free. The signs read that all tobacco products are banned. However, the representative was encouraged that the Municipality is moving forward with a policy to regulate smoking in active recreation areas. Mr. Lorenz had a concern that he didn’t want the policy to be too heavy handed or over-reaching; in other words, if there is no one in the park or the “active recreation” area, he doesn’t want the policy to impact someone who is just there on their own and wants to smoke. He believes the intent of the policy is to limit smoking to active recreation areas where people are around that might be affected negatively by smoking. Mr. Morrison said that is addressed in the enforcement section of the policy – if the offender is alone and not bothering anyone, he believes there won’t be an issue. Mr. Morrison said he will report back to Council after YLAP reviews the policy and if Council feels the enforcement section needs to be addressed, that can be done at a later date. Mrs. Kearns said the main intent is to place signs at the ball fields and play structures where there is more activity involving children. There were no additional questions from Council. car 11/17/15 Regular Voting Meeting – Wednesday, November 4, 2015 12C. DISCUSSION CONCERNING PARTICIPATION IN THE CENTRAL WESTMORELAND COUNCIL OF GOVERNMENTS UCC APPEALS BOARD PROGRAM. Mr. Morrison reminded Council that staff has had difficulty getting qualified members for the UCC Appeals Board and the Municipality has the opportunity, through the enabling legislation, to participate in a joint UCC Board. He believes this is the best opportunity for the Municipality to proceed. Mrs. Kearns asked about the fee if an individual would come before the local Board; Mr. Morrison advised that it would be $700. It would be higher if the appeal went to the joint Appeals Board at the County level. There were no questions from Council. COUNCIL ACTION ITEMS ADMINISTRATION: 13A. CONSIDER APPROVAL OF ORDINANCE NO. 933-15, AN ORDINANCE ADDING THE SKENA PROPERTY TO THE MUNICIPALITY’S HUNTING PROGRAM. Mr. Kase moved to approve. Mr. Perry seconded. Recreation Director Carly Greene thanked Council for considering this ordinance and said she will keep everyone advised as to the deer harvest. Mrs. Kearns asked if there have been any concerns voiced by adjoining property owners. Ms. Greene said she is not aware of any. Upon a roll call vote: Mr. Perry – yes, Mr. Kepler – no, Mr. Kase – yes, Mr. Vance – yes, Mrs. Kearns – yes, Mr. Lorenz – yes. Motion approved. 13B. CONSIDER AUTHORIZATION TO ADVERTISE ORDINANCE NO. 929-15, PERTAINING TO PRIVATE FIRE HYDRANTS. Mr. Perry moved to approve advertising ordinance No. 929-15, which regulates the inspection, testing, maintenance, correction and repair of private fire hydrants located on private property within the Municipality. Mr. Kepler seconded. Upon a roll call vote: Mr. Perry – yes, Mr. Kepler – yes, Mr. Kase – yes, Mr. Vance – yes, Mrs. Kearns – yes, Mr. Lorenz – yes. Motion approved. 13C. CONSIDER APPROVAL OF A PROPOSED POLICY REGULATING SMOKING IN ACTIVE RECREATION AREAS IN MUNICIPAL PARKS. Mr. Vance moved to adopt policy 34-15, a policy regulating smoking in active areas of Murrysville parks and playing fields. Mr. Kase seconded. Mr. Kepler asked for feedback once YLAP reviews the proposed policy, as he would like to get the signs to be posted in the parks. Mr. Kase asked for clarification that the only way YLAP will provide signs is if all tobacco products are regulated. Mr. Morrison said that would depend upon a review by the organization of the policy adopted by Council. car 11/17/15 Regular Voting Meeting – Wednesday, November 4, 2015 Upon a roll call vote: Mr. Perry – yes, Mr. Kepler – yes, Mr. Kase – yes, Mr. Vance – yes, Mrs. Kearns – yes, Mr. Lorenz – yes. Motion approved. 13D. CONSIDER APPROVAL TO PARTICIPATE IN THE CENTRAL WESTMORELAND COUNCIL OF GOVERNMENTS UCC APPEALS BOARD PROGRAM. Mr. Kase moved to approve. Mr. Perry seconded. Upon a roll call vote: Mr. Perry – yes, Mr. Kepler – yes, Mr. Kase – yes, Mr. Vance – yes, Mrs. Kearns – yes, Mr. Lorenz – yes. Motion approved. PUBLIC WORKS AND PARKS: 16A. CONSIDER AUTHORIZATION TO ADVERTISE TO ACCEPT BIDS FOR THE SALE OF THE OLD K9 POLICE CAR. Mr. Kase moved to approve advertisement in the Penn-Franklin News with the upset price of $3,000. Mr. Kepler seconded. Mr. Morrison explained that this type of vehicle is difficult to sell. He received an inquiry from another Municipality that has 5 K-9 dogs but, through research, he learned that equipment can’t be sold between Municipalities and this must go through a bid process. He said the $3,000 upset price was based on blue book value and the condition of the vehicle. Upon a roll call vote: Mr. Perry – yes, Mr. Kepler – yes, Mr. Kase – yes, Mr. Vance – yes, Mrs. Kearns – yes, Mr. Lorenz – yes. Motion approved. OLD BUSINESS: None. NEW BUSINESS: Mr. Morrison reminded Council that there has been discussion on updating the cameras and audio visual displays in Council Chambers, plus the TV and support, which has been in use for approximately 15 years. Mr. Morrison and Mike Hiler have met with a representative of the company that provided the original equipment and asked for an estimated price to update all equipment. He was shocked that the quote came in at around $120,000, but after checking the price for the original equipment provided in 1999 and finding that it was almost $82,000, he was less shocked by the current quote. The proposal is to replace the current televisions in Council Chambers with big screen TVs, update all the cameras and sound system, as well as all the equipment in the IT office. After meeting with the representative, Mr. Morrison will present more specific information to Council at a future meeting. The representative will put together a package, which will then be put out for bid. EXECUTIVE SESSION: Council adjourned to an Executive Session to discuss a Personnel Issue at 8:00 p.m. and reconvened at 8:06 p.m. There was no action coming out of the Executive Session. ACTION ITEMS: ADJOURNMENT: Mr. Kepler moved to adjourn. Mr. Kase seconded. All present voted aye. The Council Meeting concluded at 8:07 p.m. car 11/17/15 Regular Voting Meeting – Wednesday, November 4, 2015 The Regular Voting Meeting was broadcast on local government Channel 19. A true copy of the Council meeting DVD is available for the public to purchase from the Municipality of Murrysville and is in the Murrysville Public Library for review. car 11/17/15