Council of the Municipality of Murrysville

Regular Voting Meeting – Wednesday, November 16, 2016 Council of the Municipality of Murrysville held a Regular Voting Meeting on Wednesday, November 2, 2016 at 7:00 p.m. in the Municipal Building. Present at the meeting were Council members Loren Kase, Josh Lorenz, Jeffery Kepler, David Perry, Joan Kearns, Tony Spadaro, and Jamie Lee Korns. Also present were Mayor Robert Brooks, Chief Administrator James Morrison, Solicitor George Kotjarapoglus, Finance Director Diane Heming, Recreation Director Carly Greene, Special Events Coordinator Amy Wengrzyn and Municipal Planner Allen Cohen. MAYOR BROOKS WELCOMES THE WESTMORELAND CONSERVANCY Mayor Brooks welcomed several members of the Westmoreland Conservancy and was told that there are approximately 175 members of the organization in the Franklin Regional community. Shelly Tichey, president of the group, related that the organization is a 25-year-old land trust and has property in the Murrysville-Franklin Regional area, as well as property that extends into Salem Township and Penn Township. The group has acquired and protected 500 acres of property in that 25-year period. The members introduced themselves and told how they were involved with the Conservancy. The Mayor noted that Murrysville has more acreage for parks and conservancy land per person than almost any other community in Pennsylvania and these lands are not prohibited, but for the residents to enjoy. President Tichey explained how to search the web for information on all of the properties and reserves in Murrysville, including maps. She said the Conservancy’s slogan is “protecting nature’s home; enriching yours.” She invited residents to join the Conservancy and noted the meeting day, time and place. Mayor Brooks presented the members with a certificate of appreciation for the work they do in keeping Murrysville’s natural beauty for all to enjoy. PUBLIC HEARING A Public Hearing began at 7:25 p.m. for citizen input on the proposed Resolution No. 665-16, 2017 Municipal Budget. Finance Director Diane Heming prepared a summary of the proposed budget, which focused on the changes to the budget – none in service levels or millage – but rather, methods of payment and allocation of millage. She began by advising that the 2017 budget is approximately $13.6 million for all funds, with the largest fund being $9.3 million for the General Fund and one outstanding borrowing that will be paid off in 2021. She discussed the proposal to eliminate the Special Purpose Fund, which allocated 1 mill between the library and Medic One, and make payments to those entities from the General Fund. Ms. Heming and Mr. Morrison explained the rationale for moving the money to the General Fund. They also discussed the leasing arrangement with the library and the yearly contribution to Medic One for operational needs. Each of the three fire companies will receive $10,000 per year for three years to be used for non-routine maintenance costs. Mr. Morrison discussed the pending retirement of the construction manager and decrease in hours provided by the Consulting Engineer. Applications for Director of Engineering and Engineering Technician are being solicited and reviewed. Overall salaries for Municipal employees are expected to increase between 2.5 and 4.0% based upon collective bargaining agreements. The health insurance costs for everyone except laborers are expected to increase 7%. car 12/1/2016 Regular Voting Meeting – Wednesday, November 16, 2016 The cost for laborers is projected to increase between 10-12%. Workers’ compensation costs through the State program are expected to increase $8,000-$9,000, which Ms. Heming said is good because last year it was around $20,000. The transfer from the General Fund to Capital reserve was increased in order to keep the balances in the reserve strong for specific projects (roads, bridges, infrastructure, land purchases or major construction projects); staff is still trying to build the balances in the reserve and will be putting $250,000 in for capital projects and $250,000 for the Community Park reserve. Additionally, it is proposed to replace the lights in the Administration Building, Public Works Building and Library with LED lights. Recently replacing the lights in the Community Center has resulted in an approximate 25% reduction in the lighting bill. It is projected to replace the hydraulic life in the mechanic’s bay at Public Works, as well as installing solar panels on the Sears House. Ms. Heming next discussed a proposed $3.2 million dollar bond issue which would be used to refinance existing PEMA fire equipment loans, refinance the 2012 borrowing which was used to purchase two fire trucks and replenish the emergency equipment fund that has come to the end of its 15-year financing schedule. The borrowing will mature in 2036 and is anticipated to reduce the annual debt payments through 2024. The remaining payments will not require a tax increase. Information regarding the bond debt service was provided to Council for review. There were no questions from the audience or Council members. The Public Hearing was closed at 7:46 p.m. 2017 MUNICIPAL BUDGET WORKSHOP Mr. Perry asked why the hydraulic lift is to be replaced since he’s not used to seeing that type of equipment being replaced after only being in use 9 years. Mr. Morrison said it is his understanding that the life expectancy on that type of equipment is 10-12 years, but more importantly, it needs an annual inspection and at the last expectancy staff was advised it would not last another year. He then inquired as to why Medic One was being paid one amount once a year and asked if it was because Medic One will now be serving another community. Ms. Heming said staff believed it was better not to have dedicated millage to an organization that was multi _____. There was additional discussion on the proposed bond issue and the advantages to refinancing. Mr. Kase asked if the fire companies and Medic One had to be accountable to the Municipality for the dedicated millage contribution provided to those entities in prior years. Ms. Heming said that Medic One had to send, no sooner than July 1, a letter requesting the allocation for the year and then outlined equipment to be sold and/or purchased. The Municipality no longer owns any of Medic One’s vehicles but Council wanted to know what was being done with the funds. Mr. Morrison explained that the only allocation that came from dedicated millage was to Medic One. The money to the fire companies was a general fund appropriation. Mr. Lorenz explained the coverage of ambulances to both Murrysville and Washington Township and assured that the coverage in Murrysville will not be decreased. Mr. Morrison said that if Council approves the budget as presented, staff will move forward with the bond issue and plans to bring it before Council in January or February. There were no further questions or discussion and the workshop was closed at 7:56 p.m. car 12/1/2016 Regular Voting Meeting – Wednesday, November 16, 2016 Frank Burnett of Morrison Fiduciary Advisors came before Council with a recommendation from the pension committee about a change in investment policy to authorize an investment that his company recommended to the committee. Mr. Burnett reported that the Fund is up 7.5% through September 30, 2016 and the annualized return for five years has been 10.6%. He advised that, at the last valuation date, the Funds were fully funded. He explained that the Fund is currently invested as follows: 62% total equities, 25% fixed income, 7.5% real estate, 4% energy pipeline dividends and stocks. After considering several types of investment, the committee is recommending a 6-7% investment in “private debt.” This recommendation is made because this particular asset class is anticipated to generate an income stream of about 9%. He explained how this type of investment works, which involves investing money in a fund which then makes loans to middle-market companies on a secured basis. All loans are designed to mature within 5 years, so the commitment from the fund is for a 5-year time period, at which time the loans will mature or be refinanced. Mr. Burnett, on behalf of the committee, is requesting approval from Council for the ability to make an adjustment to the investment policy statement acknowledging the language that authorizes private debt, which would then be made part of the investment policy statement. There was a question and discussion on the rate of return in comparison with the S&P Index Fund. There were no further questions from Council. Amy Wengrzyn, Program/Special Events Coordinator, spoke about Night of Lights to be held December 2 at First United Methodist Church and Jingles & Gingerbread hosted by the Murrysville Community Library on December 5 and invited all residents to attend and participate in both events. Carly Greene, Director of Recreation, presented an update on the Volunteer Program following a recent meeting with local volunteer organizations. The program is intended to match residents interested in volunteering with groups that might meet their needs and interests. It will also give the organizations a platform to better tell their story, needs, purpose and mission. Several resources were found which can be adjusted and tailored to Murrysville. The vision of the program is to establish a robust volunteer matchmaking program that will impact the community in significant, positive ways, while the mission is to Increase Volunteer Awareness and Engagement in both community and municipal roles. She discussed the program goals and why staff believes the program will work in Murrysville. 29 community organizations were represented at the initial meeting and, following a round table discussion, Ms. Greene compiled a list of challenges facing the groups and requests for ways to increase participation. A website has been developed and is already up and running. She asked anyone interested in more information to view the site or contact her at the Municipal office. REGULAR VOTING MEETING AGENDA UNISTED AMENDMENTS: 1. Following the 2017 Municipal Budget Workshop – ADD the following presentations: *Update on the Municipal Pension Plans by Frank Burnette *Update on the Volunteer Program by Carly Greene 2. Under Council Action Items – Executive Session – ADD Item No. 19B – Real Estate Issue. car 12/1/2016 Regular Voting Meeting – Wednesday, November 16, 2016 Mr. Kepler moved to approve the agenda as amended. Mrs. Lee Korns seconded. All present voted aye. Motion approved. CONSENT CALENDAR ITEMS: A. ACCOUNTS PAYABLE B. INVESTMENTS AND TRANSFERS C. NOVEMBER 2, 2016 MEETING MINUTES TO BE APPROVED Mr. Spadaro moved to approve the Consent Calendar items. Mr. Kepler seconded. All present voted aye. Motion approved. COMMUNITY INPUT: Cindy Gesuale of 3051 Hoy Farm Court asked that Council get rid of the requirement for natural gas developers to show that their operations will not violate the State’s arbitrary Environmental Rights Amendment, which was added to the SALDO. She said the Environmental Rights Amendment should be stricken from the ordinance; this request has previously been made by residents, as well as the Planning Commission. She believes the public hearing should be delayed until next year to give everyone time to read and consider Planning Commission’s comments. Barbara Sims, 3837 Hills Church Road, had concerns about the widespread chemical emissions that occurred in the Municipality the week prior to the meeting and cited school evacuations and the number of people treated at local hospitals. Having been told that the theory was that the odor came from a truck traveling through town, she asked how Murrysville will be able to monitor the safety and thousands of trucks that will be necessary to perform unconventional gas drilling. Mr. Morrison said that the investigation conducted by the emergency management response team and DEP indicated that the odor was from differential oil burning in the truck as it passed through Murrysville and eventually broke down near Wendy’s. Norman Franke, 4816 Sardis Road also commented on the previous night’s Planning Commission meeting and noted that the Commission voted unanimously not to recommend the passage of the proposed ordinance in its current form. He feels the entire process needs to slow down and the public hearing should be delayed until residents have an opportunity to review the Planning Commission’s comments and recommendations. Alyson Holt, 4830 Primrose Lane, asked Council to pass the ordinance after the public hearing. She said over 500 paper petitions from residents who want wide setbacks and no fracking in residential zones have already been presented and submitted an additional 125 on-line petitions – all in favor of strong regulations. She presented a summary of those petitions to Council for their review. car 12/1/2016 Regular Voting Meeting – Wednesday, November 16, 2016 COUNCIL - ACTION ITEMS ADMINISTRATION: 13A. CONSIDER APPROVAL OF A POLICY FOR THE USE OF TRAFFIC SIGNAL PREEMPTION DEVICES. Mrs. Lee Korns moved to adopt Policy No. 36-16, a policy governing the use of traffic signal preemption equipment for traffic signals along Route 22. Mr. Kase seconded. Upon a roll call: Mr. Kase – yes, Mr. Lorenz – yes, Mr. Kepler – yes, Mr. Perry – yes, Mrs. Kearns – yes, Mr. Spadaro – yes, Mrs. Lee Korns - yes. Motion approved. COMMUNITY DEVELOPMENT: None. ENGINEERING: 15A. CONSIDER APPROVAL OF ORDINANCE NO. 958-16, AN ORDINANCE ACCEPTING A DRAINAGE EASEMENT AGREEMENT FROM MATT ALSOP, 3075 CARSON AVENUE, MURRYSVILLE, PA. Mrs. Lee Korns moved to approve ordinance No. 958-16 accepting a drainage easement from Matt Alsop. Mr. Kepler seconded. Upon a roll call: Mr. Kase – yes, Mr. Lorenz – yes, Mr. Kepler – yes, Mr. Perry – yes, Mrs. Kearns – yes, Mr. Spadaro – yes, Mrs. Lee Korns - yes. Motion approved. 15B. CONSIDER APPROVAL OF A BOND RELEASE FOR THE MERITAGE GROUP FOR THE FINAL PAVING OF HARVEST DRIVE IN HERITAGE ESTATES. Mr. Spadaro moved to release the bond for the completion of the final wearing course on Harvest Drive in the Heritage Estates development, Phase III in the amount of $81,221.40. Mrs. Lee Korns seconded. Upon a roll call: Mr. Kase – yes, Mr. Lorenz – abstained as he resides in the development, Mr. Kepler – yes, Mr. Perry – yes, Mrs. Kearns – yes, Mr. Spadaro – yes, Mrs. Lee Korns - yes. Motion approved. PUBLIC WORKS AND PARKS: None. OLD BUSINESS: Mr. Morrison advised that he met with representatives from Allegheny Township, Municipal Authority of Washington Township, MSA and representatives from the “Big K” (Kiski Treatment Facility). An agreement is in place that has been preliminarily approved by an outside agency to accept 37 EDUs along Pucketa Creek; the agreement will be brought before Council once the Solicitor has reviewed it. None NEW BUSINESS: None. car 12/1/2016 Regular Voting Meeting – Wednesday, November 16, 2016 EXECUTIVE SESSION: Council adjourned to Executive Session at 8:45 p.m. to discuss the Volunteer of the Year and a Real Estate issue and reconvened at 9:03 p.m. There was no action coming out of the session. ACTION ITEMS: None. ADJOURNMENT: Mr. Kase moved to adjourn. Mr. Spadaro seconded. All present voted aye. Motion approved. The Council Meeting concluded at 9:04 p.m. 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 12/1/2016