Supervisors Special Budget Work Session Tuesday, July 31, 2012

A special budget work session of the Board of Supervisors was conducted on Tuesday, July 31, 2012 commencing at 1:00 p.m. Chairwoman, Ms. Silvernail called the meeting to order. Present were Supervisors Mr. Greenfield and Ms. Horan, Township Engineer/Zoning Officer Mr. MacCombie,Township Accountant, Joe Drozd and members of the community.

The moment of silence and pledge of allegiance were waived.

Larry Maulo, representing Maulo & Maulo presented to the Board the year end December 31, 2011 preliminary audit results. Mr. Maulo referred to the Independent Auditor’s Report conducted in accordance with the auditing standards of the United States of America and gave the Township a clean opinion. Mr. Maulo stated the general fund budget for 2011 came in under budget. Ms. Silvernail stated the Sadsbury Village Enhancement project is still pending. Mr. Maulo stated the income and expenses in the Special Accounts has a balance of $104,502.00 and the township is in a good financial position. Mr. Maulo stated the Sewer System revenue had a balance of $1,000,480.00 with $666,037.00 in expenses leaving $159,245.00 net assets. Mr. Maulo stated the fact that a billing error was discovered in 2011 in which multiple EDU’s customers were not billed correctly and in 2012 the Township back-billed these customers; the amount of the accounts receivable, net of an allowance was understated at December 31, 2010 by $83,273.00

Mr. Maulo recommended the Township review the escrow account policy. As of this time, only engineer fees are paid from escrow account. It is recommended that also legal bills be paid from escrow accounts instead of separate billing. Mr. Maulo stated that some municipalities charge a management fee to the developer in order to maintain the escrow account and make payments. The average management fee is 3% of the amount disbursed each quarter.

Ms. Horan asked Mr. Maulo why this has never been an issue in the past. Mr. MacCombie stated that it is only recently that legal bills have been allowed to be taken out of escrow accounts.

Mr. Maulo also suggested that the Township upgrade Quickbooks so that controls could be set in place to make sure all sewer bills are sent out and no bills are missed or delayed. The new version of Quickbooks has a feature for batch billing.

Mr. Maulo asked the Board to approve the draft of the Financial Statements year ended December 31, 2011 for Sadsbury Township and it will be put together in final form.

Ms. Silvernail made a motion, seconded by Mr. Greenfield, to adopt the draft copy of the Financial Statements year ended December 31, 2011 for Sadsbury Township. With there being no questions from the public, the Board voting “aye”, the motion passed unanimously.

Mr. Joe Drozd stated that in the General Fund account comparison of 2012 budget versus actual as of June 30, 2012 collection of real estate transfer taxes (89%collected by June 30) and taxes levied under act 511 (53 % collected by June 30) are over the budged amount. The real estate transfer taxes were budgeted low. Mr. Drozd stated the police budget is approximately $15,000 over budget. Factors not considered in the budget were Jerry Ranck sick pay and coverage pay and increase in part time police officers. Mr. Drozd would like to transfer $17,000 from the Special Projects Account to the police wages and $10,000 from police Capital Account to police wages.

Ms. Silvernail made a motion, seconded by Ms. Horan, to transfer $17,000 from Special Projects Account to police wages per Mr. Drozd recommendation. With there being no questions from the public, the Board voting “aye”, the motion passed unanimously.

Ms. Silvernail made a motion, seconded by Ms. Horan, to transfer $10,000 from the Police Capital Account to police wages per Mr. Drozd recommendation. With there being no questions from the public, the Board voting “aye”, the motion passed unanimously.

Mr. Drozd stated there are two checks sitting on our books from Penquin Industries designated for the fire departments. Mr. Drozd asked how do we handle the donations to the fire companies and fund the consolidation? Mr. Drozd stated $38,000 is budgeted for contributions. Ms. Silvernail stated this might be a legal question.

Mr. Drozd stated the sewer fund is doing better because of the collections on past EDU’s. Sewer treatment cost is also doing better than last year.

Mr. Drozd stated that he learned from Mr. Pompo in going over tap in fees for sewer that they cannot be liened for non-payment. He stated he will work with Mr. Pompo on how to get this money owed to the Township.

Ms. Silvernail stated she will also discuss this issue with Mr. Pompo.

Ms. Silvernail stated that Wayne Grafton has contacted her about the Comprehension Plan update. Mrs. Silvernail stated that we did not receive a grant from the County to help pay for the update. The NPC requires an update every 10 years and our Comprehensive Plan is dated 2005. Ms. Silvernail stated money has been budgeted for the Comprehensive Plan update. Ms. Silvernail stated to think about starting the update in September or October and put the rest of the cost in next year’s budget.

Ms. Silvernail stated a quote was received from YIS/Cowden Group, Inc. for the purchase of ENRADD Wireless System at a cost of $4,395.00 plus annual calibration cost of $180.00 which would be 6 times a year at $30.00 each time. Ms. Silvernail stated that we have been using West Caln’s ENRADD machine in the past and it would be beneficial for us to buy our own.

Ms. Silvernail made a motion, seconded by Mr. Greenfield, to approve the purchase of ENRADD Wireless System from YIS/Cowden Group, Inc. at a cost of $4,395.00 plus the annual calibration cost of $180.00. With there being no questions from the public, the Board voting “aye”, the motion passed unanimously.

The Board discussed an invoice received from Charles A. Higgins & Sons, Inc. for the Township traffic signal maintenance and repairs at Lincoln Highway and Old Wilmington Road. The Board previously approved $350.00 to Higgins & Sons, Inc. for traffic light maintenance. While doing maintenance, they found repairs and some replacements needed done and they fixed them while they were in the Township. Mr. MacCombie told them to do a quote in the future.

Ms. Silvernail made a motion, seconded by Mr. Greenfield to pay invoice #31552 in the amount of $1,096.50 which includes the $350.00 already approved by the Board, to Charles A. Higgins & Sons Inc. for traffic signal maintenance and repairs done to the traffic light at Lincoln Highway and Old Wilmington Road. With there being no questions from the public, the Board voting “aye”, the motion passed unanimously.

Ms. Silvernail stated a proposal was received from Charles A. Higgins & Sons, Inc. for the replacement of two 12-volt/100amp batteries and re-installation of the battery back-up inverter for the traffic light at Route 30 and Aim Boulevard at a cost of $738.40.

Ms. Silvernail made a motion, seconded by Ms. Horan to accept the proposal from Charles A. Higgins & Sons, Inc. in the amount of $738.40 for replacement of two 12volt/100 amp batteries and re-installation of the battery back-up inverter for the traffic light at Route 30 and Aim Boulevard. With there being no questions from the public, the Board voting “aye”, the motion passed unanimously.

Ms. Silvernail stated an invoice from Modern Group, Ltd. was received by the Township for $1,445.50 for generator service and repair. Ms. Silvernail stated that $650.00 was originally approved at the April 3, 2012 Board of Supervisors Meeting. Mr. Simmons, Road Crew Foreman, stated that Modern Group told him the problem with the generator was incorrect wiring on the part of Charles A. Higgins & Sons, Inc. who was the installer. Ms. Silvernail stated the warranty on the generator has expired and we cannot collect from the installer.

Ms. Silvernail made a motion, seconded by Mr. Greenfield, to approve payment for Invoice #PSVI137532 from Modern Group, Ltd. for generator service and repair in the amount of $1,445.50 which includes $650.00 previously approved by the Board at the April 3, 2012 Board of Supervisors Meeting. With there being no questions from the public, the Board voting “aye”, the motion passed unanimously.

Mr. Simmons stated he has a quote from Stephenson Equipment Company from Lancaster for a road side mower. Mr. Simmons stated to purchase a new road side mower the cost would be $100,000. To rent a road side mower weekly the cost would be $2,300.00 including delivery. The boom is a separate attachment.

Ms. Silvernail stated the roadside mower is in bad condition and was purchased in the late 1960’s or early 1970’s.

Mr. Simmons stated that roadside mowing is done approximately 3 times a year, but could probably get by with one time a year if it is mowed very low.

Mr. Simmons stated that some roads can be done with the John Deere tractor, which is also in need of repair. Mr. Simmons states the John Deere tractor mower deck has a worn clutch.

Mr. Simmons stated he has a quote from Atlantic Tractor for a John Deere tractor mower deck clutch and blade for $439.01.

Mr. Drozd stated that everything is in the budget.

Mrs. Silvernail made a motion, seconded by Mr. Greenfield, to permit rental of road side mower with boom from Stephenson Equipment Company not to exceed $2,300.00. With there being no questions from the public, the Board voting “aye”, the motion passed unanimously.

Ms. Silvernail made a motion, seconded by Mr. Greenfield to purchase a new clutch and blade from Atlantic Tractor for the John Deere tractor mower deck not to exceed $439.01. With there being no questions from the public, the Board voting “aye”, the motion passed unanimously.

Mr. MacCombie stated that Sadsbury Township and West Brandywine Township have a joint bid for 2012 road resurfacing projects. Mr. MacCombie stated this will be a cost saving endeavor for each Township.

Ms. Silvernail made a motion, seconded by Mr. Greenfield, to affirm the joint road resurfacing project between Sadsbury Township and West Brandywine Township to be advertised. With there being no questions from the public, the Board voting “aye”, the motion passed unanimously.

Mr. MacCombie stated the storm drains improvements on Compass Road are not part of the project.

Mr. MacCombie stated the Arborvitae tree has been cut down on Octorara Road across from Smith Farm Lane. The condition of removal by the owner was that the Township would remove the stump.

Detective Imhoff has asked to be able to attend a Firearms Instructor class given by the Pennsylvania State Police from October 8th -12th at the Allentown Police Academy. There would be no registration fee for the class. Detective Imhoff would be paid his hourly wage. Chief Gross stated he does not see what benefit this would be to the Township. Chief Gross stated there are already people who certify our officers, and part time officers bring their certifications with them from the Township where they work full time. Chief Gross stated that officer Rob Herzog is a trained instructor. Ms. Silvernail asked how it is determined when certifications expire when and who has been certified. Chief Groce stated he has an excel spreadsheet. Ms. Silvernail asked if the process could be streamlined so that each officer has to be certified at the same time. Chief Groce stated if that is what the Board would like,it could probably be done that way. Ms. Silvernail stated that Detective Imhoff is a full time employee and officer Herzog is part time. There could be an educational standpoint by having newsletter and website articles. Ms. Sivernail stated Detective Imhoff could put in writing the benefits of this class to the Township. Ms. Silvernail tabled this to the next meeting.

An employee of the Township has asked to rent Bert Reel Park for a family event. A question has risen about an employee discount for park rental. Ms. Horan suggested that the Township require the $100.00 deposit and refund $50.00 to the employee if the park is left in good condition. The refund for regular park rental is $25.00 if the park is left in good condition.

Ms. Silvernail made a motion, seconded by Mr. Greenfield, to charge employees $100.00 for Bert Reel Park rental and a $50.00 refund if the park is left in good condition. This is an addition $25.00 refund over regular park rental. With there being no questions from the public, the Board voting “aye”, the motion passed unanimously.

Dave Simmons stated he would like to put the roadside mower out to bid along with the old International plow and the 2006 Ford plow. Ms. Silvernail suggested that Mr. Simmons hold off on this and get more information to the Board and describe each item.

Mr. MacCombie informed the Board of Supervisors that the Sadsbury Villiage Homeowners Association President, Gloria Gellman, has contacted him and would like to hire his firm to stake out property lines in the Village because of trees hanging on various decks and would determine who the trees belong to. Mr. MacCombie stated he would only be putting the property line in and would be a private contractor for Sadsbury Village. Ms. Silvernail stated she has no problem with this as long as the Township is not dragged into a legal hassle.

The next budget meeting is scheduled for Thursday, September 20th at 9:00 a.m.

With there being no further business, Ms. Silvernail made a motion, seconded by Ms. Horan, to adjourn the meeting. With there being no questions from the public, the Board voting “aye”, the motion passed unanimously.

Respectfully Submitted,

Linda Shank,

Assistant Secretary