Village Council Special Public Budget Meeting Minutes 20180302

A SPECIAL PUBLIC BUDGET MEETING OF THE VILLAGE COUNCIL OF THE VILLAGE OF RIDGEWOOD HELD IN THE SYDNEY V. STOLDT, JR. COURT ROOM OF THE RIDGEWOOD VILLAGE HALL, 131 NORTH MAPLE AVENUE, RIDGEWOOD, NEW JERSEY ON MARCH 2, 2018 AT 5:30 P.M.

1. CALL TO ORDER – OPEN PUBLIC MEETINGS ACT – ROLL CALL – FLAG SALUTE
Mayor Knudsen called the meeting to order at 5:30 P.M. and read the Statement of Compliance with the Open Public Meetings Act.  At roll call, the following were present:  Councilmembers Hache, Sedon, Voigt, Walsh and Mayor Knudsen.  Also present were Heather Mailander, Village Manager/Village Clerk; Stephen Sanzari, Treasurer; and Robert Rooney, Village Chief Financial Officer (CFO). 
Mayor Knudsen led those in attendance in the Pledge of Allegiance to the flag and asked for a moment of silence in honor of the American men and women serving in our Armed Forces, as well as those serving as first responders.

2. COMMENTS FROM THE PUBLIC
Mayor Knudsen asked if there were any comments or questions from the public.  Cynthia Halaby, 374 Evergreen Place, stressed the importance of close communication between the Village and volunteer groups.  Ms. Halaby said that over the past several years, she has volunteered much of her time to help improve the appearance of the green areas of the Central Business District (CBD) as a member of the Women Gardeners of Ridgewood.  They have planted and maintained the flower beds at Memorial Park at Van Neste Square along Ridgewood Avenue, spending over $500 for plantings and have put in innumerable hours of hard work. 
Ms. Halaby recalled that six years ago, she and Maribeth Lane founded the Conservancy for Ridgewood Public Lands.  They both spent a considerable amount of time and effort raising over $46,000 from the community, which has been used on all of their town projects.  Plantings were done at the train station on North Broad Street, which was the planting of 21,000 daffodils; the removal of invasive species at Twinney Pond Park; and work at the Children’s Sensory Garden at The Stable.  When the last project is complete, it will be handed over to the Village.  Ms. Halaby thanked the Parks and Recreation Department for their help and support on these projects, and she urged Councilmembers to be generous with the Parks and Recreation Department budget as there are many pocket gardens in the CBD area, that need planting and maintenance.  There is a barren spot around the Veteran’s Memorial at Memorial Park at Van Neste Square that is in critical need of planting and Ms. Halaby urged Village Councilmembers to add funds to address these areas. 
Andrew Lowry, 441 Hawthorne Place, stated he is with the Shade Tree Commission.  He thanked the Village Council for the funding this group received last year, which allowed for the planting of over two hundred trees in the Village.  Four new trees were planted in new tree wells in the CBD and these trees are being observed to determine how they thrive in these tree wells.  Mr. Lowry stated that the Commission has learned that they need to have the right tree in the right soil, and there has to be adequate water available for the tree roots.  In addition, the trees have to be pruned and protected from people, cars and animals. The Shade Tree Commission will not plant anymore trees in the CBD until they are more certain of what is likely to work.  Mr. Lowry said that they continue to make progress with the number of tree plantings, now equaling the number of tree removals, but support for the program is still needed.
Mayor Knudsen commended all of the volunteers from the Conservancy for Ridgewood Public Lands, the Shade Tree Commission and the Women Gardeners of Ridgewood for all their hard work and efforts, as they benefit everyone in the Village.
There were no further comments from the public. 

3. INTRODUCTION OF 2018 BUDGET PROCESS – VILLAGE MANAGER AND CHIEF FINANCIAL OFFICER
Heather Mailander, Village Manager/Village Clerk, announced that this is the first of four Budget Meetings, with the three remaining meetings scheduled for March 9, March 16 and March 21 beginning at 5:30 in the Sydney V. Stoldt, Jr. Court Room.  Each of the Department Directors is present this evening to present their operating and capital budgets. 
Ms. Mailander introduced Robert Rooney, Village CFO, who said that the 2018 budget process began in July 2017.  Department Directors were asked to begin making presentations of their budget requests, to be submitted by September 30th.  After these submissions, Mr. Rooney and Stephen Sanzari, Village Treasurer, evaluated and fine-tuned the budget requests and scheduled meetings in October with each Department Director. Following the review process with Department Directors, they met with Ms. Mailander, and subsequently met with the Department Directors again to raise questions on spending differences between 2017 and 2018.  All sides ultimately met again in January and February to review any questionable items.  Mr. Rooney said that tonight, the Department Directors will make their presentations relative to what they need to operate their various departments, with the goal of moving forward from there.

4.     DISCUSSION ITEMS
 a. Review of Departmental Budgets and Capital Budgets
1.) Building Department
Thomas Yotka, Director of the Building Department, reported that, in 2017, his department conducted over 4,000 plan reviews; performed 7,200 inspections; issued 2,300 permits; and conducted over 300 code enforcement inspections.  He anticipates even more activity in 2018 due to the proposed plan for the Chestnut Village multi-family development as well as other multi-family developments planned for later this year.  Mr. Yotka has just been informed of a significant change to operations from the Department of Community Affairs.  After several hearings, the Department of Community Affairs will be modifying what is known as “ordinary maintenance and minor work”.  This change means that homeowners will not be required to obtain a permit for siding and roofing work as well as for other things which used to require permits.  This action goes into effect on Monday, March 5th and could have a negative financial impact on the Building Department.
Mr. Yotka stated that two members of the department attended the Building Safety Conference in Atlantic City in 2017, in order to maintain their licenses through continuing education.  Other members of the department amassed over 75 hours of continuing education throughout the year.  Mr. Yotka reported that the Building Department partnered with the Water Department, to assist them with the enforcement of water usage. 
Mr. Yotka stated that employee levels remained constant in 2017.  His department issued 59 outdoor dining permits and ten “A-frame” sign permits, which require constant verified compliance with the ordinances.  During leaf season, over 310 summonses were issued for violations of the leaf ordinance; however, this is a significant decrease from the previous two years. 
Mr. Yotka stated that in order to anticipate the surge in operations in 2018, the Building Department has consolidated inspections for smaller projects by allowing inspectors to make an “in the field” call to accommodate both insulation and framing inspections at the same time.  He noted that the SDL software program was initiated in 2017, and over 376 inspections requests were logged through this service.  This service will continue to be promoted in 2018.  Mr. Yotka spoke about a partnership with “George to the Rescue” a TV program featuring a home renovation project for a local resident.  He said it was fulfilling to participate in this project and see it take shape.
Mr. Yotka referred to the Professional Services Budget, which has decreased significantly because the maintenance of the software program has been transferred to the I.T. Department.  There is an increase in materials and supplies and he noted that 2018 is a New Jersey Code Adoption Cycle, which means that three complete sets of all the new codes and standards will have to be purchased.  The attendance of three staff members at the Building Safety Conference could be achieved with the amount of funding that has been proposed. 
Mr. Yotka concluded by stating that costs have been stable in his department, which continues to function at peak efficiency.  There is a possible increase in salaries and wages as they are considering a part time inspector to assist with inspections in the anticipated multi-family projects.  There is also an allowance for a part time electrical inspector who will be not be added to the staff, but will assist in the absence of the electrical inspectors.  There is an amount budgeted to cover the cost of a potential intern, who would assist with the goal of a more efficient records management and documentation system. 
2.) Zoning Department
Mr. Yotka stated that the Board of Adjustment had a busy 2017, hearing 62 and granting 51 variances.  These variances develop into more work for the Building Department.  There was a decrease in the operating expenses for the Board of Adjustment for professional services, specifically the Board Attorney.  Other items listed are necessary to maintain the operation of the Board of Adjustment including $2,500 for conferences and meetings, coupled with a separate line item for association membership. 
Councilman Voigt questioned the reasons why the budgeted amount for salaries and wages for part time employees in the Building Department had increased 10 times.  Mr. Yotka explained that in addition to the four part time employees currently in the department, the three additional employees would include the part time building inspector, the substitute electrical inspector and the intern.  These three people would cost the department an additional $78,000 and he will get more information on this for the next meeting.  Councilman Voigt questioned a large salary increase for one individual of $30,000 from the prior year and Mr. Yotka said that this employee is split between two departments.  Regarding the Board of Adjustment, Councilman Voigt asked why the salary of one individual has increased significantly.  Mr. Yotka said this salary increase was due to step increases and longevity increases. 
Councilman Sedon asked about code enforcement overall and Mr. Yotka said it has been quite successful.  There were some misunderstandings surrounding code enforcement, but with constant monitoring over time, there is an improvement in overall compliance.  The Code Enforcement Officer works twenty-three to twenty-five hours per week, which seems to be sufficient. 
Councilwoman Walsh expressed concern over the new ruling exempting the requirement for roof permits.  Mr. Yotka said that permits would still be needed for commercial roofing and he estimates the loss of about 225 roofing permits in 2018, or approximately $45,000 in permit fees because of the elimination of roofing and siding permits.  Councilwoman Walsh stated that this could have consequences relative to insurance and Ms. Mailander said they should consult Matt Rogers, Village Attorney, on this topic.  Mr. Yotka stated that home improvement contractors are required to be registered with the State and carry their own insurance.  The homeowners’ insurance policy should cover these workers.  He will put out some information to the residents as soon as possible. 
Councilwoman Walsh asked if the Water Department was being charged for any assistance given by the Building Department.  Mr. Yotka said that the Water Department is not charged and any assistance is being handled under the auspices of Code Enforcement.  Councilwoman Walsh referred to the 310 leaf summonses that were issued, and asked what number are handled through the Municipal Court system.  Mr. Yotka said he is not aware of the number of man hours devoted to leaf summonses and they have eliminated court appearances for these fines.  Councilwoman Walsh asked for an explanation of the new Code Standards and Mr. Yotka said that three sets of the new Building and Residential Code Standards are purchased at a significant cost of approximately $10,000, whether purchased in hard cover or on-line. 
Councilman Sedon questioned the amount of revenue collected through permits for 2017, and Mr. Yotka replied that $1.2 million was received in revenue. 
Councilman Hache spoke about the modifications to the Code by the Department of Community Affairs and asked if there were any other changes anticipated.  Mr. Yotka said that he expects portions of the burglar alarm and security system permits to disappear, along with permits for irrigation and sprinkler systems.  These coupled with the elimination of the roofing and siding permits, amount to 365 permits that were issued in 2017, or approximately $50,000 in permitting fees. 
Mayor Knudsen stated that the Village Council was aware of the potential elimination of the roofing and siding permits.  Mr. Yotka said that the Department of Community Affairs held many hearings on this subject and the Building Department had no idea that this decision was coming so quickly, with no advance notice or lead time for budget planning purposes.  Mayor Knudsen asked for Mr. Yotka’s opinion on these changes and he commented that most of his colleagues would agree that the changes are probably not in the best interests of any of the municipalities in the State. 
Mayor Knudsen thanked Mr. Yotka for his involvement with the family involved with the “George to the Rescue” TV show.  She pointed out that a member of this family has autism related issues, and this will allow him to have therapy at home.
3.) M.I.S./I.T.
Dylan Hansen, Director of M.I.S./I.T., said that his department will work with the Police Department relative to an I.T. project in 2018.  These projects will deploy E-ticket software, which is expected to be a form of revenue stream for I.T.  The fiber loop network has been expanded, resulting in significant savings for infrastructure costs and telecom costs.  He stated that Verizon is eliminating analog phone lines and he has been working to switch all lines to digital lines; however, not all lines are accessible.  Verizon has given a deadline of August of 2018, and the Village is looking at alternative methods because copper lines will be disconnected. 
Mr. Hansen reported on continued work with the SDL software package now being used by more Departments in the Village.  In addition to use by the Building Department, the Health Department is also using the SDL system for Dog and Cat Licensing.  The goal is to expand the use to the Village Clerk’s Office and to the Engineering Office this year and there is money in the budget to cover the cost of staff training by the vendor.  He will be working on additional file structure for access by employees in order to simplify data and help with OPRA requests.  Mr. Hansen referred to the Laserfiche project, which was approved a month ago and will be installed shortly.  Additional funding has been budgeted in case the training time is exceeded. 
Mr. Hansen spoke about the maintenance of other equipment, which covers Cisco equipment, firewall and access points throughout the Village.  This is the maintenance contract for updates and modifications issues.  He said that $5,000 was allocated for the phone system last year because he thought the system would have to be replaced.  This is because Toshiba notified him that they would no longer be making phone systems; however, it turns out that Toshiba was purchased by another company who will continue to support this existing system.  This $5,000 will now be used to tie the phone systems together and improve communications between departments. 
The tracking support involves help desk tickets that are submitted and evaluated.  This system is also used to track inventory, which aids the Finance Department relative to all computer equipment within the Village, as well as its location on an inventory data base.  Municipality in a Box is the renewal of a software program by Special Data Logic which has increased in price from $29,000 in 2017, to $34,000 this year.  There are more modules available to enhance use within the Village, along with funding for some training on the system.  Laserfiche for data archiving was mentioned earlier and there is an additional $5,000 allocated for the training of staff members if necessary. 
Mr. Hansen referred to the anticipated upgrades to the Windows 10 Operating System for computers presently using the Windows 7 operating system.  This upgrade requires the purchase of licenses at a State contract price, which is reasonable.  There is funding provided for spare parts, tools, ties, and wiring through local vendors, which is a time saver and more convenient.  Also included in the budget is the cost to provide business cards and stationary for Mr. Hansen’s assistant, as well as office supplies such as toner, CDs, memory sticks and canned air among other miscellaneous items. 
Mr. Hansen spoke about training that is necessary for all I.T. staff throughout the Tri-State area, which includes meetings, blogs and questions and answers.  There is money included for staff training and Mr. Hansen hopes to send his assistant to several website and networking courses at Bergen Community College and Rutgers, in addition to on-line courses.  He has included $10,000 to cover SDL software training for the Health Department, Engineering Department and the Village Clerk’s Office. 
Mr. Hansen’s budget includes courses relative NJLM training in Atlantic City as well as training at the Police Convention.  He proposes buying monitoring mice for the Court Room dais, and a desk, chair and filing cabinet for his assistant.  He hopes to purchase some equipment for the TV room, including cabinets to improve the appearance and tidy up the area. 
Mr. Hansen had budgeted $70,000 for computer servers and printer upgrades along with network switches for fiber connections.  He is recommending an archive server because of the amount of data that has been accumulated, which will interface with the laser fiche system.  He proposes the purchase of a file server to help free up data space.  Public Wi-Fi was recently approved and access points need to be paid for, as well as the purchase of an appliance to monitor the public Wi-Fi program.  A hard drive backup server is recommended to replace the tape and hard drive currently in use to back up Police, Fire and Village Hall data daily.  Mr. Hansen said that the Finance Department’s scanning equipment, for tax receipts in the Tax Collector’s Office, has not been replaced in the past thirteen years.  Mr. Rooney agreed that this equipment needs updating and he is recommending that some spare equipment should be stored in the office as well.  There are two main core switches at Village Hall and Mr. Hansen suggested adding more cards, along with upgrading the existing platform to a 10 gig data rate with expanded band width rate.  Mr. Hansen stated that they will be replacing the anti-virus system and using a virtual server, which will allow department Directors to remotely access their desk top computer in locations other than Village Hall. 
Ms. Mailander explained the capital process, stating that the Department Directors present their capital requests to Mr. Rooney and these requests are subsequently reviewed and discussed with them by Mr. Rooney and Mr. Sanzari.  The budget requests are then reduced and another meeting takes place with all of the Department Directors who again present their requests, followed by another give and take or barter type session amongst the Department Directors.  Everything that is recommended is what is left after this barter session and there is an indication of what items the department Directors are willing to wait for until the following year. 
Mr. Hansen mentioned his request to upgrade the Court Room for the audio in the amount of $50,000.  The request to upgrade the Village website has been withdrawn. 
Councilman Hache asked if there is any interaction between departments relative to consulting with the I.T. Department to see how existing systems could be improved.  Mr. Hansen said that various vendors will promote their services to different departments and in some cases, Department Directors will present the proposal to him to get his feedback before meeting with the vendor. 
Councilman Hache asked how vulnerable the Village is to a hacking incident.  Mr. Hansen explained that the current auditing company will be conducting a penetration test in the near future, which will test the security of the computer system and its ability to combat certain types of hacking.  The Village Auditors will issue a report on areas of concern.  He noted that the system has responded correctly to any breech type situations that have occurred since he has been with the Village, and no data has been lost.  Mr. Hansen doesn’t feel that any breech is likely due to the layers of protection and infrastructure that are in place.
Councilwoman Walsh asked about the time requirements for storage of data.  Mr. Hansen explained that the Laserfiche program will be able to upload documents, so that most paper documents can be destroyed.  Documents in the system will be tagged and the retention schedule will be programed into the software.  He pointed out that they need to retain things like flood maps, because they are useful for comparison purposes.  Some emails have to be retained for five years and others for seven and there is an archival system in place for that purpose.  
Councilwoman Walsh spoke about the elimination of analog copper lines and Mr. Hansen said that several years ago, part of the Village was moved to Light Path.  There is one flat rate for this system, which includes long distance telephone charges and internet.  The Police Department will be moved onto this service next, eventually followed by the satellite offices.  Upon questioning about the Court Room, Mr. Hansen said he would like to put some funding in the budget to begin some upgrading that  might have to be done in three phases.
Councilman Sedon couldn’t understand why money for the upgrade to the Village website is not included in this budget.  The website is difficult to navigate for residents of the Village and almost impossible for newcomers to the Village.  He said that making the website user friendly is a definite priority.  Ms. Mailander stated that Mr. Hansen is working on the website and she hopes that during March he can submit his recommendations to the Mayor and Councilmembers for their input.  She said that it is ultimately up to the Council to decide whether or not they want to include additional funding to improve the website.  Mr. Hansen stated he has the pricing for the package that other municipalities have used, which is based on population.  His assistant is familiar with this type of work and he would reach out to see if there are any residents who would be interested in developing this system with him.  Mayor Knudsen stated that when this had been discussed previously several residents, who are web designers indicated they would be interested in forming an ad hoc committee.  
Councilman Voigt asked if the Laserfiche program is labor intensive.  Mr. Hansen said that initially, the program requires a certain amount of document input work, which he hopes can be done by interns.  The system will remove some of the workload moving forward, because it will track the retention schedule and make information readily available by inputting key words.  Initially, some time will have to be spent on the implementation of the system, and Ms. Mailander said that staff within the Village will be doing the input work as quickly as possible from January forward, followed by interns in the summer. 
Upon questioning by Mayor Knudsen, Mr. Hansen explained that the backup server and archive server are in two different formats and the two cannot be combined.  This is useful, because it prevents files and information from being lost or destroyed.  Ms. Mailander pointed out that there are documents such as minutes and information on buildings that have to be kept on paper forever or for the life of the building per State statute, even though this information will be scanned.
4.) PARKS AND RECREATION DEPARTMENT
5.) GRAYDON POOL
Nancy Bigos, Director of the Department of Parks and Recreation, thanked everyone for their support, guidance and financial support of the Parks and Recreation Department.  The Department is transitioning due to the retirement of Tim Cronin, who was the Director for over thirty years.  Several people have been hired in management positions, others have been promoted and the staff has been reorganized.  Ms. Bigos said that these changes are making a difference.  They are a unified team and she thanked everyone for their level of professionalism.  The Village is one of the leaders in the State for offering new and innovative programs and they recently won the award for Excellence in Programing this year in the Wellness Category for their partnership with HealthBarn U.S.A.  The Village had previously won the Award for Excellence in Design for the design and use of The Stable as a Community Center. 
Ms. Bigos shared some of the goals from 2017, stating that over 100 programs were offered to the community.  They strive to make the programs profitable, to ease the burden on the taxpayer while being enjoyable at the same time.  They have worked to enhance their social media exposure through the department’s Facebook page, highlighting special events and information that is shared with the schools on the individual school websites.
Ms. Bigos reported that there has been an increase in programs, facilities, park use and building use and they are focusing on revamping their standards and the permit system.  The rules, regulations and the permit system have been updated, as has the fee system for the Community Center, the Municipal Parks and the Graydon Pool facility.  Ms. Bigos is working on social technology in order to bring Wi-Fi into the municipal parks. 
Ms. Bigos stressed the importance of offering the opportunity for elder residents to “age in place” and they hope to meet the needs of senior citizens in a variety of ways, through transportation as well as health and wellness programs.  They are working to encourage seniors to remain in the Village via the Community Center.  Ms. Bigos stated that they continue to work on special needs inclusion in the Village and the Village is part of the Access for All Community.  The Village offers an Aquatics Learn to Swim Program geared towards those with special needs and they began both an Equestrian and an Artistically Abled Art Program last year, primarily for those that are autistic.  Employees acting as shadow counselors and are available during the Day Camp Program, for those who need them. 
Ms. Bigos reported on the work being done relative to development of park properties and facilities.  Regarding the capital budget, she said there are a number of items needing serious attention and she noted that safety is always the first priority.  
Ms. Bigos outlined departmental goals for 2018, and she reiterated the need for public Wi-Fi at Graydon Pool and Memorial Park at Van Neste Square.  At Graydon Pool, they are looking specifically at Wi-Fi for the kiddie area, the patio area and the adult area near the high dive to provide this service.  This would also make the sharing of information and communications with the Parks and Recreation Office easier for staff members.  Ms. Bigos said that they need to consider the antiquated chlorine system being used at Graydon Pool, which needs upgrading due to the system failure at the end of the season last year.  The Village was able to borrow an automated pump from another community that made a difference in water quality.  Ms. Bigos mentioned the importance of the ability to connect the southern spillway to the sanitary sewer, which seems to be a cash cow for the New Jersey Department of Environmental Protection (NJDEP).  It would be beneficial for the Village to bypass the spillways and empty the water directly into the sanitary sewer in order to avoid fines from the State.  
Ms. Bigos said the resurfacing of the tennis courts has been in the capital budget request for the past five years.  At the Parks and Recreation Department office, she noted that the main office has been reorganized and the inner office has been restructured to improve contact with the residents.  She hopes that special accommodations can be further developed for individuals with special needs. 
Ms. Bigos stated that with the help of the Shade Tree Commission and the Engineering staff, they hope to continue the philosophy of tree replacement and the streetscape concept.  She began talking about the program eight years ago and she is happy to see that the program has progressed as far as it has and it is making a difference.  Ms. Bigos recognized that the Community Center Advisory Board, which continues to work with the “aging in place” population through the upgrade of programs and she recognized the donations and gifts ranging from furniture to monetary gifts that have recently been received and are greatly appreciated.  Ms. Bigos said that the operating budget remains flat for Parks, Recreation, Graydon Pool, the Community Center, Project Pride and the Kasschau Shell.  
Councilman Hache asked if there were any challenges relative to the upgrade of operations to Graydon Pool.  Ms. Bigos said that Graydon Pool is the gem of the community and the staff has been trained to be most professional.  She hopes to maintain the integrity of this facility and they have worked hard to make it barrier free and accessible to all ages.  The next challenge is the water quality and she is confident that the new Parks Manager will address this issue. 
Councilwoman Walsh commented that the programs offered by the Parks and Recreation Department offer something for all ages.  She said the facilities and variety of programs offered need to be better promoted to every resident in the Village.  Councilwoman Walsh said she is very pleased overall with the work done by the Parks and Recreation Department.
Councilman Sedon noted that salaries and wages in the Parks Department increased, but decreased in Recreation Department.  He guessed that this is why the budget is flat and Ms. Bigos confirmed that his understanding was correct.
Councilman Voigt questioned why the Board of Education maintenance isn’t in the Board of Education budget.  Ms. Bigos explained that this item covers three employees that would be hired to do maintenance of Board of Education fields and is a wash.  Councilman Voigt noted full time wages have gone up by 29%.  Ms. Bigos said that this is due to steps and longevity and will be explained in more detail later.  Councilman Voigt said that there is a considerable amount of money budgeted for tree related items and he asked for some background.  He questioned the Crest Road tree trimming and Ms. Mailander said this was a proposal for pruning and shaping trees at The View on Crest Road, and would involve the hiring of an outside contractor for one day’s work that would include the Police Department and Parks Department employees. 
Daniel Cramblitt, Manager of Parks and Grounds, spoke about the crane service and he noted that the Village’s tree canopy is aging quickly and is quite massive, which is the reason for the cost of dumping fees.  This type of tree removal can cost as much as $1,200 per day and approximately 30 trees are removed per month in addition to dumping fees.  He is looking into alternatives to reduce the cost such as doing more of the work in-house; recycling and mulching the logs; and offering free firewood to residents to reduce the amount of wood being transported out of the Village. 
Mayor Knudsen thanked the staff at the Parks and Recreation Department, in particular Nancy Bigos and Daniel Cramblitt.  She asked how they would determine when a park becomes stressed for the immediate neighborhood, since this is a consideration when scheduling various activities.  Ms. Bigos stated that there is a concern that all of the parks in the Village are over utilized and the community’s needs are outgrowing the availability of park properties and amenities.  Village residents want to take advantage of the outdoors.  Youth sports are important and Ms. Bigos said it is impossible to fit another person on Veteran’s Field and it is the same story at Graydon Pool, Leuning Park and Habernickel Park.  There is also a need to balance passive and active recreational activities.
Mayor Knudsen referred to the resurfacing of the tennis courts and she asked for the number of tennis badges sold last year.  Ms. Bigos said there has been a resurgence in the popularity of tennis and she stated that pickleball is becoming popular as the new racket sport.  She said there was approximately $4,000 in revenue for tennis badges last year, but she will get the actual number for the next meeting.  She said she sends staff members to the tennis courts periodically to check to make sure everyone on the courts has a valid badge.  If the player doesn’t have a badge, they are discretely handed a fee schedule and are encouraged to join.  Mayor Knudsen mentioned that the Village may be losing revenue if the courts are not frequently checked to ensure that everyone has purchased a badge.  Ms. Bigos said that the annual price for a badge is $35 for residents and $45 for non-residents and they could try adding more security, along with publicizing information about the tennis courts. 
Ms. Bigos went onto the capital budget and said that the infrastructure within the parks system is deteriorating.  Facilities are in serious need of upgrading, along with operations and maintenance efforts, to enhance the municipal parks and recreation system.  The items on the capital budget list are not new and have been on the list for some time; however, the problems are urgent in order for the Village to avoid liability.  Ms. Bigos reiterated that topping the list are improvements to the pool chlorination system and increased circulation of the water so that water will not overwhelm the spillways and empty into the Ho-Ho-Kus Brook.  There is a request for equipment at Graydon Pool, including a new freezer at the concession stand and replacement grills for those that have rotted through.  Replacement of the surface of Maple Park turf is another priority at $450,000; however, they have applied for a grant from Bergen County Open Space for $100,000, as well as a request for $1,000 from the Ridgewood Open Space Fund.  There is a request for the remaining $250,000 to come from the Village.  G Max testing on the viability of this field failed last April and even though some mediation work was done, there was concern voiced about this material at a recent Parks and Recreation Committee Meeting from the Board of Education; the President of the Ridgewood Lacrosse Association; as well as many residents.  The High School has removed their freshman Lacrosse team from the Maple Park turf field and the Ridgewood Lacrosse Association has also relocated their games.  Ms. Bigos said the situation is dire and asked for the Village Council’s consideration.
Mr. Cramblitt referred to the request for a replacement vehicle 113 or the big box chip box, which is a 1997 truck.  This twenty year old truck can barely get up East Glen Avenue and is in need of replacement. 
Ms. Bigos gave details on the tennis court repairs on North Monroe Street totaling $107,800.  There have been cracking problems, which were patched, but the adhesive has split resulting in wider cracks.  Two residents recently fell on the adhesive split and Ms. Bigos said that repairs in the amount of $157,300 are needed at the Bellair tennis courts. 
Mr. Cramblitt referred to the Grounds Master for the Parks Department, which is a medium size, ride-on lawn mower that can no longer function.  This machine, which is over twenty years old, works on traffic circles and other areas where a push mower is too small and a ride on mower is too large. 
Ms. Cramblitt spoke about tree replacements in the amount of $60,500 that would allow for the planting of 165 trees throughout the Village.  They were able to plant over 200 trees last year by means of the Adopt a Tree program and they want to continue to operate this program.  Mr. Cramblitt has been working with Deputy Mayor Sedon and the Shade Tree Commission to beautify the downtown area.  They are hoping to enlist the help of an expert in urban scape tree wells, who can advise them on how to avoid dead trees and increase the canopy downtown, while still being responsible for the taxpayers. 
Ms. Bigos said she has been working with the Engineering Department and the staff in her office to establish three phases of development regarding the Schedler property.  Phase 2 would encompass infrastructure and includes site preparation; installation of the underground utilities such as sewer, water, gas and electric; driveway installation; parking lot; sidewalks; curbing; field grading; placement of the guiderails along Route 17; installation of a six foot berm; and conifer plantings.  They are requesting $756,000 along with a contingency of $75,000 for a total of $831,600 for Phase 2.  Ms. Bigos stated that Phase 3 concentrates on the site and the needs of the community, to begin to give some character to the site.  This would include a playground for children aged 2 to 12, and an adjacent play area for children 5 to 12.  The playground surface would have strict requirements and would contain a restroom facility with an overhead shelter.  The streetscape calls for trees for the front and privacy screening in the amount of $197,400, plus the contingency for a total of $217,140.  Phase 4 is comprised of turf field installation that would allow everyone to utilize the field for practice, play, and everyday use at a cost of $650,000, and a contingency of $65,000 or a total of $715,000.  The projected year for this request is 2020.  The budget is a result of working with the Schedler ad hoc committee, the Engineering staff and the neighbors in the community.  The development of this park would greatly alleviate strains on the other Village parks. 
Ms. Mailander stated that funding for Phase II in the amount of $831,600 is up to the Village Council, who could add it into additional phases.  The Village Council must decide whether to do everything involved in Phase II or if they want Phase II to be phased in several stages.  Ms. Bigos stated that the infrastructure consists of the parking, sidewalks, walking paths, utilities for security lighting, a berm, and a new guiderail.  These items are essential before anything else can be done. 
Councilman Hache recalled that they looked at the cost of maintaining a natural grass playing surface rather than a turf field at the Schedler property.  Ms. Bigos said this could be accomplished in Phase II when they could decide whether to use sod or seed.  There would be considerable cost savings using natural materials.  There is grading that needs to be done and soil may have to be imported to the site.  Developers at the new sites being developed in the Village have agreed to move their excess soil to create the berm and the Engineering Office is looking into this possibility with the New Jersey Department of Transportation (NJDOT).  Ms. Bigos said that if the Village Council approves a turf field on the Schedler property they can move ahead quickly.  Councilwoman Walsh indicated agreement with the removal of the turf and Ms. Mailander added that the soil at the Schedler Park property would have to be tested to ensure it is contaminant-free, before a grass field is placed there.
Councilman Hache said that they may find some creative ways to raise money to cover the cost of Phase III.  He agreed with the need for the installation of public Wi-Fi at Village-owned parks and Ms. Mailander said the funding will come from the MIS/I.T. budget.  They will begin with Graydon Pool that will be tied together next with the Stable and the Municipal Building. 
Councilman Hache stated that the dimensions for a pickleball court and a tennis court are different and he wondered if the lines would be distracting for players.  Ms. Bigos has spoken to the pickleball instructor and she pointed out that two pickleball courts can fit onto one tennis court.  She requested designated pickleball courts because the tennis courts are being used daily and she has some locations in mind.
Councilman Hache recalled that the money to cover the cost of the original Maple Avenue turf field was largely raised through donations.  The Village was asked to chip into the sinking fund, which was never done and now the roles are reversed.  He suggested having the sports groups annually contribute to a sinking fund to build up a reserve for replacement at some point in the future.  Councilwoman Walsh agreed, adding that it would be good to share some costs with the community, and residents could donate specifically towards certain projects.  She said perhaps they could elicit some funding to help with Phase II.
Councilman Voigt agreed that the tennis courts on Monroe are a mess and need to be repaved.  He asked for an explanation of contingencies and Ms. Bigos stated that they are looking at the projected budget or the potential cost of the project and add an additional 10% to that to cover any other unexpected costs that weren’t considered.  Councilman Voigt questioned the status of the Zabriskie-Schedler House.  Ms. Mailander stated that the roof for the house is included in Phase I, which has been funded half through a grant and half by the Village.  Phase II will include the windows, doors and electrical and they are confident that the funding will again be half and half.  When Phase II is completed, the work will be evaluated, to consider what still needs to be done for the structure to be safe for public use.  Councilman Voigt questioned why the house was being considered separate from the park.  Mr. Rooney explained that Schedler Park was initially included in Engineering but removed so that Ms. Bigos could make a presentation; however, it will be included again with Engineering in the capital budget.
Mayor Knudsen thanked Ms. Bigos and Mr. Cramblitt for their presentation this evening.
At this time, Mayor Knudsen called for a five minute break.  The Village Council returned at 8:16 P.M. and the following were present at roll call:  Councilmembers Hache, Sedon, Voigt, Walsh and Mayor Knudsen.  Also present were Heather Mailander, Village Manager/Village Clerk; Stephen Sanzari, Treasurer; and Robert Rooney, Village CFO. 
6.) STREETS DEPARTMENT
Ms. Mailander introduced Richard Calbi, Director of Operations, and Dan Kiely, Superintendent of Public Works.  Mr. Kiely stated that in 2017, the Streets Department deviated slightly from the way things have been done in the past.  Leaf pick-up is done by means of a sweeper and other employees who rake and clean debris from the curbs and remove more leaves from the planting strips near the curb line.  The addition of pushers on pick-up trucks meant that larger piles of leaves could be maneuvered and removed from the road.  A sweeper follows behind to ensure that everything is completed in a more efficient and tidy manner.  Mr. Kiely said that small changes made in snow removal procedures have kept plow operators from working all night and they have been able to complete the work in a number of hours, rather than what used to take two or three days.  This has resulted in parking lots in the CBD being more accessible in a shorter amount of time, and less overtime, resulting in considerable savings for the Village.  Mr. Kiely said that the new Assistant Superintendent in the Street Department is working out well.  
Mr. Kiely stated that some of the goals for 2018 are the completion of the cleaning of more storm drains and the repair of more manholes.  He was hoping to take Section B back in leaf collection from the contractor; however, realistically this probably won’t happen until 2019.  There are two garbage trucks that will be outfitted with chutes in the rear, along with two loader operators, two garbage truck operators and an employee running the roll off.  This system will require a crew of five to six personnel to pick up and compact the leaves, which means that there will be less running back and forth to dump the leaves.  Two new loaders equipped with buckets were purchased last year, requiring smaller crews which makes this possible.  Mr. Kiely said that another goal mentioned above was to decrease the cost of the snow contract.  Rather than contracting out snow removal on sidewalks, there is an in-house crew taking care of a portion of sidewalk snow removal, which has worked well.  Ms. Mailander added that these are the permanent part time workers and she thanked the Village Council for funding these individuals who work twenty-eight hours per week.  This has made a difference for efficiency in the Village in the areas of snow, leaf and garbage removal.  This has also assisted with morale in the department. 
Councilman Hache commented that the Village hasn’t looked this good in a long time and he thanked Mr. Kiely and his staff for working so efficiently.  He noted that the department has come in under budget in overtime and part time pay but appropriations for 2018 are over $100,000.  Mr. Kiely stated that snow storms are the one thing that can seriously impact the budget, because a lot of snow means that they have to continue to plow at intersections for safety and visibility reasons. 
Mayor Knudsen said that she noticed that the cost for the private leaf collection has gone up considerably since the first year at $60,000 to $88,000.  Mr. Kiely said that this is because the company did not understand the scope of the work involved in the first year, and submitted a low bid.  There is only one bidder who has the capacity to do this work.  Mr. Kiely reiterated that there will be two crews working on leaf pick-up next year and they won’t need to use any of the garbage trucks. 
Councilman Sedon said that he has heard endless complaints about leaf pick-up during his time as a reporter at the Ridgewood News and since he became a Councilmember.  He does not recall receiving any complaints this year and he thanked Mr. Kiely for figuring out a solution to the problem. 
7.) FLEET SERVICES
Mr. Kiely stated that in the Fleet Services division, they began using diagnostic software, which has saved a considerable amount of time and money because they had to send vehicles out whenever a code came up.  Due to the size of the fleet, Mr. Kiely noted that they are bulk buying, which saves money.  They began to use a fuel additive in the fuel system of every vehicle and during the first year, they noticed that the filters were much cleaner and the vehicles sustain a longer life.  This keeps the diesel fuel from gelling in the winter and is quite helpful for the vehicles.  Mr. Kiely said that some of the machinery has been updated including a new tire balancer and wireless lifts, which can be transported from garage to garage.  Many of the lock out/tag out programs have been improved, along with other safety programs.  Mr. Kiely spoke about problems they have had with fuel tracking systems so he was happy to report that new fuel tracking systems have successfully been installed.  The system tracks the exact location of the fuel and the amount of fuel going into each vehicle with readings being displayed on computers.  Diesel emissions fluid must be added to all new diesel engines and the system to be installed this year can be tracked, together with the fuel tracking system. 
Mr. Kiely anticipates that the Shared Services Agreement relative to vehicle and equipment maintenance and repair with the Township of Washington will be completed shortly and the department will begin servicing the Ridgewood Board of Education vehicles again.  On Wednesdays, the Police Department brings their vehicles in for inspection by a mechanic between 7:00 A.M. and 3:00 P.M., time permitting.  He stressed the importance of maintenance and detecting problems early, before they become major defects and problems. 
Councilman Hache asked about the possibility of doing maintenance for vehicles in other towns.  Mr. Kiely said that the fleet from Washington Township isn’t very large and along with the Board of Education vehicles, will be a good test for the department.  He would like to do work for other municipalities to bring in extra money, but they will make sure that they are not overwhelmed with work initially. 
Mayor Knudsen said it is wonderful for this department to have turned the thinking on maintenance around and she is happy to see the Village working again on Board of Education vehicles and the fleet from Washington Township. 
Councilman Voigt asked if there would be a charge back regarding Board of Education vehicles.  Ms. Mailander replied that she expects a resolution to come to the Village Council at the end of March or beginning of April on this issue. 
8.) RECYCLING AND YARD WASTE
Mr. Kiely said that they tried to clean things up at the Lakeview recycling/compost facility through the addition of three boxes and concrete and more permanent markers are being added.  He thanked the Village Council for purchasing some garbage trucks, which has had a tremendous impact and is a big help for the department.  The clear barrels have been added in the CBD and pellets are being used in receptacle dumpsters to help with odors.  Mr. Kiely intends to work on sanitation overtime this year and the trucks will make the trip to the dump as needed, and not every day.  Mr. Kiely stated that the purchase of two plows for the garbage trucks will have a huge impact on snow removal, including the time it takes for snow removal, and the cost of snow removal. 
Mr. Kiely reported that they recently completed a textile drive at two schools.  Super Science Saturday will be held tomorrow, and he will be distributing information on recycling.  They will try to get into the schools more to make an impact and get the message on recycling to the students.  There are several speaking events planned for Earth Day on the importance of recycling food waste, which is being emphasized this year.  Mayor Knudsen said that the Ridgewood Recycling Center must be the best in the country because it is very clean, orderly and nicely organized. 
Councilman Voigt asked why the disposal fees for recycling have increased by $10,000.  Mr. Kiely said he will get an answer for Councilman Voigt.  Councilman Voigt pointed out the line item for uncompensated time under Solid Waste and Mr. Kiely explained that the $90,456 involves the retirement payouts for two individuals.  Councilman Voigt was curious as to why materials and supplies have increased from $2,950 to $14,000.  Mr. Kiely explained that this is because they have to purchase clear plastic bags for the CBD, due to safety considerations. 
Mr. Kiely said that they had been taking electronic recyclables to E Waste; however, they have secured Universal, which is a new company.  They come to the Village and take and recycle or dump these items, which is a time saver. 
Councilman Voigt asked why disposal fees fluctuate so greatly and Mr. Kiely indicated that this number varies because of who the Village contracts with to dispose of yard waste and how it is separated.  There is no guarantee this year what type of rate the Village will have to pay these vendors because they have their own permits to secure and they have to find places to dump the leaves.  Mr. Kiely added that this situation also depends a lot on the weather.
Councilman Sedon asked how the recently announced tariffs on steel will impact whether there will be an issue with China accepting metal recyclables.  Mr. Calbi said that they recently locked into a price contract relative to metal recycling.  The tariff may hurt the Village somewhat, but not as drastically as it could impact other municipalities.  The emphasis is on education with the goal of getting as much recycling as possible out of the garbage.  Mr. Kiely stated that there are representatives from companies in China who buy the recyclables on site and inspect the material before it is shipped.  
Councilwoman Walsh asked for more direction as to what are legitimate recyclables.  Mr. Kiely said they can only collect items the user wants that are marketable.  He said plastic bags are not acceptable, but people continue to place them in the recyclable bins and they are encouraging everyone to use reusable bags.  Councilman Sedon stated that REAC has been working on this issue for some time and several members are researching a surcharge for plastic bags or banning plastic bags altogether.  Ms. Mailander is considering having Mr. Kiely make a presentation to the Village Council on the problems caused by plastic bags and other materials when they go through recycling facilities.  This presentation could include a review of what items can and can’t be recycled.
Mr. Calbi reviewed capital items in the budget, which includes a replacement roll-off and salter in the Streets Division.  The new roll-off will have a larger capacity and can be used for leaf collection and snow removal.  The asphalt hot box, which keeps asphalt hot during the winter is needed.  Repairs continue to be needed at the Chestnut Street facility, especially the bathrooms.  He wants to provide additional amenities in the lunch room.  He is asking for funding for at least one chute or two for the garbage trucks, to assist in leaf collection. 
Regarding recycling, Mr. Calbi said that the entry gate at the Recycling Center needs to be replaced for security purposes.  They hope to replace the co-mingled box which has rusted.  The electric service at the center is currently being replaced, in order to install a compactor that was purchased two years ago.  Mr. Calbi said that in the Sanitation Department, they continue to replace garbage trucks until the entire fleet will be turned over in another four or five years.  He pointed out that it can take months to get replacement parts for the older trucks that are no longer manufactured in this area.  The new trucks are a more standard diesel truck. 
Mr. Calbi referred to the Fleet Division and recalled that Mr. Kiely had spoken about the program for the DEF tracking system.  They are requesting a large truck scanner to diagnose repairs on the trucks.  Regarding yard waste, Mr. Calbi said that last year, there was a sinking fund to replace the tub grinder at the Lakeview facility.  This year, they are asking for $110,000 from that fund for the purchase of a replacement Scarab windrow turner for the Lakeview compost facility, which is over twenty years old. 
Ms. Mailander reviewed the cost for leaf pick-up over the past few years and she noted that the cost had increased to $88,500 in 2017.  Mr. Calbi commented that he expects the price to be higher this year, due to the requirement for police traffic patrol while the leaves are being picked up. 
8.) WATER DEPARTMENT
Ms. Mailander stated that Ridgewood Water serves four different municipalities which includes Ridgewood, Glen Rock, Midland Park and Wyckoff.  Richard Calbi, Director of Operations, for Ridgewood Water; Daniel Timmeny, Business Manager for Ridgewood Water; and Jill Fasano, Senior Engineer for Ridgewood Water, introduced themselves.  Mr. Calbi put together a slide show to help explain the $17 million budget that this department carries.  He spoke about accomplishments with the lead and copper corrosion control system, which has led to an 82% reduction in parts per billion.  There was an emphasis on water conservation in 2017, and a new conservation ordinance was passed in the Village.  This has resulted in a per capita water consumption decrease from 121 gallons in 2013, to 93 gallons in 2017.  Mr. Calbi reported that the Village completed the EPA directive on Groundwater Under the Direct Influence of Surface Water and there is a meeting next week with the EPA to review the data and reports that were issued.  At this meeting, they will find out the next steps, which Mr. Calbi expects to be further study of some wells in the Village.  
Mr. Calbi reported that the Water Department initiated and completed several projects, with more currently underway.  A study of inactive wells was conducted, along with recommendations of what to do with those wells, and recently a bid was put out for three new wells and renovations on inactive wells.  The Layfette tank was recently renovated and work is underway on the Cedar Hill tank in Wyckoff.  There is a design for improvements to the Ames tank and they are close to completion of a design for the Carr treatment for PFCs.  The auxiliary power project is fully underway and they are close to the point where generators will be arriving to tie into the buildings.  The stream crossing project is about 85% complete and the SCADA upgrade is complete.  The majority of locations have been hooked up to fiber, which allows for instant connection and control, while providing improved security through the use of cameras providing live footage at most locations, to ensure safety for employees.  There is treatment available for any wells susceptible to E.coli in order to avoid potential viruses.  Mr. Calbi stated that the Wireless Study has been completed and the antennas at the Glen Avenue tank in Midland Park have been leased.  It was found that there was more room for additional antennas and a lease was secured at $240,000 annually.  Mr. Calbi said that when corrosion control was installed, NJDEP required standby chemical storage.  Many of the facilities are small and in lieu of having to install individual storage at each facility, the Water Department negotiated with the NJDEP and were able to meet the requirement by purchasing a tanker truck.  This allowed for the purchase of chemical in bulk, resulting in a decrease in the cost of disinfectant from $3.62 to $1.55 per gallon.  
Mr. Calbi stated that the main goal for 2018 is to continue to foster communication and he hope to get the Water Conservation Ordinance approved by the other three municipalities.  He wants to restructure customer service and public relations to improve the front line of the utility.  They must reach out to engage the customer for the inception of the contact and he hopes improved technology will provide a better insight to provide leverage towards the customer.  He hopes to complete the Suez Water Quality Study and partner with the Passaic Valley Water Commission in order to secure a larger volume of cheaper water for the Village.  Mr. Calbi spoke about management, construction and architectural documents for the Elks Club if that project moves forward in 2018. 
Mr. Calbi stated that the Water Quality Accountability Act is the new mandate passed by the State that he would like to utilize to invest further in the Water Department.  One of the major qualities of this act is asset management.  Ridgewood Water is far ahead of many others and has had a Geographic Information System (GIS) for over a decade.  All of the pipes, valves and hydrants have been mapped, but the facilities were not included.  There is now a GIS team and an intern on staff who will inventory every piece of equipment housed in each facility including the condition of the roof, windows, doors and pumps for better asset management.  This is now a State requirement.  Mr. Calbi stated that they will complete the PFOA treatment at the Carr facility, which has been off-line since January 2017.
Mr. Calbi stated that some of the numbers he is using will change but he doesn’t foresee these figures will change significantly.  He noted that salaries and wages have increased, because they are hoping for a new hire that will complement the I.T. staff.  This would free Mr. Hansen, the Director of I.T./M.I.S., to spend more time on Village related issues.  This is an important request, due to security requirements and the facilities that have to be maintained by the utility.  The SCADA system is a separate network, along with the security system.  Mr. Calbi wants to develop a new website, Facebook page, and Twitter and Instagram accounts.  He anticipates further salary increases in the utility.
Mr. Calbi stated that pumping expenses have increased by 2%.  There will be an increase in electricity costs when the Carr tank is back on-line, along with the three new wells.  Additionally, there will be other costs associated with the operations of this equipment.  Treatment costs associated with chlorine are reduced, in addition to the bulk purchases.  Last year, the Village allowed the utility to hire a chemist, who is now on staff and there are savings connected with the ability to conduct testing in-house.  Looking ahead, Mr. Calbi hopes to offer the use of the chemist to smaller utilities in the area, which will generate some income.  There has been a lot of work done on the transmission distribution system, resulting in a significant jump in costs.  There are a number of mains that die at the end of the street and a new blow off assembly or hydrants have to be installed to flush the water out.   Valves have to be tested per the Water Accountability Act and the necessary repairs need to be made.  Hydrants in these dead end areas have to be replaced.  Traffic control costs for police used for various projects, have increased.  Mr. Calbi hopes to take the soil for these projects and build a berm at the Schedler property, which is an opportunity to save money for the utility in the budget. 
Mr. Calbi stated that administrative costs have decreased.  Money has been put aside for notifications, which will be done through the Water Smart platform.  Mr. Calbi pointed out that taxes paid to the State remain consistent.  He is assuming they will have to buy more water in 2018.  He is anticipating that there will be a large number of unregulated contaminants from the State, which could result in the closure of some facilities.  Mr. Calbi said that the utility will need to make up for this decrease in the water supply, which is why this amount has increased.  Statutory expenditures are slightly higher, due to salary increases and pension contributions. 
Mr. Calbi spoke about the “pay as you go” capital.  He said that over three years, the operating costs have been infused with money for capital improvements.  This had been funded through the capital improvement line; however, he has learned from the State that this needs to go under the Capital Outlay line.  The reason for the shift in funding is that this money goes to smaller capital projects, such as the annual contract for insertion valves.  
Mr. Calbi indicated that there is not much of an increase in debt service.  Mr. Calbi stated that based on current projections and current spending by 2021, debt service will increase to $4 million per year.  There are no deferred charges in 2018.  In summary, there are Other Expenses of $12 million, statutory expenses of $643,000, “pay as you go” capital of $1.4 million and debt service for a total budget of $16.2 million, plus 5% operating expenditure or a $17 million budget, which is a 1% increase from the 2017 budget. 
Councilman Voigt asked if the PFCs were included in the water treatment expense relative to the cost of Carr facility.  Mr. Calbi said this was not included in the operational expenses.  The on-going operation and maintenance of the Carr tank would be under capital expenditures.  There are replacement costs, but these are included in the capital portion of the budget.  Councilman Hache questioned the divesture study.  Ms. Mailander recalled that this had previously been discussed in Closed Session.  Mr. Calbi said he will have a final draft from the consultant and he indicated he would be available for comments and questions from Councilmembers.
Mr. Calbi moved to capital expenditures and said that they have a costly capital plan, and 2018 will be the third year of the six year plan.  He stated that in 2017, capital expenditures were $9.2 million and consisted of what was spent in operating capital; what was funded by bonding; and a second bond ordinance for a stream crossing project.  In 2018, they are looking at $962,000, or a $7.1 million capital investment.  This represents what is being proposed for bonding.  Mr. Calbi recalled that $3.57 million has already been bonded for the Carr well project and when added in the “pay as you go” capital, the amount is $7.1 million in total.  The projects include upgrades to the Eder and Lakeview pump stations; well replacement; upgrades to out of services wells; the rehabilitation or redevelopment of an additional eleven wells because the majority of the wells do not pump at their permitted capacity, due to age; new chlorine, PH and phosphate analyzers; continued installation of hydrants, valves and meter replacements; tank cleaning and tank improvements; new equipment including trucks and vehicles; continuing work on the GIS and security upgrades. 
Mr. Calbi pointed out that he included a five year projection, which considers the entire six year plan developed in 2016, plus sections of a study done by a consultant three years ago, that included various other projects. The Water Department will have to start infusing a great deal of money to pipe replacement beginning in 2019, in addition to tank rehabilitation.  He expects that the Asset Management study will recommend refurbishing of all the buildings.  The focus stays on distribution and wells and Mr. Calbi mentioned the booster tank project in Wyckoff that should be considered in order to provide more storage for the facility, along with improvements to the Elks Club facility.  This does change from year to year, depending on priorities and regulatory agencies.  Councilman Voigt questioned plans connected with the PFOA and Mr. Calbi said they are studying this list by location and the policy consultant in Trenton has provided them with a list of twenty other contaminants the State is considering.  The staff is looking at what would be needed to remove these contaminates.  They are putting the costs together and hope to present it to the people in Trenton and they will emphasize that with every new regulation there is a significant cost.  Mr. Calbi stated that representatives from Park Ridge are joining the coalition and he will continue to share information on this with the Village Council.   Fair Lawn, Ho-Ho-Kus, Mahwah and Garfield have also expressed an interest in joining the group.
Mr. Calbi shared information on the unaudited amount of money taken in by the utility in 2107, and said that rents were within 1.5% of the number budgeted.  He is anticipating status quo in 2018, and much less in surplus due to new revenue from cell tower rent.  The Water Department expects to maintain the volume rate in 2018, due to the fact that a hearing with Howard Woods, who prepared a water rate study, is pending.  The Department is instead pushing forward with a proposal to increase the fixed charges. 
Mr. Calbi indicated that in his study, Mr. Woods recommended that facility charges based on the size of the meter be recalculated to be in line with American Water Works Association (AWWA) meter capacity ratios.  These ratios represent a multiplier based on the meter size or how much flow comes out of the meter.  In the past, every annual rate increase of approximately 3% was used for every meter charge.  This increase should have only been taken on the 5/8th inch meters because every meter has a multiplier.  In other words, consumers have been underpaying on their fixed charges for quite some time.  Mr. Calbi stated that the AWWA is recommending a fixed charge of 20% to cover the utility expense or $3.2 million for 2018.  In 2018, the utility proposes to make an adjustment to fixed charges and apply the proper multipliers for each size of meter.  He referred to the seven sizes of meters in the Village, which range from a 5/8th inch meter, which is the most common size, to 4 inch meter size.  Mr. Calbi noted that the 4 inch meter should be charged at twenty-five times the size of the 5/8th inch meter because of the larger amount of water flowing through the meter.  Mr. Calbi explained how they calculated the number they need to arrive at for the 20%, and he noted that the $456,000 anticipated for collection in 2018 is only from July through December.  They would estimate almost $1 million to be recouped during 2019, and in each subsequent year.  For comparison Mr. Calbi provided information for water rate charges from the Passaic Valley Water Commission, who have implemented the proper distribution charges.  Mr. Calbi estimated that there will be an increase of $7.41 per quarter, for the average ratepayer with the most dramatic jump to the larger meter users. 
Councilman Voigt asked if Mr. Calbi expects an onslaught of disgruntled customers.  Mr. Calbi said he thinks it will be a mixture, depending on the information they have.  The message about increased water rates could be put out well in advance, through Water Smart (a software package) so residents understand what the change will be and why.  He hopes to avoid a repeat of past scenarios when there was a lack of communication relative to the meter change out program.  The proposal on the fixed charge increase will be a separate ordinance for consideration by the Village Council and it is backed up by solid information.  Mr. Calbi emphasized that this should have been implemented years ago.
Councilman Hache questioned leakage problems and Mr. Calbi said that they have been able to do a better calculation this year.  Mr. Timmeny has been able to use the monthly metering data to get a close comparison with the production data, which came in at 15.5% in 2017.  The national average is in the 20% range with 15% as the benchmark.  He hopes that percentage will be reduced, since they have become quite proactive relative to leaks. 
Councilwoman Walsh asked for more information about the streets that are dead ending.  Mr. Calbi said that the GIS department has mapped the entire water system.  They took the maps and met with the Fire Chiefs from the four towns and asked them where they wanted hydrants located.  In the areas where the Fire Chiefs did not want a hydrant, a blow off assembly will be installed.  Mr. Calbi explained that the water is flushed from these remaining areas, by releasing a valve from a box in the street.  Councilwoman Walsh asked for some detail regarding the cleaning of a tank.  Mr. Calbi said that mixers are installed to mix stagnant water in the tanks.  They are required to clean and video inspect the tanks on an annual basis.  Mr. Calbi indicated that this helps to avoid corrosion on a steel tank and scouring is done to the concrete tanks.
Councilman Sedon stated that as he interprets it, the fixed rates will be adjusted to generate additional revenue in time to offset the additional debt service, from the capital expenditures needed to upgrade the system, and bring it into good repair.  Mr. Calbi said that they have completed a five year projection of debt service and found that beginning in 2019, there has to be a volume rate increase in addition to the fixed rate increase he has just described.  Without the proposed increases for 2018, the rate of increase would be enormous, which is why this is essential.  Councilman Sedon observed that some of the upgrades should have been done years ago, but Mr. Calbi pointed out that there is a new era of regulations regarding contaminants and he spoke about the problems in Flint, Michigan which necessitated the implementation of new standards.
9.) WRAP UP AND NEXT STEPS
Ms. Mailander thanked everyone for attending.  Next week the Village Council will have budget presentations from Finance, Parking, Engineering, Traffic, Building Maintenance; Water Pollution Control Facility; Police; Fire; Deferred Charges; Statutory Expenses; Utilities; and Shared Services. 

5. COMMENTS FROM THE PUBLIC
Mayor Knudsen stated they would again have comments from the public and asked anyone wishing to address the Village Council to come forward.   There were no comments from the public at this time.

6. ADJOURNMENT
There being no further business to come before the Village Council, on a motion by Councilman Sedon, seconded by Councilman Hache, and carried unanimously by voice vote, the meeting was adjourned at 10:04 P.M.

                   _________________________________                        
                                      Susan Knudsen  
                                             Mayor

____________________________________            
               Heather A. Mailander 
          Village Manager/Village Clerk