20180606 Village Council Work Session

A REGULAR WORK SESSION 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, RIDGEWOD, NEW JERSEY ON JUNE 6, 2018 AT 7:30 P.M.

 

1. CALL TO ORDER – OPEN PUBLIC MEETINGS ACT – ROLL CALL – FLAG    SALUTE

Mayor Knudsen called the meeting to order at 7:32 P.M. and read the Statement of Compliance with the Open Public Meetings Act. At roll call the following were present: Councilman Hache, Deputy Mayor Sedon, Councilman Voigt, Councilwoman Walsh, and Mayor Knudsen. Also present were Matthew Rogers, Village Attorney; Heather Mailander, Village Manager/Village Clerk; and Donna Jackson, Deputy Village Clerk.

Mayor Knudsen led those in attendance in the Pledge of Allegiance to the flag as well as in a Moment of Silence to honor the men and women serving our nation and all our first responders.

2. COMMENTS FROM THE PUBLIC

Jane Shinozuka, 825 Norgate Drive, stated that she was on the town website today and she was glad to now see that each of the Boards are listed separately. There has been one Community Relations Board Meeting she has been to since she was appointed, and it has been talked about at Citizen Safety, they have talked about streamlining the process so minutes will be taken for each board. Is there going to be a repository online where those interested in that board will be able to look up the minutes. Or is that there and she’s not seeing it. Ms. Shinozuka was wondering if that was still in the works. Mayor Knudsen stated that the Village Council would respond to her comments at the end of Public Comment.

Anne Loving, 342 South Irving Street, stated that Graydon Pool opened on Saturday and it was great to have it open again, and stated that everything was going well. She thanked the Council for getting the pool up and running as she understood there were some last minute issues with the water and Ms. Mailander got it done. Ms. Loving stated that she noticed on the Avenue that every tree well has flowers in it. She thinks in the past, individual store owners have put their own flowers in the tree wells and it now looks great. She wrote to Deputy Mayor Sedon who mentioned that he thinks it was Project Pride that was responsible, but it really looks nice and she wanted to thank whoever was responsible for that.

Jane Shinozuka, 825 Norgate Drive, added that she had seen the agenda and online that the Village Council was discussing different kinds of public space issues in town tonight. She wanted to say on behalf of the other side of Route 17, that North Road Park is a big open forest area, but somewhere down the line the Village could really do something with it.

Mayor Knudsen addressed Ms. Shinozuka and stated that the Council has been working behind the scenes to update the Village website but there are pages for each of the Boards and Committees and one of the things that they set out to do were to make sure that the by-laws and members were posted and that there is access to minutes of each meeting. It is still a work in progress, but hopefully it will be easier to get that uploaded once the website is completed. She added that North Park is on the Parks and Recreation site. May Knudsen also stated that Project Pride was responsible for the planting downtown.

3. DISCUSSION - OPERATIONS

1. Kings Pond Bergen County Open Space Trust Fund – Phase II

 

Ms. Mailander stated that the Village is now required to hold a public hearing before applying for grants under Bergen County Open Space or Bergen County Historic Trust and so the projects will be explained and then public hearings will be held, which were advertised, and then resolutions will also be approved to authorize the Village to apply for these grants.

Ms. Mailander stated that she, Nancy Bigos, Chris Rutishauser, and Janet Fricke met with the residents on Lakeview Drive to let them know what was planned and to give them an opportunity to ask questions and give suggestions. It was very productive, and the residents had some good ideas and are very happy with the proposed improvements.

Ms. Bigos stated that in following through on the initial grant application for infrastructure and cleanup, the Village now wishes to apply for additional funding, of Phase II, through the Bergen County Open Space Grant. This would be for Phase II Park Amenities. As with any park development, it starts with a hardscape, which was the eradication of invasive Japanese Knotweed, roadway improvements which included a concrete vertical curb, drainage basins, pavement of the street, streetscape, landscaping with low buffer plantings, and two small parking lots consisting of eight parking spaces and one ADA space in each. A tree structure evaluation of the older trees on the park property was also done as part of Phase I.

Phase II would be a request for a grant application for $58,595.00 through the Bergen County Open Space Grant which is a matching fund from the Village of Ridgewood. That total request would be $117,190.00. Ms. Bigos stated this would include park amenities. Among these, a stone dust walking pathway 6 foot wide in a stone dust that would walk the users along the waterway, and along the path they anticipate five park benches and a new shade tree canopy. They are finding through the Village arborist that the majority of the willow trees there are past their prime and most likely should be taken down. Ms. Bigos added that they were also looking to provide a lawn area for active and passive play, and a fine top soil and grading of all open space. The final part would be the installation of a preschool/elementary playground.

Ms. Bigos reiterated the changes that would be done during Phase I, adding that Phase II would add some simple park amenities to this project. Mayor Knudsen opened for questions from the Village Council. Deputy Mayor Sedon asked if there was any idea if the funding was improved when Phase II would begin. Ms. Bigos stated that they were thinking that the very beginning of this project could begin in the late fall, as they need to start with the road and curb to define the property and then install the parking areas. She stated that the neighbors shared that some of the street lights were out, so there are simple improvements that can be done to highlight that area. Park cleanup also needs to be done. The 2018 grant application is due in Hackensack on Monday, June 18^th, so after the hearing they would finalize the application as hopefully the resolution is passed tonight.

Councilman Voigt questioned Ms. Bigos about the new shade tree canopy since they were removing some trees. Ms. Bigos stated that they were looking for hardwood trees, and directed Councilman Voigt to look at the conceptual design that was provided. She stated that they were hoping to create a nice pathway with majestic trees, oaks, maples, hardwood trees that would be there for the next century or two. Councilman Voigt questioned how many trees that would be, to which Ms. Bigos responded 20 trees.

Councilwoman Walsh questioned the floodplain limit and if there was any impact with the stone dust if there was any flooding. Ms. Bigos stated that she didn’t believe it would come lose as she believes that the Village Engineer chose that because it was a porous surface and once the cinders come together they form themselves a semi-permanent base. Chris Rutishauser stated that the rock dust (or rock flour) does compact, and it can move if sufficient water force is applied. He added that they haven’t seen flooding in that area that has heavy force and push, but if there was a heavy flood it could erode but so could most surfaces. The rock flour was chose because with a steel edging it could be compacted and it is a suitable surface for someone in a wheelchair or for a parent pushing a child in a stroller. Mr. Rutishauser stated that it was a sand with sharp angular fragments and it if is washed away it would be mixed with any other materials.

Mayor Knudsen questioned regarding the willow trees and if they were something that would be planted there again. Ms. Bigos stated that willow trees love the water but they have shallow roots, and those trees are definitely more than 200 years old currently. Mayor Knudsen thanked Ms. Bigos as she can’t believe that they are at this place currently, and she appreciated all of her work.

Ms. Bigos added that the Ridgewood Wildscape on Sunday, June 10^th is hosting Kings Pond Quest: Battling Invasive Species, and they are getting together to clear some of the Japanese Knotweed and to do a guided tour and some park cleanup. It is on the Parks and Recreation Facebook page. Mayor Knudsen thanked Ridgewood Wildscape for all of their hard work, energy, and commitment because they have been a driving force behind this project.

 

1. Zabriskie-Schedler House – Historic Preservation – Phase III

 

Ms. Mailander stated that the Village was applying for grant funding for Phase III. Janet Fricke stated that in 2016 the Village received a grant for $116,000.00 which is a matching grant and is historic preservation. She added that they are taking additional steps to make sure that they reach every mark on historic preservation. There was a hearing for prequalifying potential contractors, as the contractor would need to be able to build a roof on an 1820’s Dutch building. In 2017, they asked for $200,000.00 which is pending with the Freeholders as there is a public hearing at Bergen County on June 14^th, and anyone interested in giving a comment may attend.

Ms. Fricke stated that tonight’s hearing is on the third phase, regarding environmental abatement. There is asbestos in the putty in the windows, and additional things that take awhile to find out. She stated that the Village would like to open a safe project for the community. Initially, there was a letter of intent that the Village wanted $100,000.00 but looking more closely they think that for this 2018 request it can be brought down to $75,000.00. She stated that the Village was restoring and rehabilitating the house, including the roof and the interior systems, exterior shingles, environmental abatement including basement asbestos and paint which all has to be carefully taken care of. Ms. Fricke stated that what the Village Council hasn’t seen is the historic preservation plan which tells everything that needs to be done historically, and is a road map which the consultant put together. The road map shows exactly where the money needs to go. She added that the prequalification rules, which was spoken about during a meeting in February, is done and they hope to get some contractors over the next two months. First they have to be qualified as historic contractors, and then they go into the kind of work that needs to be done.

Ms. Fricke stated that the other part of the project is barrier free components. There is a bathroom on the first floor that will have to be redone as barrier free as well as the entrance coming into the building. She is hoping the Community Development Block Grant which would be a match against town funding would help offset that. The consultant is working to list the house on the National Historic Register and would be submitted by July 1^st, and it takes about a month for them to process in Trenton.

Councilman Voigt questioned how the building would be used. Ms. Fricke stated that there would be smaller meeting rooms, lecture space, clubs and the public would be able to reserve it and meet there on a regular basis. Sports committees may have an interest, additionally story telling gathering spaces and committee workspace. She added it would be for residents and potentially at another point there may be a rental coming out of it and as opportunities show and people are interested it may be something that is compelling and people would show an interest. Councilman Voigt asked how much the Village is on the hook for. Deputy Mayor Sedon stated that it was around $392,000.00. Ms. Fricke agreed. Councilman Voigt questioned how the Village was paying that amount. Ms. Mailander stated that the money has been put into the Capital Budget over the years, each year a certain amount has been put in for improvements to this property and the house. Councilman Voigt questioned how much it would cost for upkeep each year. Ms. Fricke stated that she didn’t know the cost, but there was a maintenance plan that included the cycle on painting and cleaning. Ms. Mailander stated that the amount could be estimated, and it was possible that they may have to go outside for cleaning services but it would be something to look at. Ms. Fricke stated that the amount of maintenance is also the use and type of use.

Deputy Mayor Sedon stated that he was excited this was moving forward and saw it as great access to the Parks Department for everyone in Ridgewood.

Councilwoman Walsh stated that the last time she was on the Council there was a meeting at Schedler, and there was an article in the paper eight years ago. She added that she was glad that things were moving along.

Mayor Knudsen stated that she wanted to add to the use, as Janet Fricke pointed out that it was an opportunity to do as a rental as a more intimate setting because of the type of structure and the intimacy of the rooms. There was a conversation as to how it could be furnished with more period furniture to allow that kind of ambience and a potential revenue stream from a rental perspective. She added that the kitchen was set up as a catering kitchen and ideally situated to facilitate that type of use, and it is something that they should keep as a potential future use. Mayor Knudsen added that having this house on the State and potentially Federal Registry was something that the Village could be proud of.

Mayor Knudsen stated that the Council would take a motion to suspend the Work Session and convene a Special Public Meeting. Deputy Mayor Sedon moved the motion, and Councilwoman Walsh seconded the motion.

Roll Call Vote

AYES:             Councilmembers Hache, Sedon, Voigt, Walsh, and Mayor Knudsen

NAYS:            None

ABSENT:        None

ABSTAIN:      None

4. SPECIAL PUBLIC MEETING - SEE SEPARATE MINUTES

Mayor Knudsen called for a motion to adjourn, there was a motion by Deputy Mayor Sedon to adjourn the special meeting and reconvene the Work Session.   Councilwoman Walsh seconded the motion.

Roll Call Vote

AYES:             Councilmembers Hache, Sedon, Voigt, Walsh, and Mayor Knudsen

NAYS:            None

ABSENT:        None

ABSTAIN:      None

5. PRESENTATION

1. Acacia Financial Group

 

Ms. Mailander stated that Bob Rooney, Village CFO, and Josh Nyikita, from Acacia, are both going to present on the funding for the Hudson Street Parking Garage.

Josh Nyikita, from Acacia Financial Group, which are the financial advisors to the Village, introduced himself. Bob Rooney, also introduced himself as Chief Financial Officer and Parking Utility Director.

Mr. Rooney started the presentation by stating that the Village asked Mr. Nyikita to take a look at the debt that would be associated with the construction of the garage and any additional costs that might occur as a result. They asked him to look at different scenarios with a 25 and 30 year term on the debt, and if they were to capitalize interest what would the first couple of years cost the Village, and to take a look at the market as to where the Village would fall with short term borrowing and long term borrowing and what interest rates the Village would have.

Mr. Nyikita stated that he worked with Mr. Rooney and Ms. Mailander on preparing a number of financing structures and options that are available to the Village in connection with the Hudson Street Parking Garage. Given the AAA credit rating of the Village, he thinks the most attractive option and the least costly, would be the issuance of general obligation bonds of the Village. Short term notes are also an alternative, but given the current interest rate environment, they believe that long term fixed rate bonds are the best choice for the Village at this time. It would allow the Village to lock in the cost of the funds at current historically low interest rates and provide budget certainty for the parking utility, which is important given their review of the Walker Study. With respect to what those payments are going to be going forward, it is important given the size of the bondage.

Mr. Nyikita stated that the transaction being undertaken under local New Jersey Redevelopment Area Law, provides the Village with a lot of flexibility in terms of how the bonds can be structured and amortized. Typically when a bond is issued on a municipal level there is a level debt service structure over a period of 10, 20, or 30 years depending on the life of the project. There are strict limitations on how those bonds are amortized, and the principle has to be paid within one year of issuance. When looking at the Walker Parking Study, they are assuming that the first payment on the debt services is in 2020, so having that flexibility under redevelopment area law is a great tool in the toolbox when undertaking this project.

Mr. Nyikita stated that Acacia prepared a number of scenarios on both a 25 and a 30 year basis. They presented those options so that the Council can see what the cost is based on the current market conditions and based on amortization structures. Mr. Nyikita presented the traditional leveled debt service structure, similar to a mortgage as the same payment is made semi annually over the term of the bond. They also showed what a deferred principle service would look like, deferred until 2021, which results in slightly smaller payments in 2019 and 2020 but then it ramps up in 2021. Mr. Nyikita also stated that the final scenario for the 25 year option is deferred principle to 2021 with capitalized interest in 2019. He added that under this scenario, additional money is borrowed for the interest payment and is set aside in an account and used for the payment instead of funds from the parking utility, which can smooth out any particular increases related to the parking project itself.

For the 30 year scenarios, they ran the same scenarios; level debt service, deferred principle for two years, and then deferred principle for two years with the capitalized interest. Mr. Nyikita stated that the Village could begin a ramping up of debt service in the 30 year option so that it doesn’t jump from $462,722 but rather $462,000 to $562,000, and so forth. He added that they would work closely with Walker in the pro-forma that they presented in the parking study to create a scenario that has a mix of the lowest cost of funding while being sensitive to the parking rates that are needed to generate enough revenue to pay for the operations in debt service on the bond issue.

Mr. Nyikita stated that as far as the market goes, rates remain very attractive, and most Wall Street forecasts project interest rates in general to continue to tick upward which is a reason why they are recommending locking in long term borrowing rates now. The recent rate increases have been felt on the front end of the yield curve, and they have had a significant flattening of the yield curve meaning that short term rates are rising quicker than long term rates. He added that there has been a 1% increase in interest rates on the short term side within a one year period, and it is very volatile right now. He stated that they would advise long term fixed rate bonds in connection with this transaction.

Mr. Nyikita displayed a graph showing more information on the interest rate environment. He stated that looking at the yield curve, showing that the spread between the one year rate and the thirty year rate which was a spread of almost 4% in December 2010, whereas today the spread is 1.3%. He added that this supports Acacia’s recommendation to do fixed rate bonds. At this point, Mr. Nyikita stated that he would welcome any questions.

Councilman Voigt questioned how long principle could be deferred for. Mr. Nyikita stated that under the Redevelopment Area Law, it is flexible and can be deferred for any number of years as there is no requirement that it needs to be paid down under the law. He would say that the bigger constraint that the Village would have is the financial model itself. He stated that if you run the model out over a 20 or 30 year period the Village would want to see that every year they are meeting their coverages, which is what would dictate the amortization structure. Councilman Voigt pointed out that Mr. Nyikita picked two years to defer the principle, and questioned what if that was extended to five years. Mr. Nyikita stated that would increase the cost overall, and when looking at all of the scenarios you can see that the more you defer principle and amortize interest it adds to the cost of the overall borrowing.

Councilman Voigt questioned as a way of paying for this garage does Mr. Nyikita recommend deferring principle for a period of time. Mr. Nyikita stated that in the last Walker Study from February 2018, in order to meet the coverages and provide additional surplus funds for maintenance and to provide some additional cushion, it would make sense to defer principle for a number of years in the beginning part of the bond issue, meaning you wouldn’t want to go ten years or beyond but maybe there is some middle ground in the first couple of years to being generating some surpluses and mitigating spikes in parking rates. Councilman Voigt questioned if he would be comfortable from a financial analysis standpoint if the principle was deferred for 4 to 5 years. Mr. Rooney responded that one of the things that the Council would have to take into consideration would be the timing of rate increases, adding that the Village would have to work closely with Walker as to how to project the debt as to what makes sense. Building up reserves for 4 to 5 years may be an alternative to defer the principle payments, at the same time bringing in more revenue. But if the Village tries to balance that it may be two years. Mr. Rooney added that there were a lot of moving parts to this. Councilman Voigt stated that he was worried about jacking up the parking rates immediately and maybe if it was done over time it would be more palatable.

Mr. Nyikita stated that regarding deferring the principle payments, and with respect to capitalizing interest, there are limitations on how much you can capitalize interest, typically up until six months after the construction completion date. For example, if it was a year to complete construction you could capitalize interest for 18 months on the bond issue.

Deputy Mayor Sedon stated that there was a note on the presentation that municipal bond issuance is down about 26% this year versus last year, and he was wondering if that was expected to go up. Mr. Nyikita stated that he thinks the tax reform law that was passed at the end of last year, it eliminated certain aspects of the municipal market which is driving that down primarily. Advance for fundings are no longer permitted, so that was about a quarter of the market looking back historically over the last five years, and what they saw was at the end of 2017 there was a huge rush to get the market. December 2017 was the largest issuance month in the history of the municipal market pre-1986 with over $60 billion in issuance. That is causing some dry up in bond issuance in the first half of this year, but also because they can no longer do certain bond issuances.

Deputy Mayor Sedon asked if the Village was issuing the bonds for this, would that help negotiate a couple basis points off the interest rate because of the less issuance out there. Mr. Nyikita stated that it was purely supply and demand, and there is a strong demand for bonds particularly in New Jersey because it is a high income state, so investors want that tax free bond and having a AAA credit rating is that much more attractive. There will be a lot of interest in this bond, so that is why Acacia is recommending going out long term and doing it as soon as the Village can while rates remain attractive because they do believe eventually rates will push up. Because tax rates are now lower, the benefit of tax-exempt bonds isn’t a great to wealthy individuals who generally purchase them, but right now the dynamics are pretty favorable.

Councilwoman Walsh asked whether in these numbers, Mr. Nyikita was including the sinking fund for maintenance for the garage, as the Village was given a life expectancy of +/- 30 years. Mr. Rooney stated that the suggestion would be that so much money is put aside every year into a maintenance fund, taking that money out of the surplus, so that way in case there is the need to do any big projects, there is money put aside for it. In the capital number right now is construction of roughly $11 million and a 5% add-on for cost of issuance which can and probably will change because of the redevelopment laws, and the capitalized interest number if that gets charged back to the ordinance. Mr. Rooney stated that the maintenance part would be on a go-forward basis. Councilwoman Walsh stated of the numbers that were talked about in the presentation, she didn’t know if surplus was the way to look at it because they didn’t know if there would be surplus in the coming 30 years. In terms of the maintenance sinking fund, that would be part of the budget going forward as a surplus wouldn’t be the thought process. Mr. Rooney stated that she was correct in what she was saying, as he had a conversation with Walker this morning and it will determine when the rate increases are put into place as to whether or not there will be surplus generated on the beginning of the amortization period in which case a portion of that would be put aside for the maintenance, otherwise it is an operating cost every year to be dealt with.

Councilwoman Walsh stated that her other question was regarding the AAA rating and she wondered if the Village would be charged basis points with such a good rating. Mr. Nyikita stated that the 50 basis points was being conservative as they wouldn’t be selling the bonds today but rather a couple months from now. They believe the Federal government will be taking action in June and there is a lot of volatility in the market so Acacia likes to put a cushion on what the current market is to be conservative. Councilwoman Walsh asked what the value of that was. Mr. Nyikita stated that the numbers are based on current market conditions, and there is a daily AAA index called Municipal Market Data, and all bonds are priced off of that. AAA issuers may price a little wider than that plus 10-15 basis points, and Acacia did that plus 50 basis points. Councilwoman Walsh questioned if the numbers could go down based on the rating. Mr. Nyikita stated that was the hope but the Village would not know its rates until the bond sale takes place.

Councilwoman Walsh questioned what possible options could the Village have in terms of financing if somewhere along the road there is some sort of event that has to be acted upon and they have to fix it immediately, would this money be restructured. Mr. Rooney stated that would be additional, if there was something that had to be dealt with to the permanent structure, assuming there was no money left in this ordinance, there would have to be another ordinance to move forward. This is deductible under redevelopment laws so it doesn’t impact the Village’s borrowing power. Mr. Nyikita stated that this bondage itself will have a call feature, and the standard call feature in a municipal market is 10 years, so on the anniversary if rates are lower at that time the Village would be sliding down the yield curve. He added that most bonds do end up getting refunded for savings and at that time if restructuring is something that the future Council would like to consider based on the operating budget of the parking utility that’s something that can be done. Councilwoman Walsh stated that because of the design with potential retail, the Village could make the change at ten years.

Councilman Hache stated that he liked the 50 basis point cushion as it is very conservative as the most that the curve has moved since the end of last year is about 42 basis points on the 30 year end so he liked that they were building in a catastrophic scenario. He added that he keeps going back to the fact that the designation for the Redevelopment Area is done and he wanted to thank the Mayor for bringing that to the forefront; it has been a significant cost savings, and includes having more flexibility in financing options. Councilman Hache stated that assuming that the Village goes with any option, and looks at different scenarios as to how far to defer the principle, but given this cost of issuance and the option to defer, he asked what it would look in terms of the rate increases. He assumed that by doing this they would be able to smooth out the Walker parking rate increases over a longer period of time. In terms of matching out the ongoing operating cost of the utility with the added impact of having this garage added into it versus the financing timetable and what the costs of debt service would be. Mr. Rooney stated that what he thought the next step would be to go back to Walker, present the numbers to them that the Council has chosen and come up with three scenarios as to the timing of a rate increase, what the impact would have as to the debt service coverage, and that way the Village could get a better feel for how it wants to proceed.

Mayor Knudsen stated that she would be very concerned with any deferred principle for any extended period of time, and she feels that it would be the most irresponsible thing that the Village would be doing. She added that back in 2015 when the first garage iteration was presented, she felt at the time that the Village should have test marketed the increases at that time and they would have been banking all of that all this time and had those incremental increases which would have been significantly less burdensome to visitors and shoppers and diners. Her inclination was to increase the meter rates as quickly as possible as it is going to happen and it’s the inevitable, so the Village should be looking to accomplish that sooner rather than later because that’s the cushion that the Village will build up. Mr. Nyikita stated that looking at it objectively from a financial standpoint, its purely mathematical, that if the Village is willing to do the rate increases now and pay the debt service off early because that is going to be the lowest cost. He added that the question is what is a reasonable level that the Council and ratepayers are comfortable with that will work with the system. He added that he would agree that deferring principle for ten years would not be recommended, and asked if there was a balance in the beginning of what can work and use those monies that are deferred to create a surplus fund to lower rates and provide for maintenance and rate stability in other years. Mr. Nyikita stated that was what Mr. Rooney was saying about different scenarios that could be presented. Mayor Knudsen stated that the Village never knows what happens in any given year. There are ups and downs in revenue streams, so having that cushion and using the deferred principle very conservatively is the best approach in her opinion.

Deputy Mayor Sedon asked Mr. Rooney about the kiosks, as there was discussion about implementing them and one was being piloted at the Chestnut Street parking lot and that could potentially increase revenues without increasing rates. He was wondering if Mr. Rooney had any thought to that. Mr. Rooney stated that the kiosk is working, and they have seen increased revenue especially in the use of cash, which is a plus, but with that being said there are a couple glitches as to how the cash is being reported in terms of internal mechanisms. Once that is resolved in the next month, he would present to Council a plan for where to put the next kiosks and how to move forward with that.

Councilman Hache stated that they did rough calculations a month ago, looking at the revenue in that lot prior to the installation of the kiosk over the previous 12 months versus a projection over the next 12 months and it was almost an increase of 20%. Mayor Knudsen stated that was anticipated from the beginning of the process with the kiosk. This is because the Village is not losing the role over money as everyone starts anew when parking in the lot. She added that it was important that part of the process in moving forward with the garage was always with the understanding that the meter rates would be increased so if they are getting that 20% increase by installing kiosks system wide and the rates are increased, the revenue stream is significantly increased. Mayor Knudsen added that this was the most important thing that they could do as it would provide a cushion in the event of any unforeseen issues.

Councilman Hache stated that they had talked about the differential in pricing as an on-street spot is worth a lot more money than a lot, so they can look at also making parking in the lots more attractive to get people to go there. He added that it was something that they could look at with the kiosks, and suggested rolling them out on-street with the premium pricing for the on street spots. Mr. Rooney stated that this was something that could be brought before Walker as they have all the data for on street and off street as to what that impact might be so the Village can make a comparison. Mayor Knudsen added that the one benefit of that is the abuses of repeat parking and employee issues, as the kiosk is a better monitoring system of those abuses.

 

1. Licensing Sellers of E-Cigarettes

Ms. Mailander stated that Dawn Cetrulo, Director of Health Department and Health Officer, as well as Karen Blumenfeld, Executive Director of New Jersey Global Advisors of Smoke Free Policy (NJGASP) would be presenting on licensing sellers of e-cigarettes.

Ms. Cetrulo stated that the smoking world has changed as its not about smoking cigarettes anymore, it has turned into vaping and e-cigarettes. Technically, e-cigarettes are not regulated, but certain towns are starting to regulate them. If they are licensed, Ms. Cetrulo would be recommending a $1,200 fee per establishment. Currently there are four establishments in town that sell them, she knows of nine that are licensed to sell cigarettes. Generally, the funds from licensing and inspecting these establishments are used to promote non-smoking among youngsters as it is very popular with middle schoolers and high schoolers. Ms. Cetrulo stated that the funding would also be used for the Tobacco Age of Sale Program, which is a program that was funded by the State.

Ms. Blumenfeld stated that electronic smoking devices are very popular among youth and young adults. There is a triple increase in just one year according to the Federal government of youth using electronic smoking devices. The problems with electronic smoking devices are the chemical components that make up the vapor and some of those chemicals are carcinogenic. There have been studies on these chemicals that show the dangerous components. She added that studies are coming out that show the dangers of second hand vapor smoke. Ms. Blumenfeld stated that there are many communities across the State that have banned smoking and vaping in their parks and recreations areas. In Trenton the policymakers, Assembly and Senate, voted through a bill that made all State, County, and local parks as well as beaches 100% smoke-free and vape-free.

Ms. Blumenfeld stated that there is the issue of how all of the young people are getting these products, and its about the access of these e-cigarette devices to young people. It is quite disconcerting because they now come in all shapes, sizes, and forms. The jewel device has a pod that goes on it with liquid nicotine, which looks like a flash drive and teachers don’t realize that they are actually e-cigarettes.

Ms. Blumenfeld stated that individuals need to be 21 to buy these devices, also these products cannot be given or furnished, as there is a civil monetary penalty. E-cigarette refills need to be in childproof containers, Governor Christie signed that into law and it went into effect about a year ago. She added that the State does not require stores to get a license from the Treasury to sell these products, unlike cigarettes which needs a retail cigarette license from the State. She stated that about 30 towns in the State have ordinances through the Health Departments, passed by the Board of Health or the Council requiring that if a retailer wants to sell these products they need to get a license from the local Health Department and there is an annual fee. This way the local Health Department knows who is selling the product and can ensure compliance with the State laws. Any local ordinances are in addition to that then the Health Department can do that, but it is very difficult to do without some type of a tracking mechanism. The licensing fees then go back into the health system to make sure that parts aren’t sold to young people, the compliance check program, and other types of programming.

Paramus and Woodridge have passed ordinances, with the average rate at $1,200 for the licensing. Ms. Blumenfeld recommended that towns should look at what they charge for a retail liquor license, which in Ridgewood is $2,500. Ms. Blumenfeld suggested that the Village Council think about the channel of production through sale that the State regulates when it comes to cigarettes. A manufacturer, wholesaler, distributor, retailer, all are regulated by a license. Towns are now starting to say that they are not only interested in licensing retailers of e-cigarettes but also the remainder of the chain, and they need to ensure that they product is made in childproof containers, or if it is re-sold it doesn’t go to someone who is underage. Ms. Blumenfeld stated that there does need to be more regulation, but while the Federal Government decides what they are going to do, tobacco always comes back to the grassroots level and always starts at home rule.

Ms. Blumenfeld stated that there was one community that did not want to have any vape stores in their town, so in their ordinance they included that kind of language. She added that the Council could decide if this was something that they wanted to do, and then what they wanted to include. To keep the ordinances up to date, they need to include electronic smoking devices, school property K-12 public and private needs to be smoke free fence to fence. The vehicles K-12 need to be smoke free and vape free. If there is an activity sponsored by a school and taking place off of school property that also needs to be smoke free and vape free. This year the State Legislature also passed a law that required all public schools K-12 to be tobacco free.

Ms. Blumenfeld stated that flavorings for the e-cigarettes and the packaging do not appeal to adults, they appeal to children and teenagers. There is a movement to try and pear that back, and even the FDA has given a word on this as well. Councilman Voigt questioned whether Ms. Blumenfeld had several ordinances that she could provide to the Council. Ms. Blumenfeld stated that they do have a database of the ordinances that have passed and she would be happy to share that with the Council. Councilwoman Walsh stated that this has been a conversation in her house because her children keep saying that their friends are vaping, so it is a topic that she thinks has to be discussed because her children educated her on what the kids are doing. They are not just putting nicotine in, but other drugs as well. This is a huge concern for the Village if this is going on, and they need the device to be able to do it.

Councilman Hache stated that this was very informative, as he witnesses a lot of younger kids sneaking off around town and it is very concerning because the effects of nicotine is still there, the addictive qualities of it. It starts with the coolness factor, now kids buy these things because it’s the cool gadget to get. Councilman Hache questioned if there was anything moving through the Legislature regarding the licensing of e-cigarette retailers. Ms. Blumenfeld stated that there was legislation introduced last session, and has been introduced again for this legislative session but it hasn’t moved yet. Councilman Hache asked whether there was something similar to her educating the students and teachers regarding how these devices work, and asked whether School Resource Officers are included in this. Ms. Blumenfeld stated that after school hours they present to the PTO’s, but during the school day when they present it is usually in the classroom or in an assembly. She stated that she didn’t know if the other adults that were present were the individuals that Councilman Hache was asking about. She added that it would be very helpful to have that component brought in.

Councilman Hache questioned how this was tying in to the imminent legalization of marijuana in the State of New Jersey. Ms. Blumenfeld stated that the e-cigarettes are already being used for illicit drugs, including marijuana. Her understanding from Police is that it cannot be smelled when it is vaped, so someone could be using an e-cigarette or jewel and be using marijuana right by you and you can’t see the smoke or smell it. Ms. Blumenfeld stated that there was a chemical called diacetyl and it causes popcorn lung disease which is only cured through a lung transplant. The FDA allows a small amount of diacetyl to be used in food consumption because it has a buttery flavor and feel on the palate. Many employees in popcorn factories came down with this disease because of the diacetyl, and the scientists found that when you eat the diacetyl it is metabolized differently than when you breathe it in. Ms. Blumenfeld stated that she believes that the UK banned diacetyl in the liquids.

Councilman Hache thanked Ms. Blumenfeld for bringing up the chemical element. He added that he definitely thinks that the Council needs to update the smoke free ordinance to include e-cigarettes as soon as possible because his concern is what happens in the schools and goes undetected. Ms. Blumenfeld stated that there was a company in New York making some kind of a detector device for the vapor from electronic smoking devices and are talking to school systems about it. Help for schools is definitely needed, but the education is the most important because people are not aware of the chemicals. She added that these cannot be advertised as smoking cessation devices because they do not have FDA approval. Ms. Blumenfeld stated that when she was in Trenton on Monday, testifying on the smoke free parks and beaches. A representative for the vaping products was saying that they should be exempt from the bill because they help people quit smoking. However, the FDA has told retailers that they cannot use this wording at all when they are marketing these devices.

Ms. Blumenfeld stated that when she is presenting to students she points out that the nicotine is affecting their brain development. The choices that you make now even though there may be external influences, are really important. Mayor Knudsen asked if the four shops that sell e-cigarettes sell vape. Ms. Cetrulo stated that she was not sure exactly what the stores sold, but they sold something of this form of electronic smoking devices. There hasn’t been actual surveys by going into all the businesses, but it is just what has been found. Mayor Knudsen stated that it was hard to believe how something like this could become such an issue and there is no control or oversight so people and kids are out there doing this and there is no way to know what the long term impact is to health.

Ms. Blumenfeld stated that New Jersey was the first State to ban e-cigarette use in any public or work place in 2009, which took effect in 2010, which was just when e-cigarettes got on the market. From the standpoint of de-normalizing e-cigarettes inside public and workplaces, New Jersey gets an A+ for that. However, she gets the feeling that the State is trying to do the best that it can. New Jersey could be the first State to ban smoking and vaping at all public, local, County and State parks and beaches.

6. DISCUSSION

1. Ridgewood Water – None

 

1. Parking

 

1. Valet Parking – Broad Street

 

Ms. Mailander stated that this was discussed previously, as the Council had some concerns regarding valet parking outside of Steel Wheel Tavern. Chris Rutishauser was given all of the questions that the Council asked and can address any additional questions. Mr. Rutishauser stated that Sergeant Chuck was detained on a police matter and was unable to attend the meeting tonight.

The Village was approached by Steel Wheel Tavern on North Broad Street to implement a valet service for their patrons similar to those currently at Roots and Park West. Mr. Rutishauser stated that he looked at the location and the best spot for them to have patrons drop off cars and valet park them would be the three spaces just south of Franklin Avenue along the Northbound direction of North Broad Street. Those are the three spaces just before the traffic light. They have asked for seven days, which is subject to the Council’s opinion. He stated that Roots and Park West are very successful with their valet service, however other places have ceased using it or never really implemented it.

Mr. Rutishauser stated that they have looked at this location, and feel those are the best spaces for implementation of the valet. The traffic control signal is at that intersection, as well as the pedestrian crosswalk which is well marked.

Councilwoman Walsh stated that she was in the area recently observing the traffic patterns and she felt that even when this was first presented she couldn’t see how this would be a safe process, and the more that she has been in that area she personally doesn’t think that this would be wise for the Council to approve. Councilman Voigt asked whether they could look at spaces that are closer in rather than next to the light. Mr. Rutishauser stated that they looked at that, but the spaces in front of the restaurant are angled spaces, which would need many more individual spaces to make a successful drop off and pickup in comparison to the three proposed that are just parallel to the curb. He stated that the restaurant initially thought that they could use the alleyway next to Boiling Springs, but they were not able to obtain absolute permission from the property owner but they were unable to achieve that.

Councilman Voigt questioned whether they were amenable to not having it every day, but during the busy times on Thursday, Friday, Saturday. Ms. Mailander stated that all of the valets in the Village have it everyday of the week, they just don’t use it everyday of the week. It is mostly used Thursday, Friday, Saturday. There are times during the day when they have to pay for the meters because they have a daytime event. Councilman Voigt questioned whether it could be tested out a couple of days to see from a safety and logistics standpoint. Mr. Rutishauser stated that from the other valet locations, the Police Department have kept a close eye and been firm if there are any issues with the valets. They like to make sure that all of the valets have driver’s licenses and are not on a revoked list, the Police Department is very vigilant in that aspect. If a valet attendant commits a motor vehicle violation, they get issued a summons. Mr. Rutishauser stated that in speaking the Sergeant Chuck, they don’t tolerate any improprieties.

Councilman Voigt questioned where they would be parking the cars. Mr. Rutishauser stated that they would be parking offsite in a private lot. Deputy Mayor Sedon questioned when Boiling Springs Bank closed. Mr. Rutishauser stated that he was unsure, but this should not affect them because they have parking on the east side of the building and have rights on the driveway. Deputy Mayor Sedon questioned if there was any concern with how close the drop off and pick up would be to the actual traffic light for cutting into a queue as there are people driving around looking for parking spaces that can stack up at that light. Mr. Rutishauser stated that if there is an issue of too many cars at once, the valet attendants are going to be advised that they can’t stack. The valets have to obey the signal and if there is an issue with them blocking the street Mr. Rutishauser is certain that the Police Department would advise them that it is not permitted.

Deputy Mayor Sedon stated that when the light is red and someone wants to make a right and can go on the side and form another lane when the light changes. He was wondering if that double stack waiting to turn left or right would make a mess for someone to also have to cut into that traffic and if that would be a problem. Mr. Rutishauser stated that he didn’t think it would be that much of a problem because there is the dedicated left turn lane, and then a dedicated lane that is either straight or right. There are then the three parallel parking spaces that the valet would occupy for pick up and drop off. The valet would have to use due caution and merge into the straight or right turn only lane to bring the car to storage or for the customers to leave in their cars. Deputy Mayor Sedon asked if the parking lot was to the right. Mr. Rutishauser stated that no left turn was anticipated. Deputy Mayor Sedon asked whether they felt comfortable that this would be alright. Mr. Rutishauser stated that they felt comfortable that it can work, as the valet has to understand that they have a finite capacity that they have to manage. Managing that capacity is predicated on having enough attendants.

Deputy Mayor Sedon questioned if there was a way to pilot this for a certain amount of time instead of issuing a permit for a year, or if a permit is issued would they be able to get out of it if it becomes obvious that it is not working after a week or a month. Mr. Rutishauser stated that subject to Mr. Rogers opinion that was certainly within the Council’s purview.

Councilwoman Walsh stated that she walked across that street a lot recently, and people turn from Franklin onto Broad Street and they do the illegal U-turn into the slotted spots on a regular basis. Everybody double parks in front of Dunkin Donuts, either letting someone run in or picking someone up. She reiterated that these were her observations. There is always a car illegally parked at the corner when there are no spots, which impedes the view of anyone walking across the crosswalk at the beginning of Ridgewood and Broad. There is a consistent challenge with parking along there. To add the valet now, there would be three lanes of traffic because the valets won’t be parking but rather moving cars. There are pedestrians, drivers, and Councilwoman Walsh she didn’t think it was worth a pilot as it is a dangerous situation. She added that the commuters start coming home around 5:00 P.M. and so they would be dodging traffic all night.

Councilman Hache agreed with Councilwoman Walsh’s assessment, adding that he tries to avoid that intersection as there is bad lighting and sight issues with pedestrians going to and from the train station. He stated that valet parking in general in front of specific stores came up at the last business forum and he was amazed at how all of the businesses that were there rejected the notion of having valet parking specific to certain businesses. Some even cited the revenue that was lost because of the parking spaces that were bagged when they were still open and the restaurants were opening up. Councilman Hache stated that the other concern that was noted is that it creates no foot traffic as people drop off their car and then leave and haven’t walked past one store in the Central Business District.

Mayor Knudsen stated that she too saw the illegal behavior that Councilwoman Walsh had mentioned. She doesn’t think that double parked cars and illegal u turns could be the measure when they contemplate the valet for a business, as that illegal behavior is an enforcement issue. She felt that you couldn’t penalize a business for illegal behavior that is occurring. Mayor Knudsen stated that she would be concerned that by not permitting one restaurant to have valet service while allowing others to have valet service, in someone’s mind might be giving an unfair advantage to some restaurants while saying that the decision about valet is based on the location and immediate surrounding area. She stated that she disagreed with Councilman Voigt to test this during the busiest time because that’s when there would most likely be the problems.

Mayor Knudsen stated that in a way, valet actually removes vehicles from the street. Mr. Rutishauser stated that it was a way of making the Village’s parking situation a little more efficient. Mayor Knudsen stated that it stopped people from driving around the block repeatedly so it could have the effect of removing some vehicular traffic. She added that she would be open to testing it out, but she would be concerned as to whether or not valet was something that the Village wanted to continue with or stop. Mayor Knudsen stated that the issue of valet needs to be addressed because she has heard similar complaints that some people can actually measure the drop in their revenue based on when the valet actually came in and the loss of those parking spaces to that particular business and the lack of foot traffic. Mayor Knudsen added that the opportunity has to be applied fairly to everyone, whether they continued with or stopped the allowance of valet services by businesses.

Ms. Mailander stated that what she needed to get was a sense of the Council as to whether or not there are enough votes to be able to adopt the ordinance. Mayor Knudsen stated that she would vote for it because the Village has valet and it could have the effect of removing vehicles out of the constant rotation around the block, but there would also have to be a commitment to enforcement to stop the illegal behavior. Councilman Voigt stated that he would support it. Deputy Mayor Sedon stated that he was unsure about this, as he sees how tight that intersection is and how crazy things can get there. He added that if Engineering and the Police Department are comfortable with it, they have more expertise than he does, but he would want to try it. He stated that maybe there was wording added about the light and concerns about safety so that it is piloted for a month or two and then gets revisited with feedback from the business and observations from Police and Engineering and then make a decision as to whether or not it should be made permanent for that location. Ms. Mailander stated that she agrees that there should be enforcement with what Councilwoman Walsh is mentioning and it is something that she will be getting done because it shouldn’t continue. Councilman Hache and Councilwoman Walsh stated that they were both no.

Ms. Mailander stated that there were enough votes to adopt the ordinance. It could be pushed forward to the July meeting for introduction and then adoption in August. She added that they would see what can be done in the ordinance itself to have a trial period and have the Police observe to see how it works.

Councilman Voigt questioned whether Steel Wheel would attend a Council meeting when this gets introduced to hear their perspective. Ms. Mailander stated that it was possible to have them attend a meeting.

 

1. Budget

 

1. Appointment of Municipal Humane Law Enforcement Officers

Ms. Mailander stated that the appointment of a Municipal humane law enforcement officer was signed into law in 2017, and took effect on May 1. It requires an ordinance and a resolution to appoint these officers. The plan is to name three animal control officers of TYCO Animal Control to these positions. Full background investigations have to be done for these individuals and the Police Chief would have to approve their appointment. Ms. Mailander stated that Mr. Rogers has been reviewing the ordinance and it would be discussed again in July as there were several areas where perhaps the ordinance needs more work.

Mr. Rogers stated that this is being recommended by the Police Chief and is something that the State Legislature has decided to adopt and permit municipalities to participate and it was just a matter of getting the ordinance straightened out, which can be done in July if that’s the way the Council would like to go. Ms. Mailander stated that it would be checked as it may be something that is required.

 

2. Contributions as Tax Payments – Charitable Contribution Law

 

Ms. Mailander stated that on May 4^th, Governor Murphy signed Senate Bill 1893 which authorizes municipalities, counties and school districts to establish one or more charitable funds, which are for specific public purposes, and permits certain donations to those charitable funds to be credited toward the donor’s property tax obligation. This has been talked about for a while, and it actually takes effect July 3^rd. At a conference that Ms. Mailander attended, it was indicated that the State Division of Community Affairs, Treasury, Education, and Banking and Insurance are going through the rule making process at this time to set out the rules to do so. However, there was some indication from the IRS that they see it as circumventing the property tax deduction from Federal Taxes and so it may not be something that the Village should consider.

Mr. Rooney stated that in December 2017 the Federal government changed the tax law, tax brackets, personal exemptions were being eliminated, standard deductions were increased, SALT deductions were capped. There was no change to charitable contributions. In January 2018, Congressman Gottheimer proposed individuals donate to a town run charity which would allow taxpayers to contribute the amount they pay in annual property taxes to an established charitable trust. This led to Senate Bill 1893 passed by both houses in April 2018.

Mr. Rooney stated that this legislation will allow the property tax credit currently proposed to be capped at 90%. As of right now there is up to a 10% charge that a municipality can charge to administer these funds. It gives the local unit the ability to establish a charitable fund so that donors can put money into the fund and credit it towards their taxes for State, Local and County. This would also require administration by each entity to establish the funds that can be contributed to and require the municipality to funnel those monies into these respective areas. Mr. Rooney stated that an individual would need to be identified as the custodian of these funds, and a separate bank account would have to be maintained. The law also says that the regulations will need to be promulgated by the Department of Community Affairs, Treasury, Education, and Banking and Insurance in order to address issues such as budgeting, tax collection, financial administration, mortgage servicing, and property tax relief programs.

Mr. Rooney stated that there was a lot of guidance that the State still has to come up with before this could be administered. The enactment of this law does not guarantee that the IRS will consider contributions to local unit charitable funds to be a committed deduction from the tax payers Federal income tax obligation. The IRS issued a notice 218-54 which informs taxpayers that the Department of Treasury and the IRS intend to propose regulations addressing the Federal income tax treatment of certain payments made by taxpayers for which taxpayers receive a credit against their State and Local taxes. In response to limitations placed by SALT deductions, some State legislations are considering or have adopted legislative proposals that will allow taxpayers to make transfers to funds controlled by State or local governments in exchange for credits against the State and local taxes the taxpayer is required to pay. This would allow taxpayers to characterize such transfer as fully deductible charitable contributions for Federal tax purposes while using the same transfers to satisfy their State and local tax liability. Despite State efforts to circumvent, taxpayers must be mindful that Federal law controls the proper characterization of payments for Federal income tax purposes.

Mr. Rooney stated that there has been no decision on either side as to how this will be moving forward. Councilman Voigt questioned if someone owed $10,000 in property tax per year and gave $1000 to a charitable entity. Mr. Rooney stated if the charitable entity has been established by the municipality school district for the County. Councilman Voigt stated that rather than getting $10,000 the municipality gets $9,000, and asked if that would reduce the general tax revenues for the year in terms of discretionary funds. Mr. Rooney stated that there was a lot of planning that was involved but it was basically just a matter of what bucket you put it into, as you would still get the same amount of tax revenue, it is just how it is designated.

Deputy Mayor Sedon stated that the local government would be the charity, so someone owes $16,000 in property taxes they can pay $10,000 to the Village the way they always have and then that would be written off at the Federal level and then the $6,000 would be put into the Village of Ridgewood charity fund, and it would still go to taxes for school, County, and the Village, it would just go into a different bank account but would be distributed in the same way out of that. He asked if there was any indication as to what the Federal Government’s take is going to be on this as he was all for doing this if it was allowable as it would help out the residents. Mr. Rooney stated that he has read several articles, some say don’t do anything until December, others say that the State is going to come out with some guidance and procedures which may not be effective until next year. There are a lot of different theories and he has not read anything related to timing.

Deputy Mayor Sedon asked how much work Mr. Rooney would have to put in to establish the accounts, charities, and the trust. Mr. Rooney stated that it would be significant work, as it would have to be enacted and voted on by the Council to establish it, and he was waiting on some guidance from the State as to where to go next. Councilman Voigt asked if the Village was restricted in the charitable fund definition. Mr. Rooney stated that the other part of this is that a charitable contribution is supposed to be without benefit, in this case there is a benefit though as some services will come back. This is what the IRS is dealing with, how to classify this to be able to get around that concept.

Councilwoman Walsh stated that Mr. Rooney used the word circumvent, and her opinion that once they try to circumvent things to come to a conclusion it doesn’t usually work out well. In her work she deals with a lot of people that have tax issues and she always tells them that she is not a tax expert as they need to consult a tax expert, which she believes is the other key thing here. This is going to be applied to different individuals in different ways because of their total income, type of income, whether they are paid through an LLC, and the Village has no idea the income the taxpayers make and how they make it and how they do their tax returns. So, for them to give them false hope that they are going to get this deductible donation. If it isn’t, they are going to come back to the Village and say that it would work better if they put it through another way. She read several of articles and it doesn’t sound to her that the IRS would let the money go and she doesn’t think it is going to happen. Councilwoman Walsh stated that it would be a challenge for the Village and a lot of work for Mr. Rooney.

Councilman Hache stated that he agreed with Councilwoman Walsh, and that until the analysts came out a definitive statement on what the position is, he didn’t see it happening. In the unlikely event that it does happen, they could look at retroactively to January 1 if it takes three months to ramp things up, as he would not like Mr. Rooney to do all of that work for something that might not happen. Deputy Mayor Sedon stated that was where he was going as well. Mayor Knudsen stated that if it is perceived as circumventing that could be a nightmare. Mr. Rooney stated that there is a risk that the taxpayer relies on it and makes payments and then when they file a Federal tax return and are disallowed and would have penalties and interest. Mr. Rogers stated that for Mr. Rooney to set up administratively without knowing where the IRS was going did not make any sense.

Mayor Knudsen stated that there was a statement that was made that this is happening in other states already, and she was wondering if Mr. Rooney knew exactly what that was and what they were referring to. Mr. Rooney stated that an example in one of the communications was the State of California where 30 to 40 charities were set up, but they are more or less like scholarship funds, and individuals can contribute to the scholarship without the money going towards the governmental entity that is providing the service. Under California law they stipulate that is considered a charitable contribution and is allowable and the IRS is on board with that.

Deputy Mayor Sedon stated that it sounds like the Village has time because the State hasn’t stipulated anything. Mr. Rooney stated that he thought that by July 3^rd something would have to come out because that is when the law goes into effect, so the State is going to have to say something at that point. Deputy Mayor Sedon stated that they should wait and see what the statement says. Mr. Rooney was in agreement.

 

3. Award Contract – School Bus Transportation – Recreation Department

 

Ms. Mailander stated that this contract was for the day camp and the day camp trips. The Village is going to reject the former bid because it didn’t allow for ADA compliance and if there were students or people going to the camp or on trips who had disabilities it would be difficult for them to get on the bus. This new proposal did have those provisions in it and three bids were received. The three bids varied in price from $31,804 to $37,182. TransEd was cheaper for the daily transportation services, and then First Student was the lowest for each of the two categories of day camp trips. It is being recommended that two line items for daily transportation services be awarded to TransEd and then two line items for day camp trips be awarded to First Student. Once it is awarded, each company can provide the required school bus driver qualifications as called for in the bid documents for review by the Village Police Department. This includes State and National criminal background checks for the drivers and contracts for staff with no felony or misdemeanor arrest or charges of moral servitude or being listed as a sex predator. Drivers must have a physical screening as well as hearing and vision tests. The field supervisor shall oversee the bus operation at all times since the buses are going to be transporting children. There are several field trips and all of them can be accessed without travelling on highways if so desired.

Councilwoman Walsh stated that one of the middle schools had a challenge with a class trip because there were no seat belts on the bus. She asked if that was something that the Village was obligated to make sure that there were seat belts on the bus. Ms. Mailander stated that it would be checked, as she was under the impression that it was state law that all buses have lap belts. Mayor Knudsen stated that she had asked Ms. Mailander the same question earlier. Councilman Hache stated that the lap belts were a requirement, and he was under the impression that Congressman Gottheimer was trying to push for the shoulder belt as well. Councilwoman Walsh asked if it could be clarified that the buses that are used are complaint with the current state law. Mayor Knudsen questioned if it was actually state law, and what the criteria for the Village then should be.

 

4. Award Contract – Vehicle Emergency Equipment – Police, Fire and Emergency Services Departments

 

Ms. Mailander stated that there were two companies that picked up plans, and one bid package was received. The sole bidder is Regional Communications, Inc. The bid was structured so that prices were obtained for each individual service. Regional submitted a complete bid package, therefore it is recommended that the Village go with Regional Communications. The Village has worked with them in the past and they have been the successful supplier for the past two years.

 

5. State Contract Purchase – Finance Department Carpet Replacement

 

Ms. Mailander stated that in the Finance Department, third floor conference room, and elevator are the original carpets from thirteen years ago. They are proposing to go under State Contract with Brother’s Carpet and Flooring in Hackensack in the amount of $14,068. The funds are in a current capital account for this removal and installation of new carpet.

 

6. Quarterly Financial Report

 

Mr. Rooney stated that this quarterly financial report was for four months since the budget was adopted until May 4^th. Explanation was provided along the right side for any areas where deviation that was significant from 33% of the budget. In the revenue stream, a lot of it is the timing of billings as a lot of the Village revenues are generated through mid-year billings. There are a number of things that are fully realized in terms of revenues, those are grant programs and that money is in the Village already so it is just a matter of classifying it as 100%.

General fund revenues show the greatest fluctuation under administrative charges and vehicle fees for Police and outside services. That is seasonal as there is not as much roadwork being done in the bad weather so there is no opportunity to bill third parties for services that the Police report on. Chief Luthcke and Mr. Rooney went through the timing compared to last year and they are on track with that. The Village has had the ability to realize about 50% of its tax liabilities and revenue stream because of the prepaid taxes that were made at the end of the year.

In terms of appropriations, most if not all of the other expenses are about encumbrances. The Department Directors have not had the opportunity to encumber funds because the budget wasn’t adopted yet, so there is less that 33% on those items but it is similar to what the Village had last year.

Councilman Voigt questioned whether Mr. Rooney could go over the administrative charges. Mr. Rooney stated that it was compared to last year where there was the same scenario with not as much road work being done during the winter months. When road work begins, these are on a cash basis so they have to be billed and by the time it is collected it is the end of June and there is a significant jump at that point.

Councilman Hache questioned the Cablevision franchise tax of over $368,000. Mr. Rooney stated that was a franchise fee that Cablevision pays to the Village on an annual basis in accordance with franchise agreements.

Mr. Rooney moved onto the Water Utility Fund, and stated that revenue was down because of weather as there has been a lot of rain and people don’t use as much water. Expenses on the appropriations side, encumbrances could not have been made until the budget was adopted and that will grow.

Mr. Rooney stated that Parking revenues were on track, however there was a bit of seasonal activity there. He added that he was comfortable with that, and on the appropriations side there were encumbrances that were not put into place for other expenses. A full time PEO hasn’t come on board yet, so that is a reason for the salary being lower than 33% of the budget.

Councilman Voigt questioned whether Mr. Rooney could break out what was Parkmobile versus coin. Mr. Rooney stated that he would send a summary of the breakdown to Councilman Voigt.

 

7. Award State Contract – 2018 Chevy Tahoe SUV – Fire Department

 

Ms. Mailander stated that this was the award under State Contract for a 2018 Chevy Tahoe SUV to replace a 2006 Ford Expedition. The Tahoe is in this year’s capital account and is $34,695.68. The contractor is Hertrich Fleet Services, Inc. of Delaware. The 2018 Chevy Tahoe will be used by the fire inspection bureau, to transport personnel and equipment to emergency scenes, and transport personnel to firefighting classes. The 2006 Ford Expedition will be sold on GovDeals.com.

 

8. Proposed Ordinance for Hillcrest Road Streetscape Project

 

9. Proposed Ordinance for North Pleasant Avenue Streetscape Project

 

Ms. Mailander stated that the proposed ordinance for the Hillcrest Road streetscape project and the proposed ordinance for North Pleasant Avenue streetscape project were 100% funded through NJDOT grants which were received for each of these projects. The plan is to introduce these ordinances at the July 1 reorganization meeting and adopt them at the July 18 public meeting. This will get the funding in place so the Village can move forward with these streetscape projects.

Councilman Voigt questioned what the Village was doing for the streetscapes. Ms. Mailander stated that it included curbs and sidewalks. Mr. Rutishauser stated that the projects includes re-surfacing the road, minor drainage work when necessary, replacement of curbs that are past their useful lifespan, driveway aprons, addition of walking crosswalks, and the planting of street trees where applicable.

 

1. Policy

 

1. Public Health Nuisance Code

 

According to Chapter 52, Public Health Practice Standards of Performance for local boards of Health, will conduct a public health nuisance program to include the investigations of Public Health Nuisances. In 2005 the Village adopted certain sections of the Public Health Nuisance code, however it did not adopt the section regarding the depositing of matter which serves as food for insects or rodents or which constitutes a breeding place or harborage for insects or rodents. Dawn Cetrulo is suggesting that the Village adopts this now as there were some issues with rodents that were being fed. This would not include bird feeders, they would only be included if the ground or the area beneath the birdfeeder were not cleaned up. This could be anything that would harbor insects.

Deputy Mayor Sedon asked whether this would impact anyone who would like to do backyard composting. Ms. Mailander stated that it would be alright to compost so long as they cleaned up and maintained the compost appropriately.

 

2. Ban on Plastic Bags

 

Elle Gruber and Lisa Somers introduced themselves as members of the Ridgewood Environmental Advisory Committee (REAC). Ms. Gruber stated that last time they were before the Council they presented their idea and they served the Chamber of Commerce and the Ridgewood Guild. Ms. Somers thanked the Council for asking for a progress report and added that they were happy that there was openness to considering a bag ban as this is a growing trend in Europe, the United States, in quite a few towns. Just to set a context, not all bag bans are alike, there is room for devising what makes sense for the community. The typical formula is one in which the supermarkets and some retailers are not allowed to provide single use plastic bags, they are required to provide, if necessary, biodegradable paper bags and at a cost to the customer of five cents, but it could be ten cents.

Ms. Somers stated that what they have done since they were last before the Council, they created a survey for the business community and met with the Chamber and Guild, and they were very supportive and thought it was a wonderful idea and were happy to forward the survey to the members. So far, there was one concern that was voiced from a restaurant regarding take home food and leakage, and so Ms. Gruber checked with people in states where there are successful bans and was told that is a problem that is not insurmountable. Usually a cardboard box is given for food with a paper bag, and the cost is added to the bill.

Ms. Somers stated that they looked at other bag ban laws, and Teaneck has a law that will go into effect in July. It does not ban single use bags, it requires that a store may not offer one but if asked then there is a charge. In her opinion that is somewhat of a deterrent to people using plastic bags, but frankly there are a lot of communities out there that are doing better with their laws. Ms. Gruber checked with Stop and Shop headquarters in Massachusetts, where there are now 30 towns that have enacted bag bans, and they report no problem at all with this ban.

Ms. Somers stated that Ridgewood would not be reinventing the wheel, as there are a lot of really good models that it could follow. There are states and municipalities that have been doing it long enough that there is a guide for how to do this, and there is evidence that it is very effective and has an impact on consumer behavior. They are anticipating that there will be some concerns once there is an effort to create a bag ban. Ms. Somers stated that one of the things they are anticipating is people who might say they should up the pressure on people to recycle bags. Regarding that approach, increasing the opportunity for recycling bags can be done but you are not addressing the extraordinary amount of fossil fuels that are used to produce these bags and the fact that we know that any time there is a recycling program that the recycling stream is only getting a fairly small percentage of the number of recyclable items that you are trying to capture.

Ms. Somers stated that their feeling is that this is not going to be without some concerns. Nonetheless the governing body is responsible for the laws that will protect the environment. The statistics around plastic bags are stark and horrible, as there are a trillion of these bags produced annually across the globe. One hundred billion of these bags are in the United States, with 12 billion barrels of oil used to produce these bags. It takes 500 years for one plastic bag to degrade. Ms. Somers stated that the feeling at REAC is that it is way past time, and it would be a really fantastic and exciting opportunity for Ridgewood to be one of the leaders in doing the right thing.

Councilman Voigt questioned what the next steps were. Ms. Gruber stated that the next step is an education program, they would put out some information. She added that the stores like it when you bring your own bags shopping, as Kings and Whole Foods offer money back. Mayor Knudsen stated that with adding the carousel at the checkout for the plastic bags, Stop and Shop has created a deterrent to bringing her own bags. Ms. Gruber stated that Monmouth County passed an ordinance this week. She stated that hopefully in a few months they would be ready to introduce an ordinance. Councilman Voigt asked if Ms. Gruber could provide a copy of the Monmouth County ordinance.

Deputy Mayor Sedon stated that the Council would put together an ordinance based on what was discovered from various outreach and education. This would all be compiled into a list of what they are looking for, and craft an ordinance out of that. It would be an effort that could come to fruition in the fall or winter.

Councilwoman Walsh stated that Suffolk County, New York, as of January 1, 2018 started this law. The grocery store in the town where she has a summer home has a five cent charge per bag and have said that it has had absolutely no impact as people don’t care about paying for the bag. In this instance, their ban isn’t working. Ms. Gruber compared this to the Teaneck ordinance. Ms. Somers stated that this is unlike other models where plastic is not available. Ms. Gruber stated that the objection from Kings was that it costs them money for the plastic bags. Councilwoman Walsh stated that the consumer doesn’t care about paying the five cents. The challenge is the education and how to change the behavior. The places that have had the most success include a major educational push as well as not providing plastic bags so people really understand why they are not getting plastic bags.

Councilman Hache stated that if there is no impact the stores don’t complain because they are making money on the bags. Councilwoman Walsh stated that it was a reusable plastic bag that is being used in Suffolk County. Ms. Gruber stated that in Maine at the vegetable stand you get a reusable plastic bag which she has been using for over a year. Mayor Knudsen stated that they should try to gauge the public sentiment. Councilman Hache stated that they could team up with the CBDAC possibly to hold an educational forum. Mayor Knudsen recommended going out to social media and putting the information out there.

 

1. Operation

 

1. Authorizing Age Friendly Application for the AARP Community Grant

 

Ms. Mailander stated that Age Friendly Ridgewood has proposed to apply for a grant to purchase two solar powered pedestrian crosswalk warning signs for the Village. This is similar to the crosswalk warning signs by Graydon Pool. They would like to place one at the mid-block crosswalk on North Maple Avenue from the Library to the Kings Shopping Center and another possibly on Franklin Avenue at one of the intersections there.

 

2. Amend Designated Individuals to Issue Notices on Dead Trees

 

Ms. Mailander stated that there have been a lot of storms this winter and spring and looking at the current language in the code it doesn’t permit the Code Enforcement Officer to send notices to residents on tree hazards. This would add to the ordinance so they can enforce by sending notices. It would include the Village’s Code Enforcement Officer, Parks and Recreation Department, the Engineering Division, in addition to the current one which includes Police and/or Fire. It also adds the Village’s Code Enforcement Officer, Parks and Recreation Department, and the Engineering Division to those who can enforce this chapter, which also includes the Police and Fire Department, the Construction Officer and Village Sanitation.

 

3. Authorization to Join U.S. Communities Cooperative Purchasing Program

 

Ms. Mailander stated that this was cooperative purchasing and pricing. One of the Village’s principle suppliers of electrical materials is on this cooperative, so it will be an excellent way for the Village to obtain equipment and parts needed that have been competitively bid.

7. REVIEW OF JUNE 13, 2018 PUBLIC MEETING AGENDA

 

Ms. Mailander stated that this was a review of the June 13, 2018 Public Meeting Agenda.

Proclamation to Recognize the 60^th Anniversary of Kasschau Memorial Shell.

Resolution for Ridgewood Water: Award Professional Services Contract – Water Rate Study.

The following ordinances are scheduled for public hearing: 3639 – Amend Chapter 212-31 – Skate Park Rules and Regulations; 3646 – Establish Valet Parking Area on North Broad Street; 3647 – Amend Chapter 190 – Land Use and Development – Establish Regulations for Blade Signs in Central Business District; 3648 – Amend Chapter 172-6 – Nuisances Enumerated – Bands and Music; and 3649 – Redevelopment Plan – Block 3809, Lots 12 & 13 – Hudson Street Parking Lot.

Resolutions include: Waive Fourth of July Vendor Fees; Grant Permission to Fireworks Company for Fireworks Display; Reject Bids – School Bus Transportation – Summer Day Camp; Title 59 Approval – School Bus Transportation – Summer Day Camp; Award Contract – School Bus Transportation; Title 59 Approval – Vehicle Emergency Equipment – Police, Fire, and Emergency Services; Award Contract under State Contract – Carpet Replacement – Police Department; Award Contract under State Contract – Carpet Replacement – Finance Department; Award Contract under State Contract – 2018 Chevrolet Tahoe SUV – Fire Department; Award Professional Services Contract – Phase 1 Archaeological Study – Schedler Property; Authorize Snow Plowing Agreement with Bergen County; Extend Suspension of Ordinance for Certain Illuminated Signs in Central Business District; Authorize Encroachment Agreement – ADDRESS; Authorize Mailing of Estimated 2018 Third Quarter Tax Bills; Authorize Joining U.S. Communities Cooperative Purchasing Program; Authorize Joining Somerset County Cooperative Pricing; Authorize Director of Parks and Recreation to Sign Certain Seasonal Contracts; Authorize Application to AARP Community Grant for Age Friendly Ridgewood – Pedestrian Safety Improvements; Extend Non-Enforcement of Electronic Signs in Windows of the Central Business District; Endorse Application for Bergen County Historic Preservation Grant for James Rose Center; Authorize Settlement of Claim; and Approve 2018-2019 Renewals of Liquor Licenses.

8. MANAGERS REPORT

Open House – Ms. Mailander stated that on Monday, June 11^th at 8:30 P.M. there would be an Open House in the Court Room to view plans for the Hudson Street Parking Garage. Representative from Epic Management, Tim Haahs, and Bohler Engineering. Mr. Rooney will also be present. Anyone interested in the project is invited to come and take advantage of this opportunity.

Village Council Reorganization – Ms. Mailander stated on Sunday, July 1^st at noon the Village Council Reorganization Meeting would be taking place in the Court Room.

 

Village Council Work Session – Ms. Mailander stated that the Village Council Work Session for June 20^th has been cancelled.

Graydon Pool – Ms. Mailander stated that Graydon Pool opened last Saturday and is open seven days a week from now until Labor Day. Memberships and daily passes can be purchased by residents at the pool office, full hours are weekdays from noon to 7:30 P.M. and weekends from 10:00 A.M. to 7:30 P.M.

Ridgewood Guild’s “Music in the Night” – Ms. Mailander stated that showcase began June 1^st and will continue in front of several participating restaurants every Friday night through the end of August.

Kasschau Shell – Ms. Mailander stated that the Kasschau Shell opens its season on Thursday, June 7^th with ‘Tunes in June’ with various groups from Ridgewood High School. On Thursday, June 14^th, there will be a 60^th Anniversary celebration for the Kasschau Shell, with a performance by the Ridgewood Choral, which was the group which performed at the first performance at Kasschau Shell in June of 1958, where there were 3,500 people in attendance.

Movies in the Park – Ms. Mailander stated that Movies in the Park sponsored by the Ridgewood Guild will start June 13^th at Memorial Park at Van Neste Square.   The movie will be ‘The Creature from the Black Lagoon,’ which will start at approximately 9:00 P.M. Movies are shown every other Wednesday, and the movies shown during the summer will be big, including ‘LaLaLand,’ ‘Toy Story,’ ‘Mrs. Doubtfire,’ and ‘Planet of the Apes.’

Mayor Knudsen stated that there was a thread on Facebook about the closing of Graydon on Monday due to inclement weather and people showed up later but there was no posting regarding the closure of the pool. Ms. Mailander stated that she would report on this last week so that everyone could be aware as to how it works.

9. COUNCIL REPORTS

 

Planning Board – Councilman Voigt stated that the Planning Board met last night for a courtesy review of the Hudson Street Garage along with a presentation by Epic. Epic has done a nice job in thinking through the issues so far. There was a review of the installation of the granular activated carbon system in order to meet EPA Health Advisory Standards. Mayor Knudsen and himself were asked to recuse themselves.

They memorialized a resolution for a minor subdivision at 401 Mountain. There was an approval of the developer’s agreement for The Dayton and Chestnut Village.

 

Gay Pride Flag Raising Ceremony – Councilman Voigt stated that himself and Mayor Knudsen attended the ceremony yesterday at Ridgewood High School, which was a nice presentation put on by the members of the Gay/Straight Alliance. Charlotte Simpson and Sarah Vaccaro did a very nice job. Tom Gordon, Principal, provided some words of wisdom on acceptance of everybody.

 

Gun Violence Awareness Program – Deputy Mayor Sedon stated that on June 2^nd he and Mayor Knudsen attended the Gun Violence Awareness Program involving the Mothers Demand Action at Memorial Park at Van Neste Square. They then went down to Olive R. Twist to celebrate their Grand Opening and then went to Graydon for the meet and greet on Graydon patio, which was a senior event that was well attended.

RBSA – Mayor Knudsen stated that RSBA had their last Special All-Stars Program this past Sunday, and all of the Special Needs children who participated had a t-ball game and received trophies. She thanked Brendan Buckley, Karen Whalen, Jim Albano, and all of the parents and kids who came out from RBSA to assist the children to run the bases and hit the ball. She added that this was a great opportunity for special needs children to participate in sporting events. Mayor Knudsen remembered a friend’s son who had his first opportunity to play organized sports at this RBSA event eleven years ago.

 

Ad-Hoc Committee Suggestion – Mayor Knudsen stated that a resident suggested an ad-hoc committee be organized to review any potential conflicts of interest for individuals appointed to Boards and Committees. She thought that was an interesting opportunity to better understand what Boards and Committees the appointed members in case they did have any specific conflicts. She stated that it was something they should consider and there should be a form that identified individuals who may have a conflict of interest step away from the entire board or any specific discussions.

 

10. COMMENTS FROM THE PUBLIC

 

Boyd Loving, 342 South Irving Street, stated that he wanted to follow up on the subject of Graydon and closing Graydon. He stated that it would be nice to have a phone number to call or a place where it could be posted online to determine whether the pool is in fact open or closed.

Mr. Loving stated that Councilwoman Walsh spoke about the bus situation where the middle school had requested charter buses because they wanted air conditioning, comfortable seats, and restrooms. Charter buses don’t have seat belts, but it is mandatory in the State of New Jersey that all school buses have seat belts. He added that having contracted with a company, they should make sure that the Village will be provided with school buses which have more safety features.

Mr. Loving stated that he was upset regarding what he heard about the garage this evening. One of the things was that the life expectancy was said to be thirty years, as he believes that number is very high as it is a pre-fab construction with caulking between the seams which has a life expectancy between 15 and 20 years if you take care of it properly. He added that he would be concerned about entering into any financial arrangement that requires 25 to 30 years to pay if off because the garage may not last that long.

Mr. Loving stated that regarding deferred payments, the Village would pay more if they paid later. He questioned why the Village would want to spend any more if it didn’t have to. He stated that there was also mention of borrowing more to pay off interest, so there would be bonds and then more money borrowed via another process to pay off some interest so there would be two loans, which didn’t make any sense to him at all. He added that it seemed like the rate increase was a done deal, where he thought it was said that a rate increase can amount to nothing more than a tax increase, or another tax and the Village was going to try and avoid that. Mr. Loving stated that he didn’t know here that came from as it is basically another tax, and why would the Village add another tax. It seems as though the Village still hasn’t figured how to pay for this. The last time there was a rate increase it had to be rolled back. He encouraged the Council to slow down and talk about how they planned to pay for it before the Village was in a big financial mess.

Mr. Loving stated that there was a comment made about no design costs and lower construction costs, and cautioned that just because it costs less to build a multi-million dollar house doesn’t mean you should buy it.

Anne Loving, 342 South Irving Street, stated that she and Mr. Loving learned that you can call the Bergen County Mosquito Control and they will come to your house at no charge and they will check your property for mosquito areas and spray BT spores which is a non-pathogenic spore and is non-toxic to humans.

3. RESOLUTION TO GO INTO CLOSED SESSION

 

Deputy Village Clerk Donna Jackson read Resolution #18-168 to go into Closed Session as follows:

11. ADJOURNMENT

 

There being no further business to come before the Village Council, on a motion by Councilman Hache, seconded by Deputy Mayor Sedon, and carried unanimously by voice vote, the Village Council’s Work Session was adjourned at 11:03 P.M.

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                                                                                                     Susan Knudsen                            

Mayor                        

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              Donna M. Jackson