Special Public Budget Meeting 20160413

A SPECIAL PUBLIC BUDGET MEETING OF THE VILLAGE COUNCIL OF THE VILLAGE OF RIDGEWOOD HELD IN THE SYDNEY V. STOLDT, JR., COURTROOM ON THE FOURTH FLOOR OF THE RIDGEWOOD VILLAGE HALL, 131 NORTH MAPLE AVENUE, RIDGEWOOD, NEW JERSEY, ON APRIL 13, 2015 AT 5:00 P.M.

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

Mayor Aronsohn called the meeting to order at 5:01 p.m. and read the Statement of Compliance with the Open Public Meetings Act. At roll call the following were present: Councilmembers Knudsen, Pucciarelli and Sedon. Also present were Roberta Sonenfeld, Village Manager; Heather Mailander, Village Clerk; and Stephen Sanzari, Deputy Chief Financial Officer. Councilwoman Hauck was absent.

2.         FLAG SALUTE

Mayor Aronsohn led those in attendance in the Pledge of Allegiance to the flag. There was also a moment of silence held to honor the American men and women serving in the Armed Forces as well as those serving as first responders.

3.         COMMENTS FROM THE PUBLIC

Mayor Aronsohn asked if there were any comments by the public and there were none.

4.         DISCUSSION ITEMS

a.         Discussion of 2015 Operating Budget and 2015 Capital Budgets

Mayor Aronsohn stated that the purpose of this meeting is to accept one of the three 2015 budget proposals and then the chosen budget will be introduced at the next meeting on April 22, 2015. Ms. Sonenfeld mentioned that a new addition will be made to the binder, a document setting forth capital for the Parking Utility. Capital requests for the Parking Utility include three handheld devices for the new Park Mobile System, in order to automatically read license plates, and a truck with a gated hatch for efficient coin collection.

Upon questioning by Mayor Aronsohn, Ms. Sonenfeld explained how the handheld devices would be utilized by the Parking Enforcement Officials (PEOs). Automated “readers” to be placed on top of the PEO vehicles have been held in abeyance for the time being, since they are costly and Ms. Sonenfeld explained that she thought the PEOs should get used to the handheld devices initially. Councilman Pucciarelli mentioned that this would bring the total capital budget to approximately $3,180,000, since the prior total was approximately $3,124,000. Ms. Sonenfeld explained that the budgets for the Parking Utility and Water Utility are separate from the Village capital budget.

Ms. Sonenfeld indicated that she recently met with Library personnel and the allocation has been increased from $17,000 to $20,000 in the Recommended Budget, which does not affect the 1.2% tax increase. Ms. Sonenfeld reviewed the three proposed budgets. She stated that the “Recommended Budget” with a 1.2% tax increase will increase resident satisfaction and services, as well as allow for professional development of Village staff.

Ms. Sonenfeld reviewed her meeting with Northwest Bergen Central Dispatch, as well as some corrections which were made in the Parking Utility budget. An exhaustive analysis has not been performed to determine the amount of time actually spent by the Village Manager’s Office and Village Clerk’s Office dealing with issues relative to the Parking Utility. Ms. Sonenfeld suggested that the numbers be revisited next year, when there is a new Chief Financial Officer/Parking Director in the Parking Utility who can take over some of these responsibilities.

Councilman Sedon asked why the Human Resources position was being increased from a part-time position to a full-time position with benefits. Ms. Sonenfeld mentioned that in addition to the “economic” advantages, there was a lot that had to be accomplished in the Human Resources Department. She mentioned how employees line up outside the door in order to speak with Sharyn Matthews, Senior Personnel Assistant, and how Ms. Sonenfeld and Ms. Mailander spent a good deal of time with Ms. Matthews recently reviewing civil service and seasonal employment issues. Other issues include succession planning, professional development, redesigning of organizational structure, retirements, process planning for timely performance evaluations, and overall management of the Village’s 275 employees.

Ms. Sonenfeld mentioned how the legal budget has been decreased for human resources support and personnel investigations by approximately $60,000 due to the advent of the Human Resources Department. She mentioned that Ms. Matthews’ hours will be increased from 29 hours per week to 35 hours per week. Councilman Sedon asked if these tasks couldn’t be accomplished by a part-time employee since the contract negotiations with fire and police personnel are not on-going. He was concerned about the significant increase in wages and benefits. Ms. Sonenfeld replied that it was her fervent belief that all of these responsibilities and goals cannot be handled strictly by a part-time employee.

Police Chief John Ward mentioned that the resources of his department are severely taxed when they have to devote manpower to perform employee investigations. He explained that Ms. Matthews has already taken care of a couple of investigations for them so that his department did not have to become involved. He believes that this will occur more and more in the future, resulting in the resources of the Police Department being allocated to more serious matters and a cost savings overall. Thomas Yotka, Director of the Building Department, also mentioned how extremely instrumental Ms. Matthews has been in guiding him through the Civil Service hiring process, which can entail a quagmire of details and regulations and hours of interviewing people. Ms. Sonenfeld mentioned that when the Human Resources Department has become a “well-oiled machine,” then Ms. Matthews could certainly assist in other areas, including the introduction of Six Sigma.

Councilman Sedon asked Chief Ward how many cases, on average, his department would have to investigate each year. Chief Ward indicated that he could not specifically comment on any on-going investigations, but there have been times when his detectives have had to investigate employee matters instead of devoting themselves entirely to serious criminal matters, such as during the shooting at the Old Paramus Church and the rash of burglaries seen in the Village recently. He mentioned one investigation, which actually turned into a criminal matter, which took him 3-1/2 months (at 40+ hours a week) to complete.

Chief Ward explained that they begin the investigation of a potential criminal matter and eventually need to seek the advice of Village legal counsel or independent legal counsel to continue the investigation, which could have been handled more cost effectively by a Human Resources employee. He stated that he would have to do some research to determine exactly how much time has been spent with routine personnel investigations, but he mentioned that it is not only a matter of hours, but rather days and weeks spent by him and his staff to do a proper investigation. Chief Ward also mentioned the new intergovernmental transfers for which he will seek assistance from Ms. Matthews.

Ms. Sonenfeld also indicated that Ms. Matthews is a seasoned professional and having her in a full-time position could reduce risk in certain areas, such as wrongful terminations and violations of Civil Services rules. Councilman Sedon thanked everyone for their remarks. Councilman Pucciarelli recalled a prior lawsuit against the Village, which resulted in significant time and costs being expended by the Village, dealing with an employment practice that violated Civil Service regulations. He also mentioned the Village’s insurance rating, as well as the four collective bargaining agreements negotiated within the past year and the need to develop consistent policies and procedures across the board, particularly regarding compensation time. Combining all of these factors, Councilman Pucciarelli stated that it makes sense to have a full-time Human Resources employee.

Councilman Sedon pointed that Nancy Greene from the Library was present at the meeting. Ms. Sonenfeld reported that she had advised the Councilmembers that she had met with Ms. Greene recently and they had discussed the Library’s budget requests for 2015. Ms. Sonenfeld mentioned that she had also met with John Johansen, President of the Library Board of Trustees, and they had also discussed how the Village would most likely be funding $20,000 of their approximate $34,000 budget requests and $50,000 towards their capital requests.

Ms. Greene mentioned that it was very educational and helpful for her to meet in person with Ms. Sonenfeld, Mr. Sanzari, and Toni Mathes, the Library’s Business Manager. She now better understands the overall perspective of the Village budget and the issues the Councilmembers are working on. Ms. Greene mentioned that the Library will not be replacing the Library employee who is retiring. She indicated that they discussed the 1997 oil tank remediation issue and how the startup costs for the remediation will be paid out of the Library’s operating budget, to be reimbursed by the Village at a later date. Ms. Sonenfeld indicated that $25,000 would be set aside by the Village for the oil tank remediation, since the costs for this project are unknown at this time. Ms. Greene indicated that she is very pleased with the support given to the Library by the Village Council.

Councilwoman Knudsen asked how many more hours the HR position would be increased by, and Ms. Sonenfeld reiterated that Ms. Matthews’ hours would increase by six hours per week (from 29 to 35 hours per week). Ms. Sonenfeld added that Ms. Matthews is working much more than 29 hours a week at the present time, for which she is not compensated. Councilwoman Knudsen then asked about the potential savings for legal counsel during contract negotiations if the HR position were made a full-time position, since she noted a line item of $35,000 for legal counsel.

Ms. Sonenfeld said that the savings will be realized because Ms. Matthews has been drawing up the revised contracts rather than Legal Counsel doing so and the only thing which needed to be done by Legal Counsel was to review the contracts after they have been drawn up. However, this will not be applicable regarding the police negotiations and that is why there has been a proposed allocation of $35,000 for Legal Counsel. Ms. Sonenfeld surmised that Village Legal Counsel will be used less and less as time goes on and the allocation for same has been reduced in 2015. Mr. Sanzari indicated that Labor Attorney expenses in 2014 totaled $96,210; $60,000 had been budgeted in 2014 and $50,000 was budgeted for 2015.

Councilwoman Knudsen also asked for clarification regarding investigations done by the Police Department, the differences between personnel investigations and criminal investigations. She surmised that these may be intertwined, with involvement by Internal Affairs and union representatives in the investigations. Chief Ward corroborated that there were indeed several layers in investigations and who became involved depended upon the nature of the acts which initiated the investigation. He mentioned a criminal investigation which involves non-police personnel, allegations of a possible criminal incident or improper conduct by non-police personnel.

Chief Ward indicated that when no criminality is found, the findings are generally turned over to either the Village Manager’s Office or the Labor Attorney for followup. He mentioned the differences between that scenario and Internal Affairs investigations regarding police personnel. If improper conduct is found, then the Labor Attorney would have to be consulted regarding any appropriate penalties or sanctions; abiding by Civil Service regulations; and avoiding excessive penalties, which may lead to litigation against the Village. In that regard, Chief Ward concluded by stating that a full-time HR employee would be beneficial to the Village.

Mayor Aronsohn explained the process whereby the chosen 2015 budget proposal would be introduced by a resolution at the next Village Council meeting. He indicated that during his seven years on the Village Council, there were many occasions where a full-time Human Resources employee would have been useful, whether it concerned a disciplinary issue or a professional development issue. He mentioned that the greatest assets of the Village are its people, the 275 employees who provide services to Village residents, and that making the HR position full time would be money well spent.

b.         Decision on 2015 Budget Proposals

            1.         “Recommended Budget”

            2.         “Premium/Reduced Risk Budget”

            3.         “Reduced Investment/Greater Risk Budget”

Councilman Sedon began by stating that he was inclined to go with the “Recommended Budget.” He felt that this budget included investments in technology; improvement in quality of life issues such as cleaning of the tree wells in the Central Business District (CBD); and investment in staff development.  The only hesitation he had with this budget was making the HR position a full-time position. He indicated that he needed more time to digest the new information which was rendered at today’s meeting. However, overall, his recommendation would be to go with the “Recommended Budget.”

Councilman Pucciarelli echoed the thoughts of Councilman Sedon and added that, as a member of the Board of Directors, he did not believe in micromanagement and that some leeway should be given to management to use their discretion in running the “business” of the Village. Viewing the “Recommended Budget” simplistically, he mentioned the $371,000 increase over the 2014 budget and, coincidentally, a similar sum of $367,000 for mandated Police Department salary increases, due to an old collective bargaining agreement. Therefore, the salary increases would be “absorbed” by the new tax increase and the budget would be “flat” as compared to 2014. Councilman Pucciarelli mentioned the savings of almost $350,000 which will be realized by the new collective bargaining agreement with the Fire Department. He stated that he was in favor of the “Recommended Budget” as well.

Councilwoman Knudsen agreed with the comments of both Councilmen Sedon and Pucciarelli. She spoke about differences between the private and public sectors. While revenues are generated in the private sector through sales and volume, she indicated that revenues in the public sector are borne by Village taxpayers. Councilwoman Knudsen also spoke about some of the salary increases in the proposed 2015 budget, particularly regarding a Code Enforcement Officer and the Village Manager’s Office. She indicated that while she supports the “Recommended Budget” because it provides for much-needed improvements regarding the Parking Utility, technology, Disaster Recovery Plan, aesthetics of the Village, and quality of life issues, she is still concerned about salary increases and needs more time to study it further.

Mayor Aronsohn reported that he also supports the “Recommended Budget” and although it calls for a 1.2% tax increase, he feels that in prior years the Village has been fiscally responsible and trimmed “most of the fat off the bone.” He feels now is the time to make some smart investments and that would be accomplished by adopting the “Recommended Budget.” He believes it strikes a good balance between meeting near-term needs and making some important investments for the future in both people and technology.

Councilman Pucciarelli spoke about the increase in the Blue Collar and White Collar agreements. Ms. Sonenfeld indicated that the 2015 budget “looks back” two years (1.5 + 1.5 + 1.5, cumulative). A discussion ensued about the delay in finalizing the collective bargaining agreement, which resulted in a carryover in 2015 of two prior years’ increases.

5.         Wrap-up of Budget Discussions and Setting of Tax Rate

Mayor Aronsohn said that it was time to adopt a resolution with the “Recommended Budget” proposal. He emphasized that the budget will be introduced, but discussions will continue.

Ms. Mailander read a statement submitted by Councilwoman Hauck since she was not present at this meeting. Councilwoman Hauck indicated her strong support for the 1.2% tax increase set forth in the “Recommended Budget.” She believes that this budget is fiscally responsible and recalled the numerous cuts and zero percent tax increases which took place over the prior three years. Councilwoman Hauck felt that the “Recommended Budget” will give the Village the ability to be more efficient, have more productive employees, and avoid errors. She feels that it lays a crucial foundation for better government by cutting waste, protecting services, building a stronger future for the Village, and leaving room for lower taxes in 2016 when Police contracts are renegotiated.

Mayor Aronsohn thanked everyone for their input and work on the budget. Councilman Pucciarelli also thanked everyone for their efforts in developing this budget. Both Councilman Sedon and Councilwoman Knudsen echoed Councilman Pucciarelli’s comments.

6.         PUBLIC COMMENTS

Mayor Aronsohn asked if there were any comments by the public and there were none.

7.         ADJOURNMENT

On motion by Councilwoman Knudson, seconded by Councilman Sedon, and carried unanimously by voice vote, the Village Council’s Special Public Budget Meeting was adjourned at 5:51 p.m.

                                                                        ____________________________________

                                                                                                Paul S. Aronsohn

                                                                                                      Mayor

____________________________________

                     Heather A. Mailander

Village Clerk