A REGULAR WORK SESSION OF THE VILLAGE COUNCIL OF THE VILLAGE OF RIDGEWOOD HELD IN THE SYDNEY V. STOLDT, JR., COURTROOM OF THE RIDGEWOOD VILLAGE HALL, 131 NORTH MAPLE AVENUE, RIDGEWOOD, NEW JERSEY, ON WEDNESDAY, APRIL 23, 2014, AT 7:30 P.M.

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

Mayor Aronsohn called the meeting to order at 7:42 P.M., and read the Statement of Compliance with the Open Public Meetings Act. At roll call, the following were present: Councilmembers Hauck, Pucciarelli, Riche, Walsh, and Mayor Aronsohn. Also present were Roberta Sonenfeld, Village Manager; Heather Mailander, Village Clerk; and Matthew Rogers, Village Attorney.

Mayor Aronsohn led those in attendance in the Pledge of Allegiance to the flag and asked for a moment of silence in honor of the American men and women serving in our Armed Forces, as well as those who serve as first responders in Ridgewood and throughout the United States. Mayor Aronsohn also asked for an extra moment to honor the memory of Ridgewood resident Roger Wiegand, who was a good friend, colleague, and the “sixth Councilmember”.

2. COMMENTS FROM THE PUBLIC

Mayor Aronsohn asked if anyone from the public wished to speak regarding any of the agenda items.

Ellie Gruber, 229 South Irving Street, said she and some other people had written to the Village Council about the tarp on the Schedler roof, with no response. Ms. Gruber said she found the lack of response surprising, because the Councilmembers usually respond to communications. Ms. Gruber stated that there is money available to have professional roofers come to repair the roof, meaning that no Village employee would be placed in any danger, nor would any Village-owned equipment need to be used for the repair. She does not understand why neither she nor anyone else who sent an email to the Councilmembers about the situation has received any response. Ms. Gruber commented that she can only guess from the lack of response that all of the Councilmembers are hoping that the building will collapse from neglect. Mayor Aronsohn apologized for all of the Councilmembers on the lack of response, and he pointed out that there has been a response, as well as communication going back and forth on the matter. He added that all of the Councilmembers do care about the house on the Schedler property.

Mayor Aronsohn asked Ms. Sonenfeld if she had any update on the situation, and Ms. Sonenfeld responded that she and Christopher Rutishauser, Village Engineer, drove past the house to take a look at it. Ms. Sonenfeld believes that it will be necessary to have an internal meeting to discuss what needs to be done and what the approach should be. She added that putting on a new roof is one thing, but there are many other issues with that house. Mayor Aronsohn said that after that meeting is held, a more specific response would be sent to Ms. Gruber.

George Wardly, 229 West Glen Avenue, stated that he appeared before the Village Council approximately one month ago, and he thanked Ms. Sonenfeld for inspecting the areas he mentioned that require curb repairs. Mr. Wardly said he only came to this meeting to ask if the funds have been restored for that project. Ms. Sonenfeld answered that she went and looked at the area mentioned by Mr. Wardly, and the issue on Glen Avenue is that it is a County road, and it seems that when the County paves its roads, the curbs are not taken care of properly. As a result, the paved road rises, while the curbs keep getting lower, and it becomes easier for water to rise up over the curbs. Ms. Sonenfeld noted that she and other Village representatives have a meeting at the County level tomorrow, including those responsible for such repairs, and she intends to raise this issue.

Nancy Johansen, 115 Lincoln Avenue, said she was addressing the Councilmembers in her role as Chairperson of the Financial Advisory Committee (FAC). Ms. Johansen stated that the members of the FAC wanted to make a public statement regarding the 2014 budget. The FAC spent many hours working with Stephen Sanzari, Chief Financial Officer, as well as with Ms. Mailander when she was Acting Village Manager, and more recently, with Ms. Sonenfeld as Village Manager, to improve the budget process. A major change in the process is that the 2014 budget was developed using actual expenditures from 2013, rather than 2013 appropriations, which is a major step forward in improving the process. It is also in line with private sector budgeting practices. The other major change, which is another step forward, is that the capital and operating budgets were reviewed at the same time. Ms. Johansen, on behalf of the FAC, applauded everyone for their efforts on the budget, and while they know there is more work to be done, a lot of progress has been made.

Based on the work already done, Ms. Johansen said they do not believe there is a lot of room to make cuts in the current budget, given the contractual constraints of the Village, and the Village’s current model for providing services. The FAC believes that Village department heads and staff have carefully evaluated their budgets line-by-line, which took an enormous amount of work, and Ms. Johansen applauded them. Potential savings have been found. However, in order to maintain the existing service levels without tax increases, the FAC believes more fundamental changes will be required. Those include: changes to the terms of the collective bargaining agreements; and structural changes in how services are provided, whether it be through outsourcing, working with the County, shared services, or other arrangements. It cannot be emphasized enough that the need to address longer-term issues is essential. For example, the Village does not have enough reserve to pay for unpaid sick leave compensation for Village employees who retire. Currently, there is a reserve of less than $500,000, with an estimated liability of $7 million or more. The Village has not been adequately investing in its facilities, with the Village Garage being one example of that, which could lead to higher expenditures in the long-term. However, a strategic plan is needed for all departments, with consideration given to other alternatives that have been discussed regarding outsourcing, consolidation, or shared facilities. The other longer-term issue is that the Village has essentially funded salary increases under the existing union contracts by holding the line on increases in other departments in order to stay within the 2% cap, or by utilizing one-time offsets. If changes are not made in the terms of these contracts, either services will have to be cut, or higher taxes will be required in order to fund these contractual obligations and maintain current service levels. Village residents and the Village Council will need to consider this trade-off as new contracts are negotiated and the budget process moves forward. These issues will take time to resolve, and may require one-time expenditures related to severance, consulting expenditures, or restructuring reserves, among other things. Those types of expenses are not provided for in the budget.

Additionally, the current budget does not does not have much of a cushion to absorb potential unexpected events, or unknown expenses. Therefore, there are reasons for the Village Council to consider a tax increase, particularly if the additional proceeds were applied to unfunded obligations, or to fund critical projects that are focused on cost reduction or service improvement in the longer-term. That being said, Ms. Johansen said there was lively debate among the members of the FAC, who support a 0% tax increase for 2014, while maintaining the focus on budget discipline. However, the public must understand that a 0% tax increase does not represent a new normal. The FAC sees no way to avoid significant tax increases in the future without structural changes, but in the absence of specific proposals that justify additional funding, they do not believe a tax increase is justified at this time.

Ms. Johansen continued by saying that the Village’s financial position is stable. Debt has not increased substantially in recent years, and the surplus has increased somewhat, as well. Therefore, the FAC members are confident in the ability of the new Village Manager to generate continued savings by identifying improved operating efficiency, both short-term as well as considering strategic solutions. Mayor Aronsohn thanked Ms. Johansen and the members of the FAC for their help and leadership during the entire budget process. They have accomplished a lot over the last year, and Mayor Aronsohn expects that they will do a lot of work in the coming year.

There were no other comments from the public at this time, and Mayor Aronsohn closed the time for public comment.

3. PRESENTATIONS

a. Honor and Remember Flag

Mayor Aronsohn introduced American Legion Post 53 Commander Bob Paoli, and Maria Bombace, both of whom are involved with Blue Star and Gold Star Families. Ms. Bombace said she is a proud mother of a New Jersey National Guardsmen and former United States Marine, and she has joined Mr. Paoli in asking the Councilmembers to adopt the resolution to accept the Honor and Remember Flag, and have it flown in Ridgewood in honor of its fallen warriors. Ms. Bombace became aware of the flag as a Blue Star Mother, and member of the Ridgewood Gold Star Mother’s Day Committee. The creator and designer of the flag is George Lutz, whose son, Tony Lutz II, was killed on December 29, 2005, in Iraq. In the months that followed Tony’s funeral, George visited other families who had lost loved ones in the war. These families were only the latest additions to a group that originated with the American Revolution, when the first soldiers to shed their blood for American freedom gave their lives. George discovered, as did Ms. Bombace, that the family of a fallen soldier wanted to know two things: that their sacrifice was not in vain; and that the nation would never forget. After extensive research, George found that since the Revolutionary War, there has never been a symbol specifically acknowledging American servicemen and women who gave their lives in service to their country. Thus, the Honor and Remember Flag was conceived. It was never meant to detract from Old Glory in any way, shape, or form, but is only meant as an additional reminder to others of the supreme sacrifice their heroes endured in defending their country.

The President of New Jersey Chapter 3 of Blue Star Mothers, Marjorie Sietsma, learned about the Honor and Remember Flag, and it became her mission to have it become the New Jersey State flag for the fallen. Working with Stanley Kober, Commander of VFW Post #192 in Ho-Ho-Kus; Assemblyman David Russo; and State Senator Kevin O’Toole, Ms. Sietsma helped to create legislation for the bill, which is A-2029. Ms. Sietsma was privileged to testify in both the Assembly and the Senate. The bill passed both Houses unanimously in 2012. Governor Christie signed the bill on November 19, 2012, making New Jersey the fourteenth state to make the Honor and Remember Flag its state flag for the fallen. Ms. Bombace noted that, along with the Gold Star Mother’s Day event in Ridgewood, flying the flag locally in Ridgewood and throughout New Jersey allows everyone an opportunity to pay tribute to the Gold Star families’ sacrifices. Gold Star Families are everywhere, and for the most part, no one knows who they are. They are unseen and unnoticed, blending into society. By flying the Honor and Remember Flag in Ridgewood, these families can get the recognition they deserve beyond solemn words spoken on holidays throughout the year. A silent message can be spoken, and that life can be celebrated with a tangible symbol that reminds us that Americans have fought many battles to preserve our way of life.

Mr. Paoli and Ms. Bombace displayed a picture of what the flag looks like, and Mr. Paoli said he saw the perfect place to hang it outside Village Hall on one of the flagpoles between Village Hall and the Public Library. He suggested that perhaps it could fly under the American flag. Mayor Aronsohn thanked Mr. Paoli and Ms. Bombace for coming to the meeting, and he noted that he worked with Mr. Paoli and Ms. Bombace to draft a resolution which is now before the Councilmembers. Mayor Aronsohn commented that it is a wonderful way to recognize Ridgewood’s fallen soldiers and their families, and it is an important reminder to everyone of the ultimate price that is paid. Mr. Paoli pointed out that there is no single American symbol dedicated to the purpose of honoring the military men and women who have died in all wars from the very beginning of this nation. He added that, as Ms. Bombace pointed out, 14 states have adopted this flag, and it may be as many as 18 now. Besides being recognized as a state flag, all of those states, including New Jersey, are trying to encourage all of the municipalities within those states to adopt the flag, as well.

This resolution will be put on the agenda for the May 14, 2014 Public Meeting.

4. MOTION TO SUSPEND WORK SESSION AND CONVENE SPECIAL PUBLIC MEETING

At 8:00 P.M., upon a motion by Councilman Riche, seconded by Councilwoman Walsh, and carried by unanimous voice vote, the Village Council suspended the Work Session.

5. MOTION TO RECONVENE WORK SESSION

At 8:51 P.M., upon a motion by Councilman Riche, seconded by Councilwoman Hauck, and carried by unanimous voice vote, the Village Council reconvened its Work Session. At roll call, the following were present: Councilmembers Hauck, Pucciarelli, Riche, Walsh, and Mayor Aronsohn. Also present were Roberta Sonenfeld, Village Manager; Heather Mailander, Village Clerk; and Matthew Rogers, Village Attorney.

6. PRESENTATIONS – PROPOSALS FOR HORSE BARN AT IRENE HABERNICKEL FAMILY PARK

a. Arcari and Iovino

Ms. Sonenfeld reminded everyone that at the previous Village Council meeting, there was a discussion about the Horse Barn at the Irene Habernickel Family Park. It was decided at that meeting that two of the potential vendors would be asked to present their plans to the Councilmembers.

Anthony Iovino and Sam Chen from the firm made the presentation to the Councilmembers. Mr. Iovino stated that when the RFP was received, he and Mr. Chen recalled their past efforts on a barn structure in Holmdel, New Jersey. What attracted them to this project was its proximity to their offices in Little Ferry; and the fact that they have done similar projects. Although the building in question is not a historic building, it obviously has qualities that the Village would like to preserve, otherwise there would be no question as to whether it should be saved. Mr. Iovino agreed that the first step outlined in the proposal package is the correct one, and that is to gather data, so that an informed decision can be made regarding whether the building should be renovated, or whether it should be replaced. The first step in the logical process to help make that decision is for Mr. Iovino and his staff to come and take a look at the building to assess its condition. Based on the initial visit Mr. Iovino and his staff made, he said the building does not look too bad. The building has been cleaned out, making it possible to see the few structural issues that can be found. The barn structure in Holmdel was in much worse shape, and it was completely renovated. Mr. Iovino cautioned that one of the things to be aware of in this type of situation are the unforeseen conditions that can arise, such as the possibility of opening up a wall that looks perfect from the outside, only to find that it is infested with termites inside. Whatever budget is developed for this project must include contingency funds to cover such unforeseen situations. That is also what the first step in the process is supposed to help to determine. The proposal prepared by Mr. Iovino’s firm includes an option for the Village to do environmental testing, which is hard to quantify, because it would depend on the different types of materials found in the building. However, Mr. Iovino said a rate sheet was included in the proposal for such testing. He noted that those types of services can also be performed by the Village Engineer. Mr. Iovino believes the process as performed by his firm would be a 2-3 month process, depending on what conditions are found, and what meetings must be held in order to get the necessary work done. One aspect of the proposal by Arcari and Iovino is to prepare a conceptual design based on what the proposed uses are. In the proposal package sent by the Village, classrooms and other educational-type or assembly spaces, as well as other community-type spaces and restrooms for the field were mentioned. Mr. Iovino said his firm needs to learn about the types of uses intended for the property, and they can put together a concept plan to see how the building will be renovated, assuming it can be saved, in order to meet those needs. That would also determine what the potential cost will be. The data-gathering and conceptual design plan will ultimately lead to a report that gives the Councilmembers the necessary numbers they need in order to make a decision so that they will know exactly what they need to do, and how much it will cost.

Mayor Aronsohn gave some background on the subject of this discussion. He pointed out that there is a question about whether the Horse Barn at Irene Habernickel Family Park should be left standing, and if it is left standing, proposals have been made to allow the building to be used for multiple purposes. They include lightning protection; providing restrooms for the fields; and providing classrooms or meeting spaces. The question is now whether the barn could or should be preserved, or if it should be razed and an entirely new structure erected. This discussion is to determine whether an outside firm should be brought in to do an analysis to help answer that question.

Councilman Riche commented that as he read the Village’s bid specification, there was no provision that the respondent should examine the structure to assess whether it is salvageable, or if it should be torn down. Councilman Riche thought the bid specification was written in a manner that asked how to bring the structure into compliance. He asked if that was Mr. Iovino’s assessment when he read the bid specification. Mr. Iovino responded that he believes the question of whether or not the structure can be salvaged came as a result of the site visit, because it is a logical part of this process. He added that if the building was beyond saving, that would have been stated. The analysis is not whether the building should be kept or taken down, but how the space can be used, and what it would cost to make it usable for those purposes. Councilman Riche pointed out that it is possible that the cost to convert the building may be far in excess of the cost for tearing it down and building a more modern structure, which Mr. Iovino confirmed. Councilman Riche continued by noting that the bid specification also calls for a specific analysis related to environmental issues, and Mr. Iovino listed that as a separate cost, in addition to the base bid. Mr. Iovino agreed with that, and added that on the fee sheet, he spelled out that his firm’s fee is one fixed number, and that after consulting with his environmental engineer, the issue becomes how many tests and samples are required and how many times they are sent to the lab, as well as the purpose of the specific tests. He stated that, after the initial site visit, he is not too concerned about any asbestos or mold issues, but there is a concern about lead paint. The quote included in the proposal from Arcari and Iovino is based on a specific number of tests, and could increase if the number of tests and samples increase. Mr. Iovino believes the amount quoted by the environmental engineering firm could decrease by as much as 50% for testing, because unlike Village Hall, where the materials are different in every room, the structure at Habernickel Park is an open structure, and the materials are the same on all the walls. It is easy to assume that there is lead throughout the structure, and determine how it should be treated from that point. Mr. Iovino suggested that, if necessary, he could get multiple quotes for the environmental testing, or that Christopher Rutishauser, Village Engineer, could provide that service, which will decrease the cost dramatically.

Councilwoman Walsh noted that the project in Holmdel which Mr. Iovino mentioned previously sounded as if it only needed some structural work, and she asked what the extent of that project was. Mr. Iovino responded that there were three projects. One was the Harding House at Bayonet Farms; another was the Gray Barn; and the third was the Red Barn. At the Gray Barn, nothing was done to the larger barn on the property, which had horse stables on the lower floor and an assembly space on the upper floor. Instead, an ADA-compliant bathroom was installed, and the entrance to the barn structure was made handicapped accessible. The structure is also rented out for events such as weddings, and has become a very well-used building, and is one of the main financial supports of the park. Councilwoman Walsh noted that the cost for that project was approximately $600,000, which Mr. Iovino confirmed. The cost of the work done at the Red Barn was approximately $240,000. Councilwoman Walsh asked Mr. Iovino what he foresees as far as the required work to be done on the Horse Barn, and whether it would be board-and-batten siding, or some generic, cost-effective design. Mr. Iovino responded that it is not possible to cut corners on the aesthetic of a project like that, and when it comes to keeping the “spirit” of the building, research must be done to replicate to some degree what was previously there. That does not mean the same materials must be used, because it might be possible to find something that requires less maintenance, and that is resistant to termites and water, to ensure that the investment is protected. Aesthetically, it should represent and reflect the spirit of the building.

Councilman Pucciarelli pointed out that the architectural firm’s fee is set in the proposal at $9,750. However, there is a notification at the bottom of the page indicating that the rate includes the fees for environmental testing, but the quantity of tests varies, and that service was isolated from the total fee, allowing the Village to engage its own consultant directly, should it wish to do so. Therefore, Councilman Pucciarelli asked if the $9,750 includes the environmental testing fees, or not. Mr. Iovino answered that it does not include those fees, for the reasons he explained before. Councilman Pucciarelli asked if the $9,750 fee is subject to change, and if it is subject to increase. Mr. Iovino said he did not believe that would happen, although it has happened on a very few occasions that, if the project has progressed more quickly than anticipated, his firm has been flexible in their fee.

b. T. M. Rybak & Associates

Tom Rybak, principle of T. M. Rybak & Associates, said his practice started approximately 27 years ago. His firm does many different things for many different clients. At this time, they are working on a rehabilitation project of the Salvation Army building in Paterson, New Jersey. Mr. Rybak recently met with the Paterson Historical Commission in connection with that project. In addition, his firm has done work for various municipalities. Mr. Rybak distributed information describing possibilities for the Horse Barn site. The paperwork contained drawings of what is on the inside, and the type of architecture that is currently there. Mr. Rybak explained that his firm’s proposal includes the entire site, not just the building itself. The surrounding areas are included, and Mr. Rybak said his firm is willing to work with the Village to find a use for the entire area. The first page of the drawings shows the site itself, and image number two shows another view of the building. Succeeding images show interior views, and there are also drawings depicting the baseball diamond, pond area, playground, the adjacent house, and some of the bridge area. Mr. Rybak stated that his team looked at the building with the idea of either keeping it at that location and renovating it, or perhaps investigating the possibility of relocating the building somewhere else on the site. One of the ideas proposed involves moving the barn next to the baseball field if it is feasible, and finding a use for it there, whether that is storage, a refreshment stand, or some other use. Mr. Rybak believes that the way the building is currently situated, renovating it would require expanding it, or doing something else with it. Mr. Rybak provided a depiction of how the building could look after it is renovated and painted. The last page of the proposal contains other possible ways that the building could be restructured. Mr. Rybak commented that the information packet was put together specifically for this meeting, and he hoped to get the Councilmembers’ opinions on the proposal, as well as learning what their goals and objectives are for the site.

Councilman Riche pointed out that the proposal does not specifically indicate what professionals might be used, although under their scope of work, Mr. Rybak indicated that environmental issues would be identified. However, there was no indication of who might be used for the environmental assessment, and there was no indication of whether that assessment was included in the price of the project. Mr. Rybak responded that the proposal is strictly an architectural and engineering proposal. His firm is affiliated with several environmental engineering firms, and depending upon what type of testing is required, they would work with the Village on getting any needed tests completed. Those fees would be added to the base bid that Mr. Rybak submitted.

Councilwoman Hauck applauded the creativity shown in Mr. Rybak’s proposal.

Mr. Rybak added that, as the owner of the architectural firm as well as the construction firm, the projected costs are very firm, and his firm is known for managing its construction very well, as well as for analyzing these types of structures.

7. DISCUSSION

a. Budget:

1.)Shared Services Agreement with Passaic Valley Sewerage Commission – Sludge Disposal 

Ms. Sonenfeld explained that there is a problem with the current provider, TBSA, because they will no longer accept the Village’s sludge for disposal. Three quotes have been received for this service, and now a Shared Service Agreement is being investigated between the Village and the Passaic Valley Sewerage Commission (PVSC), which was the lowest quote received for sludge disposal. This resolution will be put on the agenda for the May 14, 2014 Public Meeting.

2.) Award of Contract – Fiber-Optic Communications Equipment – Ridgewood Water 

Ms. Sonenfeld commented that this contract is for the purchase and installation of public safety fiber-optic cable for Ridgewood Water. This recommendation is for an additional award that ties Wortendyke to Village Hall, and provides more reliability and access to computer programs and databases. There will be some savings realized by Ridgewood Water due to these improvements. This resolution will be put on the agenda for the May 14, 2014 Public Meeting.

3.) Award of Contract – Horticultural Supplies

The contract for horticultural supplies is for the second year of a two-year bid. This resolution will be put on the agenda for the May 14, 2014 Public Meeting.

4.)  Award of Contract Laboratory Analysis Services – Ridgewood Water

Ms. Sonenfeld noted that this would award the contract for laboratory analysis services for Ridgewood Water. There were three plan holders, and three bids received. The lowest responsible bidder, Aqua Pro-Tech Labs, is being recommended. This resolution will be put on the agenda for the May 14, 2014 Public Meeting.

5.)   Declare Police Vehicles Surplus Property

Ms. Sonenfeld stated that this resolution will declare three police vehicles surplus property. Janet Fricke, Assistant to the Village Manager, will take care of selling these vehicles through the Internet. This resolution will be put on the agenda for the May 14, 2014 Public Meeting.

b. Policy:

1.) Human Resources Policy Manual

A new policy manual has been compiled, which is required to be done every two years by the Joint Insurance Fund (JIF). Ms. Sonenfeld noted that some of the key highlights include the fact that two documents have been combined into one; and areas that needed strengthening were strengthened, based on the last two years. There was some healthy discussion among the department supervisors, as well as during a Village Council Closed Session earlier this evening, regarding unfunded liabilities and thinking about how they can be minimized, including payments for compensatory time and sick days, among other things. The current manual is a work in progress, and Ms. Sonenfeld commented that there will be more analyses performed on some of the issues. Councilman Pucciarelli noted that the Councilmembers found the manual to be very useful, as well as being well-drafted and positive in its approach to streamlining human resources, and giving more clarity to some of the policies. This resolution, to accept the new Human Resources Policy Manual, will be put on the agenda for the May 14, 2014 Public Meeting.

2.)  Resolution for Gift Contributions

Ms. Sonenfeld reminded everyone that this resolution was reviewed at the previous Village Council meeting, and it has been redrafted. The current proposal provides dollar limits before contributions must be brought to the Councilmembers for approval, and reporting requirements. It also reflects the fact that dollar limits do not apply in situations where the donor has business before the Village within 90 days of the donation, either before or after that time, and that such donations must always be approved by the Village Council. Mayor Aronsohn added that one of the things that the Councilmembers felt was very important was to strike a balance between transparency and having public confidence maintained. Previously, anyone who had an issue before any Village entity within 90 days before or after a potential donation was precluded from making that contribution, and this now puts the burden of whether to accept the donation on the Councilmembers, who can make the determination as to whether it is appropriate.

Councilwoman Hauck pointed out that this was partly driven by her interest in the issue, because she believes it is really important for the Councilmembers to start thinking about encouraging philanthropic contributions in some way, shape, or form. This is due to the fact that recently, there has been more reliance on private/public partnerships. This is not meant to discourage philanthropic motives, and Councilwoman Hauck believes that the Village should give a boost to such motives, and make it easier for individuals and organizations to make gifts to the Village. However, transparency is a fundamental issue, and this type of ordinance should allay all concerns.

Mayor Aronsohn thanked Councilwoman Hauck for her leadership on this issue, and commented that this ordinance strikes a balance between encouraging the spirit of generosity in Ridgewood while enhancing transparency in government. This resolution will be put on the agenda for the May 14, 2014 Public Meeting.

c. Operations:

1.)   PSE&G Access Consent Agreement – Graydon Pool

Ms. Sonenfeld stated that PSE&G requires that the Village execute a consent agreement in order to cross PSE&G’s easement in order to run the pipe from Graydon Pool to the sanitary sewer connection. This resolution will authorize that, and is needed to have the pipeline built. This resolution will be put on the agenda for the May 14, 2014 Public Meeting.

4. MANAGER’S REPORT

Ms. Sonenfeld commented that there is an issue she wanted to address because she gets many questions about it from her neighbors and friends, and that is the issue of paving in Ridgewood. She wanted to clarify for the public how areas to be paved are selected. Ridgewood has approximately 97 total miles of streets, including 14.5 County miles, and one mile of State road. In making the decisions regarding paving, the first step is to consult with the New Jersey Department of Transportation (NJDOT), because the Village receives grants from them every year, which are based on certain criteria and certain roads. For example, this year, South Van Dien Avenue will be paved, which is funded via a $140,000 grant. The Garber Square area to be paved is being funded by $130,000 grant. Several weeks ago, a resident asked why no paving is being done on North Van Dien Avenue, and Ms. Sonenfeld explained that it is because the Village is awaiting a grant to fund the paving. She added that it is possible that the Village could decide to go ahead and pave North Van Dien Avenue at its own expense, but it has always been the Village’s view that whenever possible, grant monies should be obtained for such projects. The Village also has a pavement management system that rates the condition of all the roads on a 0-100 scale, which is updated yearly. This system is currently in process, and it helps to determine which roads will be paved. Priority is given to main roads in the Village, and after that, secondary feeder streets, with tertiary or dead-end streets given the lowest priority. Many of those decisions reflect how residents are affected. Moreover, paving projects are spread throughout the Village, not concentrated in one area. Another factor in the paving decision is the capital budget, and the constraints it places on any such project. In addition, the Village advocates with the County, due to the presence of County roads in the Village. Ms. Sonenfeld pointed out that the Village is responsible for the ADA compliance of all County roads. She also mentioned a compounding factor, which is slurry seal, used from 1995-2001. This still creates problems today, because it does not last very long and does not address any structural or drainage issues. A physical map is maintained by the Village to keep Village personnel abreast of the current situation of the roads in Ridgewood. On average, each road is repaved every 15-18 years, although best practices suggest it should be done every 11-14 years. A list of roads needing repaving and the schedule for the repaving is maintained, which is available on-line.

Regarding the coin theft, Ms. Sonenfeld reported that the JIF has not yet provided an accounting firm for the forensic review. She is still awaiting that information.

Ms. Sonenfeld thanked the Ridgewood Conservancy for Public Lands, whose members are planting daylilies along the walk between Village Hall and the Public Library.

On Saturday, April 26^th, several events will take place. The baseball parade will start at 9:00 A.M. The “Take Drugs Back” initiative will be held at the Police Department from 10:00 A.M.-2:00 P.M., for those who have prescription drugs that need to be thrown out. The Earth Day Fair, from 10:00 A.M.-2:00 P.M., will be at Memorial Park at Van Neste Square. In addition, LAX Day is also on Saturday.

On Sunday, April 27^th, the Daffodil Festival takes place from 12:00 P.M.-2:00 P.M. at the train station parking lot. Saylestock will occur from 12:00 P.M.-7:00 P.M. at Memorial Park at Van Neste Square, with various local bands playing. The Holocaust Memorial Interfaith Service will be held at Temple Israel in the evening.

Ms. Sonenfeld pointed out that she will not be at the next Village Council meeting, because she will be attending the New Jersey Municipal Management Association Conference, discussing shared services. In addition, she is in the process of gathering ideas for opportunities to “Meet the Manager,” similar to the “Meet the Mayor” initiative in Ridgewood.

5. COUNCIL REPORTS

Ridgewood Environmental Advisory Committee (REAC) – Councilwoman Walsh reminded everyone that the Earth Day Fair is Saturday, April 26^th, from 10:00 A.M.-2:00 P.M. in Memorial Park at Van Neste Square. The members of REAC are planning to give away 1,000 saplings to residents who request them. A poster contest was held among students in grades K-5 in the Ridgewood schools, which will be on display during the fair. Councilwoman Walsh invited everyone to attend the fair.

Councilman Pucciarelli said he had no committee reports, but he wanted to remind everyone about Candidates’ Night on Tuesday, April 29^th, starting at 7:30 P.M., in the Sydney V. Stoldt, Jr., Courtroom at Village Hall. The three candidates running for Village Council will be available at that time. Ms. Mailander mentioned that the Candidates’ Night will be televised on Cablevision and Verizon FIOS.

Fourth of July Committee – Councilman Riche reported that the Fourth of July Committee is on target with their plans for a great day. Volunteers are still needed, especially people who can work taking tickets and collecting money during the fireworks at night. They are also looking for donors, because it is a great opportunity to support the Village and this committee. Councilman Riche reminded everyone that the activities on the Fourth of July are paid entirely from the proceeds from ticket sales, as well as from donations made to the committee.

Open Space Committee – Councilman Riche mentioned that the Open Space Committee met recently, and there is now a clear understanding among the members of the committee that their role is now as stewards of the existing open space, because there is no open space money left to be spent. The Open Space Fund is, and will most likely continue to be, in a deficit situation for several years to come, so there are no funds available for the committee to use for acquisitions or to invest in the Schedler property. Councilman Riche pointed out that the committee would like the Councilmembers to explore two things. One of them is to pass a resolution or otherwise communicate with the County that the Open Space Tax should be restored at its previous funding level. The Village used to receive quite a bit of money through the Open Space Trust Fund, which is practically non-existent at this time. The second request from the Open Space Committee is for the Councilmembers to discuss internally whether the Village Open Space Tax should be reinstated, which was previously .5% per $1,000 assessed.

Parks, Recreation, and Conservation (PRC) Board – Councilwoman Hauck reported that the PRC Board met last night. It was a combined meeting with the Open Space Committee. In addition, members of the Shade Tree Commission, the Conservancy for Public Lands, and the Ridgewood Wildscape Association, were in attendance. It was realized that the missions of the various committees are very similar, and the members are ambassadors and caretakers of all that is natural and green in Ridgewood. The discussion centered on the lack of funding and manpower and resources in the Village. New members are needed for all of these committees. Councilwoman Hauck also stated that she believes it is necessary to recognize all of the volunteers in the Village, and perhaps something could be done once a year to give them the recognition they deserve. Ms. Mailander noted that they were recognized in the past, but not recently. Councilwoman Hauck pointed out that many volunteers serve the Village for 20-30 years. She added that it is very nice to discover the wealth of knowledge that exists on all of these committees. Councilman Riche pointed out that the Village used to give a “Volunteer of the Year” Award, which could possibly be resurrected.

Planning Board – Mayor Aronsohn stated that there are approximately six Planning Board meetings scheduled between now and the end of June, including several that will deal with Valley Hospital. In fact, it is planned that the Valley Hospital application will be wrapped up with a vote on June 17^th, and the remaining meetings include opportunities for the public to ask questions of Blais Brancheau, Village Planner; two meetings in which the public will be allowed to comment; and one meeting for instructions.

Ridgewood Guild – Mayor Aronsohn reported that the Ridgewood Guild is holding its annual film festival. This is the fourth year for the festival, which is held for two nights. Tonight, the festival showcased student films; and tomorrow night, Danny Aiello will be attending to showcase some of his movies, and a reception is planned after the festival which he will attend. Mayor Aronsohn encouraged everyone to go to the film festival.

10. COMMENTS FROM THE PUBLIC

Mayor Aronsohn stated that they would again have comments from the public and asked anyone wishing to address the Village Council to come forward. He noted that when he first joined the Village Council in 2008, public comments were only allowed at the beginning of each meeting, and Roger Wiegand, a Ridgewood resident, suggested several years ago that another opportunity be added at the end of each meeting to allow the public the opportunity to ask questions about issues discussed during the meeting. He also made a very important point, which was that the public should have the “last word”.

Leonard Eisen, 762 Upper Boulevard, mentioned that today is William Shakespeare’s birthday.

Russell Forenza, 228 Emmett Place, said this meeting had been very instructive, and the comments he was about to make only reflected Ridgewood, not any other municipality or community. Regarding the budget, Mr. Forenza said he supported Councilman Riche’s comments for the most part. He agreed with the red flags mentioned by Councilman Riche, and he noted another red flag that he did not hear Councilman Riche mention, which was the use of surplus. The Village is using $2.9 million, or approximately 6% of the budget, which means that 6% of the budget must be funded through surplus. Mr. Forenza believes that is both a good and bad idea, depending on one’s perspective. It is a good idea for any resident who is thinking of moving out of town after graduation, because those residents will not incur any tax increase. However, it is not a good idea for long-term residents who plan to stay in the Village for a long time. Mr. Forenza pointed out that Ridgewood has a large turnover, and many residents move out of the Village each time there is a tax increase to avoid paying their share of that increase. Their share of that increase is the money that would be used to go into the surplus. No one knows what will happen with the surplus, or whether it will all be used. If it does get used, and that fact is combined with the other red flags mentioned by Councilman Riche, Mr. Forenza believes that will create a problem.

Another item mentioned was the reserve for uncollected taxes. Mr. Forenza noted that a three-year average could be applied to that item, especially if it is noticed that the percentage of the reserve is decreasing by a large amount, which will help to keep the reserve funded. He added that the red flags presented by Councilman Riche are important. It is impossible to know how many snowstorms will occur in any given year, and this past winter was one of the worst in recent memory. So much snow was piled on the streets that it was sometimes impossible for two cars to pass each other.

Mr. Forenza pointed out that the budget is very important, and his recommendations are specific to this budget. However, increasing taxes, especially by 1%, is something he always believes can be done, as long as it stays as close to the cost of living as possible. He considers that to be a “just” increase. Staff salary increases always occur, and the only way to save money on salaries is when a longtime employee retires. As the Village Manager mentioned, it is expected that as many as eight people will be retiring in 2015.

Changing the subject, Mr. Forenza spoke about the coin theft situation. He believes that no one should be allowed to have a master key to any area in which large sums of money, or any money at all, is kept. Two people should always be involved in the security features surrounding money. For example, the keys to the room where the money is stored should be placed in a box, which requires two people with keys to open the box to access the keys contained in it. Access to the box is recorded, as well as access to the room where the money is stored. There should never be one person alone in the room with the money at any time, but a minimum of two people should be required. Furthermore, the two people should be changed periodically. Mr. Forenza finds it inconceivable that there was no video camera surveillance for that room, which was directly linked to the Police Department. He also finds it hard to believe that one person could have taken all that money out of that room over a 1-2 year period, especially when one considers how heavy quarters are. That is why Mr. Forenza believes there was more than one person involved in the theft. Mr. Forenza also questioned why the money was left in the room for so long, instead of being deposited within 24-48 hours.

Mayor Aronson interjected that Mr. Forenza had exceeded his time limit, and asked Ms. Sonenfeld if she wanted to respond to any of his comments. Ms. Sonenfeld responded to Mr. Forenza by saying that she had given an in-depth explanation of the issue several weeks ago at a Village Council meeting, and she would be glad to discuss it with him if he wished, as well as his other recommendations.

Leanne Lampone, 850 North Road, noted that her street had been identified in 1995 as one being in need of repair. Slurry seal was applied in 1997, but no further work has been done since then. For the past six years, Ms. Lampone said she has been negotiating with the Streets Department to try to get the work finished, but to no avail. She has been told that her street is not a priority, among other things, but Ms. Lampone pointed out that there was a problem identified in 1995. Village employees have come out and walked the street to see the damage. Ms. Lampone commented that the street has “waves” in it, causing people to trip when they try to walk on the street. The road is patched at least 3-4 times a year, after which it sinks, creating gullies on top of the waves, on top of curbs that are falling apart so that water rises up over them. Ms. Lampone was told that her street would be put on the list to be repaved, but when she asked to see the list, she was told that it was not a written list, but kept in someone’s head. When Ms. Lampone asked how it was determined which roads get repaved, the answer was that an employee drives around the Village and evaluates the roads. Ms. Lampone stated that she specifically moved to this community because it is quiet, where one can walk with a stroller or dog; senior citizens can walk comfortably; and people can walk safely day or night. However, that is not possible on North Road. Moreover, when the crews come to patch the road, they leave a lot of debris behind. Ms. Lampone said she had a meeting with the Streets Department today, and she believes they are overburdened. Mayor Aronsohn apologized for the situation, and said he was glad that Ms. Lampone brought it to the attention of the Councilmembers. Ms. Sonenfeld responded frankly that the fact that Ms. Lampone’s street is a cul-de-sac means that it is given a lower priority on the paving list, but she said it would be re-evaluated either tomorrow or the day after. Ms. Lampone gave Ms. Sonenfeld a copy of the paving schedule she obtained from her meeting with Village representatives.

The last thing Ms. Lampone brought to the Councilmembers’ attention was that the snowplows have caused quite a bit of damage on many of the driveways and curbs. She brought pictures showing five driveways that have been damaged by the snowplows, as well as curbs that have been ripped up by the plows. Many attempts have been made to patch the damaged areas, but none of the work lasts very long. Ms. Lampone requested that the job be done correctly in the first place so that it need not be redone. Ms. Sonenfeld said she would re-evaluate the street personally to see what could be done.

There were no other comments from the public at this time, and Mayor Aronsohn closed the time for public comments.

11. ADJOURNMENT

There being no further business to come to before the Village Council, on a motion by Councilman Riche, seconded by Councilwoman Walsh, and carried unanimously by voice vote, the meeting was adjourned at 9:53 P.M.

                                                                                                                                                                                                                                     _____________________________

                                                                                                                                                                                                                                                     Paul S. Aronsohn

                                                                                                                                                                                                                                                             Mayor

_________________________________

            Heather A. Mailander

               Village Clerk

A SPECIAL PUBLIC BUDGET MEETING OF THE VILLAGE COUNCIL OF THE VILLAGE OF RIDGEWOOD HELD IN THE SYDNEY V. STOLDT, JR. COURT ROOM OF THE RIDGEWOOD VILLAGE HALL, 131 NORTH MAPLE AVENUE, RIDGEWOOD, NEW JERSEY, ON MONDAY, APRIL 21, 2014, AT 6:30 PM.

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

Mayor Aronsohn called the meeting to order at 6:37 P.M., and read the Statement of Compliance with the Open Public Meetings Act. At roll call, the following were present: Councilmembers Hauck, Pucciarelli, Riche, Walsh, and Mayor Aronsohn. Also present were Roberta Sonenfeld, Village Manager; Heather Mailander, Village Clerk; and Stephen Sanzari, Chief Financial Officer (CFO).  

Mayor Aronsohn led those in attendance in the Pledge of Allegiance to the flag and asked for a moment of silence in honor of the American men and women serving in our Armed Forces, as well as those serving as first responders. Mayor Aronsohn asked for an extra moment of silence in remembrance of a friend, colleague, and the “sixth Councilmember,” Roger Wiegand.

2. COMMENTS FROM THE PUBLIC

Mayor Aronsohn stated that they would now have comments from the public and advised anyone wishing to address the Village Council to come forward. There were no comments from the public at this time, and Mayor Aronsohn closed the time for public comment.

3. DISCUSSION ITEMS

Ms. Sonenfeld said she wanted to point out a couple of things before the actual discussion got underway. A public budget review was held last Wednesday, and she was using the same document, which has been updated. Councilwoman Hauck and Councilwoman Walsh were not present at the previous meeting, but Ms. Sonenfeld met with Councilwoman Hauck, and Councilwoman Walsh watched the video of the meeting, and both of them studied the presentation document. Ms. Sonenfeld will make the presentation again on Wednesday, April 23^rd, at the Village Council Work Session meeting, to give the public another opportunity to see all of the details.

1. REVIEW AND WRAP UP OF 2014 BUDGET, 2014 CAPITAL BUDGETS, AND SETTING OF 2014 TAX RATE

Ms. Sonenfeld commented that she would go over the changes made since the previous meeting last Wednesday. First, she thanked the team of professionals who worked with her on this presentation for giving up so many hours to work with her on these changes. In addition, further departmental reviews were held from last Friday through Monday morning. She noted that in re-examining the budget, another $161,000 in expenses was found.

As noted before, there are expenses in the budget that need to be covered as soon as the process is started. Ms. Sonenfeld went over all of the most important ones last week, but several more have been added, including some Planning Board fees, which are incremental legal fees; the forensic review of Village processes; investment in Six Sigma training; and the fine assessed by the New Jersey Department of Environmental Protection (NJDEP). In addition, Ms. Sonenfeld added to the list of expenses that she believes should be covered the Community Center, and replacement of trees and mulch in the Village.

Ms. Sonenfeld explained that she found some expense savings in the budget. These include some full-time salary savings in the Fire Department, due to new hires, in the amount of approximately $161,000; a savings of approximately $56,000 in the Village Manager’s office on salaries and benefits; a savings of $10,000 in tax assessments; and an extra $161,000 in additional budget cuts.

On the revenue side, Ms. Sonenfeld commented that over the past couple of days, they took a closer look at the revenue numbers, and as mentioned last week, in nearly every case, revenue was maximized up to the actual revenue received in 2013. The revenue figures were re-evaluated to see whether there was any risk or opportunity in those numbers, and Ms. Sonenfeld believes the revenue situation is fine. Revenue may be increased in some areas, and decreased in others. It was thought that the side jobs by the Police Department might show a potential increase of approximately $200,000 year over year, and it was rumored that PSE&G has done a lot of major work, but it seems that any future work may be gas work, rather than electrical work. Therefore, Ms. Sonenfeld stated that, given the usual Graydon Pool weather risk, she is comfortable with the revenue numbers at this time.

Next, Ms. Sonenfeld discussed the fund balance. She pointed out a significant change from what was reported at the last meeting. At that time, Ms. Sonenfeld stated that $3.1 million of the fund balance would be used, but based on the savings in expenses, that amount has decreased to $2.983 million of the surplus to be used. When compared with the remaining surplus one year ago, it is actually higher in 2014, or $1.45 million. Moreover, the percent of the budget is lower.

The one-time revenues anticipated for 2014 did not change from what was reported last week. Ms. Sonenfeld reminded everyone that in 2014, $1.3 million is anticipated, and for 2013, that figure was approximately $877,000.

The debt service information also did not change from what was reported at the previous meeting. However, the information on supplemental expenses versus sources of funds did show a slight change, based on the slight increase in the supplemental expenses. The figure for supplemental expenses increased from $5.995 million to $6.428 million. The new total budget appropriation is $46.226 million. The total budget appropriation in 2013 was $45.343 million. That reflects a 1.9% increase year over year, which obviously is within the 2% cap, and is even more significant when one considers that uncapped and capped expenditures are included.

Ms. Sonenfeld explained that, in order to get to a 0% tax increase, there are two scenarios to be considered by the Councilmembers: a 0% tax increase, or a 1% tax increase. Both of the scenarios have positive aspects, because both of them are based on a new, more accurate, and realistic way of budgeting. Revenues have been raised as much as is allowed by law, and the previous year’s actual expenses were used to determine the current year’s expenses. Ms. Sonenfeld cautioned that this is not the best way to do zero-based budgeting, but it is better than using appropriation figures from the previous year for comparison. As a result, it was possible to decrease expenses. Both scenarios also include some modest but meaningful investments, including some relief for the Zoning Board and the Building Department; starting Six Sigma methods in the Village to enable looking at new and different ways of doing business; changes in human resource policies to strengthen the supervisory and middle-management layers; controls for the forensic audit; investment in the Community Center for the vibrant senior citizen population in Ridgewood; investment in police vehicles to replace old and possibly dangerous vehicles currently in use; technology investments; and investments in beautification of the community. Both of the alternatives include all of those things.

There are differences in the two scenarios, however. A 1% tax increase would mitigate the risk of not building up the fund balances. The process of budgeting used by Ms. Sonenfeld, in which the actual figures from 2013 were used to determine the appropriations for 2014, and revenue was matched, creates more of a risk in building up the surplus then there was in previous years, although Ms. Sonenfeld pointed out that in previous years, more money was put into surplus than was taken out. If that risk is encountered going forward, it could mean that there will be a larger tax increase 2015. On the other hand, the 0% tax increase does have its positive aspects. It continues to provide tax relief to many beleaguered residents who have paid a lot of taxes in the last couple of years, and demonstrates the Village’s desire to toe the line. The other positive aspect is that there are possibilities that over the next couple of months, more expenses could be identified, and there are some ideas that could be implemented.

Mayor Aronsohn thanked Ms. Sonenfeld and her team once again for all of their efforts in formulating the budget, and Mr. Sanzari and Ms. Mailander for their hard work.

Councilman Pucciarelli pointed out that another advantage to the 0% tax increase that goes with the idea of continued tax relief is that as a homeowner, a Ridgewood resident receives an equity dividend if the perception of Ridgewood is one of the highest taxed communities is changed. The 0% tax increase for 2014, coupled with the 0% tax increase in 2013, could help to change that perception. In the real estate world, it is said that the higher the perception of yearly tax increases is, the less likely it is that people would be willing to buy in the community. In addition, if the Village Council can be seen as a highly disciplined governing body that does not raise taxes routinely, particularly in excess of the Consumer Price Index (CPI) that could also benefit homeownership and equity investment in the community.

Ms. Sonenfeld pointed out that a .5% tax increase represents an increase of $22 per year per property, and a 1% tax increase represents an additional $50 per year per property. In addition, a .5% tax increase would raise an additional $225,000 for the Village, while a 1% tax increase would raise approximately $450,000 for the Village. However, Ms. Sonenfeld cautioned that while $450,000 seems like a lot of money, it may not actually add that much to the elimination of risk in the budget.

Councilman Riche noted that in the preliminary budget, the amount shown for receipts from delinquent taxes was increased from $738,000 in 2013 to $800,000 in 2014. He asked if that is based upon actual receipts in 2013, or if that is a projected amount. Mr. Sanzari explained that the amount for delinquent taxes is based on the amount that is outstanding at the end of the year, and is calculated based on tax collection rates. The actual figure was $950,000 at the end of the year, but based on the collection rate, the Village is allowed to anticipate $800,000 in the current budget. Councilman Riche clarified that there is a formula associated with that figure, and Mr. Sanzari confirmed this, adding that there are no foreclosures associated with those properties, so it is very likely that those funds will be collected.

Councilwoman Walsh asked if the estimates for assessed property values were based on 2013 assessments. The answer was that the estimates are based on 2014 assessments, and Councilwoman Walsh asked if the existing 2014 assessments were used, or some other assessment. Ms. Sonenfeld replied that the average house value in Ridgewood was assessed at $688,358. In 2013, the average assessed value was $686,994. Councilwoman Walsh stated that when she researched the numbers online, it shows that the 2013 average home value was $817,000. In fact, when Councilwoman Walsh accessed the information on the Internet, it showed that in 2012, the average home value was $738,480; and in 2013, it was $817,380. So far, the average home value in 2014 is shown as $762,000.

Michael Barker, Tax Assessor, commented that he believed Councilwoman Walsh was looking at the average selling prices, not the average assessed value of those homes. He pointed out that there is another chart online that has the residential average assessment, and the actual average assessment, which factors in the commercial properties, as well.

Councilwoman Walsh noted that the Board of Education tax increase will be 1.9%, and Ms. Sonenfeld added that the County tax increase is approximately 1.8%. Councilwoman Walsh commented that those are obligations that taxpayers will have to meet, regardless of what is decided by the Councilmembers. She pointed out that the majority of questions and concerns over the past several months have been regarding services. If the Village is going to keep services at the current level, some residents think that the budget was cut a bit too much, which has affected services. Councilwoman Walsh added that the residents will see a tax increase, and unfortunately, it always seems to be attributed to the Village Council. She asked how the Councilmembers should respond to residents when discussing either a 0% tax increase, or some type of tax increase. Ms. Sonenfeld explained that the assumption during the budgeting process was that there would be no diminishment of services, and she believes this budget provides that. She thinks the question is one of the risk involved in building the reserve back up, and the other question is that, while the Village does some modest investments, there is always more investment that could be done. This is a modest budget for times that are still difficult for many people, and it could be a completely different story next year.

Mayor Aronsohn said he appreciated the way Ms. Sonenfeld laid out the different options available to the Councilmembers, both of which have some significant positive aspects. As he understands it, the positive aspects include the fact that the budgeting process is different, with a more accurate way to do budgeting due to the fact that the actual expenses and revenues are being used, as opposed to appropriations and what was budgeted. Mayor Aronsohn believes that is a big step forward. Next, as Ms. Sonenfeld pointed out, there is a lot of discipline in this budget, whether there is a 0% tax increase or a 1% tax increase, it underscores the fact that Village government is very serious about budget discipline. Mayor Aronsohn thinks either scenario would indicate the Councilmembers’ willingness to do right by the taxpayers. The third point Mayor Aronsohn wanted to make had to do with Ms. Sonenfeld’s discussion about strategic investments. He noted that there are some investments included in the budget, and he thinks they are all very important investments to make. Regarding surplus, Mayor Aronsohn thinks that the budget maintains the line, and in fact, shows a bit of an increase in the remaining surplus. He is very much in favor of a 0% tax increase. Mayor Aronsohn agreed with Councilwoman Walsh that, when one considers the tax increases being levied by the Board of Education and the County, the tax burden on Ridgewood residents is increasing, and Mayor Aronsohn emphasized that he does not want to compound that. He believes this budget presents an opportunity to allow a 0% tax increase, and that going forward, more efficiencies will be found, as well as the possibilities for making additional investments next year, which might mean a tax increase. However, that increase will be targeted and strategic. Mayor Aronsohn is very uncomfortable with raising taxes if the level of services is not being raised in a targeted way.

Councilman Riche commented that Ms. Sonenfeld made the point that the Department Directors were charged with not diminishing services, but Councilman Riche thought the bar had already been lowered. He believes there has been a tremendous diminishment of services in the Village. As an example, he noted that the Village has three employees and a Supervisor to take care of grounds maintenance throughout the Village. If the level of services is measured against what is currently provided, the budget does provide no diminishment in services. However, since the layoffs in 2010, there has been a clear diminishment in the level of services in Ridgewood.

Councilman Riche also pointed out that the debt service has increased 21%, by $835,000. Compelling arguments have been made by some Department Directors regarding equipment that needs to be replaced, and Councilman Riche believes that the Village is putting off until tomorrow what is needed today. Therefore, Councilman Riche said he supports a 1% tax increase to help with the capital budget as well as the operating budget. He does not like to see tax increases, but he does not believe that an increase of $50 per property places an undue burden on taxpayers, and it will help with some of the unfunded liabilities discussed previously. Councilman Riche is concerned that, in order to make up for all of the unfunded liabilities and capital projects that are put off, there will have to be a large tax increase at some point, which will place an even bigger burden on Ridgewood taxpayers.

Councilman Pucciarelli commented that a 0% tax increase does not mean that there will be no tax increase in Ridgewood, due to the increases from the Board of Education and the County. The 0% tax increase only dilutes the increases from the other entities. Next, Councilman Pucciarelli said that he does not understand the correlation between a 1% tax increase and the level of services, which Councilman Riche just discussed. If raising the budget by $500,000 would somehow translate into providing better services, Councilman Pucciarelli said he might be able to support that. However, no restructuring plan has been completed, and simply throwing more money into the budget without knowing where it is going and without a plan going forward is not something that Councilman Pucciarelli can support. In fact, Councilman Pucciarelli does not feel a 0% tax increase is much different than a 1% tax increase, but he completely supports the implied discipline in the 0% tax increase. He asked Ms. Sonenfeld about the $161,000 in additional cuts, and where they are coming from. Ms. Sonenfeld answered that the biggest cut is in Workers Compensation claims, in the amount of $125,000. The other cuts are coming from the Village Clerk’s office, including cuts made in the elections budget based on the elections two years ago; and other cuts from tax collection, $14,000 in cuts from the Village Manager’s office and other cuts in the Engineering, Building Maintenance, Yard Waste, Recycling, Solid Waste, Fleet, Recreation, Parks Departments, and Graydon Pool. As far as employees are concerned, there was a large increase in part-time and seasonal workers in the Department of Parks and Recreation.

Councilman Pucciarelli noticed that there is an increase in the cost for health insurance in the amount of $321,000. He pointed out that the Village pays a higher percentage of that than most other municipalities because, due to contractual negotiations with uniformed services, implementation of the State law that requires a minimum 1.5% of salary contribution, up to 35% of premium, was delayed as a result of the last round of collective bargaining negotiations. However, that portion of the contract with the Fire Department will expire in October 2014, and contributions to healthcare premiums made by Fire Department personnel will go to the amount required by State statute. The Police Department contract expires at the end of 2015, which will bring their health benefit contributions to the amount required by State statute. This is indicative of the structural changes that will be made in the budget going forward. Councilman Pucciarelli said there must be other similar areas that can be modified to change the embedded increases that are seen every year.

Councilwoman Hauck said she finds this to be a very difficult decision, because she also finds the difference between a 0% tax increase and a 1% tax increase to be negligible. However, it is more symbolic to be able to say that there is a 0% tax increase and that the Village Council is practicing responsible government. Councilwoman Hauck realizes that a 1% increase represents approximately $450,000. However, she feels strongly that in this day and age, New Jersey residents are barraged by tax increases, and Councilwoman Hauck believes that ways can be found to be more efficient. With the surplus in place, and seeing that all of the most important needs of the largest Departments are being fulfilled with the 0% tax increase, she is more inclined to vote for the 0% tax increase. She recognizes all of the cuts and sacrifices made, as well as the hard work done by the various Department Directors to get to this point. In addition, Councilwoman Hauck believes there is the potential to find more revenue and to save money in other ways that do not include more budget cuts.

Councilwoman Walsh said she had a couple of questions for Ms. Sonenfeld. In the 2013 tax bill, the percentage apportioned to the Board of Education was 1.535%. The municipal portion of the tax bill was .542%. The Open Space tax was .004%, and the Public Library portion was .036%. Therefore, Councilwoman Walsh wanted to know if there was a chance that the mil rate numbers would come down based on the County numbers, and is that something that is built into the budget. Ms. Sonenfeld tried to clarify Councilwoman Walsh’s question by saying that the Public Library has been funded above the mil rate by approximately $320,000, and they have requested a $43,000 increase on top of that or approximately 1.9% more than the 2013 appropriation, as well as a significant amount of capital funds. In the past few days, rather than focusing on their expenses, Ms. Sonenfeld stated that the focus was on their capital requests. Approximately $300,000 worth of capital requests were removed from the capital budget, one of which was a request by the Public Library for a $250,000 generator, because the Public Library is not considered to be a primary disaster recovery site in the Village. Another item that was cut from the capital budget was the request by the Public Library for automatic doors with heat curtains, in the amount of approximately $26,000. In addition, the request for automated kiosks for checking out books and credit card use was also cut. Ms. Sonenfeld pointed out that she is not sure what the Village Council’s responsibility, or Ms. Sonenfeld’s responsibility, is regarding the Public Library. She is unsure as to whether the Public Library reports to the Village Council, or whether they must report to the Public Library Board of Trustees. Therefore, there has been no open dialogue held with anyone associated with the Public Library in order to find efficiencies. That is something that could be addressed this year. Councilwoman Walsh said she is torn, because she wants to support the 0% tax increase, but she feels strongly that services in the Village have diminished.

Mayor Aronsohn commented that he supported Ms. Sonenfeld’s idea about having a dialogue with representatives from the Public Library to find efficiencies, and such opportunities might be found in other Village Departments. He also pointed out that the Public Library budget is not the only one that is increasing, because there are increases in other Departments across-the-board. Ms. Sonenfeld noted that the year-over-year increase in the Public Library budget is comparable to the year-over-year increase in the Village operating budget. Because Ridgewood values its Public Library, and considers it to be a centerpiece of the community, the question of whether to fund it over and above the State mandated amount is a difficult one. Ms. Sonenfeld commented that when she was a member of the FAC, the possibility of evaluating the budget for the Public Library was discussed. In fact, Ms. Sonenfeld said that the FAC could do to the Public Library budget the same thing that they did to the Village budget, which is to completely take it apart, analyze it, and make their recommendations. They could also do some Six Sigma training and apply those methodologies in the Public Library.

Councilman Pucciarelli stated that one of the service areas for which he has heard a lot of complaints in the past year was due to the confluence of leaves and snow on the ground, and one of the current candidates for Village Council made a suggestion as to how that could be improved. He urged everyone to come to the candidates’ debate next week, because they offer many good ideas and solutions to current issues affecting the Village. Councilman Pucciarelli also noted that if everyone starts thinking about what services are really wanted; what services need to be improved; and how the services can best be delivered, it may be discovered that the services could be provided for less. It may also be determined that they might cost more, but if it is what people want, they might be willing to pay more for these services. However, Councilman Pucciarelli pointed out that the Village is not at that point yet. Therefore, to increase the budget at this time, while receiving the same level of services as before, indicates poor discipline to him.

Mayor Aronsohn proposed that a headcount (not a vote) be taken to move forward with the preliminary budget as outlined by Ms. Sonenfeld, for the 0% tax increase. Councilman Pucciarelli and Councilwoman Hauck joined Mayor Aronsohn in that support, while Councilman Riche and Councilwoman Walsh stated that they do not. Mayor Aronsohn said the budget would be introduced on Wednesday, April 23^rd, at the Village Council Work Session meeting.

Ms. Sonenfeld commented that she and her team went through the capital budget in detail. She noted that the Village Council directive was $3 million, and the capital budget is now close to $3 million. The capital budget includes a lot of the requests made by the various Department Directors, although some equipment requests had to be cut. Ms. Sonenfeld also pointed out that there is the $850,000 increase on the principal and interest payment for the outstanding debt that cannot be ignored. She reminded the Village Council that the higher the capital budget goes, the more bonds that are issued, which will only increase the principal and interest payments. She feels strongly that going forward, there needs to be some type of long-range capital plan formulated. Ms. Sonenfeld commented that Mr. Rutishauser told her that in 2006, he prepared information suggesting that there is a lot of infrastructure work to be done in the Village, which Ms. Sonenfeld said could potentially be a big number. She believes it is essential to come up with a five-year capital plan, in order to determine how much capital will be needed. The FAC will be consulted in creating that plan.

Councilman Pucciarelli pointed out that Nancy Johansen, Chairperson of the FAC, and Janice Willet, FAC member, were present at this meeting. He noted that they and Ms. Sonenfeld had discussed the possibility of leasing Village vehicles, rather than purchasing them, which would come out of the operating budget rather than the capital budget. In addition, Ms. Sonenfeld had mentioned the possibility of having the vehicles serviced by the proposed vehicle repair facility to be built by the County. These are more examples of finding ways to deliver the same services without cutting personnel or the current level of services. Ms. Sonenfeld noted that they also require investment spending.

4. ADJOURNMENT

There being no further business to come before the Village Council, on a motion by Councilman Riche, seconded by Councilman Pucciarelli, and carried unanimously by voice vote, the meeting was adjourned at 7:28 P.M.

                                                                                                                                                                                                                                    _____________________________

                                                                                                                                                                                                                                                  Paul S. Aronsohn

                                                                                                                                                                                                                                                            Mayor

_________________________________

            Heather A. Mailander

                Village Clerk

A SPECIAL PUBLIC BUDGET MEETING OF THE VILLAGE COUNCIL OF THE VILLAGE OF RIDGEWOOD HELD IN THE SYDNEY V. STOLDT, JR. COURT ROOM OF THE RIDGEWOOD VILLAGE HALL, 131 NORTH MAPLE AVENUE, RIDGEWOOD, NEW JERSEY, ON WEDNESDAY, APRIL 16, 2014, AT 5:00 PM.

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

Mayor Aronsohn called the meeting to order at 5:02 P.M., and read the Statement of Compliance with the Open Public Meetings Act. At roll call, the following were present: Councilmembers Pucciarelli, Riche, and Mayor Aronsohn. Also present were Roberta Sonenfeld, Village Manager; Heather Mailander, Village Clerk; and Stephen Sanzari, Chief Financial Officer (CFO). Councilmembers Hauck and Walsh were absent.

Mayor Aronsohn led those in attendance in the Pledge of Allegiance to the flag and asked for a moment of silence in honor of the American men and women serving in our Armed Forces, as well as those serving as first responders.

2. COMMENTS FROM THE PUBLIC

Mayor Aronsohn stated that they would now have comments from the public and advised anyone wishing to address the Village council to come forward. There were no comments from the public at this time, and Mayor Aronsohn closed the time for public comment.

3. DISCUSSION ITEMS

To get started, Ms. Sonenfeld said she wanted to emphasize a couple of things. The first is that this is not the budget introduction, and normally, at this point in the process, there is a lot less information available than what is available now. Furthermore, there are some numbers that still need to be reviewed.

This is a preliminary review of the budget, representing a culmination of the budget discussions to date between Village management and the various Department Supervisors, as well as between the Councilmembers and the Department Supervisors, and there are still some adjustments that could be made to this budget. Ms. Sonenfeld will be disseminating a lot of information tonight, which represents the beginning of the decision phase for the budget. Therefore, Ms. Sonenfeld invited the public to engage in a conversation. The next budget meeting is scheduled for Monday, April 21, 2014, at 6:30 P.M.

Ms. Sonenfeld noted that this not only the start of the decision process for this budget, but it is also the start of a longer-term conversation and longer-term plans for how to strategize and deliver government services going forward.

A. REVIEW AND WRAP UP OF 2014 BUDGET, 2014 CAPITAL BUDGETS, AND SETTING OF 2014 TAX RATE

In the budget process to date, the Village Council directed the Village Manager to come up with a 0% tax increase for 2014, and to come up with a $3 million capital budget. Ms. Sonenfeld commented that they have completed at least two rounds of budget reviews and worked with some of the Departments. Departmental reviews have been held with the Village Council over the past three weeks, and based on those reviews and conversations, further adjustments to the numbers have been made. Generally speaking, anticipated revenue has been maximized. In many cases, the actual revenue figures from 2013 were used. There is not much room in this budget. Actual expenses for 2013 were used as a guideline for expense appropriations in 2014. It was assumed that there would be no change or diminishment in any services to residents.

Councilman Pucciarelli pointed out that when Ms. Sonenfeld referred to “maxing out anticipated revenue,” it is important to distinguish that it is unlike the private sector, where revenue that has never been received can be anticipated. In the public sector, only revenue that has been realized in the prior year can be included in the budget, with very few exceptions.

Ms. Sonenfeld began by looking at expenses that need to be covered, which are supplemental expenses over and above those included in the 2013 budget, and are expenses that must be funded upfront. In 2013, the figure for one-time revenue and fund balance of $3.827 million was used. It was necessary to figure out how to address that in the 2014 budget year. There is a year-to-year increase in debt service of $835,000, which also must be dealt with in the 2014 budget. In addition, there are contractual salary increases of $212,290; health insurance increases of $321,000; and terminal leave increases, over and above what was paid out in 2013, of $101,000. Councilman Pucciarelli asked if that is anticipated terminal leave, and Ms. Sonenfeld responded that it is terminal leave which she is sure must be paid. Councilman Pucciarelli added for clarification that the number does not represent the establishment of a reserve against the unfunded liability that is already known. Continuing with the supplemental expenses, incremental snow removal costs total $365,452, which has already been spent; seasonal staff, which was a grant last year that was used in two areas, of $118,548; and election expenses for the Municipal Election of $50,000; salary raises for non-union and management staff of $50,000; two new Police Officers, including salaries, benefits, uniforms, and training, in the amount of $80,000; and grass disposal/NJDEP license expenses of $65,000. Ms. Sonenfeld noted that these expenses must be covered, because they are contractual in nature, except perhaps for the salary raises, which could be discussed. The supplemental expenses currently in the budget that Ms. Sonenfeld believes should be covered include expenses for police vehicles in the amount of $100,000; Board of Adjustment support in the amount of $33,000; an added amount for snow removal for 2014 of $40,000, which would cover one snowstorm; an added part-time staff member in the Information Technology Department, to be paid $35,000; and expenses for the e-ticket system in the amount of $15,000, all of which total $262,000.

Moving over to the revenue side, Ms. Sonenfeld pointed out that there are some risks, as well as some opportunities. Parking tickets could be a risk, because currently, there is not any staff to deal with parking tickets. There are the usual weather-related risks associated with Graydon Pool, as well as some risks in recycling revenue due to the tougher standards and potentially lower prices. Moreover, because revenues have been estimated closer to the 2013 actual spent figures, when the fund balance is replenished in 2015, there is a risk that it will not be replenished at the same amount.

There are also some opportunities in 2014. There will be a full-year impact felt from the increase in the side job fees, which could be as much as $200,000 over that of 2013. That is one of the areas referred to earlier by Councilman Pucciarelli in which revenue can be anticipated. There could also be an increase in building permits, given the state of the economy.

Ms. Sonenfeld then discussed the sources of funds, and the use of surplus and trust funds. She commented that, in order to get to the 0% tax increase, some of the fund balance would be used, as has been done in the past. The fund balance is replenished every year by revenues that are over and above the anticipated revenues, or actual revenues. It is also replenished by expenses that are overestimated. Therefore, Ms. Sonenfeld suggested using $3.1 million of the surplus balance, leaving a remaining balance of $1.3 million. This is comparable to what was done in previous years. There is also a Recycling Trust Fund with a balance of nearly $600,000, although nearly half of it was taken for allocation against budget items, and another $150,000 was taken to offset the tax levy in order to get to the 0% tax increase. The Snow Removal Trust Fund of $211,000 was completely depleted in 2013, due to the harsh winter.

There are some one-time revenues that are anticipated for 2014. These are in addition to the fund balance, and they include the Recycling Trust Fund; a reserve from the Federal Emergency Management Agency (FEMA) that will be used; Green Acres grant money; and the reserve for debt service. There will also be deferred charges from the parking facility for 2011 and 2012, when the Village moved money to make up a deficit in the Parking Utility, and which the Parking Utility is now paying back to the Village; and the capital fund balance. The total for all of those one-time revenues is $1.343 million. In 2013, the one-time revenues totaled $877,540.

Regarding debt service, Ms. Sonenfeld noted that it increases significantly year-to-year. The principal and interest payments on the outstanding debt are approximately $4.8 million, which is $835,000 more than in 2013. Money must be found to offset that increase. Some of it has been offset by Green Acres grants; a FEMA reserve; and the Open Space tax levy. One of the things Ms. Sonenfeld believes must be reviewed and considered is to look at long-range budget forecasting and planning. She hopes to work with the Financial Advisory Committee (FAC) in that area. Councilman Pucciarelli asked if most of the debt service increase is due to an increase in the principal, because he recalled that the Village was able to obtain a very good interest rate in 2013. Mr. Sanzari explained that the large increase is from the 2013 bond sale, resulting in a $600,000 principal payment in the 2014 budget.

Reviewing the supplemental expenses against the sources of funds, Ms. Sonenfeld stated that the supplemental expenses, including the ones that must be covered, as well as the ones that she believes should be covered, total $5,995,830, which she and the Councilmembers must figure out how to fund. The three areas of funding being discussed are: fund balance; one-time revenues; and one-time budget allocations, which bring the supplemental expenses down to $4.9 million. Ms. Sonenfeld stressed the fact that this is all preliminary, and could change. Mayor Aronsohn asked how much of that was due to snow removal expenses, and Ms. Sonenfeld responded that snow removal expenses totaled $365,000; the increase in debt service was $835,000; and the contractual expenses covering salaries, insurance, and terminal leave totaled approximately $600,000. All of those expenses must be covered.

In reviewing the preliminary budget, Ms. Sonenfeld commented that, based on the 0% tax increase, and all of these sources and uses of funds that she discussed, the amount to be raised by taxation totals $30.975 million, which would be a decrease in taxes of $5 per year based on the average assessed value of a home in Ridgewood.

Councilman Riche commented that unless he misunderstood what Ms. Sonenfeld stated, there is currently a total of $1.037 million in unfunded expenses versus the funds to be raised. Ms. Sonenfeld responded that they are unfunded by one-time events, but they will be funded through revenue increases and expense decreases in the budget. Regarding the anticipated revenue from the FEMA reserve in the amount of $452,000, Councilman Riche asked if the Village already has that money, or if it is anticipated. Ms. Sonenfeld responded that it has been received. Councilman Riche asked what, if any, anticipated FEMA money is in the budget. Ms. Sonenfeld answered that approximately $300,000 is anticipated to come from FEMA. In addition, she pointed out that the amount of surplus that is being recommended to be used in 2014 is $3.1 million, with $300,000 to be received from FEMA. Ms. Sonenfeld reminded everyone that she recommended going $100,000 lower in remaining surplus for 2014 in the fund balance account. The reason she is comfortable with that recommendation is because the $300,000 that is anticipated from FEMA will be applied to that account, and those funds have not yet been received by the Village. Mayor Aronsohn pointed out that the $300,000 is not reflected in the budget. Mr. Sanzari explained that the situation is very similar to that in 2013, when the fund balance was anticipated, and FEMA money was received during the year. Mr. Sanzari added that it is anticipated based on an approval that was obtained by FEMA, and it is now just a matter of getting the funds, which could take another two or three months.

Ms. Sonenfeld stated that there is a discussion to be had about utilizing approximately $5 million of the fund balance and other associated one-time revenues and allocations. She emphasized that the $5 million is not a change, but represents $1 million of added risk over what was done in 2013. This is the trend that the Village has followed over the past couple of years, according to Mr. Sanzari. One possibility suggested by Ms. Sonenfeld was partially funding the unfunded liabilities by tax increases. If taxes were raised by .5%, it would equate to $22 per resident per year, or less than two dollars per month, and the Village would raise $225,000 by doing that. A 1% tax increase would equal $50 per resident per year, and it would raise $450,000 for the Village. Ms. Sonenfeld reiterated that expenses and revenues will be reviewed again to see if there any other expense savings or revenue enhancements that can be made, and that will be done prior to the meeting on Monday.

Councilman Pucciarelli asked a question about the number for the capital debt service, and Mr. Sanzari explained that there is a line in the budget to be introduced for a $140,000 for capital funding, which is the same level as in 2013. Councilman Riche commented that when the Department Directors made the budget requests, specifically capital requests, Councilman Riche thought they made some compelling arguments for them He asked Ms. Sonenfeld if she could perhaps prioritize the most important items to be funded out of the capital budget, and to see if they could be funded if a tax increase were to be approved. Ms. Sonenfeld reminded everyone that the initial budget requests were double the amount shown in this budget presentation. In addition, Mr. Sanzari is currently in the process of canceling out old capital projects and re-appropriating the funds for new projects. Ms. Sonenfeld assured Councilman Riche that some money can be found through that process. Mayor Aronsohn asked if it would be possible to have a list before Monday of the various capital requests. Councilman Riche pointed out that none of these discussions cover Ridgewood Water. He noted that there was a project being considered to sell some of the properties owned by Ridgewood Water, and Councilman Riche wondered whatever happened to the project. Mr. Sanzari responded that there was a capital ordinance introduced and adopted in 2013 for that project, and he would get that information for Councilman Riche.

Ms. Sonenfeld stated that she wanted to introduce some challenges and opportunities going forward. Taking the contractual obligations as a whole, there are approximately $26.7 million in contractual obligations in a budget of approximately $46 million. That represents more than 57% of the budget. The importance of that is, that aside from long-range planning against those numbers, they are hard, but not impossible, to move. In fact, the terminal leave figure for this year is a risk for 2015. To the extent that there are, in particular, several retirements from the Police Department in 2015, terminal leave will increase. As stated earlier, there are 11 confirmed retirements in 2014, which will cost the Village $420,000 in terminal leave this year. The same 11 retirements will cost the Village $271,000 in 2015, and approximately $100,000 in 2016, for a total of $791,950 over three years. Ms. Sonenfeld pointed out that there is also an unused Trust Fund that contains $479,000. The $420,000 payment has already been budgeted, so the Trust Fund will not be touched this year. That will also help in the event that there are some unanticipated retirements.

Councilman Riche pointed out that the health insurance premium paid by the Village annually exceeds the entire salaries of the Fire Department, and is very close to the total salaries of the Police Department. Councilman Pucciarelli pointed out that, unlike other municipalities, Ridgewood is absorbing more of the increase in health insurance than other municipalities do because the contribution level was frozen in previous collective bargaining agreements. While everyone else must pay 1.5% of their salary, or 35% of the premium, toward health care benefits, a disproportionate percentage of that is falling on Ridgewood taxpayers because the contribution level was frozen for any unions under contract at the time the contribution level was established. Councilman Pucciarelli assured everyone that will not be the case in future collective bargaining agreements. Councilman Riche asked of the $5.9 million pay for health insurance, how much is paid for current employees versus retired employees. Mr. Sanzari said he did not know the actual dollar figures, but the monthly premium for current employees is approximately $335,000, and the premium for retirees is approximately $238,000 per month. That does not include any employee contributions. Councilman Riche asked if retirees contribute to their healthcare premiums after they retire, and Mr. Sanzari responded that they do not, except for those under an old contract which provided that employees would pay for their healthcare premiums after they retired, but that is a rather small amount. Councilman Pucciarelli added that, as everyone is aware, the terminal leave policy must also be reviewed, because it is unfair to pay at today’s rate for a sick day that was not taken at a lower rate several years previously. That becomes the equivalent of a very large severance payment. Mayor Aronsohn explained for the benefit of the public that terminal leave, which is something that is virtually unknown in the private sector, is payment for unused sick days when public employees retire. In the private sector, unused sick days disappear upon retirement, but government employees get paid for their unused sick time. That puts a tremendous burden on municipal governments, although Mayor Aronsohn is aware that the law has changed for new hires, and now provides a $15,000 cap. Ms. Sonenfeld mentioned the policy on compensatory time, and Councilman Pucciarelli stated that the current policy does not seem to discriminate effectively between salaried and non-salaried employees, which must be clarified. Ms. Sonenfeld commented that the management team will be meeting tomorrow to discuss the new Human Resources Policy Manual, and the big topic will be compensatory time, and how it is implemented throughout the Village. Ms. Mailander interjected that she left information about that for each of the Councilmembers, and asked them to read it prior to April 23^rd, because it will be discussed at the Village Council meeting on April 23^rd.

Continuing her discussion regarding the budget going forward, Ms. Sonenfeld believes in tweaking the budget year after year, although the management team has been successful in decreasing the important numbers this year. Ms. Sonenfeld does not believe there is a lot of fat left in the 2014 budget. Going back to the comment made by Councilman Pucciarelli, Ms. Sonenfeld agreed that salaries and steps, as well as longevity, must be reassessed. Moreover, the 2% cap must be used as a tool going forward. In addition, the Village must begin to do government differently. That includes delivering services differently; treating people in the organization differently; and treating clients (residents) differently. As far as delivering services, that means collaboration with the County, as well as with other municipalities; potential in sourcing and outsourcing; and the possibility of using a Six Sigma productivity tool in the organization, to make it more effective and more customer-friendly. As far as people are concerned, the staff needs to be empowered, and the focus needs to be on staff and leadership development, as well as on succession planning. On the client side, a way must be found to measure client satisfaction. Ms. Sonenfeld gets feedback from residents who are unhappy, as well as residents who are happy, but all of that information is anecdotal. It is very hard to gauge client satisfaction, and what their critical customer requirements are. Once that information is obtained, the Village can change its processes to deliver a better product to the residents in a more effective and efficient way, which will make them happier.

Finally, Ms. Sonenfeld noted that the Village Council’s directive was $3 million for the capital budget, and that she would follow Councilman Riche’s recommendation to prioritize the capital budget requests. She also reiterated that all of this budget discussion is preliminary, and some of the numbers still need to be tweaked. A lot of information has been disseminated, and it is important to remember that this is only the beginning of the decision phase for Village management. Ms. Sonenfeld asked for public feedback and input on the budget.

Mayor Aronsohn thanked Ms. Sonenfeld for her presentation on the budget. He also thanked Mr. Sanzari and Ms. Mailander for their work on the budget, as well as all of the Department Supervisors. Governing and budgeting are not easy tasks, and a lot of constraints are placed on municipalities as far as budgets are concerned. Everyone is been very cooperative, and Ms. Sonenfeld echoed that sentiment. She appreciated the honesty and candor of the Village staff, and the thoughtfulness that they put into the process. Ms. Sonenfeld especially thanked Ms. Mailander for her guidance, and the members of the FAC for their help.

Mayor Aronsohn continued by saying that Ms. Sonenfeld gave everyone a lot of information to digest in a very well-organized way, and everyone should come to the meeting on Monday prepared to make some decisions.

Finally, Mayor Aronsohn addressed Ms. Sonenfeld’s suggestions about doing things differently. Structural changes are needed in Ridgewood, and certain things need to be looked at differently. Mayor Aronsohn is also very enthusiastic about Ms. Sonenfeld’s recommendations regarding delivering services differently; treating staff members differently; and focusing on client satisfaction.

Councilman Pucciarelli asked a question about the Trust Fund listed on the page with the unfunded liabilities. He wanted to know what the Trust Fund is. Ms. Sonenfeld explained that it is money that was put aside to be used for future retirements. Councilman Pucciarelli asked if that is a specific Trust Fund for that purpose, and Ms. Sonenfeld answered that it is. Councilman Pucciarelli asked if the money is to be used for compensatory time, and Mr. Sanzari answered that it would be used if someone who is entitled to compensatory time, sick time, or vacation time retires during the year, the money could be used for those payments. Ms. Sonenfeld noted that the 11 confirmed retirements are being charged against the budget, not against the Trust Fund. Councilman Pucciarelli asked what the source of income is for the Trust Fund. Mr. Sanzari explained that every year, funds are added to the Trust Fund from the prior year’s budget.

Councilman Pucciarelli joined Mayor Aronsohn in thanking the numbers of the FAC who helped the Councilmembers to look at the budgets prepared by the Department Supervisors in a different format. In particular, Mac Highet attended all of the budget meetings that were held, and made a great contribution to the process, with no compensation from the Village. Councilman Pucciarelli said he also thought that the Department Supervisors were very professional, and were very understanding in the efforts to try to keep the 0% tax increase possible.

Councilman Riche thanked Mr. Sanzari for all of his efforts in the budget process, as well as Ms. Sonenfeld. He commented that the new format is great, and very easy to understand. It gives the Councilmembers a better sense of concentrating on specific areas, instead of micromanaging the budget.

4. ADJOURNMENT

There being no further business to come before the Village Council, on a motion by Councilman Riche, seconded by Councilman Pucciarelli, and carried unanimously by voice vote, the meeting was adjourned at 5:45 P.M.

                                                                                                                                                                                                                                    _____________________________

                                                                                                Paul S. Aronsohn

                                                                                                        Mayor

_________________________________

            Heather A. Mailander

                Village Clerk

A REGULAR PUBLIC MEETING OF THE VILLAGE COUNCIL OF THE VILLAGE OF RIDGEWOOD HELD IN THE SYDNEY V. STOLDT, JR. COURTROOM OF THE RIDGEWOOD VILLAGE HALL, 131 NORTH MAPLE AVENUE, RIDGEWOOD, NEW JERSEY, ON WEDNESDAY, APRIL 9, 2014, AT 8:00 P.M.

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

Mayor Aronsohn called the meeting to order at 8:02 P.M., and read the Statement of Compliance with the Open Public Meetings Act. At roll call, the following were present: Councilmembers Hauck, Pucciarelli, Riche, and Mayor Aronsohn. Also present were Roberta Sonenfeld, Village Manager; Heather Mailander, Village Clerk; and Matthew Rogers, Village Attorney. Councilwoman Walsh was absent.

Mayor Aronsohn asked the members of Webelos Cub Scout Pack 44 to lead those in attendance in the Pledge of Allegiance to the flag. Mayor Aronsohn then asked for a moment of silence to honor the men and women in the United States Armed Forces who protect and defend our freedom every day, as well as those serving as first responders.

2. ACCEPTANCE OF FINANCIAL REPORTS

Mayor Aronsohn moved that the Bills, Claims, and Vouchers, and Statement of Funds on hand as of March 31, 2014, be accepted as submitted. Councilman Pucciarelli seconded the motion.  

Roll Call Vote

AYES:             Councilmembers Hauck, Pucciarelli, Riche, and Mayor Aronsohn

NAYS: None

ABSENT:        Councilwoman Walsh

ABSTAIN:       None

Councilman Riche asked for an exception for line item number 13-04415.

3. APPROVAL OF MINUTES

Mayor Aronsohn moved that the Village Council minutes of February 5 and March 12, 2014 having been reviewed by the Village Council and now available in the Village Clerk’s Office, be approved as submitted. Councilman Riche seconded the motion.

Roll Call Vote

AYES:             Councilmembers Hauck, Pucciarelli, Riche, and Mayor Aronsohn

NAYS: None

ABSENT:        Councilwoman Walsh

ABSTAIN:       None

4. PROCLAMATIONS

A.         Proclaim April as Tree Planting Month and April 25, 2014 as Arbor Day

Councilman Pucciarelli read the following proclamation:

B.         Proclaim April 26, 2014 LAX Day in Ridgewood

Councilwoman Hauck read the following proclamation:

Ms. Mailander noted for the record that Councilwoman Walsh arrived at the meeting at 8:07 P.M.

5. SWEARING-IN OF POLICE OFFICER MICHAEL KARCHER

Mayor Aronsohn administered the Oath of Office to Police Officer Michael Karcher, while his wife held the Bible as his parents looked on.

6. PRESENTATION BY CUB SCOUT PACK 44 – OIL MEMORIAL SCULPTURE

Mayor Aronsohn introduced the members of the Webelos Cub Scout Pack 44, who came to the meeting to make a presentation.

Charlie Glazer, Brett Karp, Peter Joseph, Alex Sloman, Paul Masser, and Den Leaders Dana Glazer, Dave Sloman, and John Masser presented an oil sculpture created by members of the Pack to bring awareness to oil dependence, for which all of the materials were donated. It was built and placed in front of Ridge School two months ago. They proposed that the structure be relocated to Memorial Park at Van Neste Square for Earth Day. Mr. Glazer explained that the sculpture was created by members of the Pack bringing items that were either made from oil products, or brought about as a result of oil, which encompasses nearly everything, and fashioning them together to create the sculpture. The front of the sculpture also contains a sheet, which was read by the members of the Pack, explaining what the sculpture represents: “We are calling this sculpture ‘R.I.P. OIL’ because oil is a limited resource, which means that it will go away someday if we use it all. We have made this oil memorial for three reasons: 1. Most people don't think of oil as a limited resource, so they waste too much of it.  2. Most people don't know how many things have oil in them or got here because of oil.  3. We want people to start thinking about preparing for when oil runs out.”

Mayor Aronsohn commended the members of the Pack for their presentation, as well as for their project, which he said was very thought-provoking and creative.

Councilwoman Walsh commented that she has been working with the Ridgewood Environmental Advisory Committee (REAC) on Earth Day, and there will be many Earth-friendly vendors at the festivities, as well as Earth-friendly displays. This sculpture will fit perfectly with the theme of reducing, reusing, and recycling. In addition, Councilwoman Walsh says that another sculpture made by high school students that is based on garbage will be displayed at Ridgewood High School. She believes this is a wonderful example of how the youth of the Village are getting involved with being energy and environmentally conscious.

7. COMMENTS FROM THE PUBLIC

Mayor Aronsohn asked if anyone from the public wished to speak regarding any of the agenda items.

Anne Loving, 342 South Irving Street, followed up her request from last week that the Councilmembers consider allocating funds to an investigation of the anonymous email sent to the employer of Village Council candidate Mike Sedon. It is Ms. Loving’s firm opinion that it is in the best interests of the Village that this matter be resolved, and the identity of the person be revealed. Although Mr. Sedon was the target, the fallout from this affects the entire community, as the election process has been compromised. Ms. Loving asked if there was any update available on the situation. Mayor Aronsohn responded that he, Ms. Mailander, and Ms. Sonenfeld have discussed the matter several times. Ms. Mailander added that the situation is being reviewed to see what other action might be possible, and she mentioned that she needed to speak to Mr. Sedon, and asked him to wait after the meeting was over so that she could briefly discuss the matter with him. There is no definite course of action at this time, but Ms. Mailander said the incident is being investigated. Mr. Sedon filed a complaint with the Election Law Enforcement Commission (ELEC), and a police report has been filed for the record. Councilman Riche asked if it is possible for the Village to file a request for a status report with ELEC, or to become part of any investigation conducted by that organization. Ms. Mailander said she would find out that information, and get back to Councilman Riche. Ms. Loving said she believes this was an attack on the Village, and the Village should be proactive about clearing up the matter.

Leonard Eisen, 762 Upper Boulevard, said he read about the incident mentioned by Ms. Loving in the newspaper, and he is very upset about it. He called the author of the email a coward. Mr. Eisen believes it was a terrible thing to do. He said he does not even know how to respond to something like this, and he hopes it never happens again.

There were no other comments from the public at this time, and Mayor Aronsohn closed the time for public comment.

8. MANAGER’S REPORT

Ms. Sonenfeld followed up on her discussion from last week regarding the coin theft with an update on the current situation. She said that she has had meetings with insurance representatives, particularly from the Joint Insurance Fund (JIF), to get the forensic reviews done. The JIF has recommended two companies to perform the forensic audit, and an RFP will be issued shortly. Ms. Sonenfeld said she would also be interviewing the companies, and some fee-sharing would be involved. She hopes to get all this done within the next two weeks.

Regarding the Village Vehicle Repair Facility, no discussion has been held on this matter for quite some time, and she wanted to make everyone aware of the current status of this project. Ms. Sonenfeld reminded everyone that the proposal was to build a joint facility with the Borough of Glen Rock. Councilman Pucciarelli requested that the Financial Advisory Committee (FAC) review the proposal, and the members of the FAC agreed that an analysis of the needs for a new garage facility should be undertaken so that a wide range of options could be considered. Information was gathered from other municipalities, as well as the County and other public companies. After approaching the County, Ms. Sonenfeld said it was learned that the County is building a new, state-of-the-art facility that is expected to be operational in November 2014. Moreover, the new facility is in Paramus. The new County facility will contain washing equipment, which the current garage does not have; and loaner vehicles will be offered. The facility will be set up for County use first, but it is anticipated that it will serve other municipalities. Ms. Sonenfeld said that serious consideration must be given to this possibility, as well as other ideas. As a result of this information, the members of the project team has been changed to add Christopher Rutishauser, Village Engineer; and Frank Moritz, Director of Operations, to the original membership roster, which includes Janet Fricke, Assistant to the Village Manager; Mac Highet of the FAC; Ms. Sonenfeld; and Joe Loprieno, Supervisor of the Village Garage. Ms. Sonenfeld stated that it is hoped that several of the committee members will be meeting with representatives from the County within the next two weeks to discuss potential collaboration on this project. It is projected that the study analysis can be presented to the Village Council and the public by September 2014.

Ms. Sonenfeld noted that the Conservancy for Ridgewood Public Lands is nearing completion of its Broad Street beautification project, and the Streets Department did a lot of work on this project. The celebration of the completion of the project, as well as the Daffodil Festival, will take place on Sunday, April 27, 2014.

Flo’s Market is now open and ready for business at the train station.

Saturday, April 12, 2014, from 9:00 A.M.-12:30 P.M. is “Shred Day” at the Village Recycling Facility.

On Saturday, April 26, 2014, 10:00 A.M.-2:00 P.M., the Village will participate in the National Take Back Initiative for Drugs. Anyone who has prescription drugs that are outdated can bring them to the Ridgewood Police Department headquarters at Village Hall.

The American Biogas Council today awarded Ridgewood the “Biogas Project of the Year” award for a renewable energy project implemented at the Wastewater Treatment Plant owned by the Village. The American Biogas Council selected the project in the municipal category because of its excellence in all of its criteria, innovation, technology, collaboration, and complexity. The goal of the project was to enhance anaerobic digestion in a municipal wastewater treatment plant so that enough biogas is produced to provide 100% of the heat and power needed to run the plant.

9. COUNCIL REPORTS

Bergen League of Municipalities – Councilwoman Walsh said she and Ms. Sonenfeld attended the Bergen League of Municipalities meeting this past Wednesday morning. The Bergen County Sheriff, representatives from the American Red Cross, and a representative from Bergen County Social Services spoke to the members about emergency preparedness and what is done throughout the County, as well as how those entities could assist the municipalities in emergencies. Sheriff Saudino discussed some of the things he could do with his facilities, and how they are a benefit and revenue producer for the County.

Ridgewood Environmental Advisory Committee (REAC) – Councilwoman Walsh stated that REAC met last night, and they are making their final preparations for the Earth Day festivities. Everyone is encouraged to come, and if anyone wants to exhibit at Earth Day, space can be found.

Shade Tree Commission – Councilwoman Walsh noted that the Shade Tree Commission met right after the REAC meeting. Their plans are moving forward, and they will be meeting with members of the Department of Parks and Recreation and Ms. Sonenfeld to discuss some of those plans.

Village Garage – Councilman Pucciarelli responded to Ms. Sonenfeld’s comments, noting that when she was on the FAC, she was very firm in taking a less aggressive approach toward building an entirely new facility. Instead she preferred to wait and try to find alternatives to simply replicating what already exists with a more modern version. Councilman Pucciarelli said he is delighted to see that alternative thinking starting to bear fruit, particularly now that the County has taken an initiative.

10. ORDINANCES

a. Introduction – #3411 – Amend Redevelopment Zone

Mayor Aronsohn moved the first reading of Ordinance 3411. Councilman Pucciarelli seconded the motion.

Roll Call Vote

AYES:             Councilmembers Hauck, Pucciarelli, Riche, Walsh, and Mayor Aronsohn

NAYS: None

ABSENT:        None

ABSTAIN:       None

The Village Clerk read Ordinance 3411 by title:

AN ORDINANCE AMENDING THE REDEVELOPMENT PLAN FOR THE NORTH WALNUT STREET REDEVELOPMENT AREA

Councilwoman Hauck moved that Ordinance 3411 be adopted on first reading and that May 14, 2014, be fixed as the date for the hearing thereon. Councilman Pucciarelli seconded the motion.

Roll Call Vote

AYES:             Councilmembers Hauck, Pucciarelli, Riche, Walsh, and Mayor Aronsohn

NAYS: None

ABSENT:        None

ABSTAIN:       None

b. Introduction – #3409 – Amend Chapter 145 – Fees – Establish Fees for Use of Mobile Concession Stand

Mayor Aronsohn moved the second reading of Ordinance 3409 and that the Public Hearing be opened. Councilman Riche seconded the motion.

Roll Call Vote

AYES:             Councilmembers Hauck, Pucciarelli, Riche, Walsh, and Mayor Aronsohn

NAYS: None

ABSENT:        None

ABSTAIN:       None

The Village Clerk read Ordinance 3409 by title:

AN ORDINANCE TO AMEND CHAPTER 145-6 OF THE CODE OF THE VILLAGE OF RIDGEWOOD ENTITLED “ENUMERATION OF FEES RELATING TO CODE CHAPTERS”

Mayor Aronsohn announced that the Public Hearing was open. There were no comments from the public, and Mayor Aronsohn moved that the Public Hearing be closed. Councilman Riche seconded the motion.

Roll Call Vote

AYES:             Councilmembers Hauck, Pucciarelli, Riche, Walsh, and Mayor Aronsohn

NAYS: None

ABSENT:        None

ABSTAIN:       None

Councilwoman Walsh moved that Ordinance 3409 be adopted on second reading and final publication as required by law. Councilman Riche seconded the motion.

Roll Call Vote

AYES:             Councilmembers Hauck, Pucciarelli, Riche, Walsh, and Mayor Aronsohn

NAYS: None

ABSENT:        None

ABSTAIN:       None

c. Public Hearing – #3410 – Amend Chapter 145 – Fees – Graydon Pool – Establish Membership Fee for Resident Patron with a Permanent Disability

Mayor Aronsohn moved the second reading of Ordinance 3410 and that the Public Hearing be opened. Councilman Pucciarelli seconded the motion.

Roll Call Vote

AYES:             Councilmembers Hauck, Pucciarelli, Riche, Walsh, and Mayor Aronsohn

NAYS: None

ABSENT:        None

ABSTAIN:       None

The Village Clerk read Ordinance 3410 by title:

AN ORDINANCE TO AMEND CHAPTER 145-6 OF THE CODE OF THE VILLAGE OF RIDGEWOOD ENTITLED “FEES”

Mayor Aronsohn announced that the Public Hearing was open. There were no comments from the public, and Mayor Aronsohn moved that the Public Hearing be closed. Councilwoman Walsh seconded the motion.

Roll Call Vote

AYES:             Councilmembers Hauck, Pucciarelli, Riche, Walsh, and Mayor Aronsohn

NAYS: None

ABSENT:        None

ABSTAIN:       None

Councilman Riche moved that Ordinance 3410 be adopted on second reading and final publication as required by law. Councilman Pucciarelli seconded the motion.

Roll Call Vote

AYES:             Councilmembers Hauck, Pucciarelli, Riche, Walsh, and Mayor Aronsohn

NAYS: None

ABSENT:        None

ABSTAIN:       None

11. RESOLUTIONS

THE FOLLOWING RESOLUTIONS, NUMBERED 14-83 THROUGH 14-104, WERE ADOPTED BY A CONSENT AGENDA, WITH ONE VOTE BY THE VILLAGE COUNCIL, AND WERE READ BY TITLE ONLY:

12. COMMENTS FROM THE PUBLIC

Mayor Aronsohn stated that they would again have comments from the public and asked anyone wishing to address the Village Council to come forward.

Boyd Loving, 342 South Irving Street, had a question with respect to comments made by Ms. Sonenfeld about the coin theft incident. He noted that she mentioned the need to get the forensic review under way, and Mr. Loving asked what plans are under way with respect to a review of the security process and the coin collection process. Ms. Sonenfeld responded that the review will be twofold: there will be a forensic review of the accounting, and the same firm will also analyze the process involved in coin collection, as well as any processing of those coins. The JIF will be paying for the forensic review of the accounting, and the Village will pay for the forensic review of the coin collection process. Therefore, a firm that could do both of those things will be sought when the RFP is issued. Any firm selected will be tested, and if they prove satisfactory, they will be asked to do a review of every area in which cash and checks come into the Village, and the process attached to that.

Next, Mr. Loving wanted to follow up on comments made by Councilman Riche when he omitted certain bills from his approval. Mr. Loving asked why Councilman Riche did this. Councilman Riche recalled that some months ago, there was a discussion about the telephone maintenance for the Village, and the contract was awarded to another vendor. He pointed out that none of the Councilmembers were aware of the fact that when that contract was awarded, the Village would be required to pay a two-hour minimum on every service call, even if the service call only lasts 10 minutes. In essence, the Village is now paying more for every service call made by the new vendor for telephone service. In addition, Councilman Riche noted that some new equipment was also billed on that invoice at the rate of approximately $600 per unit, and the units are available through Amazon.com for approximately $325 apiece.

Chris Dobson, 408 Eton Court, said he saw an article in the Bergen Record this week about municipalities with the highest payouts for unused vacation and sick leave. The quote for Ridgewood was approximately $6.4 million. Mr. Dobson asked if this is something that the Village can afford, and what is the plan going forward regarding such payouts. In addition, Mr. Dobson asked if there is any schedule available for the repaving of roads this spring. Ms. Sonenfeld responded that she has a draft schedule for repaving, and it is scheduled to begin on or around April 15^th. She is now trying to firm up the schedule, after which it will be made public. Regarding Mr. Dobson’s other question, Ms. Sonenfeld said she read the same article, and Ridgewood has the second-highest level of payouts in Bergen County. She said the issue has been “grandfathered,” and it is impossible to get rid of the $6.4 million worth of liabilities at this time. However, Ms. Sonenfeld said the goal is to try to prevent that from happening again. Some of the work done by the FAC, as well as some of the labor contract negotiations to be held this year and next year will help to alleviate some of that going forward.

There were no more comments from the public, and Mayor Aronsohn closed the time for public comment.

13. ADJOURNMENT

There being no further business to come before the Village Council, on a motion by Councilman Riche, seconded by Councilman Pucciarelli, and carried unanimously by voice vote, the meeting was adjourned at 8:37 P.M.

                                                                                                                                                                                                                                    _____________________________

                                                                                                Paul S. Aronsohn

                                                                                                        Mayor

_________________________________

            Heather A. Mailander

                Village Clerk