Minutes: November 29, 2010

The Regular Meeting of the Township Council of the Township of Vernon was convened at 5:06 p.m. on Monday, November 29, 2010 in the Vernon Municipal Center, 21 Church Street, Vernon, New Jersey with Mayor Sally Rinker presiding.

Statement of Compliance

Adequate notice of this meeting had been provided to the public and the press on November 18, 2010, and was posted on the bulletin board in the Municipal Building in accordance with the Open Public Meetings Act, N.J.S.A. 10:4-6.

Roll Call of Members

Present were Council Members Richard Carson, Valerie Seufert, Harry Shortway, and Mayor Sally Rinker. Also present were Township Manager Jerry Giaimis and Township Attorney John Ursin.

Council Business

Municipal Service Act Reimbursement

All the private communities affected requested a meeting with the Council to discuss the outstanding 2009 and 2010 reimbursement issues.

Township Attorney John Ursin stated that in Vernon for the past 12-14 years the issue of Municipal Services Reimbursement has been a point of conflict. The policy and procedures over the years have changed and good records were not kept. The Township is at a point now that they need to resolve it so that now and moving forward there is a policy. Normally the fees that are reimbursed to the communities is paid out by the Township based on a calculation. In the 1990’s the Stonehill community stated that the cap should be 1.5%. Sometime between then and now all the communities are receiving reimbursement at a premium of 1.5% per mile cap for all communities. With a previous manager a contract was drafted and distributed to the communities for a 1 to 1 reimbursement. For some communities the reimbursement will not be an issue because the amount being requested does not exceed the 1 to 1 cap. The Township has considered bringing in an outside consultant to analyze the communities and provide an additional opinion as to whether or not a premium or a 1 to 1 is appropriate.

Township Manager Jerry Giaimis provided the Council with a memo of the cost of the Department of Public works taking over the communities, the communities that have submitted invoices and the cost and the history of the former payments.

Council Member Seufert asked if all of the communities had been reimbursed for 2008. Township Manager stated that all the communities have been paid with the exception of a partial payment to Highland Lakes. $12,000 proposal for one person to due a full anaylsis of the situation and evaluation of Township roads. $300,000 was budgeted in 2009, $600,000 was budgeted in 2010.

The Mayor opened the meeting to the public.

Robert Oliver, member of the Finance Committee, stated there had been a backlog from previous years payments and additional money was added to the 2010 budget to cover that backlog.

Council Member Seufert and Carson stated that the Chief Financial Officer needs to start attending the Council meetings. The Township Manager stated that he would relay that message.

Jeanne Jameson, Lake Communities, Association spokesperson, stated a meeting was requested by the President’s of the Association. They feel they are entitled to at least the 1.5% reimbursement. They would like to express their concerns and explain their areas for the difficulty factor. The winter starts earlier and lasts later than in the valley...with ice conditions being more difficult. Asking of the fair treatment for the plowing of the taxpayers roads. Many residents are concerned about the issue at hand.

Each private community addressed their concerns about their individual communities. Some associations agreed that they should be reimbursed more than 1.5%.

Mr. Ursin advised that directly after the Stonehill case, each community was assessed individually and not everyone received 1.5%. It was a few years later that no documentation was found that every community received the standard 1.5%. The group would like something put in writing and memorialized when an agreement is reached.

The Barry Lakes representative was concerned about the cost per mile, not being a true reflection because sometimes there are roads being plowed on the Mountain but not in the valley. There is difficult terrain, narrow roadways, dead ends and numerous intersections. The only way to compensate for this would be the 1.5% difficulty factor.

More material is needed per mile due to the terrain and elevation.

The Mayor was disappointed that Dave Pullis, DPW Director and Bill Zuckerman, the CFO were not present because they are both highly involved in this situation.

Mr. Ursin reported the formula that is being used is standard throughout the state and stated that if the Township and the associations cannot agree, this could end up in court. He suggested that the Council be careful with their comments since they do not have full documentation and information in order to make an analysis and decision.

Mike Curry, Lake Wallkill, representative, was concerned about their individual communities’ budgets because they have not received money back for 2009 yet. He stated that Mr. Ursin made a statement that 2009 would not be affected and now they are hearing something different. Mr. Curry expressed concern about how to keep the communities dues down if they do not know how much money they will be receiving from the Township. There were concerns about hiring a consultant at $12,000 versus speaking with the contractors that are currently plowing the roads.

The Mayor addressed the associations concerns stating that the Council has not been properly informed in the past and needs to be informed before they can make a decision.

Bill Rixon, Scenic Lakes, representative, addressed the issue of picking up salting if the Township is to take over the roads; their community is far from the Township’s facility to pick up the material. Mr. Rixon asked if the consultant will be in touch with each of the communities, the Mayor stated that they should be.

The Mayor promised that the issue is front and center for the Council right now.

John McCloud, Village of Lake Glenwood representative, asked if the Council was willing to set a timeframe for when this will be resolved. The Mayor stated that she believed that they are still in the midst of gathering information and need to decide on how the Township will be moving forward and a letter be addressed to all the communities ASAP.

Mayor Rinker asked if Council Member Valerie Seufert would work with her as soon as possible to get this resolved, Council Member Seufert agreed.

The Mayor asked Mr. Ursin if they could speak in Executive Session about the issue of the contractor for the analysis service. Mr. Ursin said it could be added.

Council Member Harry Shortway stated that he doesn’t want this to go to litigation; it needs to be resolved within the next two weeks. The Mayor asked the Council to come to a decision by the next Council Meeting on December 16th.

Rich Cosh, Pochuck, a volunteer for many years, stated that there is a difficulty factor as a contractor. The roads that are harder to plow require him to do more maintenance and work on his trucks; material and repairs need to be considered. He stated the $12,000 for the consultant is a waste of money and as a taxpayer it is foolish.

Mr. Banks, stated that two parts to anaylsis is the difficulty factor and the calculation of the Township’s cost per mile. To the best of his knowledge the CFO, auditor and financial consultant have not been involved in this calculation.

Anthony Anari, stated there was a five year plan initially, with an agreement of 50% back one year, 40% next year, etc. He understands it’s not the current Mayor, Council or Managers fault.

Phil Capobianco, part of original negotiating team with the Council from Lake Wallkill; he is concerned as a taxpayer that Vernon Township didn’t accumulate on an annual basis for the budgeted of the snowplowing costs that the township would need to pay. Mr. Capobianco is concerned about bringing in new people to plow their lakes that don’t have the experience on their roads. He believes that they can do the work cheaper than the township can and the town should not burden the rest of the township’s residents that don’t live in these areas for buying new trucks and equipment.

Seeing no one else from the public wishing to speak, Mayor Rinker closed the public portion of the meeting.

Resolution to Go into Executive Session

At 6:13 p.m. Mayor Sally Rinker asked for a motion to close the meeting to the public and enter into Executive Session; the motion was made by Council Member Richard Carson seconded by Council Member Valerie Seufert with all members voting in favor.

The Municipal Clerk read the following resolution to go into executive session:

WHEREAS, Section 8 of the Open Public Meetings Act, Chapter 231, P.L. 1975 permits the exclusion of the public in certain circumstances; and

WHEREAS, this public body is of the opinion that such circumstances presently exist;

NOW, THEREFORE, BE IT RESOLVED by the Township Council of the Township of Vernon as follows:

1. The public shall be excluded from discussion of and action upon the hereinafter specified subject matter.
2. The general nature of the subject matters to be discussed are:
   1. Personnel matter: Police Department—Executive Session minutes will be released to the public upon conclusion of this matter.
   2. Potential Litigation: GRC matter—Executive Session minutes will be released to the public upon conclusion of this matter.
   3. Personnel matter: One interview for the position of Municipal Clerk. Executive Session minutes will be released to the public upon the execution of an employment agreement for the Municipal Clerk position.
3. It is anticipated that the above-stated subject matter will be made available upon final decision.
4. This resolution shall take effect immediately.

The Township Council entered into Executive Session at 6:13 p.m.

The meeting was reopened to the public at 7:13 p.m. Present were Council Members Richard Carson, Valerie Seufert, Harry Shortway, and Mayor Sally Rinker. Also present were Township Manager Jerry Giaimis and Township Attorney John Ursin.

Council Member Valerie Seufert made a motion to come out of Executive Session, seconded by Richard Carson, with all in favor.

Salute to the Flag

The Mayor led the assemblage in the salute to the flag.

Resolution #10-229: Authorizing Execution of Memorandum of Understanding between Township of Vernon and New Jersey State Policemen’s Benevolent Association Local No. 285

WHEREAS, the Township and PBA Local 285 are parties to a Collective Negotiations Agreement with a term of January 1, 2008 through December 31, 2011 (hereafter, the “2008-2011 Agreement”); and

WHEREAS, the Township and PBA Local 285 seek to affirm their mutual understanding regarding salary guide placement for new hires and Sergeant promotions; and

WHEREAS, the parties have negotiated a Memorandum of Understanding to affirm their mutual understanding.

NOW THERFORE BE IT RESOLVED, the Council of the Township of Vernon hereby approves the execution of the Memorandum of Understanding between that the Township and PBA Local 285 which sets forth the mutual understanding with respect to the salary guide placement for new hires and Sergeant promotions. This mutual understanding is effective November 29, 2010 through December 31, 2011.

BE IT FURTHER RESOLVED, this Memorandum of Understanding shall not be effective unless and until it is ratified by the PBA membership and the Township Council.

Moved: Valerie Seufert
Seconded: Harry Shortway

A roll call vote was taken:
Ayes: Richard Carson, Valerie Seufert, Harry Shortway, Sally Rinker
Nays: None
Resolution #10-229 was approved.

Presentations and Special Items

Vernon Township Police Department Retirees, Promotions and New Hires

Lieutenant Daniel Zill and Sergeant Michael Burns were recognized for their years of public service and retirement from the Vernon Police force.

Mayor Rinker read the Oath of Office for the promotion of Patrolman William Fischer to Sergeant and Patrolman Keith Kimkowski to Sergeant.

Stephen Gentle and Ronald Koumaras III were sworn in as new Patrolmen.

Discussion of Council Vacancy

Mayor Rinker stated that the Council had not received three names of nominees from the Republican County Committee to fill the current Council vacancy, so there will be no further discussion on this topic. The Republican County Committee meeting will take place tomorrow evening at 8 p.m. in the Senior Center of the Municipal Building if anyone is willing to put their name forward to be nominated to fill the council seat, you must be a registered republican to fill the seat.

Presentations

Municipal Alliance Committee (MAC)

Council Member Richard Carson requested that Jeanne Buffalino, Coordinator of the MAC Committee and Police Chief Roy Wherry spoke about the current programs and future endeavors of the Committee.

Council Member Richard Carson reported on a certain drink called “Four Loco” that has had disastrous effects on people who have consumed this beverage. It has been banned in certain states and is currently not being sold in Vernon Township. Council Member Carson also warned about another beverage that is a danger to the public called “Cream” which is whipped cream with alcohol in it.

New Jersey Trails Program Grant Application

Mr. Cory Stoner, Township Engineer, from Harold A. Pellow & Associates gave an overview of the New Jersey Trails Program and grant application. Mr. Stoner reported that the grant is due in by December 15th.

Resolution #10-230: Authorizing the Approval to Submit an Application and Execute an Agreement and Any Amendment Thereto with the State of New Jersey Department of Environmental Protection, Green Acres Program, for the Bike Path Project Phase IIA

WHEREAS, the New Jersey Department of Environmental Protection, Green Acres Program (“State”), provides loans and/or grants to municipal and county governments for maintenance of existing trails, development of trailheads, purchase of trail maintenance equipment, construction of new trails and acquisition of property for trails; and

WHEREAS, the Township of Vernon desires to further the public interest by obtaining funding in the amount of $25,000 from the State to fund the following project: Bike Path Project Phase IIA; and

WHEREAS, the maximum grant award is $25,000.00 with a 20% matching share from the Township; and

NOW, THEREFORE BE IT RESOLVED, by the governing body of the Township of Vernon authorization is approved to submit a Grant Application and Execute any Agreement and any Amendment thereto with the State of New Jersey Department of Environmental Protection, Green Acres Program for the Bike Path Project Phase IIA; and

BE IT FURTHER RESOLVED, that the applicant is willing to use the State’s funds in accordance with such rules, regulations and applicable statues, and is willing to enter into an agreement with the State for the above named project.

This resolution shall take effect immediately according to law.

Council Member Harry Shortway made a motion to approve Resolution #10-230; seconded by Council Member Richard Carson.

A roll call vote was taken:
Ayes: Richard Carson, Harry Shortway
Nays: None
Recused: Valerie Seufert
Abstain: Sally Rinker
Resolution #10-230 was approved.

Terry Vanderhey, President of the Vernon Township Firemen’s Association, asked the Council to approve replacing at least five sets of gear for 2011 that are due to expire. The Council asked that she put a request in writing with costs.

Robert Benecke provided an overview of Resolution #10-226 as a disclosure resolution commonly prepared showing that each bond ordinance financed by the bond issue are not separately financed by individual bonds, but are wrapped into one issue. There are nine of them and they compare to the notes on the annual financial statements of the Township.

Robert Benecke also provided an overview of Resolution #10-227, stating this is a companion piece to the resolution adopted on October 28th, and it discloses that you are issuing the bond similar to the October 28th resolution, and provides the sequence that on December 21, 2010 you will be taking competitive publicly sealed bids electronically, and the bonds will be book entry only (not physical bonds) and the maturity level and the first payment will be due in January of 2012.

Resolution #10-226: Resolution Providing for the Combination of Certain Issues of Bonds of the Township of Vernon, in the County of Sussex, New Jersey, into a Single Issue of General Bonds Aggregating $13,395,000 in Principal Amount

BE IT RESOLVED by the Township Council of the Township of Vernon, in the County of Sussex, New Jersey, as follows:

Section 1. Pursuant to the provisions of Section 40A:2-26 of the Local Bond Law of New Jersey, particularly paragraph (f) thereof and in lieu of the sale of more than one issue of bonds as provided for in said Local Bond Law, the several issues of bonds of this local unit described in Section 2 hereof, authorized pursuant to bond ordinances of the local unit heretofore adopted, shall be combined into a single and combined issue of bonds in the principal amount of $13,395,000.

Section 2. The principal amount of the bonds of the several issues of bonds to be combined into a single issue as above provided, the bond ordinance authorizing each of said several issues described by reference to its title and date of adoption, and the period or average period of usefulness determined in each of said bond ordinances are respectively as follows:

Section 3. The following matters are hereby determined with respect to said combined issue of bonds:

1. The average period of usefulness, taking into consideration the respective amounts of obligations authorized to be issued pursuant to each of said bond ordinances, respectively, is fifteen (15) years.
2. The bonds of said combined issue shall be designated “General Bonds of 2011” and shall mature within the said average period of usefulness hereinabove determined.
3. The bonds of said combined issue shall be sold and issued in accordance with the provisions of said Local Bond Law applicable to the sale and issue of a single issue of bonds.

Section 4. The following additional matters are hereby determined, declared, recited and stated:

1. None of the bonds of the several issues of bonds described in Section 2 hereof has been heretofore sold or issued and the several bond ordinances described in Section 2 hereof have not heretofore been rescinded and now remain in full force and effect as authorizations for the amount of bonds set forth opposite the title of the several bond ordinances described in said Section 2 hereof.
2. No bonds are authorized by any of the bond ordinances described in Section 2 hereof, except bonds in the amount set opposite the title of said bond ordinances in Section 2 hereof, and except $247,000.86 (#04-26) and $390,000 (#06-19).
3. The several purposes for the financing of which the bonds described in Section 2 hereof have been authorized to be issued pursuant to the respective bond ordinances described in Section 2 hereof are purposes for which bonds of this local unit may lawfully be issued pursuant to said Local Bond Law and are not purposes for which a deduction may be taken in any annual or supplemental debt statement of the local unit.

Section 5. This resolution shall take effect immediately.

Moved: Richard Carson
Seconded: Harry Shortway

Mr. Benecke was questioned regarding the cost of the sale. Mr. Benecke stated there is a typical cost of $7500.00 and $12,500.00 for printing and preparation and bond council opinion fee. This amount is included in the bond sale itself.

Motion to approve Resolution #10-226

A roll call vote was taken:
Ayes: Richard Carson, Valerie Seufert, Harry Shortway, Mayor Sally Rinker
Nays: None
Resolution #10-226 was approved.

Resolution #10-227: Resolution Determining the Form and Other Details of $13,395,000 General Bonds of 2011 of the Township of Vernon, in the County of Sussex, New Jersey, and Providing for Their Sale

BE IT RESOLVED by the Township Council of the Township of Vernon, in the County of Sussex, New Jersey, as follows:

Terms of Bonds. The $13,395,000 General Bonds of 2011 (the “Bonds”) of The Township of Vernon, in the County of Sussex, New Jersey (the “Township”), referred to and described in the resolution adopted pursuant to the Local Bond Law of the State of New Jersey, by the Township Council of the Township on November 29, 2010, entitled “Resolution providing for the combination of certain issues of bonds of the Township of Vernon, in the County of Sussex, New Jersey, into a single issue of General Bonds aggregating $13,395,000 in principal amount” and authorized by certain bond ordinances of the Township therein described, shall be dated the date of delivery thereof, shall bear interest payable semi-annually on January 1 and July 1 in each year, commencing January 1, 2012, expressed in a multiple of 1/8 or 1/20 of 1%, shall mature (subject to the option of the successful bidder to establish term bonds in accordance with the provisions of the notice of sale) in the principal amount of $595,000 on January 1, 2012, $640,000 on January 1, 2013, $680,000 on January 1, 2014, $720,000 on January 1, 2015, $765,000 on January 1, 2016, $810,000 on January 1, 2017, $850,000 on January 1, 2018, $890,000 on January 1, 2019, $935,000 on January 1, 2020, $980,000 on January 1, 2021, $1,020,000 on January 1, 2022, $1,065,000 on January 1, 2023, $1,105,000 on January 1, 2024, $1,150,000 on January 1, 2025 and $1,190,000 on January 1, 2026.

Section 1. Book-Entry-Only Bonds. The Bonds shall be issued by means of a book-entry system with no physical distribution of bond certificates made to the public. The Bonds shall be issued in registered form and bond certificates for each maturity will be issued to The Depository Trust Company, New York, New York (“DTC”), registered in the name of its nominee Cede & Co., and immobilized in its custody. A book-entry system will be employed, evidencing ownership of the Bonds in principal amount of $5,000 or any $1,000 increment in excess thereof, with transfers of ownership affected on the records of DTC and its participants pursuant to rules and procedures adopted by DTC and its participants. The successful bidder, as a condition to the delivery of the Bonds, will be required to deposit the bond certificates with DTC, registered in the name of Cede & Co. So long as Cede & Co. is the registered owner of the Bonds, principal and redemption price, if any, of and interest on the Bonds will be payable by the Township or its agent to DTC or its nominee as registered owner of the Bonds. The Bonds shall be executed in the name of the Township by the manual or facsimile signatures of its Mayor and its Chief Financial Officer, under the seal of the Township affixed, imprinted or otherwise reproduced thereon and attested by the manual signature of its Township Clerk or Acting Township Clerk.

Section 2. Redemption. The Bonds maturing prior to January 1, 2022 are not subject to redemption prior to maturity at the option of the Township. The Bonds maturing on or after January 1, 2022 are subject to redemption prior to maturity at the option of the Township upon notice as described below in whole or in part, in any order of maturity and by lot within a maturity if less than all the Bonds of such maturity are to be redeemed, on any date on or after January 1, 2021, at a redemption price equal to 100% of the principal amount thereof, together with interest accrued, if any, to the date fixed for redemption. Notice of redemption shall be given by first-class mail, postage prepaid, to the registered owners of the Bonds or portions thereof to be redeemed, not less than thirty (30) days nor more than sixty (60) days prior to the redemption date, but such mailing shall not be a condition precedent to such redemption and failure so to mail any such notice shall not affect the validity of any proceedings for the redemption of Bonds. If notice of redemption shall have been given as aforesaid, the Bonds or portions thereof specified in said notice shall become due and payable at the redemption price on the redemption date therein designated and if, on the redemption date, moneys for payment of the redemption price of all the Bonds to be redeemed, together with interest to the redemption date, shall be available for such payment on said date, then from and after the redemption date interest on such Bonds shall cease to accrue and become payable. Less than all of a Bond in a denomination in excess of $5,000 may be so redeemed, and in such case, upon the surrender of such Bond, there shall be issued to the registered owner thereof, without charge therefor, for the unredeemed balance of the principal amount of such Bond, Bonds of like series, designation, maturity and interest rate in any of the authorized denominations.

Section 3. Form of Bonds. The Bonds shall be in substantially the following forms with such changes and modifications as may be required, necessary, convenient or desirable for delivery thereof (including the inclusion of mandatory sinking fund provisions if term Bonds are specified by the successful bidder):

Section 4. Sale of Bonds and Publication of Notice. The Bonds shall be sold upon electronic proposals submitted on either Grant Street Group’s MuniAuction website or the Parity Electronic Bid System of i-Deal LLC (as shall be determined by the Chief Financial Officer of the Township after consultation with the Township financial advisor, Township auditor and bond counsel) on December 21, 2010 until 11:00 o’clock A.M. (or such other date or time as shall be determined by the Chief Financial Officer of the Township after consultation with the Township financial advisor, Township auditor and bond counsel) and the Township Clerk or Acting Township Clerk is hereby authorized and directed to (a) cause a notice of such sale to be published at least once, the first publication to be at least seven days prior to said sale in the “New Jersey Herald.” a newspaper published in the County of Sussex, and circulating in the municipality, and (b) cause a summary of the notice of sale to be published at least once, the first publication to be at least seven days prior to said sale in “The Bond Buyer,” a financial newspaper published and circulating in the City of New York, New York.

Section 5. Forms of Notices. Said notice of sale and said summary of notice of sale shall be in substantially the following forms, respectively, with such changes and modifications as may be approved by the Chief Financial Officer of the Township after consultation with the Township financial advisor, Township auditor and bond counsel:

Section 6. Additional Matters Contained in Bonds. The Township Clerk or Acting Township Clerk is hereby authorized and, if necessary or advisable in the opinion of Hawkins Delafield & Wood LLP, directed (a) to cause the applicable CUSIP numbers (if any) assigned for each of said bonds by the CUSIP Service Bureau of Standard & Poor’s Corporation of New York, New York, to be printed on the Bonds, and (b) to cause, in the event that the Bonds shall qualify for issuance of any policy of municipal bond insurance, at the option of the purchaser thereof, such legend or reference (if any) of such insurance to be printed (at the expense of such purchaser) on the Bonds in such form as shall be satisfactory to Hawkins Delafield & Wood LLP.

Section 7. Delivery of Related Documents. Upon the date of issue of the Bonds, being the date of delivery of the Bonds to the successful bidder and the payment of the purchase price thereof in accordance with the contract of sale, the Chief Financial Officer is hereby authorized and directed, as of the date of issue, to deliver to said bidder (a) an arbitrage and use of proceeds certificate with respect to the Bonds in such form as shall be satisfactory to Hawkins Delafield & Wood LLP under and for the purposes of Section 148 of the Internal Revenue Code of 1986, as amended to said date of issue (the “Code”), (b) an undertaking to provide continuing disclosure in order to assist said bidder in complying with Rule 15c2-12 of the Securities and Exchange Commission (“Rule 15c2-12”) in a form satisfactory to Hawkins Delafield & Wood LLP and (c) such other documents as may be useful, necessary, convenient or desirable in connection with the issuance of the Bonds.

Section 8. Delegation of Power to Award Bonds. The Township Council of the Township, as the governing body thereof, does by this resolution designate the Chief Financial Officer of the Township, or such other Township official as may be deemed appropriate, to sell and award the Bonds in accordance with the advertised terms of public sale. Said Chief Financial Officer or other Township official making such sale shall report in writing to this governing body at its next meeting thereafter as to the principal amount, interest rate and maturities of the Bonds sold, the price obtained and the name of the purchaser. Such Chief Financial Officer or other Township official is hereby further authorized and directed to do and accomplish all matters and things necessary or desirable to accomplish the sale of the Bonds including, after consultation with the Township financial advisor, Township auditor and bond counsel, (a) adjusting the maturity schedule of the Bonds and (b) postponing and rescheduling from time to time the sale of the Bonds, all in accordance with the provisions set forth in the notice of sale and as provided by law.

Section 9. Bank-Qualified Designation. The Bonds are hereby designated as “qualified tax-exempt obligations” pursuant to and for the purposes of Section 265(b)(3) of the Code, or to the extent the Bonds refund other obligations of the Township, the Bonds are “qualified tax-exempt obligations” pursuant to Section 265(b)(3)(D)(iii) of the Code; provided, however, that such designation shall be effective only if at the time of issuance of the Bonds the Code would allow for such designation. Not more than $30,000,000 of obligations, including the Bonds, of the Township and all subordinate entities thereof are expected to be designated by the Township for purposes of Section 265(b)(3) of the Code. As of the date hereof, the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds, as referred to and defined in Section 141 of the Code and current refundings of other obligations of the Township), which will be issued by the Township and all subordinate entities thereof during the 2011 calendar year does not exceed $30,000,000.

Section 10. Preliminary Official Statement. All action taken to date by the officials, employees and agents of the Township with respect to the issuance of the Bonds, including the preparation of a Preliminary Official Statement with respect thereto be and the same hereby are approved, ratified, adopted and confirmed and the Chief Financial Officer of the Township is hereby authorized to deliver said Preliminary Official Statement for its use in the sale, resale and distribution of the Bonds. The Chief Financial Officer of the Township or such other Township official as may be appropriate is hereby authorized and directed to deem said Preliminary Official Statement final as of its date for purposes and within the meaning of Rule 15c2-12.

Section 11. Final Official Statement. The execution, delivery and dissemination of a final Official Statement in substantially the same form as said Preliminary Official Statement with such changes, insertions and omissions as may be approved by the Chief Financial Officer of the Township with respect to the issuance of the Bonds by and on behalf of the Township, is hereby authorized, and the Chief Financial Officer of the Township or such other Township official as may be deemed appropriate is hereby authorized and directed to execute the same in the name and on behalf of the Township Council and is further authorized to deliver said final Official Statement in executed form for its use in the sale, resale and distribution of the Bonds. The execution of said final Official Statement by the Chief Financial Officer of the Township or such other Township official as may be deemed appropriate shall be conclusive evidence of any approval required hereby.

Section 12. Actions to be Taken on Behalf of the Township. The Township Manager, the Chief Financial Officer of the Township and the Township Clerk or Acting Township Clerk are hereby authorized to do all matters necessary, useful, convenient or desirable to accomplish the sale and delivery of the Bonds, including without limitation matters relating to the provision of electronic bids for the Bonds, acceptance of a financial surety bond to secure the good faith deposit for the Bonds and the appointment of a redemption agent in connection with the issuance of term bonds.

Section 13. Prior Action. All action heretofore taken by Township officials and professionals relating to the sale of the Bonds is hereby ratified, confirmed, adopted and approved.

Section 14. Effective Date. This resolution shall take effect immediately.

The foregoing resolution was adopted by the following vote:
Moved: Valerie Seufert
Seconded: Harry Shortway

A roll call vote was taken:
Ayes: Richard Carson, Valerie Seufert, Harry Shortway, Mayor Sally Rinker
Nays: None
Resolution #10-227 was approved.

Public Comments

Mayor Rinker opened the meeting for public comment.

Jeanne Jameson, Vernon Township Association of Private Communities, commented that they will wait until the Council meeting on December 16, 2010 for a decision on the reimbursement level which has been used for the past twelve years. Ms. Jameson also requested that the payment for the 2009 reimbursement year be made by December 31, 2010 and that the payment for the 2010 reimbursement year be made by the end of January 2011.

Dennis Miranda, Chairman of the Environmental Commission, spoke regarding Greenway properties. Mr. Miranda requested that the Council approve a second appraisal for the properties so that the project can move forward.

Diane Weston, Barry Lakes, questioned Township Manager Jerry Giaimis’ decision to transfer funds to social security and FUDA taxes. Ms. Weston further questioned specifically where the funds were transferred from. Mr. Giaimis responded that they were salary line items from layoffs being transferred to the social security budget.

Gary Martinsen, Vernon resident and business owner, commented that he feels the order in which the Council does business at the meetings is out of order. Mr. Martinsen further commented that the public should have a chance to comment before resolutions are passed, so the Council can have the public’s input before decisions are made instead of after. Mr. Martinsen also spoke regarding the possibility of passing an ordinance to limit bonding of excessive amounts without bringing it to the people to vote on.

Seeing no one else from the public whishing to speak, the meeting was closed to the public.

Approval of Minutes

August 26, 2010 Regular Meeting Minutes

Moved: Richard Carson
Seconded: Harry Shortway

A roll call vote was taken:
Ayes: Richard Carson, Harry Shortway, Sally Rinker
Nays: None
Abstain: Valerie Seufert

September 13, 2010 Regular Meeting Minutes

Moved: Richard Carson
Seconded: Valerie Seufert

A roll call vote was taken:
Ayes: Richard Carson, Valerie Seufert, Sally Rinker
Nays: Harry Shortway
Abstain: None

Minutes Added by Addendum

September 23, 2010 Regular Meeting Minutes

Mayor Rinker made a motion to carry these minutes to the next Township Council Meeting of December 16, 2010; seconded by Council Member Valerie Seufert with all in favor.

Township Manager’s Report

Jerry Giaimis reported that Vernon Township had thirty officers at the beginning of the year which was down from 34 officers the previous year. There were four retirements in 2010 which brought the number of officers down to 26. The new Police Officers will be hired at the step one salary as opposed to the experienced salary. Mr. Giaimis provided a detailed report that is open to the public and has been provided to the press.

Mr. Giaimis commented on an issue from the last Council meeting that had been raised by Council Member Valerie Seufert in respect to the bill free audit coming in late. He contacted the audit company and they indicated that it was sent in to a prior manager which Mr. Giaimis never received.

Mr. Giaimis commented on an issue regarding 10 Cedar and advised a property owner who was present at the meeting, that the DPW Director will be contacting the resident personally.

Mr. Giaimis commented on being interviewed by the Boy Scouts who were well prepared and had a lot of excellent questions.

The Manager reported that the County will be performing a site visit to the Public Works Department and putting together a proposal for the possibility of a shared service to house our public works and move them from their present site.

Mr. Giaimis reported that on November 28th the Manager’s office sent out a list of professionals for consideration at the January reorganization meeting. The Council will need to determine which of those they would like to send out for request for proposals to.

Mr. Giaimis reported that we are currently without a COAH plan and would like the Township Attorney to discuss some of the ramifications of that. Township Attorney John Ursin stated there are statutorily mandated development fees, residential and commercial. Those fees, when paid to the town, if you have a certified COAH plan, the commercial are allowed to be kept here in town in an affordable housing trust account. If you don’t have a certified COAH plan then those fees all go to Trenton. It is important to address this so that when those fees come in they can be kept here in town and can be used for affordable housing programs. Mr. Giaimis stated that estimated costs for COAH should not exceed $3,500.00.

Council Member Valerie Seufert made a motion to have the Manager instruct the Engineer to draft a plan for COAH, so that we are not at risk of losing our development fees, not to exceed $3,500.00. The Mayor added to have Mr. Ursin’s expertise in conjunction with the Engineer as well on this; the motion was seconded by Council Member Harry Shortway.

A roll call vote was taken:
Ayes: Richard Carson, Valerie Seufert, Harry Shortway, Mayor Sally Rinker
Nays: None

The Manager reported doing extensive research on the hotel/motel tax and is gathering information from the State government, who is in the process of providing a detailed breakdown. Council Member Valerie Seufert suggested going back to check the general development plan that Mt. Creek entered into to see if there are any limitations on the stays.

Mr. Giaimis commented on a resident’s complaint regarding garbage burning in home fireplaces and stated that the complaint should be forwarded to the County health officials.

The Manager commented that the HVAC system is currently underway and should be completed in approximately 8 weeks.

Mayor Rinker questioned the Manager regarding the budget process. Mr. Giaimis stated that he has meetings scheduled with all of the department heads next week after which there will be a department head meeting that will be open to the public.

Mayor Rinker commented that she would like to be part of the budget sub-committee and questioned if there is anyone else on the Council who would like to join her. Council Member Harry Shortway volunteered to be a part of the process.

Township Attorney’s Report

Township Attorney John Ursin reported to the Council that he is busy with tax appeals before the end of the year to avoid refunds rolling over into next year. Mr. Ursin further reported with respect to tax foreclosures filings. Mr. Ursin strongly recommended that the Council consider forming a real estate committee because the municipality holds a fairly high number of properties that could be reviewed by such a committee. Mr. Ursin stated that the real estate committee would be able to suggest which properties could be sold off to generate revenue and this would be very productive for the Town.

Resolutions Requiring Separate Action

Resolution #10-223: Authorizing the Approval of Bills List

BE IT RESOLVED that the following bills listed are hereby approved:

Council Member Valerie Seufert made a motion to approve journal items 2 through 8 with the exception of entry 2536 for $47.79 and 2537 for $425.00, seconded by Sally Rinker.

A roll call vote was taken:
Ayes: Richard Carson, Valerie Seufert, Harry Shortway, Sally Rinker
Nays: None
Resolution #10-223 was approved.

Council Member Valerie Seufert made a motion to approve Resolution #223 to approve disbursement journal item #1, which is $200,000. to Highland Lakes Country Club, seconded by Harry Shortway

A roll call vote was taken:
Ayes: Valerie Seufert, Harry Shortway, Sally Rinker
Nays: None
Abstain: Richard Carson
Resolution #10-223 was approved.

Resolution #10-224: Authorizing Purchase of Annual Policy Subcription to PowerDMS.com for Vernon Police Department in the Amount Not to Exceed $1,650.00

WHEREAS, there exists a need for a software program for the administration of policy and procedures for the Vernon Township Police Department; and

WHEREAS, Innovative Data Solutions, Inc. is the sole distributor for software for electronic administration of written directives, policy and procedures, accountability as well as training and education management; and

WHEREAS, the Chief of Police has received a proposal dated October 7, 2010 for the needed services from Innovative Data Solutions, Inc.; and

WHEREAS, the cost estimate for the Annual Policy Subscription is $1,450.00 for the PowerDMS.com and $200.00 for the PowerDMS.com Annual Client Access License; and

WHEREAS, the Chief Financial Officer of the Township of Vernon, has determined and certified the funds of this agreement.

NOW THEREFORE BE IT RESOLVED, by the Mayor and Council of the Township of Vernon, approval to purchase the Annual Policy Subscription, for the PowerDMS.com and Annual Client Access License for the Vernon Township Police Department is approved at a cost not to exceed $1,650.00.

This Resolution will take affect immediately according to law.

Moved: Harry Shortway
Seconded: Valerie Seufert

A roll call vote was taken:
Ayes: Richard Carson, Valerie Seufert, Harry Shortway, Sally Rinker
Nays: None
Resolution #10-224 was approved.

Resolution #10-225: Authorizing an Award of Contract for Recording Secretary for the Environmental Commission in the Amount Not to Exceed $500.00

WHEREAS, there exists a need for a Recording Secretary for the Vernon Township Environmental Commission for the remainder of year 2010; and

WHEREAS, Vernon Township desires to enter into a contract for these services, as stated in Exhibit “A”, with Aida Cahill for the term from November 22, 2010 to December 31, 2010, with a total contract price not to exceed $500.00; and

WHEREAS, the Chief Financial Officer has certified that funds are available for this purpose in the 2010 Municipal Budget.

NOW THEREFORE BE IT RESOLVED, this 29th day of November, 2010, by the Township Council of the Township of Vernon, County of Sussex and State of New Jersey as follows:

1. The Township of Vernon is authorized to execute the contract with Aida Cahill Recording Secretary for the Vernon Township Environmental Commission for the term from November 22, 2010 through December 31, 2010.
2. An executed copy of this Resolution will be forwarded to the Chair of the Environmental Commission as well as published in the New Jersey Herald by the Township Clerk as required by law and a true copy of same and the Contract shall be available for inspection in the office of the Township Clerk.

Moved: Valerie Seufert
Seconded: Harry Shortway

Council Member Seufert questioned the pay per hour amount of $15.00 as opposed to $12.00 for the other commission’s secretaries. Mr. Giaimis explained that Ms. Cahill has municipal experience with several other towns.

A roll call vote was taken:
Ayes: Valerie Seufert, Harry Shortway, Sally Rinker
Nays: Richard Carson
Resolution #10-225 was approved.

Resolution #10-228: Authorizing a Memorandum of Agreement with Priority Search Services, LLC for “Inquiry Only” Access to Certain Tax Collectors Tax and/or Utility Records via Vital Communications

WHEREAS, the Township of Vernon received a request from Priority Search Services LLC, seeking electronic “look only” inquiry access to the public tax records administered by the tax collector; and

WHEREAS, Vernon Township’s tax records are currently maintained in an electronic format by Vital Communications Inc. of Trenton, New Jersey; and

WHEREAS, upon authorization, Priority Search Services, LLC, agrees to use this information for the sole purpose of providing tax search information to the title industry; and

WHEREAS, Priority Search Services LLC, also agrees to protect the information obtained and to not re-sell or re-distribute this same information or make available to a third party except as needed for the purpose of providing information for tax searches to the title industry.

NOW THEREFORE BE IT RESOLVED by the Council of the Township of Vernon:

1. Vernon Township will authorize Vital Communications, Inc. to provide look up information access to Priority Search Services, LLC for Vernon Township property tax and/or utility records.
2. Priority Search Services, LLC shall be subject to Vital Computers policies and procedures.
3. Priority Search Services, LLC waives any claim that it may have against Vernon Township in connection with Vital Communications, Inc.’s policies and procedures.
4. Priority Search Services, LLC, agrees to use this information for the sole purpose of providing tax search information to the title industry, agrees to protect the information obtained and to not re-sell or re-distribute this same information or make available to a third party except as needed for the purpose of providing information for tax searches to the title industry.
5. The Township of Vernon shall not incur any charges for providing this access or means of information exchange to Priority Search Services, LLC.

Moved: Valerie Seufert
Seconded: Harry Shortway

A roll call vote was taken:
Ayes: Richard Carson, Valerie Seufert, Harry Shortway, Sally Rinker
Nays: None
Resolution #10-228 was approved.

Second Reading, Public Hearing on Proposed Ordinances

Ordinance #10-22: An ordinance granting a franchise expansion and permission for United Water New Jersey Inc., to lay its water pipes beneath such public roads, streets and alleys as may be necessary for its corporate purposes and to construct and maintain water pipes on and along public streets in the Township of Vernon, County of Sussex, State of New Jersey to service Great Gorge Terrace Condominium Association, Inc.

Mayor Rinker read Ordinance #10-22 by title only. First reading was held on October 28, 2010.

Council Member Valerie Seufert made a motion to approve Ordinance #10-22, seconded by Council Member Richard Carson.

Mayor Rinker opened the meeting for public hearing on this ordinance.

Dennis Miranda, Chair, Environmental Commission, commented on the possibility of existing businesses and homeowners having their wells taxed or compromised by expansion of sewer service areas and portable water service areas.

There being no further comments from the public, the Mayor closed the Public Hearing.

There was no Council discussion.

A roll call vote was taken:
Ayes: Richard Carson, Valerie Seufert, Harry Shortway, Sally Rinker
Nays: None
Ordinance #10-22 was approved.

Council Business

Council Member Valerie Seufert questioned if the payments to the Board of Education are up to date. The Township Manager stated the payments are up to date. Council Member Seufert also questioned who pays for the School Resource Officers. Mr. Giaimis explained that the Township currently pays the salary for School Resource Officers. Council Member Seufert commented that the budget is very tight and feels the Board of Education should be contributing to this.

Mayor Rinker questioned progress on arrangements for cleaning of the Municipal Building, IT, and payroll needing to move forward at an accelerated rate so the Council can accommodate these items in the new budget.

Mayor Rinker questioned Mr. Giaimis in regard to shared services. Mr. Giaimis says discussions with the Board of Education are planned. Mayor Rinker commented on the recommendation of forming a real estate sub committee and should like to offer her expertise and asked the Council if anyone would like to join her. Council Member Valerie Seufert offered to join the subcommittee.

Dennis Miranda made a Point of Order, any consideration or real estate review of properties, if those properties occur within a greenway or a list of lands that could be preserved for open space, there should be a check and balance within this review process so that there is an opportunity to take advantage of foreclosed properties, you have a free ride at preserving open space to the greenway, please consider that.

Resolution to Go into Executive Session

At 9:27 p.m. Council Member Richard Carson made a motion to close the meeting to the public and enter into Executive Session; the motion was seconded by Council Member Valerie Seufert with all members voting in favor.

The Municipal Clerk read the following resolution to go into executive session:

WHEREAS, Section 8 of the Open Public Meetings Act, Chapter 231, P.L. 1975 permits the exclusion of the public in certain circumstances; and

WHEREAS, this public body is of the opinion that such circumstances presently exist;

NOW, THEREFORE, BE IT RESOLVED by the Township Council of the Township of Vernon as follows:

1. The public shall be excluded from discussion of and action upon the hereinafter specified subject matter.
2. The general nature of the subject matters to be discussed is:
   1. Personnel matter: Tax Assessor position—Executive Session minutes will be released to the public upon the execution of an employment agreement for the Tax Assessor position.
   2. Lake Conway Dam: Executive Session minutes will be released to the public upon the conclusion of this matter or upon the execution of a contract.
   3. Negotiation matter: Municipal Services Act—Executive Session minutes will be released to the public upon the conclusion of this matter.
   4. Contract negotiation matter: United Water—Executive Session minutes will be released to the public upon conclusion of this matter or upon the execution of an agreement.
3. It is anticipated that the above-stated subject matter will be made available upon final decision.
4. This resolution shall take effect immediately.

The Township Council entered into Executive Session at 9:28 p.m.

The meeting was reopened to the public at 10:40 p.m. Present were Council Members Richard Carson, Valerie Seufert, Harry Shortway, and Mayor Sally Rinker. Also present were Township Manager Jerry Giaimis and Township Attorney John Ursin.

A motion was made by Council Member Richard Carson to hire a consultant for Municipal Services Act reimbursement, not to exceed $12,000.00, seconded by Council Member Harry Shortway.

A roll call vote was taken:
Ayes: Richard Carson, Valerie Seufert, Harry Shortway, Sally Rinker
Nays: None

Adjournment

There being no further items of business to be conducted on the Regular Meeting agenda, a motion for Adjournment was made by Council Member Valerie Seufert. Motion seconded by Council Member Harry Shortway with all members voting in favor.

The Regular Meeting of the Township Council of the Township of Vernon was adjourned at 10:42p.m.

Respectfully submitted,
Andrea Bates
Acting Municipal Clerk

Minutes approved: January 10, 2011