MAYOR AND COUNCIL MEETING

BOROUGH OF WANAQUE

MINUTES
Special Meeting
March 29, 2010

A Special Meeting of the Mayor and Council of the Borough of Wanaque was held on Monday, March 29, 2010 at 7:45 P.M. in the Wanaque Municipal Building.

The Mayor called the meeting to order with the flag salute.

ROLL CALL:

On roll call, the following Council Members responded: Balunis, Cisco, Cortellessa, Pasquariello, Pettet and Theoharous. The Borough Attorney was present. The Borough Engineer was absent. The Mayor declared a quorum.

The Mayor read the following Sunshine Statement: Adequate notice of this meeting has been provided by the Mayor and Council by e-mailing notice of this meeting to the Suburban Trends and the Herald News newspapers on March 23, 2010 stating therein that this meeting would be held on Monday, March 29, 2010 at the time of 7:30 P.M., in the Wanaque Municipal Building, 579 Ringwood Avenue, Wanaque, New Jersey, and a copy of this notice was posted on the bulletin board in the Wanaque Municipal Building on March 23, 2010, and a copy is on file in the office of the Municipal Clerk.

RESOLUTION #59-0-10:
Re: Final Approval of the Lease with the Passaic County Social Services

The Mayor asked the Borough Administrator to explain the details of the lease.
The Borough Administrator said the annual rental of the building is seventy seven thousand dollars based on the square footage of $15.00 per square foot. We need to have the Council confirm that number. The Board of Social Services has already approved the lease and they are willing to take occupancy as of April 15th . The fifty five thousand dollars in revenue for 2010 is already anticipated in the 2010 Budget.
Councilman Cortellessa said I looked at this lease closely and I have a good relationship with Pulte as well. I found that it is a very creative way to generate revenue for the community. There is a significant revenue generation. At the end of the period of the lease you have a property that is pretty well valued and appropriate. I think we need more creative ways of generating revenues for this community as well as looking at how we address expenses as well. From my perspective it’s a very solid idea and I think we should also think more creatively.
The Mayor said Councilman Cortellessa and I have been discussing the purchase and the fact that we are going to be getting less money from the lease than anticipated and he reached out to Pulte and negotiated a twenty five thousand dollar decrease in the purchase price. I would like to thank him for that. You did a great job for us.

On entertainment of the Mayor, Councilmen Theoharous and Pettet moved that,

RESOLUTION AUTHORIZING THE EXECUTION OF A REVISED LEASE
AGREEMENT FOR PREMISES AT 1237 RINGWOOD AVENUE, HASKELL

WHEREAS, the Borough of Wanaque, in connection with Ordinance 12-0-09 authorizing the Borough to purchase property at 1237 Ringwood Avenue has been in dialogue with the Passaic County Board of Social Services concerning a Lease arrangement for said premises and;
WHEREAS, the Passaic County Board of Social Services, and the Borough, have tentatively reached an agreement concerning the terms and conditions to be included in such Lease;
NOW THEREFORE, BE IT RESOLVED, by the Mayor and Council of the Borough of Wanaque, County of Passaic and State of New Jersey as follows:
1. The Borough of Wanaque is hereby authorized to enter into a Lease Agreement between itself, and the Passaic County Board of Social Services, concerning premises at 1237 Ringwood Avenue, in the Borough of Wanaque, which premises have been authorized for acquisition pursuant to Ordinance 12-0-09 and which said premises are subject to a Contract for Sale.
2. The Mayor of the Borough of Wanaque and appropriate Borough Officials are hereby authorized to enter into a Lease Agreement, deemed appropriate and conditioned upon approval of the Wanaque Borough Attorney.
3. This approval supercedes Resolution #145-0-09.
On roll call, all voted yes, except Councilman Balunis who voted no and the Mayor declared the motion carried.

On the roll call vote Councilman Balunis voted no. The Mayor said no. Wait a minute. Hey Tom so you don’t want fifty five thousand dollars.
Councilman Balunis said I don’t agree with the purchase.
The Mayor said okay so what police officer do you want to lay off.
Councilman Balunis said I didn’t say I want to lay off a police officer.
The Mayor said well you are going to lay off somebody with fifty five thousand dollars.
Councilman Balunis said this is not a political grand stand this is a roll call.
Councilwoman Cisco said let’s not. There are too many other important things to be discussed. Don’t turn this into a political arena tonight.
The Mayor said it is a political arena Karen.
Councilwoman Cisco said you want to do that then let’s talk about the three different notifications that had to be sent out for the change of this meeting. Three times we paid the newspapers in this town. There’s a couple of hundred dollars right there so you want to nickel and dime everything he has his vote.
The Mayor said fifty five thousand dollars isn’t nickel and diming Karen.
Councilwoman Cisco said he has his vote.
The Mayor said fine he made it.
Councilwoman Cisco said you’re right he doesn’t need your comment by it.
Councilman Cortellessa said one of the changes in the date was the result of a personal situation that I had and I appreciated the Council making that change and if I caused some additional cost to us as a result of a change I apologize for that.

INTRODUCTION OF THE 2010 CURRENT AND WATER UTILITY BUDGETS –
RESOLUTION #57-0-10 AND RESOLUTION #58-0-10 – DEFERRED SCHOOL TAXES AND OTHER BUDGETARY RESOLUTIONS

Held. The Borough Administrator explained the budget stating that the State Aid is down and also the Levy Waiver. We are down four positions in the budget and are down to $300,000.00 cost cuts and need additional $25,000.00 to get to Cap without any layoffs.
Councilman Balunis said Mayor can I make a suggestion. Since we are really struggling for money here. I would like to make a motion that from this point on until the rest of the year that the Mayor and Council give up their salary so we that we can help out with the budget a little bit.
Councilwoman Cisco said I concur because I said that two months ago.
Councilman Balunis said so I would like to make that motion.
The Mayor said we can add that to the list.
Councilman Balunis said do you want to vote on it.
The Mayor said we’ll add it to the list.
The Borough Administrator said that’s about twenty thousand dollars.
Councilman Balunis said I think it’s more than that. For the year it’s thirty nine and three months I calculated twenty nine five I think.
The Borough Administrator said that might be enough to close the gap.
Councilman Balunis said it may help pay for something.
The Borough Administrator said and if everyone is in agreement we’ll do a resolution at the next Council meeting but we’ll go from there.

The Borough Administrator discussed the budget and said we cut every departments budget and it is only up sixty nine thousand dollars. The recommendation and we spoke to Senator O’Toole regarding the Governor’s position as far as not allowing us to pass on tax cuts to the residents and there is discussion in Trenton to possibly do something allow a phase in which would loosen up the Cap a little bit. What I would like to do is get your feedback on these items because some of them are time sensitive to start putting in motion and see what transpires over the next couple of weeks in order to introduce a budget on April 19th. A lot of towns you are seeing layoffs happening. We don’t have a bloated staff to begin with. We need the people that are here to do the work. Right from the start of this whole process no one wanted to see layoffs. We can hold off on authorizing me to begin a layoff plan for another couple of weeks to see where we are on the 19th and make a decision on the 19th where we want to go.
Councilman Cortellessa said what’s the risk in the revenue number.
The Borough Administrator said the revenue number is firm.
Councilman Cortellessa said it is firm. You have no risk or exposure in any of the numbers.
The Borough Administrator said no. The State allows us to anticipate revenue up to what we made the prior year or what is based on formula for example the receipt of taxes is a formula base. The revenue numbers should be good and I believe that we will meet those revenue numbers this year something that didn’t happen last year.
Councilman Cortellesssa where are the other areas where there might be reserves that we can tap into if any.
The Borough Administrator said all of the Borough reserves have been tapped. I even mentioned the library they have funds over there and I am going to ask them to return some of those to the taxpayers.
Councilwoman Cisco said Tom have you talked to all these different individuals and groups at all.
The Borough Administrator said no not yet.
Councilwoman Cisco said no conversations have taken place yet.
The Borough Administrator said not until I talk to the Council. Well excuse me Recreation is aware of the proposal. I have not talked to the local assistance board, I have not talked to the library. The Golden Agers do know.
Councilman Cortellessa said what are the implications of the school guard in terms of the safety or any other issues.
The Borough Administrator said the school guard was there historically well before the traffic light was installed at Ringwood Avenue and Doty Road. So now anyone coming south of Second Avenue or Doty Road has the ability to cross with the traffic light to get to the west side of Ringwood Avenue and walk up Ringwood Avenue so there is no need for the school guard to be there and there are no homes between Second Avenue and Fourth Avenue. There is a crossing guard in front of the school so people can cross at that point but it would take an education process that would start at the end of this school year so that the children and the parents are aware of the fact that if you are coming from south of Doty Road or Second Avenue you have to cross to the school side before you come up Ringwood Avenue.
Councilman Cortellessa said has Chief Reno figured out how to do a stellar job without the overtime.
Chief Reno said that is not our only cut. We are currently out about one hundred fifty thousand dollars in straight cuts. We lost forty thousand dollars from Ringwood, we’re down with purchasing of one car that’s another thirty thousand dollars. So that’s over two hundred thousand of what we’ve cut already from our department and eight thousand dollars out of our operating expenses.
Councilwoman Cisco said how did we lose the school resource officer at Lakeland Regional High School. Ringwood just can’t afford it or what happened. Nothing was put in writing contractually.
The Police Chief said no there was never a contract made. We took those years and that money that Ringwood contributed and said thank you. So there was no contract and they were under no obligation to pay for that. It is our officer and it is our school but we went up there and spoke with Ringwood at the time and discussed it with them and they came up with the number. It was based on a formula of the hours worked in the school and their student enrollment at the time that’s where that number came from. This year they are in the same boat as we are and I can’t blame them. They found forty thousand dollars they can put back into their cost and we absorb that through my salaries.
Councilwoman Cisco said so next year we give it back to them. I know Councilman Balunis was instrumental in that years ago.

Councilman Balunis said we had a grant that paid for the officer. When the grant expired Mayor Hagstrom said we should ask Ringwood to put in for that officer. So I wrote a letter to them and then the Police Chief went up there and talked to them and got them to pay for it. They have paid for it every year since 2004 and now they are in a bind like us and now they are bailing out.

Public Discussion:

The Mayor opened the Public Discussion.

Bernie Kerwin, 23 Burnside Place, Haskell spoke about taking away two thousand dollars in the budget from the Memorial Day parade. There are people still fighting wars and there was money from surplus to buy the Pulte building. You should have the money for the parade if not the post will be closed after the parade if this gets knocked down.

Tom Luciani, 11 Belmont Avenue, Wanaque and representing the fire department said it is the 100th Anniversary in June and we need to know where to proceed. The State convention also will be happening. It is important to support the fire department and understand and am asking the Council to support to have the parade. My father is a World War II veteran and we should never forget our veterans.
The Mayor said it’s not that we can’t have the parade. The town doesn’t have the money to fund it. Is the fire department willing to help fund the parade. Last year we went to Trenton and had to cut three hundred thirty thousand dollars out of last years budget. The fire department clothing allowance costs as much as the parade. Are you willing to give up the amount.
Tom Luciani said we are volunteers and that is an incentive to stay on the fire department and we give up our time.
The Mayor said the budget is tough this year and to layoff people is a last resort. We have to make other cuts and the problem we have to live with.

Dave DaSilva, 108 Monroe Street, Haskell said before you start giving up residents did you individually go through the budget.
Councilwoman Cisco said I have.
Councilman Cortellessa said I have sat down with Tom about five times. We need to figure out creatively and look closer to make sure we don’t cut out the heart of the community. We’ll see if there is any more to be looked at.
Councilman Pettet said I looked at it too and there is not much to cut. We are going to do the best to make sure there is a parade. Statutorily you can’t do it now. The majority we have all looked at it.
Councilman Cortellessa said you’re a businessman you prioritize and make cuts and use your best judgment to make the best cuts. It’s a directional issue if there are no other options but we’ll take a look. I don’t know if we can come up with twenty thousand dollars but we are certainly going to try.
Dave DaSilva, 108 Monroe Street, Haskell said in reference to the twenty two thousand for the fire department parade is that the total budget for the parade or is the fire department kicking in.
Mayor that’s what the town had budgeted for the parade.
Dave DaSilva said is that the majority of the budget.
The Borough Administrator said no.
Dave DaSilva said okay thanks.
Councilwoman Cisco said in answer to Mr. DaSilva’s question will the general public be able to see the budget prior to the vote on the 19th.
The Mayor said on the 19th we’re just going to introduce it.
Councilwoman Cisco said excuse me you know what I’m saying can the general public have a copy of the budget.
The Mayor said generally I guess we don’t really distribute it until we introduce it. Isn’t that the rule of thumb.
The Borough Administrator said generally we don’t but we have never been in this position.
Councilwoman Cisco said we’re in really bad times now.
The Mayor said we can but it is going to be subject to change Karen.
Councilwoman Cisco said I well understand that.
The Administrator said I can take the draft with these cuts in it already and I can probably get them up on the website in the next couple of days.
Councilwoman Cisco said that would be fine. Thank you.

John DiMeglio, 414 Ringwood Avenue, Wanaque said on the Pulte property how much money do you plan to make on it.
The Mayor said seventy seven thousand dollars a year is the rent.
John DiMeglio said that’s the rent. How much are you going to make after you deduct everything from the rent.
Mayor said our operating costs are about three thousand dollars a year. It’s a triple net lease. We’re budgeting seven thousand dollars a year for a new roof.
John I thought they were going to pay for a new roof.
The Mayor said they did. The new roof has already been put on. We’re anticipating we’ll need a new roof in ten years to twelve years or repairs to it so we are budgeting seven thousand a year for that time period so at the end of ten to twelve years well have between seventy and ninety thousand dollars in a roof fund. And our lost municipal taxes are about a little over three thousand dollars.
John DiMeglio said I have a copy of the building inspector’s report on that building. Councilman Cortellessa did you ever see this report.
Councilman Cortellessa said I have discussed it I have seen it yes. The mold was remediated those issues were taken care of. We have a very strong lease with the county. We are generating a significant amount of revenue for the Borough and we are ending up with a building that will probably be worth a significant sum at the end of that period of time. You have to look at the financials. We put that on the lease which means that the lease lord picks up all the expenses to maintain it. The issues in that report were all remediated including the mold issue including the leak in the roof including some of the other problems they had. So from our perspective the building is clean generating significant revenue for us with minimal cost to us going forward and it makes a lot of sense to me from a business perspective.
John DiMeglio said if I take it over a ten year period you are going to lease the building for ten years to the County right.
The Mayor said it’s a ten year lease with a ten year option.
John DiMeglio said so over a ten year period you are going to pick up seven hundred and seventy seven thousand dollars over a ten year period now take off the sale of the property the newspaper said you are paying five hundred ten thousand dollars right.
The Mayor said it is now down to less twenty five thousand dollars.
John DiMeglio said so take that off the sale of the property. You’re also over a ten year period the taxes on that building are twelve thousand one hundred dollars over a ten year period that’s over one hundred twenty two thousand dollars in taxes you’re going to lose.
The Mayor said we’re not going to lose it. Some of it goes to the County. Only three thousand dollars comes to the Borough.
John DiMeglio said eighty percent would probably stay in the town.
Councilwoman Cisco said no I don’t believe eighty percent is even close.
John DiMeglio said take the maintenance that is going to cost about two thousand five hundred dollars a year.
The Mayor said that is what we budgeted three thousand dollars a year.
John DiMeglio said that’s another twenty five thousand dollars over ten years and the insurance that is going to cost you.
The Mayor said the County is insuring it. We have a rider that is costing us four hundred dollars.
Councilwoman Cisco said and it is holding us harmless.
John DiMeglio said you’re deducting the two hundred thousand dollars off the sale of the property which should have gone to the fire department.
The Mayor said that was to purchase the fire truck. That didn’t go to the fire department.
John DiMeglio said you got two hundred fifty thousand dollars off them for the purchase of the fire truck and then they were supposed to give you another two hundred thousand dollars which could have brought down the debt of the fire truck. The three hundred twenty five thousand dollars you are getting from a bond you did Rainbow Valley Lake. You bonded over one million dollars to do Rainbow Valley Lake and you had three hundred twenty five thousand dollars left over in the bond why didn’t you take that money and lower the debt on that bond.
The Mayor said because it’s not like your mortgage you can’t pay it off.
John DiMeglio said you could have lowered the debt on it.
The Mayor said it’s not like your mortgage you can’t pay it off. You could not borrow something else.
John DiMeglio said you could have put it in escrow for something what happens if an emergency comes up you could use it for that.
Mayor said what’s your point John.
John DiMeglio said I understand OSHA was in and they inspected the fire equipment and they said it is all obsolete.
The Mayor said we’re buying that for them.
John DiMeglio said you’re going to bond it to buy it right.
The Mayor said right.
John DiMeglio said you could have taken the two hundred thousand dollars to pay for the new equipment.
Councilman Cortellessa said can’t use the property value. We have to reduce the budget revenue by fifty five thousand dollars.
John DiMeglio said let’s say after ten years you want to sell the property and they want to abandon the trailers that are on there. There is no guarantee you can build on that property there because there are two sewer easements going through that property. So it could be rough trying to put another building on that property if you want to do away with the trailers.
The Mayor said we could relocate the sewer easement that’s possible too. A lot of things are possible. Let me tell you something about this building. I own real estate and if this building was located instead of being a quarter of a mile north of 287 it was a quarter of a mile south of 287 in Pompton Lakes I would have bought it myself because it was a great deal. Even paying a mortgage on it and paying full real estate taxes it would have been a great deal. So renting to the County when you are in the real estate business you want a good tenant. It’s not like we don’t have a good tenant and the rent is not going to get paid. The rent is going to get paid the first of every month it’s not going to be a problem. People say we should not be in the real estate business we’re not in the real estate business it’s a joint venture with the County and I believe the County is not going to leave after ten years I don’t think. The County is here to provide services to the residents. We’re not in the real estate business. We get an increase in the rent after five years.
Discussion continued regarding the property.
John DiMeglio said you spent almost one million dollars in real estate property in town.
The Mayor said that was the redevelopment zone to build the own center and we had to buy the properties. We are looking to do the south of Doty Road.
John DiMeglio said you lost the candle factory.
Councilwoman Cisco said I agree with what the Mayor said.

Larry Montena, 1105 Ringwood Avenue, Haskell said regarding the property at 1085 Ringwood Avenue how much did the town spend on the property. When something goes wrong you throw the police under the bus. Why don’t you put the County in the 1085 Ringwood Avenue building. You are taking away parking for the businesses and took things away from the town people. Have to look at our town and take care of people. Maybe we can sell the property. How much did you spend for 1085 Ringwood Avenue.
The Borough Administrator said four hundred eighty five thousand dollars.
Larry Montena said we put our heart and soul in the town like the firemen. They don’t deserve to be take advantage of and there are ways to finance things.

 

Sandy Lawson, 28 Haskell Avenue, Haskell said the cost for 1085 Ringwood Avenue is four hundred eighty five thousand dollars and ninety nine thousand three hundred dollars is a federal grant and the cost should be three hundred eighty five thousand dollars. Nothing has been done for parking there.
The Borough Administrator said we put gravel in, we plow it and maintain it.
Sandy Lawson said we could use additional parking. The water utility budget what salaries are in it.
The Borough Administrator said a portion of my salary, thirty eight percent, a portion of the Chief Financial Officer’s and a portion of the purchasing and water clerks.
Sandy Lawson said is the budget going to be going up and is there a salary increase for you.
The Administrator said not yet.
Sandy Lawson said you should consider giving up your salary increase also if others do.

The Mayor closed the Public Discussion.
The Borough Administrator said each Municipality must approve the plan for the fire department parade.
The Mayor said we have to add or go over on the list again.
Councilwoman Cisco said is Lynn Gordon aware of the cut. The Library Board is a tough sell.
The Mayor said it’s statutory what we give the Library.
Councilman Cortellessa said is that coming out of the reserves.
The Mayor said it’s their money and their choice to give it to us or not.
Councilman Cortellessa said you should ask for a little more. I’m a veteran myself and the fire department does a good job as volunteers.
The Borough of Administrator said the revenues are maxed.
Councilman Pettet said the parade is a one time thing.
Councilman Cortellessa said it is a once in a lifetime issue. When there is struggling in a town you need something to get the moral up and we are inclined to continue to work on it. Should ask the library is they have a reserve fund and to help out in these times.
Councilman Balunis said I will stop in tomorrow and go over the miscellaneous items.
The Borough Administrator said every department has been cut.
Councilman Cortellessa said should prioritize the consequences and see what needs to be done.
Councilman Balunis said are other property owners interested in selling any property in the bird sanctuary.
The Borough Administrator said the properties are not buildable there are DEP restrictions, wetlands issues and neighbor disputes. We sold the old ambulance and other vehicles in anticipation.
The Mayor said if we get the sixty five thousand dollars to ninety thousand dollars plus thirty thousand dollars and use that for the fire department parade and Memorial day.
The Borough Administrator said authorize me to have the police meet with the Engineer for one thousand dollars to one thousand five hundred dollars subject to the library meeting.

The Mayor said we’ll take a five minute break.

NEW BUSINESS:
Closed Session:
Re: Negotiations/Personnel/Litigation

On entertainment of the Mayor, Councilman Cortellessa and Councilwoman Cisco moved that,
WHEREAS, Section 8 of the Open Public Meetings Act, Chapter 231, P.L. 1975, (N.J.S.A. 10:4-1) permits the exclusion of the public from a meeting in certain circumstances; and
WHEREAS, This public Body is of the opinion that such circumstances presently exist;
NOW, THEREFORE, BE IT RESOLVED, by the Mayor and Council of the Borough of Wanaque, County of Passaic, State of New Jersey, as follows:
1. The public shall be excluded from discussion of action upon the hereinafter specified subject matter.
2. The general nature of the subject matter to be discussed is as follows:
1) Negotiations.
3. The Mayor and Council shall release and disclose to the general public the
discussion and actions taken on the subject matter of the above mentioned closed session when the reasons for discussing and acting on the matter in closed session no longer exist, but no later than one month of the Mayor and Council arriving at a final decision on the specified subject matter.
On roll call, all voted yes, and the Mayor declared the motion carried.

RECONVENEMENT:

On entertainment of the Mayor, Councilmen Pettet and Cortellessa moved a motion to reconvene at 9:20 P.M.
On roll call, all were present.

ADJOURNMENT:

On entertainment of the Mayor, Councilwoman Cisco and Councilman Balunis moved a motion to adjourn the meeting.
On roll call, all voted yes, and the Mayor declared the motion carried; meeting adjourned at 9:20 P.M.

___________________________
Katherine J. Falone, RMC, CMC
Municipal Clerk