Finance and Administration
Monday, May 24 2010
UPPER MORELAND TOWNSHIP
BOARD OF COMMISSIONERS
FINANCE & ADMINISTRATIVE COMMITTEE
MEETING MINUTES
May 24, 2010
CALL TO ORDER: The stated meeting of the Finance & Administrative
Committee of the Board of Commissioners of Upper Moreland Township was called to order by Commissioner Sam Valenza at
7:00 p.m.
A MOMENT OF SILENCE WAS FOLLOWED BY THE PLEDGE OF ALLEGIANCE
PRESENTATIONS/ANNOUNCEMENTS:
Mr. Stasio said tonight, he is pleased to be part of a presentation for the Board to consider
making Upper Moreland Township part of Bird Town. Through the Pennypack relay meetings; he met with John Rogers and
Steve Saffier, who are part of the Audubon Society, and they approached us with a request to become partners with
Audubon Bird Town.
He and Jonathan deJonge had several meetings with them to discuss what Bird Town could mean to
Upper Moreland Township. Jonathan and the EAC have partnered with the Parks & Recreation Department to make this
a reality in Upper Moreland Township. He introduced Jonathan deJonge to make his presentation.
Jonathan deJonge gave a power point presentation on Bird Town, a project of Audubon
Pennsylvania's Audubon At Home Program to the Board, and a copy of his presentation was provided to the Board.
Following the presentation, Jonathan asked for any questions by the Board.
Commissioner Valenza asked what other Townships are part of Audubon Bird Town?
Mr. Rogers replied we just started this program, and there are about 20 different
municipalities, who are interested but, because of our working relationship through the Pennypack; we asked Upper
Moreland to be the first to join our program.
Commissioner Valenza asked how are consumers educated on native and nonnative plants?
Mr. Rogers replied they can find information on our website and there is small book that can be
purchased. Each municipality will train their local residents to design their own backyards.
Finance & Administrative Committee MeetingMay 24, 2010
Commissioner McFatridge asked about the cost to the Township.
Mr. Rogers replied this is a fundraising activity for Audubon and municipalities. Our
expectation is that the municipalities' EAC and Parks & Recreation Department raise funds for planting
trees.
Commissioner Romaniello asked for the start-up costs.
Mr. Rogers replied there will be start-up costs involved. Audubon will provide most of the
materials to begin with and their fee for that is nominal. It is actually setup as a small business.
Commissioner Romaniello asked would the Township need to pay the nominal fee on a yearly
basis?
Mr. Rogers replied every year that the Board feels it is worthwhile.
Commissioner Spearing said the Township has severe stormwater problems and he understands that
native plantings encourage better recharging of the water table; but it should be understood that this could not in
any way replace some of the stormwater projects in the Township.
Mr. Rogers replied he understands, but the more municipalities participate, the less severe the
problem would be.
Commissioner Spearing said there should be an education process for the entire community with
regards to native plants. He would imagine signage might be an expense the Township would need to incur. This looks
like it would be positive for the community if the Township participates in it and we would garner points for
education and apply that to some of the requirements for MS4.
Mr. Rogers replied he does not know if that qualifies, but it should.
Commissioner Parsell asked about partnerships with local nurseries or plant sellers to provide
the same benefits to them.
Jonathan deJonge replied he has spoken with a number of residents who want to be part of the
advisors group and they would take training with Audubon about native plantings.
Commissioner Valenza noted that PERT has birdseed sales to generate income; is that something
that would be done with this program?
Mr. deJonge replied he spoke with Dave Robertson of PERT, and he is aware of what we are trying
to accomplish. Native plant sales would be part of this program.
Finance & Administrative Committee MeetingMay 24, 2010
Commissioner Valenza asked how many members of the EAC will attend this training
program?
Mr. deJonge replied about three members from the EAC.
Commissioner Parsell asked if there are model ordinances from other municipalities.
Mr. Saffier replied yes, there are model ordinances around the country. Lower Makefield has a
native plant ordinance and that is part of the process.
Commissioner Valenza asked for any public comments. There were none.
Commissioner Spearing asked will the advisors get certificates after training?
Mr. Saffier replied yes, they would be recognized and they would know about the ecology and how
everything is related.
Commissioner Romaniello asked what does $25 cover?
Mr. Saffier replied this program is an extension of Audubon Pennsylvania called, Bird Habitat
Recognition Program, which is the residential-part of this program. Residents can register their property for free
and make a donation to Audubon through that process and receive a yard sign. By registering your property, which is
making a pledge that you would use native plants; provide water for birds and reduce pesticide use on the
property.
Commissioner Valenza thanked Mr. Saffier and Jonathan deJonge for their presentation.
ROLL CALL: Commissioner Valenza, Chairman, took roll call. Present:
Commissioner Kip McFatridge.
Others: David Dodies, Township Manager, John Crawford, Assistant Township
Manager/Director of Finance and Josh Ganz, Township Solicitor.
APPROVAL OF MINUTES:
Commissioner Valenza accepted the minutes of the Finance & Administrative Committee of
April 19, 2010 into the record as submitted.
REPORTS:
There were no questions or comments of the Director of Finance; Tax Enforcement Officers;
Earned Income Tax Collector and Investment Activity Reports.
Finance & Administrative Committee MeetingMay 24, 2010
REVIEW OF FINANCIAL STATEMENTS:
Current Bills Paid:
There were no questions or comments.
Revenue & Expense Summaries:
Commissioner Valenza commented that it looks like we have about 90% collected in tax revenue in
April. Are we on target?
Mr. Crawford replied from a Real Estate Tax standpoint, we are right on target, traditionally,
at this point in time. We are about $60,000-$65,000 below last year, but he feels we should be able to make that up
throughout the year. The business taxes are ahead significantly over last year, which is due to the business
environment being a little better and paying sooner than they did last year.
Commissioner Valenza asked for any comments from Commissioners. There were none.
Commissioner Valenza asked for any public comments. There were none.
PERSONNEL:
Appointments/Reappointments:
Boards & Commissions -
Commissioner Valenza noted that terms have expired for three members of the PRAC and those
members are Stephen B. Cissne, Stewart J. Greenleaf, Jr., and Ronald Sanceciz. He contacted all three members and
Stewart Greenleaf and Ronald Sanceciz are interested in remaining as members for another two years. Stephen Cissne
would not like to continue on as member of the PRAC due to work responsibilities. There are three members of the APA
whose terms will not expire until next month so we will discuss it then.
The committee moved forward the reappointments of Stephen Cissne and Stewart Greenleaf Jr., for
action at the next Regular Board meeting.
OLD BUSINESS:
Finance & Administrative Committee MeetingMay 24, 2010
Consider moving the Public Health & Safety Committee Meetings to the same night as
Finance & Administrative and Parks & Recreation Committee meetings:
Commissioner Valenza noted that he has spoken with Commissioner Lavalle, Chairman of the
Community Development Committee meeting and Joe would like to keep the same meeting schedule as it currently stands.
Commissioner Lavalle indicated that he can handle getting the work done in three hours and it will help him to limit
the amount of time spent for which presentations are made and to cut discussions on certain topics to a
minimum.
Commissioner Valenza agreed with Commissioner Lavalle to keep the Public Health & Safety
Committee meeting on the same meeting schedule.
Commissioner McFatridge also agreed with Commissioner Lavalle as he would rather keep the
meeting schedule as it is and have Commissioner Lavalle push the meeting along.
Commissioner Valenza asked for any comments from Commissioners.
Commissioner Romaniello commented that it is not in the Township's best interest to keep the
Public Health & Safety Committee meeting on the same night as Community Development/Redevelopment because
redevelopment is important and a lot of the items on the agenda are not addressed thoroughly and, if redevelopment
was a priority, this committee would be in favor of this decision.
Commissioner Valenza asked for any public comments. There were none.
NEW BUSINESS:
Cooperation Agreement between Township and Redevelopment Authority of Montgomery County re:
Settlement Music School:
Bruce Nicholson of the Montgomery County Redevelopment Authority stated the Settlement Music
School is the recipient of a Redevelopment Assistance Capital Program Grant from the Commonwealth of Pennsylvania,
and that grant is administered in Montgomery County by the Redevelopment Authority. Once the Governor's Office
determined that the project of the new facility of the Settlement Music School on Davisville Road was a project that
was to be funded through a grant, they turned to the Redevelopment Authority to administer it on behalf of Montgomery
County.
Finance & Administrative Committee MeetingMay 24, 2010
This is a reimbursement grant in which the Settlement Music School has an $8 million dollar
budget to construct their new facility in Upper Moreland Township and $3 million dollars is coming from the
Commonwealth. As they build, they need to spend the money and then submit proof of payment to the Redevelopment
Authority who passes that proof of payment back to the State with an application for payment.
When officials from the State are satisfied that all requirements of the grant are met; it will
reimburse the payments to the Redevelopment Authority and the Redevelopment Authority we will reimburse the
Settlement Music School.
The application for reimbursement requires a certification from Settlement Music School that
payments requested are in compliance with the grant and a certification by project architect or engineer. As a
condition of the program and a requirement of the State's contract between the Redevelopment Authority and the State
is that the local municipality enters into a cooperation agreement with the Redevelopment Authority. For the
Redevelopment Authority to move forward in submitting application for reimbursement; the State requires this
cooperation agreement to be in place.
Commissioner Valenza asked for the total cost of the project.
Mr. Nicholson replied it is about $8 million dollars.
Commissioner Valenza asked Mr. Crawford if he has any problem with this agreement.
Mr. Crawford replied it is not a financial decision; however, he feels it is guaranteeing that
the State does not have a loss of funds in case something goes awry with the project.
Township Solicitor, Josh Ganz explained that the Board has in their packets a letter from Kate
Harper, dated, April 12, 2010. We reviewed the cooperation agreement between the Redevelopment Authority and Upper
Moreland Township concerning financing the Settlement Music School project, and we found that the Township would be
the guarantor as part of the recent funds from the Redevelopment Authority to the Settlement Music School.
This is not an usual request and very common with the Redevelopment Authority and there is
always some risk involved in undertaking the agreement; however, this risk is less as it involves the Redevelopment
Authority's promise to disperse the funds only after the agreement and procedures have been undertaken. Upper
Moreland Township would be entitled to receive duplicate requests for payments so the Township will be aware of the
status of the project. This is not an uncommon request and will promote the redevelopment of this property and the
Redevelopment Authority is behind it.
Commissioner Valenza noted that we worked out an agreement with regards to escrow.
Finance & Administrative Committee MeetingMay 24, 2010
Mr. Dodies agreed, and noted that there was a 10% reduction in the amount of escrow, which we
normally require 110% to 100%. One issue is that the Township is in a third-party situation here and being asked to
backup any aspect of construction activity onsite and not being directly involved. He has been assured by the
Redevelopment Authority that it is a common practice with regards to grants and the Redevelopment Authority, but he
wants to be certain the Board of Commissioners is aware of it. There are provisions in the agreement to protect the
Township, but there is no guarantee.
Solicitor Ganz added that there is money that goes into escrow and the obligation is to make
public improvements. The Township will be able to monitor the project and, if it is not progressing, the Township
will be able hold or take back some of the escrow money.
Commissioner Valenza asked for any comments from Commissioners.
Commissioner McFatridge asked about this agreement coming about mid-stream and shouldn't it
have been in place ahead of time.
Mr. Nicholson replied bureaucratic wheels move slowly. The Redevelopment Authority has handled
between 15-20 grants in Montgomery County and, all but one, has a State requirement for release of funding. It was
from the 2008 capital budget of the State of Pennsylvania that this allocation was given and it was awarded towards
the end of 2008 and we received the contract and signed it and sent it back to the County in early November
2009.
Commissioner McFatridge commented that this program was in the State's budget since 2008 and it
was awarded just recently.
Mr. Nicholson replied the grant has to be in the State's capital budget and it is up to the
Governor's Office to select the projects. Once the applicant has been selected, they are advised to file an
application for funding to the State. The State reviews and appoints an outside auditor to review it and, if it is in
order, the State contacts the Redevelopment Authority and requires that we get this cooperation agreement.
Commissioner McFatridge clarified that the Township is the one who are really backing this
project.
Mr. Nicholson replied that is correct, but before the State releases any money to the
Redevelopment Authority, they require proof that the reimbursement being requested satisfies the program budget. The
Redevelopment Authority has not had any problems with any of the projects that we have been administered.
Commissioner Valenza asked who determines the reimbursements for paid eligible project
expenses?
Finance & Administrative Committee MeetingMay 24, 2010
Mr. Nicholson replied the State.
Commissioner Valenza said so the payment obligation only arises when the Commonwealth of
Pennsylvania determines that grant funds were used for ineligible project activities.
Mr. Nicholson replied that is correct.
Commissioner Romaniello commented that this request came to the Township mid-stream and the
Montgomery County Commissioners setup the Redevelopment Authority and the County Commissioners say that, "Grant shall
submit an executed cooperation agreement from either Montgomery County or Upper Moreland Township." Why not make this
request from the County Commissioners?
Mr. Nicholson replied he cannot speak for the County Commissioners; however, this has been a
consistent policy of the County Commissioners to endorse grants that are for economic development projects in local
municipalities.
Commissioner Romaniello said if this was not a policy; she would ask that this be requested by
the County Commissioners because the Township is being brought in at the last hour.
Commissioner Spearing commented he appreciates comments made about this being brought in late
in the game, but by the same token it makes a lot of sense that the municipality would be the point person. We
control their escrow and inspect their work and we shouldn't look at it as we are the guarantor of the project, but
we are assisting Settlement Music School in achieving their grant money. If they do not receive an agreement; they
will not get their grant money.
Also, there are benchmarks identified and the most significant is the $1.9 million dollars that
needs to be spent before any money is to be released. He has seen the development that has occurred at that site and
it would appear that they are over that benchmark. He supports this and we should be excited about this
project.
Commissioner Valenza asked has any project expenses been approved to-date?
Mr. Nicholson replied no, because we cannot submit anything to the State until we have this
agreement in place.
Commissioner McFatridge asked is it all non-profit companies who apply and receive these
grants?
Mr. Nicholson replied no, it is a broad spectrum of recipients for these grants.
Finance & Administrative Committee MeetingMay 24, 2010
Mr. Dodies asked Mr. Nicholson if he is aware of any situations where this mechanism has been
triggered?
Mr. Nicholson replied no.
Mr. Dodies noted that while certainly the Township will be overseeing the work from a
development prospective; the trigger mechanism here is a violation in the eyes of the State and not something that
the Township might have to settle. Is that correct?
Mr. Nicholson replied that is correct.
Commissioner Romaniello noted that she is in support of this request as she sits on the
Settlement Music School's Board. This project is well underway, but getting this midstream puts the Township in an
awkward position.
Mr. Nicholson replied that he cannot explain the timing of this request.
Commissioner Valenza asked for any public comments.
Jonathan deJonge commented he does not have a problem with the Township being the guarantor for
this project and he feels Settlement Music School will be a welcome addition to the Township.
Commissioner Valenza noted that we will move this for action at our next Regular Board meeting
in June.
OTHER ITEMS: None.
VISITOR COMMENTS: None.
COMMISSIONER COMMENTS:
Commissioner Spearing asked that we consider getting periodic updates from the EAC on their
progress and he feels this committee needs to decide what committee the EAC should report to.
Commissioner Valenza directed Jonathan deJonge to forward the minutes of the EAC to the Board
of Commissioners and the committee agreed that the EAC can provide their report to the Finance & Administrative
Committee.
Finance & Administrative Committee MeetingMay 24, 2010
ADJOURNMENT:7:56 p.m.
Respectfully submitted,
S. Elizabeth Vile, Recording Secretary
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