1

BOROUGH OF MOUNTAIN LAKES

BOROUGH HALL, 400 BOULEVARD, MOUNTAIN LAKES

973-334-3131

www.mtnlakes.org

JULY 23, 2012

7:30 p.m.

MINUTES

1. CALL TO ORDER; OPENING STATEMENT: This meeting is being held in compliance

with Public Law 1975, Chapter 231, Sections 4 and 13, as notice of this meeting and the agenda thereof had been reported to The Citizen and the Morris County Daily Record and The Star Ledger on January 4, 2012 and posted in the municipal building.

Deputy Mayor Happer called the meeting to order at 7:33 p.m.

2. ATTENDANCE AND FLAG SALUTE

All Council members were present except for Councilwoman Bravo, who arrived at 8:10 p.m. and Mayor Gormally, who was absent. Also in attendance were Borough Attorney Jim Bryce, Borough Manager Robert Tovo, and Deputy Borough Clerk Michele Reilly.

3. EXECUTIVE SESSION RESOLUTION 96-12

Matters Relating to Litigation, Negotiations and the Attorney-Client Privilege:

-Tax Appeal Settlement: Petersen vs. Mountain Lakes

At the request of Councilman Jackson, the Council amended the Resolution to include:

Matters Relating to the Employment Relationship

-Chief Financial Officer Position

Motion made by Councilman Holmberg, second by Councilman Shaw, to enter into Executive Session with all members in favor signifying by “Aye”.

Motion made by Councilman McWilliams, second by Councilman Holmberg, to close the Executive Session and return to the public portion of the meeting with all members in favor signifying by “Aye”.

4. COMMUNITY ANNOUNCEMENTS

Deputy Mayor Happer said that the Borough Fourth of July celebration was successful and included a good fireworks presentation.

5. PUBLIC COMMENT

Deputy Mayor Happer opened the public comment portion of the meeting with consent of the Council. Deputy Mayor Happer explained the Council’s policy of limiting each speaker to five (5) minutes and no yielding of time to another person.

With no one wishing to be heard, Deputy Mayor Happer closed the public comment portion of the meeting.

JULY 23, 2012

Regular Minutes

Page Two

6. BUDGET RESOLUTION R97-12

Read Budget by Title Only

Council Member	By:	2^nd	Yes	No	Abstain	Absent
McWilliams		X	X
Holmberg			X
Jackson			X
Bravo						X
Shaw	X		X
Happer			X
Gormally						X

7. PUBLIC HEARING ON 2012 MUNICIPAL BUDGET

Acting Chief Financial Officer Tim Roberts said the 2012 budget as presented represented a 9.3% municipal tax rate increase, and a $301 increase for the average homeowner. The total tax rate, including the county and school taxes, will increase less than two percent (2%). Mr. Roberts said that, after lengthy discussions and input from the Finance Committee, the Borough increased its debt service appropriations to reflect a historical policy of paying off ten percent (10%) of debt each year. This decision added $190,000 in debt service obligations to the budget and contributed to the municipal tax rate increase.

The consensus of the Council was that there was support for the budget as presented and for the budget process, although they were not completely happy with the amount of the tax increase. Deputy Mayor Happer pointed out that 2011 was a particularly challenging year for the Borough due to Hurricane Irene, the October snowstorm, the change in Borough Managers, and the emergency appropriations which will be paid for from the 2012 budget.

With no one wishing to be heard, Deputy Mayor Happer closed the public comment portion of the meeting.

8. BUDGET RESOLUTION R98-12

Amendment of 2012 Municipal Budget

Mr. Roberts explained the Amendment to the Council. The Borough had anticipated $169,000 non-cash surplus in the budget; however, Trenton denied the Borough the ability to do so and therefore the Borough had to adjust the RUT (Reserve for Uncollected Taxes). Additionally, the Borough had retained $52,000 in COAH (Council on Affordable Housing Funds) fees in a developer’s escrow account since 2004. The Borough had made a payment on behalf of the developer and these funds represented the amount he paid back. Trenton agreed to allow the Borough to anticipate this $52,000 as an item of revenue to offset the loss of the $169,000 non-cash surplus. In addition, the Borough would be including the $17,000 cap bank balance.

Mr. Vrabel, the Borough’s Auditor, noticed a typographical error on the Budget Resolution. Item (M), Reserve for Uncollected Taxes, should have reflected $1,223,899.90 in the “from” column. Councilman Holmberg made a motion to move the Budget Amendment as corrected.

JULY 23, 2012

Regular Minutes

Page Three

At Mr. Bryce’s suggestion, Deputy Mayor Happer opened the public comment portion of the meeting with consent of the Council. Deputy Mayor Happer explained the Council’s policy of limiting each speaker to five (5) minutes and no yielding of time to another person.

Angelo George – West Shore Road

Mr. George expressed concerns about the Borough’s accounting. He asked if the Borough had an annual accounting process, and Deputy Mayor Happer explained that the Borough was required to be audited every year.

With no one else wishing to be heard, Deputy Mayor Happer closed the public comment portion of the meeting.

Council Member	By:	2^nd	Yes	No	Abstain	Absent
McWilliams		X	X
Holmberg	X		X
Jackson			X
Bravo			X
Shaw			X
Happer			X
Gormally						X

9. BUDGET RESOLUTION R99-12

Adoption of 2012 Municipal Budget

Council Member

By:

2^nd

Yes

Abstain

Absent

2nd

Yes

Abstain

Absent

McWilliams

Holmberg

Jackson

Bravo

Shaw

Happer

Gormally

10. PUBLIC HEARING ON APPLICATION FOR ADDITIONAL FUNDS TO THE OPEN SPACE

AND FARMLAND PRESERVATION TRUST FUND OF THE COUNTY OF MORRIS

At Mayor Happer’s request, Mr. Tovo explained that the Borough was attempting to acquire property adjacent to King of Kings Lutheran Church. The Borough has already been awarded a grant of $1.5 million dollars to use towards purchasing the property. However, the agreed sale price is $1.9 million dollars; therefore, the Borough is attempting to secure additional grant funding in the amount of $300,000. The Borough’s obligation would be the remaining $100,000. Mr. Tovo said that this public hearing, which had been properly advertised, was a requirement of the grant process for the additional funds.

JULY 23, 2012

Regular Minutes

Page Four

Charles Halpin - Morris Avenue

Mr. Halpin told the Council he hoped that if the additional grant money was not awarded to the Borough, that there was no obligation on the part of the Borough to fund the remaining balance of the contract. He did not want to end up paying $400,000 instead of the $100,000 originally proposed.

Mr. Tovo told Mr. Halpin that the transaction is contingent upon the Borough’s receipt of the additional funding.

With no one else wishing to be heard, Deputy Mayor Happer closed the public comment portion of the meeting.

11. ORDINANCE 08-12

ORDINANCE AMENDING CHAPTER 40 OF THE REVISED GENERAL ORDINANCES OF THE BOROUGH OF MOUNTAIN LAKES ESTABLISHING SPECIAL ZONING REQUIREMENTS FOR CONTRIBUTING DWELLINGS.

If adopted this ordinance shall take effect after publication and passage as provided by law. PUBLIC HEARING

Councilman Shaw said that the Planning Board had agreed that the Ordinance was consistent with the Master Plan; however, they recommended some other changes. Mr. Bryce said that most of the modifications suggested by the Planning Board were not substantive and did not change the underlying tenor of the Ordinance. Some questions arose regarding the insertion of the following language to 40-50, Demolitions and Relocations, Section A (1)(c): “If the Committee does not send a letter within 60 days of the submission of the applicants’ documentation, the applicant shall be deemed to have complied with the requirements of this § 40-50(1)(c).”

Mr. Dagger, the Ordinance Committee Chairman, said that the Planning Board attorney, Mr. Henry, suggested the sixty (60) days.

With no one else wishing to be heard, Deputy Mayor Happer closed the public comment portion of the meeting.

Councilman Holmberg made a motion to move the Ordinance including the recommendations made by the Planning Board.

JULY 23, 2012

Regular Minutes

Page Five

Council Member

By:

2^nd

Yes

Abstain

Absent

2nd

Yes

Abstain

Absent

McWilliams

Holmberg

Jackson

Bravo

Shaw

Happer

Gormally

12. ORDINANCE 13-12

ORDINANCE AMENDING CHAPTER 102 OF THE REVISED GENERAL ORDINANCES OF THE BOROUGH OF MOUNTAIN LAKES PERTAINING TO SOIL EROSION AND SEDIMENT CONTROL

Following introduction, the above Ordinance will be published in accordance with the law and a public hearing will be held on September 10, 2012.

Mr. Tovo explained that the Ordinance was predicated by the Morris County Soil Conservation District and is necessary since the Borough approves its own soil moving permits.

Council Member

By:

2^nd

Yes

Abstain

Absent

2nd

Yes

Abstain

Absent

McWilliams

Holmberg

Jackson

Bravo

Shaw

Happer

Gormally

13. *RESOLUTIONS

R100-12 Liquor License Renewal – Olympiakos Restaurant Enterprises, LLC

R101-12 Consenting to the Proposed WQM (Water Quality Management) Plan Amendment

R102-12 Redemption of Lien: 2011-02 - Dave

R103-12 Refund Overpayment of Taxes – Brown

R104-12 2012 Salary Resolution

R105-12 Payment of Bills

14.*MINUTES

May 29, 2012 (Regular)

June 25, 2012 (Regular)

JULY 23, 2012

Regular Minutes

Page Six

15. *DEPARTMENT REPORTS

Construction Official

Department of Public Works

Fire Department

Health Officer

Police Department

Prior to the roll call vote, Councilman Jackson asked to pull the R104-12, 2012 Salary Resolution for further review. Councilman Shaw recused himself from the vote on R103-12, Refund Overpayment of Taxes – Brown, as the Browns are his neighbors.

Regarding Resolution 101-12, Consenting to the Proposed WQM (Water Quality Management) Plan Amendment, Councilman Shaw explained that, under the Federal Clean Water Act, the state is required to have a WQM plan, which basically explains how the state handles sewerage and sewer service. This Resolution consents to updating the plan,

Consent Agenda

Council Member	By:	2^nd:	Yes	No	Abstain	Absent
McWilliams			X
Holmberg		X	X
Jackson			X
Bravo			X
Shaw	X		X
Happer			X
Gormally						X

Petersen Tax Appeal Settlement

Council Member	By:	2^nd:	Yes	No	Abstain	Absent
McWilliams			X
Holmberg			X
Jackson		X	X
Bravo			X
Shaw	X		X
Happer			X
Gormally						X

JULY 23, 2012

Regular Minutes

Page Seven

Resolution 104-12, 2012 Salary Resolution

Council Member	By:	2^nd:	Yes	No	Abstain	Absent
McWilliams			X
Holmberg		X	X
Jackson				X
Bravo	X		X
Shaw			X		**
Happer			X
Gormally						X

** Shaw abstained from voting on Planning/Zoning Board Secretary increase

16. ATTORNEY REPORT

Mr. Bryce had nothing to report.

17. MANAGER REPORT

Mr. Tovo said the Request for Proposal (RFP) for solid waste was nearly complete. Mr. Bryce had completed his thorough review of the forty-seven (47) pages. Mr. Tovo expected the RFP to be sent out around August 1^st and returned mid-September.

Mr. Tovo expressed his appreciation to the Council for their support and patience during this difficult budget year. He also thanked Mr. Roberts, Mr. Vrabel, and the Borough Hall staff for their efforts.

Councilwoman Bravo complimented Mr. Tovo on the changes he made to the administrative offices. Mr. Tovo said the process was 80% complete.

Councilman Jackson asked about the status of the Borough’s COAH funds. Councilwoman Bravo said the issue is that Mountain Lakes has an affordable housing obligation and needed to be proactive in spending the money. Councilman Shaw said the court has ruled that the state has a right to the uncommitted funds. A municipality is entitled to plead its case in front of the Council on Affordable Housing.

18. COUNCIL REPORTS

Personnel – Councilman Shaw said the Committee (Councilmen Shaw and Holmberg, Mayor Gormally) met last week with Mr. Tovo and discussed Borough operations and staffing. Councilman Shaw said Mr. Tovo has accomplished a lot with the Borough renovations and the atmosphere is much more professional, which is better for both the public and the employees. Mr. Tovo recommended two (2) new hires and is in the process of developing job descriptions. Additionally, there are plans for cross-training of the Borough staff. Finally, the Committee and Mr. Tovo discussed the part-time CFO position, with the consensus that the final decision was the Manager’s and that the part-time position would be on a trial basis and reviewed quarterly.

Councilman Jackson asked for a copy of the staffing plan. Mr. Tovo said the new policy and procedure manual would contain the staffing plan as well as job descriptions and attainable goals.

JULY 23, 2012

Regular Minutes

Page Eight

Shared Services – Councilman Shaw said the Committee will be meeting with different municipalities and, in response to a question from Councilwoman Bravo, said the Committee will provide the Council with a report of their findings.

Lakes Management – Councilwoman Bravo said she had missed the last meeting and so asked Mr. Bailey, a member of the Committee to comment. Mr. Bailey said there will be a new spillway mechanism installed at the dam to control lake levels, and the Manager is handling the drawdown of the lakes, which is scheduled for the fall.

Councilman Jackson asked about the watering of Cove Park, and Councilwoman Bravo said the DPW is handling this project.

DPW – Deputy Mayor Happer said there would be a meeting in August.

Environmental Committee – Although absent from the last meeting, Deputy Mayor Happer said he knew that the Committee was continuing to work on the well protection plan Ordinance.

19. PUBLIC COMMENT

Deputy Mayor Happer opened the second public comment portion of the meeting with the consent of the Council

Jim Bailey – Kenilworth Road

Mr. Bailey had two questions. His first question was if the Borough was able to connect residents to water mains with the water restrictions in place. Mr. Tovo said yes. Mr. Bailey also wondered if the old wells were being sealed. Mr. Tovo said he and Mr. Prusina, the DPW Director, would check into this.

Councilman McWilliams said the Borough’s water restrictions encourage a higher use then some other options, and in fact this was pointed out when the Borough was applying for Sustainable Jersey certification.

With no one else wishing to be heard, Deputy Mayor Happer closed the public comment portion of the meeting.

20. ADJOURNMENT at 10:00 p.m.

Motion made by Councilman Holmberg, second by Councilwoman Bravo, to adjourn the meeting at 10:00 p.m., with all members in favor signifying by “Aye”.

*Consent agenda

Attest: July 23, 2012

________________________________ _______________________________

Michele Reilly, RMC, Deputy Clerk Charles X. Gormally, Mayor