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Budget Meeting
Saturday, November 19 2011

The second budget hearing of the Board of Commissioners (BOC) of Upper Dublin Township was held on Saturday, November 19, 2011, in the Township Building; Robert Pesavento presiding. 

 

In attendance were Commissioners Ira Tackel, Sharon Damsker, Robert Pesavento, Ronald Feldman, Stan Ropski and Rebecca Gushue as well as Commissioner-elect John Minehart.  Also present were Paul Leonard, Township Manager; Jonathan Bleemer, Finance Director; Dan Supplee, Director of Fleets and Facilities; Jerry Smith, Public Works Administrator; Cherilyn Fiory, Library Director; Sueanne Strauss, President of the Library Board, and members of the Friends of the Upper Dublin Library; Derek Dureka, Parks and Recreation Director; and Richard Barton, Code Enforcement Director.

 

PLEDGE OF ALLEGIANCE:

Mr. Pesavento asked all those present to join in pledging allegiance to the flag.

 

Before discussing the various funds, The BOC studied the chart drawn up by the Finance Director depicting real estate tax on average assessed value of $195,000, and adjusted annually for CPI.  It was noted that the Township’s portion was relatively flat since 2004.

 

According to the chart, Mr. Tackel noted that the Township’s increase in constant dollars from 1998 to 2011 is about 40%.

 

GENERAL FUND

 

SANITATION:

The Sanitation Division provides curbside residential trash, recycled materials collection service, and yard waste materials collection service.  In addition, special bulk collections are scheduled as needed. The division also provides maintenance of streambeds, watercourses and edges of roadways. The recommended budget for 2012 is $2,314,200.

 

The proposed budget for 2012 provides $865,000 in wages for 16 full-time employees.

 

Part-time labor required to complete crews and to cover full-time employee absences totals $58,000.  The budgeted amount estimates the need for 2-3 part-time employees working 9 months of the year.

 

Overtime pay is projected at $4,500 for delays at the Abington Transfer Station, to complete daily routes, especially on heavy collection days after holidays and may be required on a Saturday pick-up during the winter months due to weather conditions.

 

Mr. Pesavento noted:

·        Contracted Services is proposed at $538,000.  The lion’s share of this amount are the tipping fees ($480,000 estimated). 

·        In the 1990s, Montgomery County was projecting the tipping fees to “go through the roof” (well over $100.00), and there was a lot of consternation. 

·        Tipping fees today are $65.00 per ton.

 

Mr. Leonard commented:

·        The tipping fees are controlled by the Waste System Authority of Montgomery County (WSA).

·        All of the municipalities and private haulers that collect trash in the region are committed through 2018.

·        The WSA has gone out to the market, therefore regular trash haulers will pay significantly less tipping fees, but their volume offsets the cost.  The only way they got the aforementioned number down was to take trash from other haulers at a lower rate.

 

Mr. Tackel noted that the tipping fee went down, but the tonnage went down simultaneously due to recycling from 2002 vs. 2012.  It has made a huge difference to the Township.

 

Mr. Leonard said:

·        When we look at the cost of recycling, recycling itself would not cover the cost, but when we add in recycle costs we could go on forever.

·        RecycleBank has enjoyed part of the foregoing.

·        Upper Dublin was one of the first municipalities to contract with RecycleBank.

·        The Township had already taken a number of steps to significantly reduce trash, and RecycleBank agreed to the deal and provided carts for free.

·        RecycleBank does not touch the recycling.  They do not handle the carts or material.

·        RecycleBank provides a web-based incentive program.

·        The contract with RecycleBank is running out on February 18, 2012.

·        Administration has had a number of meetings with RecycleBank.

·        RecycleBank no longer offers the deal that the Township cut which was extraordinarily good for the Township).

·        Staff looked at the contracts between RecycleBank and other municipalities and determined Upper Dublin Township’s fee will be the same if it stays with RecycleBank.

·        RecycleBank no longer offers the individual weighing arrangement.  They will make a good faith effort to improve the technology where they would weigh at each stop.  We believe that will be a huge opportunity for the Township to understand it’s customers.

·        Speed is very important.  We could weigh trash if we had all the time in the world.

 

Mr. Pesavento questioned the reaction residents would have if they were told they will not get their points from RecycleBank anymore while their neighbor who doesn’t recycle will still get coupons.

 

Mr. Supplee said:

·        It does not work the way Mr. Pesavento outlined above.

·        Logistically speaking, community weight base works for the Township.  The dynamic weighing, which means weighing while moving the arm, is where they have a problem  They can’t get that down to under 5 pounds.

·        There will still be chips on the carts so that the Township will know if a household actually recycles.  Someone who does not recycle will not receive points.

·        The Township can get away from trucks that have tippers on the side which require 2 men and go to a 1 man system.  It will then be possible to reduce manpower and pick-up trash much faster.

·        If there is an issue with the trucks, staff can mix or match, because all of the trucks at that point will be the same.

 

The following discussion took place:

 

Mr. Leonard:

·        Staff is seeing less than 20% of the residents using recycle points.  People recycle by habit or by wanting to do something for the environment.  Co-mingling makes recycling easy.

·        It looks as if, to get a reasonable deal with RecycleBank, the Township will have to go with community rating.

 

Mr. Feldman:

If the BOC decides to cancel the contract with RecycleBank, will the carts have to go back to them?

 

Mr. Supplee:

The carts are 5 years old and are spread around the Township.  The carts have a 10 year life span.

To collect the carts, RecycleBank would have to contact each resident and collect the carts individually, or the Township could purchase them.

 

Mr. Leonard:

The Township has already put into the negotiations that whatever the contract term would be, the Township would own the carts.

 

Mr. Feldman:

·        What is RecycleBank giving us in the next contract.

·        In his opinion, residents will continue to recycle even if they do not earn coupons.

·        If the Township owns the carts and equipment, what does RecycleBank bring to the table for us to bring to the table?

 

Mr. Supplee:

·        RecycleBank owns the tippers and scales on the Township’s trucks (worth $15,000 a piece) and the Township has 6 of them.

·        RecycleBank is responsible for repairing or replacing the scales.

·        The last time the department contacted RecycleBank, they alluded to the face that Upper Dublin was the first, and they intend to try to stay close to the contract in place.

·        If the Township gets to the point where it has to pay per household, then the BOC must decide whether to stay with RecycleBank.

 

Mr. Leonard:

·        The carts are the most significant element.  The Township could replace them with Act 101 grant funding.

·        There is a capital component – the transition from the 2-3 man trucks to the 1 man truck will take some time.

 

Mr. Supplee:

·        The cost to put arms on our existing trucks will cost $560,000 per truck.

·        The Township is thinking about replacing all of its automated trucks with the recycle trucks.

·        Hopefully the Township will be able to buy trucks with arms on them, eliminate the tippers, and reduce our manpower.

 

Mr. Feldman:

We are talking about $60,000 for an arm as well as going from 2 employees down to 1. 

 


 

Mr. Supplee:

·        Will be able to eliminate a laborer or a part-timer.

·        The Township could save money on a part-time employee rather than a full-time person.

·        To have a truck outfitted with an arm, the vehicle would have to go back to the manufacturer in Canada.  It can take 6-8 weeks for installation which could be a problem.

·        Trucks cost $265,000 each.  We would have to purchase two of them in one year.

 

Mr. Ropski:

Would it not be cheaper to have a new truck outfitted with the arm immediately?

 

Mr. Supplee:

·        Recommends negotiating with RecycleBank, go to community-based weighing, and go to automated trucks to eliminate 2 part-time positions.

·        The full tonnage for each day will be averaged across the day.

 

M. Tackel:

It is really a weekly aggregate.

The BOC is here to make the best decision for the community and not just one resident.

It makes sense to bite the bullet and go with community weighing.  We are just changing the computations.

 

Mr. Leonard:

·        Right now, RecycleBank is maintaining a website and notifications for each individual and that would change.

·        Residents must be educated about recycling.  Upper Dublin residents recycle because it is the right thing to do.

·        Does not believe that the Township will see a significant drop in recycling because the points will no longer be there.

·        When the Township started accepting RecycleBank points for larger items, residents liked the idea.

·        It costs the Township for picking up larger bulk items.  For instance, metal goods are picked up by a private contract.  The charge is between $20-$40 for pick-up with $10 off.

 

Mr. Feldman:

What is the cost to the Township to provide the points?

 

Mr. Leonard:

·        Will find out the answer for Mr. Feldman.

·        The front desk which takes all of the calls informs the residents that large removal will cost $25.00, but if the resident has recycle points, it will be cheaper.  There is a value for their effort to recycle.  They can also use their recycle points toward the cost.

 

Mr. Tackel:

Are there any other communities that are successfully co-mingling trash and recyclables and at the next level separating that out?

 

Mr. Supplee:

·        None of which he is aware.

·        Separating out trash would be very difficult.

 

Mr. Leonard:

·        The nature of our trash has changed significantly. 

·        Right now the real estate tax is the mechanism to recover the costs.

 

Mr. Ropski:

What is the closest landfill that will take municipal trash?

 

Mr. Supplee:

Tulleytown in Bucks County.

 

Mr. Leonard:

·        The savings for Upper Dublin is that there is a transfer station on Fitzwatertown Road.  We do not have to haul to Plymouth Meeting.

·        Landfills have not closed as predicted in the past.

 

Ms. Gushue:

Thanked the public and particularly the townhouse communities for going to automated trash collection saving the Township $150,000 per year.

 

Mr. Leonard:

Each time we have made a change in the collection or method, the sentiment was that it could not be done.  A combination of education and thoughtful work by the BOC and staff have been able to make the changes and improve the system.  If we didn’t upgrade, the Township would not be able to continue this service.

 

PUBLIC WORKS ADMINISTRATION:

The Administrative Division functions as the administrative unit coordinating and managing services provided by the other public Works Divisions.  In addition, engineering is responsible for inspection of all Township road, storm sewer and grading projects, inspecting public improvements constructed by developers, and surveying future projects.  The proposed budget for the Administration Division is $1,155,402.

 

Mr. Tackel:

·        One of the items that has come up in prior years is perhaps going with a private trash hauler.

·        All of the Township’s trucks do multiple jobs including snowplowing, leaf collection, etc.

 

Mr. Pesavento:

The cost for collecting trash and recycling is $270.  One must take that number and compare it to private haulers in the $375. range.

 

Mr. Tackel:

If the Township were to get out of the trash hauling business, the individual taxpayer will be paying more than they do today, and the Township loses the trucks that are used for snowplowing, leaf collection, etc.

 

Mr. Supplee:

The total budget divided by householders is consistently below what the cost of a private hauler would be.

 

Mr. Tackel:

Not sure what the residents would do without leaf collection.

 

LEAF COLLECTION:

The cost of the Township Leaf Collection Program and Street Sweeping Program are budgeted in this cost center.  Recommended funding for 2012 is $191,806.

 

 

Mr. Supplee commented:

·        The leaf collection program began in the 1960s.

·        This year, he has included $30,000 for overtime, if needed.

·        In 2010, no overtime was used for leaf collection.  Hoping to do the same in 2011.

·        Loads per truck have been up tremendously during the last 2 years.

·        The leaf collection program is on schedule at the present time.

 

Mr. Leonard noted that it is difficult for the Township to build equity into the leaf collection program.

 

Ms. Gushue reminded residents to rake their leaves curbside.

 

Mr. Supplee said if leaves are on the roads and it rains, the leaves block the storm drains.

 

SNOW AND ICE REMOVAL:

The primary function of this cost center is the elimination of hazardous conditions caused by ice or snow on Township roads.  The objective is to plow all Township roads in the 12 snow districts within 4 hours of the end of the snowfall. Using 5 year historical data, the 2012 budget of $271,063 provides funds to maintain this level of service.

 

Mr. Bleemer interjected that:

·        Five year averages are taken to arrive at the proposed budget figures.

·        Projections were changed after the recent early snow storm.

·        The cost overrun was offset by contributions from the state.

 

Mr. Supplee informed:

·        300 tons of salt is put down during each snow storm.

·        The Township can use 10% of the amount of salt if brine is applied to roadways.  However, the application of brine is specific to each particular storm.

·        Most accidents take place in the initial stages of a storm or during the first snow storm of the year.

 

TRAFFIC SIGNALS, SIGNS AND MARKINGS:

The 2012 allocation for traffic signal maintenance and repair, sign installation, line painting and repair of street markings totals $116,000.

·        Cheltenham Township employs two full-time technicians who service various municipalities including Upper Dublin, and each municipality reimburses them.

 

STREET LIGHTS:

The street light budget funds the operating expenses and costs to maintain the Township-owned street lights.  The budget for 2012 is $270,500.

 

Mr. Leonard commented:

·        Have reduced some of the street lights and turned off service to avoid increases in costs.

·        The vast majority of the costs involves the conveyance and maintenance and wires.

·        We have a 3rd party distributor for the purchase of power.

·        Looking into high efficiency lamps.

·        The Township is watching New Jersey’s move to inductive lighting.  They changed their entire system over.

·        PECO’s rates are set by the state.  Investor owned utilities across the country have been pressured to keep the costs low.  Rates are based upon a political decision rather than actual utilization.

·        When tariff costs are considered, the township would vote for that.

·        In 1986, the Township purchased the lights they own.  Prior to that time, on top of this, the utilities were billing for mechanical equipment.

·        Upper Dublin and all larger municipalities own their lights.  Therefore, costs could be a whole lot worse.

 

STORM SEWER:

The recommended budget for storm sewer repair projects and maintenance in 2012 is $152,000.

·        Maintenance is costly.

 

HIGHWAY AND ROAD MAINTENANCE:

The 2012 budget for highway and road maintenance is $1,459,700.

 

Mr. Supplee informed:

·        Most of the smaller jobs are being done in-house.

·        The department contracts out a larger percentage for milling and paving.

·        The department has a 16 ft. paver, but it is not a high production paver.

 

Mr. Leonard commented that the investment in a used roller last year has been remarkable.  The quality of the work is very good.

 

TOWNSHIP BUILDINGS:

The Township Buildings cost center records all expenses related to the general operation, maintenance and repair of the main administration building, public works facility, Township library and other Township-owned general use facilities (including the North Hills Community Center, the Twining Valley Golf Club, the EPI-Center, and Old Fort Washington Elementary School).  Minor improvements to the Township buildings are also budgeted in this cost center.  The recommended budget for 2012 totals $509,660.

 

Old Fort Washington Elementary School:

·        Three bids have been received.  They are currently shown on the Township’s website.

1        $1.00 to purchase the old portion of the building, and the Township would still be “stuck” with the multi-story section.

2        $185,000 to purchase the property and take the building down.

3        $201,000 to purchase the property and take the building down.

·        ALAW has backed out of their proposal.

·        A letter was received from the Montgomery County Conservancy asking that the Township do not do anything for the time being.  Perhaps they can find someone to purchase the building within a year.

·        $18,000 is budgeted for maintenance of the building in 2012.

·        The BOC will vote on December 13th whether to accept or reject the bids.

·        If the BOC decides to divest itself of the building on December 13th, then Township would recover funds in the amount of $201,000.

 

Decision:  Mr. Bleemer was asked to put in a place holder of $15,000.

 


Twining Valley Golf Course:

·        Large maintenance items including roof and emergency replacement of HVAC System.

 

North Hills Community Center:

·        $20,000 spent after rent.

·        Rent comes from Abington Hospital and a small amount of money from Head Start.

·        Abington Hospital invested $20,000-$30,000 for building upgrades to the area they lease.

·        Costs have been cut by the elimination of the North Hills Library Branch and front desk person.

 

EPI Center:

The following discussion ensued:

 

Mr. Pesavento:

·        Costs to replace the building are in the range of $1.5-$2.5 million.  There is no money available for this.

·        Maintenance costs will continue to rise.

·        Talked about replacing the roof in the past at a high cost.

·        A decision must be made whether to keep the building open.

 

Mr. Leonard:

·        What he has seen is that any of the real options looked at are on the order of $2 million.

·        An architectural study done in 2005 was updated last year.

 

Mr. Tackel:

·        Has related the foregoing information to the neighbors.

·        Thinks a full discussion of this matter should come up under the Parks and Recreation Section of this meeting.  Thinks there may also be neighbors who will attend and want to participate in discussions.

·        A $2 million replacement is one alternative.

 

Mr. Pesavento

In his opinion, $2 million for the EPI Center is a “fluff” item.

 

Mr. Feldman:

Is there a life left in the building?

 

Mr. Supplee:

·        While it is an old building, it is constructed of stone and will not fall down.

·        The wall that goes down to the basement has been an issue for the past 15 years.

·        The roof is in need of replacement.  His department can continue to patch it, but it is drying out and the seams are opening up.  $65,000-$70,000 cost to install a new roof.

 

Mr. Tackel:

Is it cost effective to repair the building?

 

Mr. Feldman:

Is it worth adding 10 years of life to an obsolete building and using tax dollars to do so?

 

Mr. Supplee:

Need to take the total picture into consideration and decide whether to put in an elevator, handicapped access, etc.

 

 

·        Decision:  Leave this matter open and as a place holder for future discussion.

 

INTERNAL SERVICES FUND

 

FLEET:

The Fleet and Facilities Department maintains the motor pool fleet and the Township-owned buildings. Funding for the Department is derived from operating charges to all departments based on their actual use of these services. The recommended budget for 2012 is $1,344,852.

·        The Township owns 109 vehicles (11 of which are fire trucks).  These figures do not include Parks and Recreation smaller mowers, but do include the large mowing unit and tractor.

 

The following discussion took place:

 

Mr. Feldman:

Questioned whether the proposed $3.00 allotment per gallon of diesel fuel is enough?

 

Mr. Bleemer:

The average cost was $2.80 per gallon in 2011 because the Township does not pay federal tax.

 

Mr. Supplee:

·        The Department is using 81,761 gallons of diesel fuel and 56,686 gallons of gasoline this year.

·        The Township needs a fast fill compressor station in place and then we can buy trucks.

-         Attended a seminar at the Delaware Valley Regional Commission.  The cost of one fast fill station in the order of $30 million.  The Upper Dublin representatives suggested breaking down into $3 million increments.

-         Have to find a site to put the fast fill station.  Then can start looking for grant money to install the station.

 

Mr. Supplee:

·        It is in the realm of possibility because natural gas is less efficient than diesel fuel.

·        We should partner with our neighbors on the fast fuel station.

 

Mr. Tackel:

Is there anything legally to preclude the Township selling fuel to residents?

 

Mr. Leonard:

The Township would have to charge tax for compressed natural gas.

 

Mr. Supplee:

It would be an expensive undertaking – an additional $10,000 per truck.

 

Mr. Leonard:

·        The Township’s trucks return to the barn every night.  It is essential to have 24 hour availability with each truck.  That is an advantage for compressed natural gas and electric vehicles.

·        Staff will continue looking into alternative fuels during the next few years.

 

Ms. Gushue:

What about going more toward SUVs for the Police fleet?

 

Mr. Tackel:

Hybrid technology is much more efficient out and about town.

 


 

Mr. Supplee:

·        Cost-to-savings ratio is just not there.  The savings will only be 10%.

·        Mileage on police cars is between 9-10 mph.

·        Police cars have a minimum life span of 3 years up to 6 years.

 

Mr. Leonard:

·        Front-end wear on Police vehicles is tremendously high.

·        For the most part, Tahoes are 2 wheel drive vehicles.

 

2010 VEHICLE REPLACEMENT PURCHASES:

Mr. Supplee informed that the tub grinder and windrow compost turner will have to be replaced in 2016

 

ITEM

DESCRIPTION

COST

 

Two Police Vehicles

The #10 and #12 patrol vehicles, both of which will have in excess of 110,000 miles, will be replaced. The patrol units will be police Tahoe type vehicles identical to their police patrol vehicles. The vehicles will be purchased through the state PA COSTARS contract or the Westmoreland COG whichever prices lowest. The existing cars will be sent to the Consortium auction.  The change to the Tahoe type vehicles has increased the usable life span for patrol use which results in a lower amortization cost per vehicle. A four year life span is anticipated for the #10 vehicle and a six-year lifespan is expected for patrol vehicles #12.

 

$56,000

One Police Detective Vehicle:

The existing #4 Police staff car, which is used by the juvenile officer on a daily basis and by the detectives as needed, will be replaced. The current vehicle is 10 years old and will be sent to auction.

 

$24,000

One Automated Trash Truck:

This unit will replace the existing #4 automated truck which is a 2003 model year. Trash trucks see some of the Savior's service and countered in the fleet operation and the current unit has begun to show its age with ever-increasing downtime. These trucks are also a critical part of the Township's snow fighting force. They are heavily used to keep the State and main Township roads clear. The current truck will be replaced with a similar automated truck that will be purchased through the PA COSTARS contract.

 

·        Going from 3 man truck to a 1 man truck.

·        Can do 700 houses with 1 man and be done by 11:30 a.m.

·        If there is a breakdown of a vehicle, one truck can do 1,000 houses without doing overtime.

 

$265,000

One Hook Lift Truck:

This unit will be replacing the existing #19 hook lift truck, which will be 10 years old and is primarily used by the Highway, Sanitation and Parks Department as a semi-automated trash truck for trash collection in the parks. It is used by the Highway Department for moving large bulky items such as stored in length and height. It is used by the Sanitation Department as a backup trash truck and for bulk pick-up with the stake body. It is also a critical part of the snow and ice control program and covers a specific route. The old unit will be replaced with a similar unit which will interface with all existing bodies. It will be purchased off the PA COSTARS contract.

 

·        Having problems getting small parts.

 

$122,000

Turf Mower:

This unit will replace the #49 turf mower which is used by the Parks Department on a daily basis to mow sports fields and maintained park areas.  The existing mower unit will be 10 years old and it has been suffering increasing amount of maintenance issues.

 

·        When Mr. Supplee was asked if the Department would consider a larger machine, he said it might be difficult to go around trees.

 

·        Mr. Leonard suggested he talk to the Parks and Recreation Department.  The trend is to go larger when possible.

 

$75,000

Leaf Collector:

The new unit will be a 30 cubic yard machine that will replace the current #73 2002 machine which has a 25 cubic yard capacity. These machines are subject to some of the most severe servers of anti-Township equipment. Down time on a leaf machine during the week collection season causes the collection scheduled to fall behind and requires increased overtime costs. The existing will be sold at auction.

 

·        The 25 cubic yard machine should bring a good price at resale.