502 Millbrook Avenue, Randolph, NJ 07869-3799
Tel: 973.989.7100Fax: 973.989.7076

All meeting minutes posted on the township website are unofficial minutes. Official copies of minutes may be obtained from the township clerk.

Minutes: May 26, 2011

A Council Worksession of the Randolph Township Council was called to order at 7:00 p.m. by Mayor Mitsch. This meeting is held pursuant to the New Jersey Open Public Meetings Act. Adequate notice of the meeting has been provided by posting written notice of the time, date, location and, to the extent known, the agenda of the meeting in Randolph Township. This notice was posted on the Bulletin Board within Town Hall, it was filed with the Township Clerk, and it was provided to those persons or entities requesting notification. Notice was also provided to the Randolph Reporter and the Morris County Daily Record on December 8, 2010, by emailing them the annual resolution adopted by the Council on December 7, 2010. The annual resolution, which included this meeting date, was advertised in the Randolph Reporter, the official newspaper of the Township of Randolph, and in the Morris County Daily Record on December 16, 2010. Notice of the Time Change, which included this meeting date, was advertised in the Daily Record on May 24, 2011 and the Randolph Reporter on May 26, 2011.

PRESENT:
Councilman Algeier
Councilman Loveys
Councilman MacArthur
Councilman Napoliello
Councilman Obremski
Deputy Mayor Guadagno
Mayor Mitsch

Also Present: Township Manager John Lovell and Township Attorney Edward Buzak

Mayor Mitsch led the Pledge of Allegiance.

EXECUTIVE SESSION

WHEREAS, Section 8 of the Open Public Meetings Act, Chapter 231, P.L. 1975 (N.J.S.A. 10:4-12) permits the exclusion of the public from a meeting under 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 Township of Randolph, in the County of Morris, and State of New Jersey, as follows:

1. The public shall be excluded from the following portion of the meeting.

2. The general nature of the subject matter to be discussed is as follows:

A. Litigation—Lukavich v. Randolph

3. As nearly as now can be ascertained, the matter or matters to be discussed at this time will be disclosed to the public at such time and under such circumstances as are prescribed by law.

4. At the conclusion of the closed Executive Session, the Council may reconvene in public session for the purpose of taking formal action on matters discussed in closed session or on any other matter as permitted by law.

Councilman Algeier made a motion to move into Executive Session at 7:02 p.m. Deputy Mayor Guadagno seconded the motion, and the following roll call vote was taken:

AYES:
Councilman Algeier
Councilman Loveys
Councilman MacArthur
Councilman Napoliello
Councilman Obremski
Deputy Mayor Guadagno
Mayor Mitsch

NAYS: None

Councilman Napoliello made a motion to return to Open Session at 8:35 p.m. Deputy Mayor Guadagno seconded the motion, and the following roll call vote was taken:

AYES:
Councilman Algeier
Councilman Loveys
Councilman MacArthur
Councilman Napoliello
Councilman Obremski
Deputy Mayor Guadagno
Mayor Mitsch

NAYS: None

RE-OPEN PUBLIC MEETING

OPEN TO PUBLIC

Robert Bennett, 17 Ironia Road, asked how a temporary permit for a brick patio was granted to Pizza Pub when outdoor dining is not allowed in that particular zone and why the process didn’t take place in a public forum. He stated that neither he nor his neighbors were notified.

Manager Lovell responded that the Pizza Pub was granted Planning Board approval in 1996 to build a patio with tables and chairs.

Deputy Mayor Guadagno stated that there should be a certification with the Planning Board Attorney regarding the proper notices being served.

Mr. Buzak noted that he believes the application that resulted in the approval to construct the patio was for a minor site plan and he is unsure if the ordinances at the time required notice be given to property owners within 200 feet.

Mr. Bennett reiterated that outdoor dining is not allowed in that zone.

Manager Lovell responded that the Planning Board has actually made several approvals like this over the course of years in the various business zones believing they were empowered to make those approvals at the time. Subsequently, the Council will be discussing standards for the entire B zone since there are a number of businesses who believe they have approval at this time. The Council will be considering an ordinance that would change the regulations for the B zone to allow for outdoor dining.

Mayor Mitsch noted that the Pizza Pub has been operating with the assumption that they have approval for outdoor dining for a long time and asked why it has now become an issue with the neighbors.

Mr. Bennett responded that he has been periodically coming to Town Hall to complain that there is no fencing around the dumpster and there is neon lighting in the windows, which is also not allowed in the zone. Mr. Bennett stated that when he comes to Town Hall he is disheartened because certain employees note that he is here to complain again and nothing has ever been done to rectify the situation.

Deputy Mayor Guadagno asked if Mr. Bennett ever put his complaints in writing.

Mr. Bennett responded that he did put his complaints in writing a couple of times and at other times he was told that no formal complaint was necessary.

Deputy Mayor Guadagno asked if the Pizza Pub was located at the site when Mr. Bennett first moved to his current residence.

Mr. Bennett responded that when he first moved in, there was a residence at that location, which eventually became the Ironia House and then, several years later, the Pizza Pub.

Mayor Mitsch noted that she has been on the Council for nine years and her first inclination that there were any issues with the Pizza Pub property came at the Council’s May 5 meeting. Since there are multiple aspects of this issue that need to be considered, there will likely be much discussion before a final decision can be reached.

MaryAnn Spagnuolo, 14 Walnut Street, noted that approvals for several commercial projects have been granted in her area of town and asked if any traffic studies were done, if lighting and garbage collection were considered, and if it is the intent for that area of town to become a town center.

Mayor Mitsch responded that traffic studies are always a part of the approval process for commercial projects. The B1 zone is approved for certain types of commercial entities. If a developer should see a property in that particular zone that could potentially be approved for a certain commercial activity, there is nothing stopping that developer from making application and going through the process.

Mrs. Spagnuolo noted that she never received any notice that the service station would be reopening.

Manager Lovell responded that notices are not sent out when a building is reopening that already has approval. The service station was closed in order to upgrade the facility. The Manager noted that he has not heard of any other building activity in that area at this time. The Master Plan is the official document of the Township guiding township decisions and the Master Plan does not envision a major commercial center at that location.

Dennis Calabro, 8 Ironia-Mendham Road, noted that the original plans for the Pizza Pub in 1985 required an enclosure around the dumpster. The Zoning Officer noted in 2008 that there was no enclosure around the dumpster, and Mr. Calabro asked why the property owners have been allowed to continue to this point without an enclosure.

Manager Lovell responded that this is the first he has heard of a dumpster issue. However, the reason may be due to the fact that the Pizza Pub is in front of the Planning Board going through an approval process and, when in that process, enforcement actions are stayed. During the process for approval, the property will be inspected to ensure that construction and renovation of the property is in accordance with the state mandate. Manager Lovell stated that he is not sure if there was an enclosure in 1985.

Mr. Bennett responded that an enclosure around the dumpster was never put in and that he had complained to the Health Department and Zoning Board about this issue but nothing was ever done, and again he heard the comment that he was here to complain again. Mr. Bennett stated that within the last couple of years he has stopped complaining because he feels his complaints fall on deaf ears.

Manager Lovell and Mayor Mitsch noted that Mr. Bennett should have gone directly to the Township Manager and reported that comment and his concerns and the Manager would have seen that action was taken immediately. Mayor Mitsch noted also that the Council would not have supported any member of the staff treating a resident in that manner.

Mr. Calabro asked if an enclosure for a dumpster would have been a checklist item that would have needed to have been addressed prior to the Township granting a Certificate of Occupancy.

Manager Lovell responded that he would have thought the enclosure for a dumpster would have been a checklist item.

Eileen Bennett, 17 Ironia Road, asked if the proposed ordinance would have language permitting outdoor dining in any of the B zones.

Manager Lovell responded that language will permit outdoor dining in all of the B zones.

Mrs. Bennett responded to the Council’s inquiry about why this issue has come forth at this particular time. Mrs. Bennett noted that the proposed expansion by the Pizza Pub has the residents concerned and frustrated because so many things have slipped through the cracks in the past and they want to be sure that nothing further slips through the cracks now.

Seeing no one further from the public, the public portion was closed.

COUNCIL AND MANAGER REPORTS

Councilman Obremski reported that Janet Pollio will be resigning from her position as secretary to the MAC at the end of June. The RAP program is continuing to do well with 17 students enrolled and will celebrate their end of year barbeque on June 16. The Councilman asked that member appointments to the MAC be made at the June 2 meeting and that the Clerk’s Office forward all of the Tap the Talent forms submitted by individuals interested in serving on the MAC to the Council.

Deputy Mayor Guadagno asked who will take on the MAC secretary’s responsibilities.

Manager Lovell responded that he and Mr. Soccio will be discussing this situation.

Councilman Loveys’ report included the following:

  • The Parks Committee meeting was cancelled due to a lack of a quorum
  • He commended Mark Caputo and his staff for another successful Clean Communities Day with several organizations participating
  • He attended the Gordon Raupp/Kiwanis Fishing Derby where attendance was down slightly from prior years
  • He attended an Open House at Brundage Park hosted by Parks, Recreation, and Community Services in their effort to get information out regarding online registration
  • He attended a Morris County Chamber of Commerce breakfast with Mayor Mitsch where Congressman Frelinghuysen, the keynote speaker at that event, updated guests on events taking place in Washington
  • Councilman Loveys suggested the Council offer their condolences to Congressman Frelinghuysen for the recent death of his father
  • He attended a networking event Provident Bank and commended the current President of the Randolph Chamber of Commerce for his efforts in trying to revitalize the group and expand membership
  • He thanked Councilman Obremski for his assistance with a recent resident complaint regarding a JCP&L power line

Councilman Algeier reported that the Board of Health had initiated discussions with the Randolph Board of Education regarding the implementation of a policy regarding potential concussions in student athletes. The Board of Education plans to adopt a testing program to address this issue and the Board of Health has asked to be kept in the loop regarding their policy and program. Councilman Algeier asked Councilman MacArthur and Manager Lovell to place this item on their agenda for their next meeting with the Board of Education. The Board of Health expressed concern about New Jersey’s roll back on vaccination requirements and the ability for individuals to opt out. Other states who have rolled back their vaccination requirements are now facing outbreaks of what were thought to be eradicated diseases. The Councilman attended a meeting of the regional Board of Health Administrators and asked them to encourage their respective elected officials to pressure the Legislature and State Board of Health to maintain strength regarding vaccination policies. Councilman Algeier asked the Township Manager to draft a resolution for the June 2 meeting indicating Randolph’s support of a strong state-wide vaccination policy. He also asked that they bring this issue to their next Board of Education meeting and encourage the Board to adopt a similar resolution and bring the issue to the attention of their state or regional organizations. Councilman Algeier commended the Board of Health for their professionalism and their efforts to benefit the community.

Councilman MacArthur reported that the Recreation Committee met recently. The Committee is going through the process at each meeting of reviewing each of the various leagues in town. One of the issues with almost every sport is the issue of recreation teams versus travel teams and an appropriate policy for the more competitive traveling teams. The potential conflict regarding the use of the Fernbrook School for the day camp has been resolved satisfactorily, however it was suggested that Mr. Newman develop a contingency plan in the event things do not work out as planned. A new program called Rising Stars that will benefit children with special needs was reviewed. Rising Stars currently has 30 children registered. Councilman MacArthur thanked Mayor Mitsch for allowing him to be one of the representatives from Randolph at the recent tour of the Salem Nuclear Power Plant. The Councilman enjoyed the day and discovered several facts which he shared with the Council.

Councilman Napoliello noted that he had indicated at the last meeting that a resident had been unable to obtain a shingles vaccination and reported that the Township Manager has indicated more vaccinations will be authorized in November.

Manager Lovell responded that he will authorize more vaccines be purchased and he will process an end of year transfer authorization to cover the cost.

Deputy Mayor Guadagno attended a recent Landmarks Committee meeting. Their annual lawn sale was held recently and was a great success. The Committee is putting the final touches on their tour of historical houses in Randolph and hope to implement the program this fall or spring of 2012. The Deputy Mayor presented a recently awarded plaque to the Landmarks Committee. Deputy Mayor Guadagno noted that Russ Newman is doing a very good job as the newly appointed Director of Parks, Recreation, and Community Services and stated that Manager Lovell made an excellent choice in Mr. Newman. The Deputy Mayor asked if the construction work being done at the Senior Center parking lot will pose any problems for using that facility on Election Day on June 7. Deputy Mayor Guadagno plans to attend the Memorial Day ceremonies at the VFW on May 30.

Manager Lovell responded that parking at the Senior Center will not be a problem on Election Day.

Mayor Mitsch attended the recent St. Baldrick’s event at J.T. McQ’s where there was an incredible turnout and the event raised more money than expected. She thanked the individuals responsible for the event for all of their efforts in raising money to find a cure for childhood cancer. The Mayor suggested the Public Health Nurses offer the vaccination presentation recently provided to the Council to the Board of Education.

Manager Lovell reported that the air conditioning in Town Hall is experiencing problems. A new part needs to be fabricated for the 40 year old system and will hopefully be finished and installed shortly. Recent heavy rain has caused problems for the annual soccer tournament at Heistein Park. Several of the fields there can not be used, therefore the rest of the fields at Heistein, Freedom, and Brundage will be heavily relied upon. The Manager reminded the Council that the Memorial Day ceremonies begin promptly at 11:00 a.m. at the VFW. Site plan improvement will begin at the library and senior center on June 1 and actual construction of the buildings are proposed to begin on July 5. Staff will be working with the contractors to keep the buildings open and operational, however some programs may experience some juggling in order to make everything work. Signs in front of the buildings will alert the public to the project and to anticipate certain parking difficulties. The Board of Education has requested minor language changes to the agreement for the garage maintenance facility. The agreement currently refers to debt payments, however the Board of Education can not enter into an agreement that creates debt and must enter into lease agreements. Ms. Gallo will review the agreement once it is received from the Board of Education and the Mayor may be asked to initial some changes. The project is out to bid now and the Manager looks to award a contract at the end of June.

Councilman MacArthur asked if there are any liaison meetings with the Board of Education in the near future.

Manager Lovell responded there is nothing scheduled but he will reach out to see if a meeting can be scheduled before the end of the school year.

COMBINED ACTION ITEMS

Manager Lovell’s comments included the following:

  • Councilman Loveys had pointed out some minor typographical errors in the developer’s agreements and those minor changes will be made
  • The purchasing manual has existed for a number of years but it was discovered that a resolution from the Council authorizing the document was never obtained—the document is a useful tool for Randolph Township
  • Toll Brothers, the developers of the Nitti Mountain project known as The Ridge at Randolph, hope to begin this project in June—the subdivision consists of 25 homes on large lots—each property will have a conservation easement along the back of the property—Randolph acquired approximately 90 acres of open space as a part of this project
  • The Ridge at Randolph will be served by public water for fire fighting purposes only
  • A contract is being awarded to US GOVBID to undertake this year’s auction of surplus materials, including vehicles—those vehicles will be located in the parking lot for the trail head next to Town Hall for a couple of weeks beginning in early June

Councilman MacArthur asked if the insurance for the developer’s agreements was increased.

Manager Lovell responded that the insurance was raised to $5 million after a suggestion by Councilman MacArthur and that amount becomes the new standard for other agreements.

Councilman Algeier asked if the Township Engineer has reviewed the developer’s agreement for the water issue.

Manager Lovell responded that the Township Engineer has assisted the Township through the entire process.

Councilman Napoliello made a motion to approve the Combined Action Items with the exception of Item A. Councilman Loveys seconded the motion, and the following roll call vote was taken:

AYES:
Councilman Algeier
Councilman Loveys
Councilman MacArthur
Councilman Napoliello
Councilman Obremski
Deputy Mayor Guadagno
Mayor Mitsch

NAYS: None

A. Authorizing Transfer of Liquor License to 1380 Sussex Turnpike With Conditions

Acted on separately.

B. Approving Purchasing Manual

R-129-11

WHEREAS, the Township wishes to approve of the attached Purchasing Manual as its official policy.

NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council, Township of Randolph, County of Morris, State of New Jersey, that the Township Council approves of the attached Purchasing Manual.

C. Authorize Execution of Developer’s Agreement for On and Off-Site Water Facilities—Ridge at Randolph (Nitti Mountain)

R-130-11

WHEREAS, Randolph Township wishes to enter into a Developer’s Agreement with The Ridge at Randolph, LLC for the provision of On and Off Site Water Facilities at Block 146, Lot 72, located along Pierson Hill Road in Randolph.

NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council, Township of Randolph, County of Morris, State of New Jersey, that Mayor Trina Ruane Mitsch is authorized to sign the Developer’s Agreement on behalf of the Township.

D. Authorize Execution of Developer’s Agreement for Phase I—Ridge at Randolph (Nitti Mountain)

R-131-11

WHEREAS, Randolph Township wishes to enter into a Developer’s Agreement with The Ridge at Randolph, LLC for the property at Block 146, Lot 72, located along Pierson Hill Road in Randolph; and

WHEREAS, said Developer’s Agreement may be referred to as The Ridge at Randolph—Phase I.

NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council, Township of Randolph, County of Morris, State of New Jersey, that Mayor Trina Ruane Mitsch is authorized to sign the Developer’s Agreement on behalf of the Township.

E. Authorize Execution of Developer’s Agreement for Phase II—Ridge at Randolph (Nitti Mountain)

R-132-11

WHEREAS, Randolph Township wishes to enter into a Developer’s Agreement with The Ridge at Randolph, LLC for the property at Block 146, Lot 72, located along Pierson Hill Road in Randolph; and

WHEREAS, said Developer’s Agreement may be referred to as The Ridge at Randolph—Phase II.

NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council, Township of Randolph, County of Morris, State of New Jersey, that Mayor Trina Ruane Mitsch is authorized to sign the Developer’s Agreement on behalf of the Township.

F. Authorize Execution of Developer’s Agreement for Phase III—Ridge at Randolph (Nitti Mountain)

R-133-11

WHEREAS, Randolph Township wishes to enter into a Developer’s Agreement with The Ridge at Randolph, LLC for the property at Block 146, Lot 72, located along Pierson Hill Road in Randolph; and

WHEREAS, said Developer’s Agreement may be referred to as The Ridge at Randolph—Phase III.

NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council, Township of Randolph, County of Morris, State of New Jersey, that Mayor Trina Ruane Mitsch is authorized to sign the Developer’s Agreement on behalf of the Township.

G. Authorizing Portion of an Award of MCCPC Contract 11 for Motor Oils to David Weber Oil Company

R-134-11

WHEREAS, the Township of Randolph on behalf of the Morris County Cooperative Pricing Council authorizes an award of a portion of Contract #11 (Motor Oils) for Categories A, D, F and G on an as-needed basis to David Weber Oil Company; and

Category A: Motor Oil, API Series, CE, CD, CD-11/SG, SF
Category D: Gear Lubricant API
Category F: Hydraulic Oil, Non Foaming w/Anti-Wear Additives
Category G: Transmission Fluid

WHEREAS, a rebid of Categories A, D, F and G of Contract #11 (Motor Oils) has been advertised and received on May 17, 2011, in accordance with the “Local Public Contracts Law”; and

WHEREAS, four (4) bids were received and David Weber Oil Company submitted the low total bid for each category (A, D, F and G).

NOW, THEREFORE, BE IT RESOLVED by the Township Council, Township of Randolph, County of Morris, State of New Jersey, that a contract be awarded to David Weber Oil Company of Carlstadt, New Jersey, on behalf of the Morris County Cooperative Pricing Council for Categories A, D, F and G of Contract #11 (Motor Oils) beginning June 1, 2011 to December 31, 2011.

H. Authorizing Mayor to Sign Contract With USGOVBID Auction Liquidation Services for Online Auction of Surplus, Confiscated And Abandoned Items for 5.5% Commission on the Full Proceeds of This Auction

R-135-11

WHEREAS, the Township has items which are no longer needed for public use and authorizes sale pursuant to NJSA 40A:11-36 to the highest bidder; and

WHEREAS, the Township will also include the sale of tangible personal property found or recovered by the Randolph Police Department and surplus equipment pursuant to NJSA 40A:14-157 to the highest bidder; and

WHEREAS, the Local Unit Technology Program and Study Act (PL 2001, c. 30) authorizes the sale of surplus personal property no longer needed for public use through the use of an online auction service; and

WHEREAS, the Township wishes to award a contract to USGOVBID Auction Liquidation Services for a Full Service Auction; and

WHEREAS, the fee for this service will be 5.5% commission on the full proceeds of this auction; and

NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Township of Randolph, County of Morris, State of New Jersey, that the Mayor be authorized to sign the contract for the Township to enter into an agreement with USGOVBID Auction Liquidation Services at a fee of 5.5% commission on the full proceeds.

Councilman Algeier made a motion to approved Combined Action Item A. Councilman Obremski seconded the motion, and the following roll call vote was taken:

AYES:
Councilman Algeier
Councilman Obremski
Deputy Mayor Guadagno
Mayor Mitsch

NAYS:
Councilman Loveys
Councilman MacArthur
Councilman Napoliello

A. Authorize Transfer of Liquor License to 1380 Sussex Turnpike With Conditions

R-136-11

WHEREAS, 1380 Sussex Turnpike LLC (“Applicant” or “Transferee”) has submitted an application together with supporting documentation and affidavits for a person-to-person transfer (“Application”) of a Plenary Retail Consumption Liquor License No. 1432-33-004-008 (“Liquor License” or “License”) from Caldoo, Inc. (“Transferor”) to the Applicant in accordance with the rules and regulations of the Township of Randolph (“Township”) and the New Jersey Division of Alcoholic Beverage Control (“ABC”); and

WHEREAS, Notice of the Application was published in the official newspaper of the Township on August 19, 2010, and August 26, 2010, in accordance with the statutory provisions; and

WHEREAS, a police background check has been completed on the Applicant, including a fingerprint check; and

WHEREAS, the Transferor has submitted a Consent to Transfer Liquor License; and

WHEREAS, the New Jersey Department of Treasury, Division of Taxation, has approved and issued an Alcoholic Beverage Licensee Clearance Certificate; and

WHEREAS, there has been no formal objection received by the Township in connection with the application; and

WHEREAS, Nicholas Stavrakis, who has a 50% ownership interest in the Applicant, was a 50% owner of Hornet Restaurant Associates, Inc. (“Hornet”), which owned and operated another Plenary Retail Consumption Liquor License in the Township, License No. 1432-33-003-005, from approximately 1985 through September 15, 2005, when it was transferred to Westside Grill Partners, LLC; and

WHEREAS, the files of the Township and of the Township Attorney for the Township were reviewed to ascertain the history of the use and operation of the Hornet Liquor License at its Licensed Premises located at 1380 Sussex Turnpike, Randolph, New Jersey, the listed business address of the Applicant; and

WHEREAS, the Township sought and obtained additional information in connection with the current application; and

WHEREAS, the Township conducted hearings on this application on February 15, 2011, February 24, 2011, and April 7, 2011; and

WHEREAS, at the April 7, 2011, hearing certain representatives of the Applicant were present and sworn under oath, specifically Nicholas Stavrakis, Marylin Hordes and Eva Adler (the other individual involved in the application is Michelle Williams, who was out of town and unable to attend the hearing).

NOW, THEREFORE, the governing body of the Township of Randolph hereby makes the following findings of fact:

1. The Applicant submitted an application for a person-to-person transfer of the Plenary Retail Consumption Liquor License No. 1432-33-004-008 by letter of August 4, 2010, from Robert C. Williams, Esq. to the Township (Exhibit R-24).

2. Attached to the application was a Consent to Transfer executed by the current owner of the Liquor License, Caldoo, Inc.

3. The application disclosed that Nicholas Stavrakis has a 50% interest in the Applicant, 1380 Sussex Turnpike LLC, and the remaining 50% interest is owned by the Credit Shelter Trust under the Will of Philip Hordes (“Trust”). 50% of the interest in the Trust is held by Marylin Hordes (widow of Philip Hordes); 25% of the interest in the Trust is held by Eva Adler (daughter of Philip Hordes); and the balance 25% of the interest in the Trust is held by Michelle Williams (daughter of Philip Hordes).

4. Nicholas Stavrakis previously held a 50% interest in a corporation known as Hornet Restaurant Associates, Inc. (“Hornet”), incorporated on March 27, 1985. Hornet was the owner and operator of another Plenary Retail Consumption Liquor License #1432-33-003-005 (“Hornet Liquor License”). The licensed premises for that License was located at 1380 Sussex Turnpike, the business address of the Applicant herein.

5. Based upon an initial decision of the Office of Administrative Law in a matter captioned Hornet Restaurant Associates, Inc. t/a Obsessions, Petitioner, v. Mayor and Council of the Township of Randolph, Respondent, dated November 30, 1987, Nicholas Stavrakis was a 50% owner of Hornet beginning December 17, 1985. The remaining 50% ownership interest in Hornet was held by the late Philip Hordes under whose Will the Trust which has a 50% interest in the current application, was created.

6. As above stated, the premises to which the Hornet Liquor License was associated was located at 1380 Sussex Turnpike, Randolph, New Jersey, which real property is owned by Eva Restaurant Corp. At the hearing held on April 7, 2011, it was disclosed that Eva Restaurant Corp. remains the owner of the premises located at 1380 Sussex Turnpike and that 50% of Eva Restaurant Corp. is owned by the Trust (comprised of Marylin Hordes, Eva Adler, and Michelle Williams); 25% of Eva Restaurant Corp. is owned by Nicholas Stavrakis; and remaining 25% is owned by William Stavrakis (brother of Nicholas Stavrakis).

7. The premises at which the Hornet Liquor License was associated was operated as a nightclub known as “Obsessions”.

8. A review of the files of the Township and of the Township Attorney disclosed a series of incidents beginning in late 1985 and early 1986 through the date that said Hornet Liquor License was transferred on September 15, 2005, to Westside Grill Partners, LLC, briefly summarized as follows:

(i) An 80 day suspension of the Hornet Liquor License in June of 1986 which was reduced to 45 days after an appeal to the Office of Administrative Law, said suspension commencing on January 30, 1988, and terminating on March 15, 1988.

(ii) An 85 day suspension of the Hornet Liquor License after the Division of Alcoholic Beverage Control filed a notice of charges against Hornet/Obsessions for underage drinking, unlabeled liquor bottles in the bar, and permitting the unlawful possession and/or distribution of illegal drugs (cocaine) by employees and/or patrons in violation of N.J.A.C. 13:2-23.5. The suspension commenced on the date that the 45 day suspension set forth in (i) ended and carried through June 8, 1988.

(iii) Various additional incidents as set forth in Exhibits R-1 through R-27 which were incorporated as part of the hearing record.

(iv) A 70 day suspension of the Hornet Liquor License by virtue of the action of the governing body of the Township on May 6, 2004, to commence May 27, 2004. An appeal and request for stay was filed on May 7, 2004, which appeal was subsequently withdrawn and the 70 day suspension commenced on February 9, 2005.

(v) The Hornet Liquor License was transferred to Westside Grill Partners, LLC via resolution on September 15, 2005.

9. The current Application included a “Source of Funds Affidavit” signed by Nicholas Stavrakis which stated:

“All funds used in the purchase of Liquor License #1432-33-004-008 were obtained from personal funds available to the undersigned, and copies of which are attached hereto.”

Attached to said Affidavit is a Statement of Account Portfolio from J.P. Morgan reflecting an aggregate $309,924.96 in the account. Upon detailed questioning at the April 7, 2011, hearing, it was disclosed that said J.P. Morgan account was an account for Eva Restaurant Corp., which, as abovementioned, is owned by the Credit Shelter Trust, Nicholas Stavrakis and William Stavrakis. William Stavrakis is not named as an interested party in the Applicant and upon further questioning, it was represented that William Stavrakis’ “share” of funds in the J.P. Morgan account (25%) was not being utilized to purchase the Liquor License in question, which is being purchased for $225,000.00 from Caldoo, Inc. according to a Contract of Sale therefore, dated June 25, 2010, between Caldoo, Inc. and 1380 Sussex Turnpike LLC, which contract was furnished to the Township.

10. The Liquor License for which person-to-person transfer approvals sought in this Application is currently a “pocket license”, i.e. not associated with any premise and physically held by the Township Clerk. In the application for renewal of the Liquor License for the 2006-2007 year, Caldoo, Inc. stated that it was temporarily closed, but it planned to reopen later during the renewal license period. Subsequently, “pocket license approval” was initially given by the Director of the Division of ABC for two license years (2007-2008 and 2008-2009). Caldoo, Inc. subsequently sought and obtained further “pocket license approval” from the Director of the Division of ABC for the 2009-2010 and 2010-1011 license years.

11. Although the address of the Applicant is 1380 Sussex Turnpike, Randolph, New Jersey, the same location of the former Obsessions nightclub (which is now being operated without a liquor license as “Confetti’s”), there was no simultaneous request for a place-to-place transfer of the Liquor License to the 1380 Sussex Turnpike address. When questioned by the Township, representatives of the Applicant contended that at this time they could not identify the premises to which said Liquor License will become associated. When specifically asked whether the 1380 Sussex Turnpike premises could be a possible location of the Liquor License, the Applicant indicated that it could be, although they have no intention at this time to relocate it there.

12. The Township Council expressed concern that if this person-to-person transfer were approved, the Applicant would subsequently seek a place-to-place transfer of the Liquor License to the 1380 Sussex Turnpike location and recommence operations similar to that which occurred at the Obsessions nightclub for the 20 year period 1985 through 2005 and potentially recommence the activity which resulted in the various suspensions of the Liquor Licenses stated above, or other activities which would be equally or similarly violative of the appropriate conduct permitted under the applicable statutes and regulations for the operation of a Liquor License.

13. The Township was further concerned that given the fact that this was currently a pocket license not associated with a location, at some point in the future, in order to utilize this Liquor License, a location would have to be determined and that at the time that such a request were made, independent of the person-to-person transfer, the Township’s ability to deny the place-to-place transfer to 1380 Sussex Turnpike would possibly be compromised because of the previous person-to-person transfer of this Liquor License to the Applicant.

14. As a result of this application being specifically for a person-to-person transfer and not a concurrent place-to-place transfer, coupled with the history of the operation of the Hornet Liquor License which was owned by individuals seeking the transfer of the current Liquor License or their blood relatives, the Township inquired whether the Applicant would agree to a special condition on the person-to-person transfer that neither the Applicant nor any of the individuals comprising the entities of which the Applicant is composed, will seek or obtain a transfer of this Liquor License to the premises at 1380 Sussex Turnpike, Randolph, New Jersey.

15. After a brief recess in the proceedings on April 7, 2011, the Applicant returned to the hearing and agreed to such a special condition, and further, at the request of the Township, agreed to waive any right to appeal or challenge the imposition of that condition in any approval of the person-to-person transfer as requested herein.

16. The Applicant and the individuals having an interest in the entities of which the Applicant is comprised further agreed to execute an Agreement memorializing the above stated verbal commitment, and the waiver of any right of appeal if the person-to-person transfer of the Liquor License were approved.

17. Based upon the foregoing and the elimination of the Township’s concern of the transfer of this Liquor License to the premises at 1380 Sussex Turnpike as a result of the Applicant’s agreement to the special conditions, there is a consensus that the application of 1380 Sussex Turnpike LLC for a person-to-person transfer of the Liquor License should be granted, subject to the special conditions described above and below.

NOW, THEREFORE, BE IT RESOLVED by the Township Council of the Township of Randolph, County of Morris, State of New Jersey, as follows:

1. The application of 1380 Sussex Turnpike LLC for a person-to-person transfer of the Plenary Retail Consumption Liquor License No. 1432-33-004-008 from Caldoo, Inc., to be continued as a “pocket license”, be and the same is hereby approved, subject to the following conditions which have been approved by the Applicant:

(i) Neither the Applicant, 1380 Sussex Turnpike LLC, nor the individuals owning any interest in 1380 Sussex Turnpike, LLC, specifically, Nicholas Stavrakis; The Credit Shelter Trust under the Will of Philip Hordes; Marylin Hordes; Eva Adler; and Michelle Williams, shall seek or obtain a place-to-place or other transfer of the Liquor License to premises located at 1380 Sussex Turnpike, Randolph, New Jersey.

(ii) This transfer is further specifically conditioned on the execution of an Agreement by 1380 Sussex Turnpike, LLC; The Credit Shelter Trust under the Will of Philip Hordes; and each of the individuals and entities comprising the Limited Liability Company and The Credit Shelter Trust (as Trustees and Beneficiaries), memorializing the conditions set forth above, and further agreeing to waive any right of appeal and agreeing to not appeal or challenge the imposition of said conditions.

2. All representations made by the Applicant, the individuals comprising the Applicant, and the Applicant’s attorney at the hearings on February 15, 2011, February 24, 2011, and April 7, 2011, be and the same are hereby incorporated within this Resolution as if the same were set forth in detail and specifically herein, and it is acknowledged that the Township Council has relied upon such representations as part of the basis for approving the person-to-person transfer of the Liquor License to the Applicant herein.

3. In that these proceedings have been conducted for the protection of the citizens of Randolph, both this Resolution itself and the representations made by the Applicant and the Applicant’s attorney at the hearings, shall be construed in a manner that provides the broadest protection to the citizens of Randolph generally, and specifically to prevent this license, while held by these applicants (either individually or as a part of any entity) from locating this license at 1380 Sussex Turnpike, Randolph, New Jersey.

4. The Mayor and Township Clerk are hereby authorized and directed to execute an Agreement which memorializes the special conditions set forth herein, with no further authorization needed.

5. The Mayor and Township Clerk, together with all other appropriate elected and appointed officials and professionals, are hereby authorized and directed to take any and all steps necessary to effectuate the purposes of this Resolution, subsequent to the execution of the memorializing Agreement as set forth above.

6. This Resolution shall take effect upon adoption and the execution of the memorializing Agreement set forth above.

REVIEW AND SET PROPOSED AGENDA FOR JUNE 2, 2011 REGULAR MEETING

Councilman MacArthur asked if the resolution proposed by Assembly Carroll regarding the Reserve for Uncollected Taxes that was discussed several weeks ago has been finalized.

Manager Lovell responded that he will get the resolution ready for the Council to adopt.

DISCUSSION ITEMS

A. Outdoor Dining Regulations—Business “B” Zones

Manager Lovell stated that the concept has been put forward of proposing an ordinance to permit outdoor dining in the business zones. A draft ordinance has been developed by the Township Attorney and will be introduced at the next Council meeting. There is a requirement that property owners within 200 feet of each affected establishment be notified of the public hearing, and so if the Council decides to move forward with the introduction of the ordinance, approximately 550 notices will be sent out.

Councilman Algeier suggested considering the ordinance as a unified ordinance to begin with, and then make adjustments as necessary based upon discussion.

Manager Lovell noted that if the proposed ordinance does not pass, the Township will go through the process of going out to the restaurants with outdoor dining and issuing notices of violation.

B. Water Rates

Manager Lovell’s comments included the following:

  • A memorandum has been forwarded to the Council regarding water rates
  • Water rates have been adjusted several times during his tenure
  • Currently there is a $5.00 minimum fee and then rates based upon consumption are added with the largest consumers paying the highest rates
  • The Township has maintained low or below market rates for those water consumers who conserve while the largest consumers underwrite most of the cost for the water system
  • An odd-even sprinkling system was implemented
  • Residents have cut back dramatically in their summer usage of water, as was evident last year during the record drought and consumption was below 2005 drought levels
  • Randolph is a victim of its own success
  • In 2010 it was evident that there would be a need to implement a rate increase
  • The surplus is being depleted rather dramatically and the system can not remain solvent without an increase
  • The proposal is to raise the base rate from $5.00 to $30.00 per quarter and leave the consumption rate alone this year
  • This would guarantee a revenue source
  • The water fund is very dependent on the summer quarter to make the surplus

Mr. Soccio noted that the water system is currently debt free, however the system can not remain solvent without an increase. Mr. Soccio explained his calculations to determine the average cost per customer necessary to operate the facility each year, which comes to approximately $278.00 per year. The Township lost about $850,000.00 last year with the low water consumers, however that cost was significantly off-set by the higher end water consumers and the Township ended the year with a deficit of approximately $183,000.00. Surplus funds have been slowly dwindling and, if that deficit trend continues, there will not be any surplus remaining. Mr. Soccio suggested that the base fee be increased from $5.00 to $30.00 per quarter in order to generate revenue of approximately $540,000.00 per year. The current gallonage fees would remain the same.

Councilman Algeier asked if there had been any consideration to less of an increase in the base fee while also increasing gallonage rates. The Councilman noted that the concept of the water rates was to bill as much as possible based on usage and many residents don’t want any minimum base fee. Councilman Algeier asked if there are residents who pay the minimum base fee and do not use any water.

Mr. Soccio responded that approximately one hundred customers have zero consumption and pay the $5.00 base fee. Often those are homes that are unoccupied or the apartments that use a sprinkling system that operate seasonally.

Deputy Mayor Guadagno noted that if the base fee is raised to $30.00 per quarter, his bill will increase by 225 percent since he uses very little water. The Deputy Mayor suggested that, if the timing is not critical, perhaps the base fee could be raised to $15.00 and then do a study to raise the usage costs later in the year.

Manager Lovell responded that Mr. Soccio’s proposal guarantees the books will balance next year. If the Council does not find the proposal acceptable, there is no guarantee that the books will balance at the end of year. The Manager and Mr. Soccio can go back and determine a combination increase for usage and basic fees. Manager Lovell stated that he will email the Council with various rough options.

Councilman MacArthur stated that while he agrees that the $30.00 increase is a big increase at one time, currently the large users are subsidizing the lower end users. Raising rates on consumption makes it a more progressive tax. The Councilman believes that everyone should at least pay the minimum costs for the water infrastructure and then the surplus can be built up by the heaviest water consumers.

Councilman Napoliello stated that he believes residents will complain that they were told last year to conserve water, which they may have done, and then their rates will be raised anyway.

Mayor Mitsch noted that the drive for water conservation is not driven by Randolph. Water is a scarce resource that has been priced cheaper than it should have been priced for years.

Councilman Obremski countered that water should then be priced accordingly. He would not object to a very modest increase in the base fee, perhaps $1.00 or so, however he believes that the cost of the operation should be paid for through usage fees. The Councilman has never heard of a utility charging that highly anywhere in any industry and would find it hard to explain to a resident.

Manager Lovell stated that he and Mr. Soccio will work together to come up with some options and communicate those to the Council.

C. Accumulated Leave at Retirement

Manager Lovell stated that when the municipal cap law was adopted, the State also started taking action on pensions and health benefits, which has resulted in a rush to retire by several employees. The State created the opportunity for towns to cover those retirement costs. Randolph has traditionally budgeted $125,000.00 each year to cover the buyout of accumulated sick time and vacation time. Mr. Soccio has projected retirement costs over several years and believes that by taking action at this time by creating a special emergency authorization, it will create stability for the Township.

Mr. Soccio noted that there will be eight retirements this year. Currently there is approximately $176,000.00 in total funds available to use towards those retirements, but the Township will be in the hole for approximately $182,000.00. Any money that is not used for this purpose will be put into surplus.

Manager Lovell noted that the current generation of employees eligible to retire will receive a greater benefit than those employees hired after 1999 when vacation and sick day caps were instituted. This proposed emergency authorization would allow the Township to manage the cash and to do so without impacting the tax rate.

Councilman Algeier asked if the Council could get a copy of the list of employees retiring this year and the payouts associated with each.

Manager Lovell responded that he will email that list to the Council.

D. E.A. Porter Site Remediation

Manager Lovell noted that Randolph has been working through a process with EcolSciences to do a remediation study on the E.A. Porter property. The DEP is no longer funding these studies and has delegated the responsibility to manage these functions to licensed firms. EcolSciences is licensed to supervise their own work. The cost of this is being fully paid for through the trust fund set up through COAH since low and moderate income housing will be built at that location. However, because the DEP is no longer funding the studies, it will cut significantly into the dollars set aside for this project and Randolph will not be able to turn over as much money to Habitat for Humanity as was anticipated. This does not stop the project from going forward because Habitat for Humanity has always anticipated the potential for this happening and built it into their budget numbers.

Councilman MacArthur asked if the alternative of trying to sell the property was ever considered.

Manager Lovell responded that the property would have to be cleaned up before trying to sell it. He noted that Randolph’s costs are capped with this project and it is well within the budget.

Councilman Algeier suggested the Manager forward a copy of the Memorandum of Understanding for this project to the Council for the benefit of the newer members.

Mr. Buzak noted that the four year period the State has given towns to spend this money will expire in 2012 and may look to take unused funds after that time.

Manager Lovell stated that he will email a copy of the Memorandum of Understanding to the Council.

Mayor Mitsch noted that this project will help with Randolph’s ongoing COAH obligations.

E. Library—Children’s Wing

Manager Lovell noted that there is some confusion regarding what the Library’s offer was toward the proposed children’s wing. The Library is under the impression that they offered to pay for the down payment while the Township would deal with the debt service. The Manager was under the impression that the Library would be taking care of the debt service. He suggested a committee be formed to sit down with the Library to discuss this issue and has delayed any action on a bond ordinance until this can be worked out.

Deputy Mayor Guadagno asked if this issue will stop construction at the site.

Manager Lovell responded that the site improvement work will move forward as planned and does not stop the exterior improvements.

OPEN TO PUBLIC

Seeing no one from the public, the public portion was closed.

COUNCIL AND MANAGER COMMENTS

Councilman Algeier distributed a copy of a letter from the Highlands Budget Director. There is an implication that the Highlands Council will deny a seat to anybody that does not agree with their approach. The Councilman suggested a resolution or decision of some type at next week’s Council meeting to not join with that organization when the next bill comes in for payment. Councilman Algeier has heard that the Municipal Alliance Committee has decided to offer a scholarship to a graduating senior again this year and asked for confirmation.

Councilman Obremski responded that the MAC has chosen a student for some kind of award but he is not aware if there is a dollar amount attached to that.

Councilman Algeier stated that the MAC’s bylaws strictly prohibit them from awarding scholarships and that this issue was brought up in Council discussions last March. He asked if anyone has advised the MAC of this fact.

Manager Lovell responded that he has had no contact with the MAC.

Councilman Algeier suggested that Manager Lovell look into this issue as soon as possible in order to rectify the situation.

EXECUTIVE SESSION

WHEREAS, Section 8 of the Open Public Meetings Act, Chapter 231, P.L. 1975 (N.J.S.A. 10:4-12) permits the exclusion of the public from a meeting under 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 Township of Randolph, in the County of Morris, and State of New Jersey, as follows:

1. The public shall be excluded from the following portion of the meeting.

2. The general nature of the subject matter to be discussed is as follows:

A. Center Road Property
B. 7 Phyllis Place Property
C. Ambulance Service Contract
D. Bailey v. Randolph

3. As nearly as now can be ascertained, the matter or matters to be discussed at this time will be disclosed to the public at such time and under such circumstances as are prescribed by law.

4. At the conclusion of the closed Executive Session, the Council may reconvene in public session for the purpose of taking formal action on matters discussed in closed session or on any other matter as permitted by law.

Councilman Algeier made a motion to move into Executive Session at 10:20 p.m. Councilman Napoliello seconded the motion, and the following roll call vote was taken:

AYES:
Councilman Algeier
Councilman Loveys
Councilman MacArthur
Councilman Obremski
Deputy Mayor Guadagno
Mayor Mitsch

NAYS: Councilman Napoliello

Deputy Mayor Guadagno made a motion to move back to Open Session at 10:45 p.m. Councilman Napoliello seconded the motion, and the following roll call vote was taken:

AYES:
Councilman Algeier
Councilman Loveys
Councilman MacArthur
Councilman Napoliello
Councilman Obremski
Deputy Mayor Guadagno
Mayor Mitsch

NAYS: None

ADJOURNMENT

Mayor Mitsch adjourned the meeting at 10:45 p.m.

_______________________________
Donna Marie Luciani
Township Clerk