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

Minutes: April 7, 2011

A regular meeting of the Randolph Township Council was called to order at 8:00 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.

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.

OPEN TO PUBLIC

Judith Stewart, 114 Everdale Road, spoke to the Finance Director regarding the new tax bills that were issued to certain residents eligible for home rebates. Mr. Soccio assured her that the state picked up the bulk of the cost for sending out these notices. Mrs. Stewart wondered whether the state could have better spent the money elsewhere. Mrs. Stewart asked Mr. Buzak what is used to determine the exact time in that this meeting and a prior meeting were started before the advertised 8:00 p.m. start time, albeit no business was conducted prior to 8:00 p.m. at either meeting.

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

COUNCIL AND MANAGER REPORTS

Councilman Obremski attended a recent Traffic Advisory Committee. They received a letter from the NJ DOT regarding the intersection of Route 10 and Dover Chester Road. A representative from the DOT reviewed the intersection and determined that the conditions cited by the Traffic Committee did exist at the site. Some loop detectors were found to be malfunctioning and the DOT is confident that fixing those detectors will remedy the situation. The Traffic Committee will continue to watch the situation at that site and will keep the Council apprised. The high school recently took the lead for the Alive at 25 Program and conducted their first session. Members of the Committee will attend the high school presentations for the time being to ensure all is going well. The Traffic Committee will be reviewing and forwarding to the Board of Education a recent email request from a resident suggesting that a traffic light be installed at the main exit for the high school. The Committee has reviewed this issue in the past but will revisit it once again and make a recommendation to the Council.

Councilman MacArthur thanked Manager Lovell for the tour he conducted recently of the Cohn Farm and Stony Brook Day Camp.

Councilman Loveys also thought the tour was informative and beneficial.

Deputy Mayor Guadagno attended a Randolph Kiwanis meeting on April 6 and presented them with a plaque in honor of their 40th anniversary.

Mayor Mitsch met recently with high school students participating in a Practical Politics class. The class will be sponsoring a forum at Freedom Park in May to raise awareness about committee opportunities in Randolph. The Mayor asked the Council members to alert the various committees to which they are liaison and ask that those committees plan to have representatives at the forum once the final details have been set. The event will be well advertised throughout the town. The Economic Development Committee met recently. Martin Heller, the owner of the Zion tract, spoke at the meeting about his plans for developing the tract at the corner of Sussex Turnpike and West Hanover Avenue. The Mayor reported that the NJ DOT is providing $1.2 million toward right-of-way access along Sussex Turnpike, which will hopefully bring about some movement in the area.

Manager Lovell noted that the Fifth Friday gathering sponsored by the Economic Development Committee will be held on April 29 at 4:00 p.m. He is hopeful that the entire Council will be able to attend.

2011 Municipal Budget

Manager Lovell noted that four steps in adopting the budget will be taken this evening.

The first step is a resolution permitting a self-examination. New Jersey does not have adequate staff to examine all municipal budgets every year, therefore a number of municipalities are allowed to undertake a self-examination process. The second step is a resolution that will introduce the budget in accordance with Council discussion at the March 31 meeting. The third step will be the public hearing on the budget. The fourth step will be the adoption of the 2011 municipal budget.

Councilman Napoliello made a motion to accept the resolution permitting a self-examination of the budget. Councilman Obremski 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. Resolution Permitting Self-Examination

R-92-11

WHEREAS, N.J.S.A. 40A-4-78b has authorized the Local Finance Board to adopt rules that permit municipalities in sound fiscal condition to assume the responsibility, normally granted to the Director of the Division of Local Government Services, of conducting the annual budget examination; and

WHEREAS, N.J.A.C. 5:30-7 was adopted by the Local Finance Board on February 11, 1997; and

WHEREAS, pursuant to N.J.A.C, 5:30-7.2 through 7.5, the Township of Randolph has been declared eligible to participate in the program by the Division of Local Government Services, and the Chief Financial Officer has determined that the local government meets the necessary conditions to participate in the program for the 2011 budget year.

NOW, THEREFORE BE IT RESOLVED by the Mayor and Council of the Township of Randolph, that in accordance with N.J.A.C. 5:30-7.6a & 7.6b and based upon the Chief Financial Officer’s certification, the governing body has found the budget has met the following requirements:

1. That with reference to the following items, the amounts have been calculated pursuant to law and appropriated as such in the budget:

a. Payment of interest and debt redemption charges
b. Deferred charges and statutory expenditures.
c. Cash deficit of preceding year.
d. Reserve for uncollected taxes.
e. Other reserves and non-disbursement items.
f. Any inclusions of amounts required for school purposes.

2. That the provisions relating to limitations on increases of appropriations pursuant to N.J.S.A. 40A:4-45.2 and appropriations for exceptions to limits on appropriations found at N.J.S.A. 40A:4-45.3 et seq. are fully met (complies with CAP law.)

3. That the budget is in such form arrangement and content as required by the Local Budget Law and N.J.A.C. 5:30-4 and 5:30-5.

4. That pursuant to the Local Budget Law:

a. All estimates of revenue are reasonable, accurate, and correctly stated.
b. Items of appropriation are properly set forth.
c. In itemization form, arrangement and content, the budget will permit the exercise of the comptroller function within the municipality.

5. The budget and associated amendments have been introduced and publicly advertised in accordance with the relevant provisions of the Local Budget Law, except that failure to meet the deadlines of N.J.S.A. 40A:4-5 shall not prevent such certification.

6. That all other applicable statutory requirements have been fulfilled.

BE IT FURTHER RESOLVED that a copy of this resolution will be forwarded to the Director of the Division of Local Government Services upon adoption.

Manager Lovell stated that shortly after Randolph had adopted their budget, the state adopted a statute which requires municipalities to list libraries as separate line items on tax bills. That statute impacted the budget and the levy cap. To correct that situation, $25,000.00 will be taken out of surplus which will bring the Township under the levy cap with a $5,000.00 cushion. The following resolution was read into the record:

B. Resolution Amending the Introduced Budget

R-93-11

WHEREAS, the local municipal budget for the year 2011 was introduced on the 3rd day of March, 2011; and

WHEREAS, the public hearing on said budget is being held as advertised; and

WHEREAS, it is desired to amend said adopted budget.

NOW, THEREFORE, BE IT RESOLVED by the Governing Body of the Township of Randolph, County of Morris, that the following amendments to the adopted budget of 2011 be made:

BE IT FURTHER RESOLVED that three certified copies of this resolution be filed forthwith in the Office of the Director of Local Government Services for their certification of the local municipal budget so amended.

Councilman Obremski made a motion to approve the resolution amending the proposed 2011 budget. 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

C. Public Hearing 2011 Municipal Budget

Manager Lovell’s comments included the following:

• The budget process began on October 22, 2010 when an advertised public hearing was held by the Manager and staff in accordance with state statutes
• In 2010, the township initiated a number of steps for long term savings which included the elimination of the Assistant Manager position, the Community Services Supervisor position, several police officer positions, and clerical titles
• On-going tax appeals due to the decline in real estate values continues to be an issue in Randolph Township
• Revenue collections were weak in several areas, especially in areas dealing with land use and land development
• It was anticipated that the new two percent levy cap would impact the 2011 budget and beyond
• There are expenditures that are beyond the township’s control, such as the rising price of fuel
• In January and February of 2011 the Council deliberated over the budget at a number of Saturday morning meetings, taking a long term perspective by keeping costs down and using cash wherever possible rather than creating more debt
• The budget was introduced in March
• This evening a resolution was passed amending that budget resulting from a new state law and Randolph is now once again compliant with the two percent levy cap
• The 2011 budget includes two components—the municipal budget ($26,875,296.00) and the water and sewer component ($7,782,331.00) for a total of $34,657,627.00

In reviewing the budget, the areas of change this year include:

• Salaries declining by 4.5 percent
• Health insurance and workmen’s comp increasing by 10.6 percent
• Pensions increasing by 19 percent
• Social Security increasing by 2.5 percent
• Retirement program for the fire fighters and rescue squad members increasing by 3.5 percent
• General operating expenditures for the organization increasing by 3.9 percent
• Debt capital outlay and deferred costs declining by 3.5 percent
• Public library declining by 3.5 percent
• Reserve for Uncollected Taxes increasing by 9.7 percent
• Overall the budget is up 1.77 percent

Appropriations that caused problems with the budget include:

• Health insurance premiums are growing by $395,598.00—the National Health Care Program is having an impact and driving health care costs up by approximately 3 percent this year—the trend is expected to continue into the future
• Reserve for Uncollected Taxes is increasing by $236,468.00—the fund is impacted by tax appeals—tax appeal settlements reduce the rate of collections and drives up the reserve
• The Capital Improvement Program is increasing $259,300.00—a number of major infrastructure projects must be addressed and some equipment must be replaced—the Council has begun in 2011 to transition the Road Overlay Program back to a cash program as opposed to partial debt program
• Police salaries will be increasing by 4 percent this year as stipulated in their contract—all other bargaining groups and managerial employees are foregoing increases this year—an approach was made to the police union asking them to consider the increase in this last year of their contract and the request was rejected—a Letter to the Editor critical of the township for making that request appeared in the April 7 edition of the Randolph Reporter
• The police pension is increasing by $140,000.00 and the pension for all other employees is increasing $132,589.00 this year—the pension problems stem from the fact that for a number of years projections for investment earnings were not realized and the fund was used as a form of tax relief which adversely impacted the fund
• When the benefits given to retired employees are added, the state faces a very difficult situation—the municipal sector of the pension issue is in much better shape than the state sector

The Manager continued:

• Savings have been achieved in many areas due for the most part to smaller operations
• Staff has been reduced every year for a number of years
• Administration continues to look for areas to reduce and save, and this year several departments such as the police department are being considered for re-organization
• For the first time in his 36 years of public service the Manager is seeing a town’s ratable base decline
• Municipal government is very dependent upon its ratable base and growth reflects a health economy in the community
• The Manager is hopeful the town is beginning to see signs of an economic recovery due to stabilizing property values and active bidding on homes for sale in Randolph
• Developers are also expressing an interest in moving on some projects and activity is expected to begin on the Nitti Mountain, Heritage 55, and Grecco sites

Revenue is received from a number of sources, including:

• State aid, which comprises 6.87 percent of the budget
• Local fees, fines and interest comprise 12.4 percent of the budget
• Surplus comprises 7.26 percent of the budget
• Delinquent taxes comprise 4.5 percent of the budget
• The municipal tax rate necessary to support the municipal organization is increasing this year by approximately $900,000.00, a 3.2 cent tax increase that will impact taxpayers
• The impact on the average assessed residential structure ($338,000.00) will be an increase of $108.65, or $9.05 per month

Comments regarding the water and sewer funds included:

• Neither funds are subsidized by the taxpayers in Randolph Township
• Water users pay the entire cost of water operations and sewer users pay the entire cost of the sewer operations
• The township maintains independent financial records and is careful to ensure these funds remain solvent
• Currently the sewer fund provides service to 3,900 properties and the water fund provides water to 5,667 properties
• The current sewer rate structure continues to allow the township to preserve funds for future capital improvements
• The sewer budget for 2011 is proposed at $4,840,991.00, a reduction from 2010
• The water fund budget for 2011 is proposed at $2,941,340.00
• Randolph purchases all water from the MCMUA
• The MCMUA has increased wholesale water rates several times in the last few years—9.7 percent in February 2007, 3 percent in March 2008, and 2 percent in 2011
• Randolph has undertaken a number of improvements to enhance its water system, increasing pressure as well as ensuring the system is looped to protect the citizens in the event of a water main break
• It is likely that a water rate adjustment will be considered in 2011

Additional comments included:

• Council and administration has been guided in their decisions by the Mission Statement
• The Mission Statement reads: “The Randolph Township municipal organization strives to make the Township of Randolph the best it can be by providing effective governance, enhanced customer services and excellent community facilities”
• Budget deliberations in 2011 embraced this philosophy of good governance
• The 2011 budget will enable the township to meet the public’s demand and need for services
• The budget is structured in a fiscally responsible manner to ensure the financial well-being of the municipal government
• In the months to come, several departments will undergo re-organization to achieve efficiencies now and into the future
• Every effort will be made to ensure that Randolph maintains fiscally healthy and it is the Manager’s goal to maintain Randolph’s AAA bond rating even as other towns are losing theirs
• The budget embraces the conservative philosophy that has served this township well for a number of years with regard to fiscal management
• The Manager recommends the Council adopt the budget

Mayor Mitsch opened the meeting to the public for a hearing.

Lee Whilden, 82 Radtke Road, cautioned the Council that the township may be getting taxed twice for the library and urged them to be careful and thorough.

Judith Stewart, 114 Everdale Road, thanked the Council for their efforts in putting forth the budget. She reiterated her belief that Randolph is fortunate to have a council/manager form of government. Items Mrs. Stewart was concerned about when the budget was first discussed have been restored to the proposed budget and she urged the Council to support it. Mrs. Stewart noted that she has not yet been provided with an analysis that combines garbage and recycling information.

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

Deputy Mayor Guadagno asked if the line item for vaccinations has been increased for the Health Department.

Manager Lovell responded that the amount has not changed from what was discussed during the work sessions.

Deputy Mayor Guadagno asked if the line item for vaccinations will be increased.

Manager Lovell responded that he is not sure at this time. A couple of years ago the Council did increase the line item for vaccinations, however the dollars were not used so the line item was cut back. The Manager stated that he would be amenable to increasing the amount if the nursing staff can give him a solid foundation showing the need to transfer money. Manager Lovell noted that a resident had asked about private funding and stated that he has not yet had a chance to look into that option but will shortly.

Councilman Obremski thanked Mike Soccio and John Lovell for putting together a budget that, during these difficult times, accomplishes what the Council is trying to do. While there is a slight tax increase associated with the budget, the services that Randolph residents expect and deserve have been preserved. The Councilman also thanked his fellow Council members for their efforts with all of the work that went into the budget process and believes they all came together, despite sometimes having differing views, and produce a budget he can support.

Councilman MacArthur noted that, as new Council members, he and Councilman Loveys had hoped for a budget that would have no tax increase, which was not to be the case. The Councilman supports the budget, and he highlighted four areas of the budget that he has come to appreciate very much, which are:

• Essential services have been retained without any compromise
• Services that are not necessarily essential but that distinguish Randolph from surrounding communities have been preserved
• These things have been done at an additional cost of just over $100.00 a year, which he believes is nominal
• The slight move away from debt this year to maintain the roads was important and will hopefully lead to an all cash program for road maintenance in the future

Councilman Loveys echoes Councilman MacArthur’s comments in many respects. While he believes that no one sets out to raise taxes and he was disappointed to see a tax increase, the benefit is that Randolph will be able to maintain the current level of services the residents have come to expect and he supports the budget.

Mayor Mitsch stated that she agrees with the comments that have been expressed so far. She added that, to the extent there is a tax increase, much of that relates to pieces of the budget that are beyond the township’s control. When faced with a modest tax increase or compromising standards residents have come to expect, the better choice is the modest increase. The Mayor agrees with the Manager in that for many years the Council’s approach to the budget has been conservative, particularly during difficult economic times, and that is why Randolph enjoys a AAA bond rating.

Councilman Napoliello stated that, when he first heard of the 2 percent levy cap, he was concerned over the potential impact that it would have on taxes in Randolph. He supports the budget and thanked Mr. Soccio and Manager Lovell for the tremendous job they did in maintaining the quality of life in Randolph.

Manager Lovell expressed his personal appreciation to Mr. Soccio and noted that Mr. Soccio is a tremendous asset to Randolph and does the lion’s share of the work as far as putting together all of the documents and assisting him through the process of putting together a budget recommendation each year. The Manager believes the reason Randolph enjoys a AAA bond rating is the council/manager form of government, the sound fiscal policies established over the course of many years, the town is operated in a fiscally conservative manner, and the excellence in which Mr. Soccio executes his job responsibilities. Manager Lovell noted that other towns are seeing their bond ratings decline this year and is proud of Randolph’s AAA bond rating.

Manager Lovell read the following resolution into the record:

D. Adoption 2011 Municipal Budget

R-94-11

BE IT RESOLVED by the Mayor and Council of the Township of Randolph, County of Morris that the budget hereinbefore set forth is hereby adopted and shall constitute an appropriation for the purposes stated of the sums therein set forth as appropriations, and authorization of the amount of:

(a) $16,996,859.00 for municipal purposes
(d) $730,288.00 Open Space, Recreation, Farmland and Historic Preservation Trust Fund Levy
(e) $1,527,444.00 Minimum Library Levy

Summary of Revenues:

Deputy Mayor Guadagno made a motion to adopt the 2011 Municipal Budget. Councilman Obremski 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

AWARD FIRE TRUCK AERIAL APPARATUS TO PIERCE MANUFACTURING

Manager Lovell stated that the committee charged with developing specifications for this fire truck spent many months regarding this issue. The good work done by the committee resulted in the township receiving three competitive bids for the truck. The award to Pierce Manufacturing was reviewed by the Township Attorney and the Manager urged the Council to support the contract award.

Deputy Mayor Guadagno made a motion to approve the contract award. Councilman Obremski 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

Resolution to Award Fire Truck Aerial Apparatus to Pierce Manufacturing for $874,465.00

R-95-11

WHEREAS, the Township of Randolph (“Township”) duly sought by legal advertisement bids for the purchase of a Fire Department Aerial Apparatus (the “Contract”); and

WHEREAS, three sealed bids were received and opened by the Township on January 13, 2011, pursuant to the provisions of said advertisement; and

WHEREAS, the lowest responsive bid was received from American LaFrance, LLC (“ALF”) at a total bid amount of $796,172.00; and

WHEREAS, ALF stated in its bid proposal that it proposes a 2007 Cummins ISM 500 HP emissions engine “in place of” the 2010 Cummins ISX 550 engine as required in the Township’s Bid Specifications; and

WHEREAS, ALF’S proposal to substitute a 2007 Cummins ISM 500 HP engine with a 2007 HP engine is a material defect in ALF’s bid proposal which renders ALF’s bid unresponsive pursuant to International Motor Co. v. City of Plainfield, 96 N.J.L. 364 (1921); and

WHEREAS, the next lowest responsive bid was received from Pierce Manufacturing, Inc., located at 2600 American Drive, Appleton, Wisconsin (“Pierce”) at a total bid price of Nine Hundred One Thousand Nine Hundred Sixty-Five Dollars and Zero Cents ($901,965.00) less a trade in price of $27,500.00 making the total contract $874,465.00; and

WHEREAS, by letter dated April 5, 2011, Counsel for the Township has indicated the bid and bond documents submitted by Pierce are satisfactory; and

WHEREAS, the Township desires to authorize the award of the contract to Pierce as the lowest responsive and responsible bidder.

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

1. The Contract for a Fire Department Aerial Apparatus is hereby awarded to Pierce as the lowest responsive and responsible bidder in the total amount of Nine Hundred One Thousand Nine Hundred Sixty-Five Dollars and Zero Cents ($901,965.00) less trade in amount of $27,500.00 totaling $874,465.00.

2. The proper Township officials, its Attorney and Engineer are hereby instructed and directed to proceed with the preparation and execution of formal Contracts with Pierce as the lowest responsible and responsive bidder, pursuant to the terms of the bid previously submitted and the terms and conditions of this Resolution.

3. Said officials, together with all other officials, professionals and employees of the Township are hereby authorized and directed to take any and all steps necessary to effectuate the purposes of this Resolution.

4. This award is subject to the Contractor’s compliance with the requirements of P.L. 1975, c. 127 (N.J.S.A. 10:5-31 et seq.) and the Regulations adopted thereunder.

5. The foregoing award is further subject to the certification of availability of funds by the appropriate officers of the Township.

6. This Resolution shall take effect immediately.

CERTIFICATION OF AVAILABILITY OF FUNDS

Dated: April 7, 2011

As required by N.J.S.A. 40A:4-57, N.J.A.C. 5:30-14.5, and any other applicable requirement, I, Michael J. Soccio, Director of Finance of the Township of Randolph, have ascertained that funds are available in Ordinance #10-10, Various Capital Improvements—Fire Ladder Truck, to award a contract with Pierce Manufacturing, Inc. for the Purchase of a Fire Department Aerial Apparatus in the amount not to exceed $874,465.00.

_____________________________
Michael J. Soccio
Chief Financial Officer

ORDINANCES

A. Second Reading and Public Hearing

(1) Ordinance #4-11: Amendment to Traffic Code—Longview Parking

BE IT RESOLVED that an Ordinance entitled “AN ORDINANCE AMENDING AND SUPPLEMENTING SECTION 31-73, PARKING PROHIBITED ON CERTAIN STREETS, OF CHAPTER 31, TRAFFIC AND VEHICLES, OF THE REVISED ORDINANCES OF THE TOWNSHIP OF RANDOLPH, MORRIS COUNTY, NEW JERSEY” be read by title on second reading and a hearing held thereon.

Manager Lovell noted that the Council has been dealing with the Longview Avenue issue for quite some time. A petition was received by residents regarding a safety concern created by overflow parking from Brundage Park. During the process of creating a restriction for parking, Councilman Loveys noticed that parking restrictions for Longview Avenue already existed in Randolph’s ordinances. This ordinance will amend those existing parking restrictions on Longview Avenue. Parking would be prohibited on the first 250 feet north of Longview from Carrell Road along the east side.

The Mayor opened the meeting for public hearing. Seeing no one from the public, the public portion was closed.

BE IT RESOLVED that an Ordinance entitled “AN ORDINANCE AMENDING AND SUPPLEMENTING SECTION 31-73, PARKING PROHIBITED ON CERTAIN STREETS, OF CHAPTER 31, TRAFFIC AND VEHICLES, OF THE REVISED ORDINANCES OF THE TOWNSHIP OF RANDOLPH, MORRIS COUNTY, NEW JERSEY” be passed on final reading and that a Notice of Final Passage of said Ordinance be published in the official designated newspaper according to law.

Councilman Obremski noted that he did hear from the resident who initiated this issue and was told that the last remaining homeowner who would be affected by this ordinance has been contacted and has expressed no concern with this ordinance moving forward.

Councilman Obremski made a motion to adopt the ordinance. Councilman MacArthur seconded the motion, and the following roll call vote was taken:

AYES:
Councilman Loveys
Councilman MacArthur
Councilman Napoliello
Councilman Obremski
Mayor Mitsch

NAYS:
Councilman Algeier
Deputy Mayor Guadagno

(2) Ordinance #5-11: Bond Ordinance—$3.6 Million Funding the Construction of a DPW/Board of Education Shared Vehicle Maintenance Building on Sussex Turnpike

BE IT RESOLVED that an Ordinance entitled “BOND ORDINANCE PROVIDING FOR IMPROVEMENTS TO THE DEPARTMENT OF PUBLIC WORKS FACILITY IN AND BY THE TOWNSHIP OF RANDOLPH, IN THE COUNTY OF MORRIS, NEW JERSEY, APPROPRIATING $3,600,000.00 THEREFOR AND AUTHORIZING THE ISSUANCE OF $2,464,000.00 BONDS OR NOTES OF THE TOWNSHIP TO FINANCE PART OF THE COST THEREOF” be read by title on second reading and a hearing held thereon.

Manager Lovell noted that this project has been in the works for many years and is coming to fruition this year as a result of a partnership reached with the Randolph Board of Education. Under the current proposal, the existing vehicle maintenance building will be torn down and replaced with a 21,400 square foot facility to be used by the Board of Education and Public Works. This new facility should serve the township well for many generations to come. The Board of Education will share in the cost of building this new facility and a final draft of an inter-local government services agreement is being prepared and will hopefully be in place in early May with a contract awarded in early June. If the agreement with the Board of Education is not signed, the project will not move forward.

The Mayor opened the meeting for public hearing. Seeing no one from the public, the public portion was closed.

BE IT RESOLVED that an Ordinance entitled “BOND ORDINANCE PROVIDING FOR IMPROVEMENTS TO THE DEPARTMENT OF PUBLIC WORKS FACILITY IN AND BY THE TOWNSHIP OF RANDOLPH, IN THE COUNTY OF MORRIS, NEW JERSEY, APPROPRIATING $3,600,000.00 THEREFOR AND AUTHORIZING THE ISSUANCE OF $2,464,000.00 BONDS OR NOTES OF THE TOWNSHIP TO FINANCE PART OF THE COST THEREOF” be passed on final reading and that a Notice of Final Passage of said Ordinance be published in the official designated newspaper according to law.

Councilman Algeier asked if there was any indication that the Board of Education was having second thoughts about becoming involved in this project.

Manager Lovell responded that the Board of Education is indeed anxious to move forward with the project.

Deputy Mayor Guadagno made a motion to adopt the ordinance. 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

B. Introduction

Manager Lovell stated that the next two ordinances address increases to the fee schedules in Randolph Township. The first ordinance reflects general fees throughout the community, and the second ordinance deals strictly with fees for the Planning Board and Board of Adjustment.

(1) Amend Fee Schedule

BE IT RESOLVED that an Ordinance entitled “AN ORDINANCE AMENDING APPENDIX A, FEE SCHEDULE, OF THE REVISED ORDINANCES OF THE TOWNSHIP OF RANDOLPH, MORRIS COUNTY, NEW JERSEY” be introduced and read by title by the Township Clerk and passed on first reading.

BE IT RESOLVED that said Ordinance shall be further considered for final passage at the meeting of the Township Council of the Township of Randolph on the 5th of May, 2011, at 8:00 p.m. prevailing time at the Municipal Building in said Township, at which time and place all persons interested shall be given an opportunity to be heard concerning said Ordinance.

BE IT FURTHER RESOLVED that the Township Clerk be authorized and directed to advertise said Ordinance in full or by summary with the Notice of Introduction thereof in the official designated newspaper according to law.

Councilman Obremski made a motion to introduce the ordinance. Deputy Mayor Guadagno seconded the motion, and the following roll call vote was taken:

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

NAYS: None

ABSENT: Councilman MacArthur

(2) Amend Land Use Fees—Applications and Review Sign/Banner Permits, Etc.

BE IT RESOLVED that an Ordinance entitled “AN ORDINANCE AMENDING SECTION 15-91.1, APPLICATION AND REVIEW FEES, AND SECTION 15-43.11(G)(8), FEES FOR A TEMPORARY SIGN/BANNER PERMIT, OF THE LAND DEVELOPMENT ORDINANCE OF THE TOWNSHIP OF RANDOLPH TO INCREASE CERTAIN APPLICATION AND REVIEW FEES AND TO DECREASE THE FEES FOR A TEMPORARY SIGN/BANNER PERMIT” be introduced and read by title by the Township Clerk and passed on first reading.

BE IT RESOLVED that said Ordinance shall be further considered for final passage at the meeting of the Township Council of the Township of Randolph on the 5th of May, 2011, at 8:00 p.m. prevailing time at the Municipal Building in said Township, at which time and place all persons interested shall be given an opportunity to be heard concerning said Ordinance.

BE IT FURTHER RESOLVED that the Township Clerk be authorized and directed to advertise said Ordinance in full or by summary with the Notice of Introduction thereof in the official designated newspaper according to law.

Deputy Mayor Guadagno made a motion to introduce the ordinance. Councilman Obremski 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

Manager Lovell thanked Mrs. Luciani, the Township Clerk, for her efforts in working with the various department heads and compiling the fee information for these ordinances.

HEARING FOR PERSON-TO-PERSON LIQUOR LICENSE TRANSFER

A. 1380 Sussex Turnpike—Continued From February 24

Robert C. Williams, the attorney representing 1380 Sussex Turnpike LLC, introduced Nicholas Stavrakis, Marylin Hordes, and Eva Adler.

Mr. Buzak stated that the Council had requested the applicants appear this evening for the public hearing on the liquor license transfer. Late last week Mr. Buzak’s office provided to the Council and to Mr. Williams a set of documents marked R-1 through R-27. Mr. Williams provided additional documentation, the Certificate of Incorporation for Hornet Restaurants Associates, a Certificate of Dissolution, a letter from the IRS acknowledging the existence of the Credit Shelter Trust, and a copy of the Last Will and Testament along with two codicils that had created the Credit Shelter Trust. Mr. Buzak asked each of the principals of the organization present this evening to stand, raise their right hands, and answer the following question:

“Do each of you swear that the testimony you will give tonight will be the truth, the whole truth, and nothing but the truth, so help you God.”

Mr. Stavrakis, Ms. Hordes, and Ms. Adler each answered “yes” to the above question and introduced themselves to the Council.

Mr. Williams noted that he and Mr. Stavrakis have appeared before the Council regarding this issue on February 15 and February 24. He reiterated that this is an application for a person-to-person transfer of a pocket license that will remain a pocket license. At whatever time 1380 Sussex Turnpike LLC chooses to try to activate the license, the Council is the board that will determine at that time where and under what terms that license will be activated. The Randolph Police Department has investigated the principals and each one has met the qualifications to hold a liquor license under New Jersey statute. Prior infractions in 2002 and 2003 at a licensed premises in which Mr. Stavrakis held an interest occurred when no alcohol was being served and charges stemming from those incidents had nothing to do with the serving of alcohol. Mr. Williams reiterated that there is nothing in the record before the Council this evening that would deny the applicant the right to hold a liquor license.

Mr. Buzak questioned Mr. Williams. Those questions are shown below with the answer shown in parentheses:

Please explain the interest the Credit Shelter Trust has in the liquor license. (Mr. Stavrakis will hold 50 percent, the other 50 percent will be held by the Philip Hordes Credit Trust which is divided as 50 percent to Marylin Hordes, 25 percent to Eva Adler, and 25 percent to Michele Williams.)

Is there any financial contribution being given to the purchase price by the Credit Shelter Trust or is it all coming from Mr. Stavrakis? (The Credit Shelter Trust has a 50 percent interest in the funds—there are joint funds between Mr. Stavrakis and the Credit Shelter Trust from prior dealings over the years with Mr. Hordes.)

Mr. Stavrakis’s certification attached to the liquor license application set forth that all funds used in the purchase of the liquor license were paid by personal funds available to the undersigned. Also attached was a JP Morgan account portfolio showing that almost $310,000.00 was available and the contract was for $225,000.00. This is contrary to what was just represented. Does the Credit Shelter Trust have a financial interest in the money that is in Mr. Stavrakis’s account? (Mr. Stavrakis and the Credit Shelter Trust have an interest in the account.)

Mr. Williams questioned Mr. Stavrakis, and the answers appear in parentheses:

Shown an account which was attached to the Source of Funds Affidavit, does Mr. Stavrakis recall signing that? (Yes)

Attached to that is an Account Portfolio showing a balance of $309,000.00. (Yes)

That money is in what account? (Eva Restaurant Corp, the landlord that owns the property at Confetti, 1380 Sussex Turnpike in Randolph)

Who has an interest in Eva Restaurant Corp? (Nicholas Stavrakis, William Stavrakis, and the Credit Shelter Trust which owns 50 percent)

Money will be taken out of this account that is available to the three entities to purchase the liquor license for $225,000.00? (Yes)

Mr. Buzak noted that the application states that the money is coming from Mr. Stavrakis.

Mr. Williams responded that the application states the money is coming from personal funds in an account available to Mr. Stavrakis.

Mr. Buzak asked for the name in which the account is held.

Mr. Stavrakis responded that Eva Restaurant Corp is the name on the account.

Mr. Buzak asked who the principals are of the Eva Restaurant Corp.

Mr. Stavrakis responded that he and the Credit Shelter Trust are the principals.

Mr. Buzak noted that Mr. Stavrakis had mentioned his brother as being a principal.

Mr. Stavrakis responded that his brother is a share holder of Eva Restaurant Corp.

Mr. Buzak asked that Mr. Stavrakis listen to each question and answer completely. He reminded Mr. Stavrakis that this hearing is neither an interrogation nor an adversarial proceeding but an attempt for the Council to get all of the facts.

Questioning of Mr. Stavrakis by Mr. Buzak continued as follows and those answers are shown in parentheses:

Who are the principals of Eva Restaurant Corp? (Nicholas Stavrakis holds 25 percent, William Stavrakis holds 25 percent, and the Credit Shelter Trust holds 50 percent.)

Does William Stavrakis have any interest in 1380 Sussex Turnpike LLC? (No.)

Did Nicholas Stavrakis have an interest in Hornet Restaurants, Inc.? (Yes.)

What was that interest? (25 percent.)

Who owned the balance of the interest in Hornet? (Mr. Hordes held 50 percent and Nicholas Stavrakis held 50 percent.)

Did Nicholas Stavrakis have an opportunity to see the documents Mr. Buzak provided to Mr. Williams? (No.)

Was Nicholas Stavrakis an active participant in the operation of the liquor license held by Hornet? (Yes.)

Was Nicholas Stavrakis an active participant in the premises to which the license was attached? (Yes.)

Is Nicholas Stavrakis familiar with a number of incidents referred to by Mr. Williams and that are set forth in the documents that occurred in connection with the operation of that facility? (Yes.)

Is Nicholas Stavrakis familiar with the fact that during the course of the operation of that facility and the course of the ownership of the liquor license held by Hornet that the license was suspended on occasion? (Yes.)

Does Nicholas Stavrakis recall the suspension in 2004 for 70 days? (Vaguely, yes.)

Does Nicholas Stavrakis recall that the suspension was appealed but ultimately the appeal was withdrawn and the license was in fact suspended for that 70 day period? (Yes.)

Does Nicholas Stavrakis recall that in the formation of 1380 Sussex Turnpike LLC and the documents that were furnished with the application marked as R-24, the LLC was created for the purpose of operating a bar and restaurant according to the Certificate of Formation of the LLC attached to the application? (Yes.)

In connection with the acquisition of this license, does Nicholas Stavrakis have any idea where this bar or restaurant is going to be located? (No, there are no present plans at the moment.)

Is it correct that the business address of the operation is 1380 Sussex Turnpike? (Yes.)

Mr. Buzak stated that he had no further questions at this time.

Councilman MacArthur asked the following questions. Those answers are shown in parentheses:

Is there a written agreement among the shareholders of Eva Restaurant Corp allowing the funds that Eva owns to be used to buy a license that a different corporation will own that has a different capital structure and a different mix of shareholders? (Mr. Stavrakis responded that there is an oral agreement, no written agreement. The only outside person is William Stavrakis and his money is put aside.)

If Ms. Hordes and Ms. Adler wanted to withdraw their share of the cash in Eva Restaurant Corp rather than buying this license, would they permitted to do so? (Yes.)

Is it the desire of Ms. Hordes and Ms. Adler to put funds towards the liquor license rather than take it in another form? (Yes.)

Councilman Obremski asked if Mr. Stavrakis has access to only his share of the funds in the JP Morgan account or does he have access to the entire amount.

Mr. Stavrakis responded that the principals enjoy a good relationship. If he decides there is a move to be made, the others go along and vice versa.

Councilman Algeier asked the following questions of Ms. Adler. Her responses are shown in parentheses:

Who had the idea to form 1380 Sussex Turnpike, LLC? (We all thought about it.)

Who brought the idea up the first time, was it Nicholas Stavrakis? (I believe so.)

Did Nicholas Stavrakis tell them why he wanted to form the LLC or what he wanted to do with it? (He said there was a liquor license available through the town and what do you think about buying it. She responded that it was a great idea because in the future we might need a liquor license for a new establishment or restaurant that would need a liquor license or we might want to bring it back to our location or sell it in the future.)

Was there any discussion about putting the license back at 1380 Sussex Turnpike? (Putting it back there right now, no.)

The Councilman didn’t say putting it back there right now, but was there discussion about putting the license back there? (It was more of a business decision for the future.)

Again, was there discussion about putting the license back at 1380 Sussex Turnpike now or in the future? (Possibly in the future.)

What was discussed about putting the license back at 1380 Sussex Turnpike in the future? (If a restaurant wanted to go in there, perhaps a chain that would need a liquor license in the future, that was the only aspect we looked at, at the time.)

Would they sell the liquor license to a chain? (They might possibly lease it—they wouldn’t be able to lease it to a chain unless there was a liquor license.)

Would it be their idea that 1380 Sussex Turnpike LLC would hold the liquor license and lease it to a chain? (Possibly, or sell to a different restaurant if they needed it. The Council would have to approve such a transaction.)

Mr. Williams stated that he objects to Councilman Algeier’s line of questioning. It is illegal to lease a liquor license in New Jersey.

Ms. Adler responded that she was not aware of that restriction.

Councilman Algeier continued questioning Ms. Adler as follows:

Did the partners talk about leasing the license or about selling the license? (Different scenarios came up. There are no plans for the license at this point, they just wanted to acquire it for the future in case an opportunity arose.)

Is one of the potential solutions that Eva Restaurant or 1380 Sussex Turnpike LLC operating a liquor licensed facility at 1380 Sussex Turnpike? (The details are a little unclear as to what they are allowed to do.)

Was there any discussion about Eva Restaurant or 1380 Sussex Turnpike LLC, perhaps under the same name or a different name, perhaps including William Stavrakis, operating a liquor licensed establishment at 1380 Sussex Turnpike? (Ms. Adler’s response was inaudible.)

Would Ms. Adler be willing to agree that no one in this current organization would become a part of any entity or organization that would operate a liquor licensed facility at 1380 Sussex Turnpike?

Mr. Williams responded that his clients have not even discussed that option.

Councilman Algeier’s discussion with Mr. Williams continued as follows:

The Councilman would like to know the answer to his last question to Ms. Adler because there have been problems with Mr. Stavrakis in the past and the Councilman is concerned. (The Council is the board that will ultimately determine who will operate a facility at 1380 Sussex Turnpike.)

The Councilman would like to get the issue on the table now that the partners will agree to not be a part of any organization operating out of 1380 Sussex Turnpike. (They don’t know what’s going to happen in the future. Mr. Stavrakis could be going in a different direction. But the Council makes the final decision.)

The Councilman would prefer to have that discussion now. (The issue has not been discussed and it is unfair in this situation to ask them that question. He would be happy to discuss it with them if Council wishes to take a brief recess.)

The Council will grant the recess in order for the partners to discuss this very important point.

Mr. Williams noted that Michele Williams, a member of the Credit Shelter Trust, is not present.

Councilman Algeier stated for the record that Mr. Hordes was a partner of Mr. Stavrakis, the father of Ms. Adler and Ms. Williams, and the husband of Mrs. Hordes.

Mayor Mitsch called a recess in the hearing for 10 minutes and moved forward on the agenda.

COMBINED ACTION RESOLUTIONS

Councilman Loveys asked that Item E be pulled and stated that he has a philosophical difference of opinion on the resolution concerning the Reserve for Uncollected Taxes. Assemblyman Carroll is introducing legislation regarding this issue that Councilman Loveys would favor over the resolution this evening.

Councilman MacArthur requested that Items L and I be pulled for further discussion.

Councilman Algeier made a motion to approve the Combined Action Resolutions with the exception of Items E, I, K, and L. 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

A. Refund Outside Tax Sale Certificate #1911 to CCTS Capital, LLC—$21,238.60

R-96-11

WHEREAS, Outside Tax Sale Certificate #1911 held CCTS Capital, LLC, assessed to Liechun Huang, Block 196, Lot 6, 233 South Salem Street; and

WHEREAS, the above mentioned Tax Sale Certificate has been redeemed through the Tax Collector, including principal and interest in the amount of $20,438.60 and premium in the amount of $800.00.

NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Township of Randolph, County of Morris, that the Treasurer be instructed to refund $21,238.60 to CCTS Capital, LLC holder of Tax Sale Certificate #1911.

B. Refund Outside Tax Sale Certificate #1920 to JN Properties—$3,072.42

R-97-11

WHEREAS, Outside Tax Sale Certificate #1920 held JN Properties, assessed to Pedro Jorge, Block 119, Lot 112, 672 Millbrook Avenue; and

WHEREAS, the above mentioned Tax Sale Certificate has been redeemed through the Tax Collector, including principal and interest in the amount of $472.42 and premium in the amount of $2,600.00.

NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Township of Randolph, County of Morris, that the Treasurer be instructed to refund $3,072.42 to JN Properties, holder of Tax Sale Certificate #1920.

C. Professional Services Agreement—Robert Michaels Associates—General Planning Services—$4,000.00

R-98-11

WHEREAS, the Township of Randolph has a need to retain Robert Michaels and Associates pursuant to the provisions of N.J.S.A. 19:44A-20.4; and

WHEREAS, Gail Catania, Purchasing Agent, has determined and certified in writing that the value of the acquisition in addition to others may exceed $17,500.00; and

WHEREAS, the anticipated term of this contract is one year; and

WHEREAS, Robert Michaels and Associates has indicated they will complete the General Planning Services for an amount not to exceed $4,000.00; and

WHEREAS, Robert Michaels and Associates has completed and submitted a Business Entity Disclosure Certification which certifies that Robert Michaels and Associates has not made any reportable contributions to a political or candidate committee in the Township of Randolph in the previous one year, and that the contract will prohibit Robert Michaels and Associates from making any reportable contributions through the term of the contract, and

WHEREAS, funds are available for this purpose.

NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council of the Township of Randolph, County of Morris, State of New Jersey, authorize the Township of Randolph to enter into a contract with Robert Michaels and Associates as described herein.

BE IT FURTHER RESOLVED that the Business Entity Disclosure Certification and the Determination of Value is on file with the original agreement for 2011.

CERTIFICATION OF AVAILABILITY OF FUNDS

Dated: April 7, 2011

As required by N.J.S.A. 40A:4-57, N.J.A.C. 5:30-14.5, and any other applicable requirement, I, Michael J. Soccio, Director of Finance of the Township of Randolph, have ascertained that funds are available in the 2011 Planning/Zoning Board of Adjustment, Other Expense, to award a contract to Robert Michaels Associates for General Planning Services in the amount not to exceed $4,000.00.

_____________________________
Michael J. Soccio
Chief Financial Officer

D. Professional Services Agreement—EcolSciences, Inc.—Soil Disposal and UST Investigations at 42 Bennett Avenue—$29,988.00

R-99-11

WHEREAS, the Township of Randolph has a need to retain EcolSciences, Inc. pursuant to the provisions of N.J.S.A. 19:44A-20.4; and

WHEREAS, Gail Catania, Purchasing Agent, has determined and certified in writing that the value of the acquisition will exceed $17,500.00; and

WHEREAS, the anticipated term of this contract is one year; and

WHEREAS, EcolSciences, Inc. has indicated they will complete the Soil Disposal and UST Investigation as stated in their proposal for an amount not to exceed $28,988.00; and

WHEREAS, EcolSciences, Inc. has completed and submitted a Business Entity Disclosure Certification which certifies that EcolSciences, Inc. has not made any reportable contributions to a political or candidate committee in the Township of Randolph in the previous one year, and that the contract will prohibit EcolSciences, Inc. from making any reportable contributions through the term of the contract, and

WHEREAS, funds are available for this purpose.

NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council of the Township of Randolph, County of Morris, State of New Jersey, authorize the Township of Randolph to enter into a contract with EcolSciences, Inc. as described herein.

BE IT FURTHER RESOLVED that the Business Entity Disclosure Certification and the Determination of Value is on file with the original agreement for 2011.

CERTIFICATION OF AVAILABILITY OF FUNDS

Dated: April 7, 2011

As required by N.J.S.A. 40A:4-57, N.J.A.C. 5:30-14.5, and any other applicable requirement, I, Michael J. Soccio, Director of Finance of the Township of Randolph, have ascertained that funds are available in the Housing Trust Fund to award a contract to EcolSciences, Inc., for Soil Disposal and Underground Storage Tank Investigation at 42 Bennett Avenue in the amount not to exceed $28,988.00.

_____________________________
Michael J. Soccio
Chief Financial Officer

E. Urging Governor and Legislature to Exempt the Reserve for Uncollected Taxes From the Levy Cap

Discussed separately and tabled.

F. Petition to Extend Licensed Premises—JT McQ’s (L&W Liquors, Inc.), 540 Route 10 West, May 21, 2011—St. Baldrick’s Foundation

R-100-11

WHEREAS, L&W Liquors, Inc., also known as J.T. McQ’s, 540 Route 10 West, Randolph, NJ, is the holder of Liquor License 1432-33-010-006; and

WHEREAS, L&W Liquors, Inc. annually sponsors a charity event for the St. Baldrick’s Foundation; and

WHEREAS, this year the charity event will take place on May 21, 2011, between the hours of 10:00 a.m. and 12:00 midnight; and

WHEREAS, L&W Liquors, Inc. is requesting an extension of their normal business hours of operation and an extension of the licensed premises to include 4,000 square feet of the parking lot area; and

WHEREAS, L&W Liquors, Inc. has filed a Petition to Extend Licensed Premises and has paid the designated fee of $75.00 to the State of New Jersey.

NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council of the Township of Randolph, County of Morris, State of New Jersey, approve the application by L&W Liquors, Inc. to extend the licensed premises on May 21, 2011.

G. Refund Tax Certificate—US Bank-Cust/SASS—9 Radtke Road—$101,528.08

R-101-11

WHEREAS, Outside Tax Sale Certificate #1877 held by US Bank-Cust/SASS, assessed to Carmine Amelio, Block 119, Lot 49, 9 Radtke Road; and

WHEREAS, the above mentioned Tax Sale Certificate has been redeemed through the Tax Collector, including principal and interest in the amount of $70,528.08 and premium in the amount of $31,000.00.

NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Township of Randolph, County of Morris, that the Treasurer be instructed to refund $101,528.08 to US Bank-Cust/SASS, holder of Tax Sale Certificate #1877.

H. Authorize Change Order #1—Milling and Resurfacing of South Road

R-102-11

WHEREAS, a contract was awarded to English Paving, Clifton, New Jersey, on August 5, 2010, for South Road Improvements in the amount of $223,327.07; and

WHEREAS, due to low areas on the roadway base surface of the road, a leveling course pavement was required. The total for this item was $17,875.76; and

WHEREAS, due to traffic volume and safety concerns, police detail was required from the Township of Randolph and Mendham Township. The total cost for the police detail was $2,424.50; and

WHEREAS, a change order is requested to add the costs of the leveling course pavement at $17,875.76 and $2,424.50 for the police detail for a total change order amount of $20,300.26. This change order represents a 9% increase in the original contract amount making the total contract price $243,627.33.

NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Township of Randolph, County of Morris, State of New Jersey, that a change order be approved as noted above.

CERTIFICATION OF AVAILABILITY OF FUNDS

Dated: April 7, 2011

As required by N.J.S.A. 40A:4-57, N.J.A.C. 5:30-14.5, and any other applicable requirement, I, Michael J. Soccio, Director of Finance of the Township of Randolph, have ascertained that funds are available in Ordinance #11-10, Various Capital Improvements—South Road, to amend the contract with English Paving with regards to Change Order #1 for South Road Improvements in the amount not to exceed $20,300.26.

_____________________________
Michael J. Soccio
Chief Financial Officer

I. Open Public Records Act Recommendations

Acted on separately.

J. Professional Services Agreements for Arthur Thibault—Special Legal Counsel to the Police Department

(1) General Services for 2011—$12,000.00

R-103-11

WHEREAS, the Township of Randolph has a need to acquire Arthur R. Thibault, Jr., of Apruzzese, McDermott, Mastro & Murphy as a non-fair and open contract pursuant to the provisions of N.J.S.A. 19:44A-20.4; and

WHEREAS, Gail Catania, Purchasing Agent, has determined and certified in writing that the value of the acquisition in addition to others may exceed $17,500.00; and

WHEREAS, the anticipated term of this contract is one year; and

WHEREAS, Arthur R. Thibault, Jr., of Apruzzese, McDermott, Mastro & Murphy has indicated he will provide the Special Police Counsel Services at a rate of $145.00 per hour for an amount not to exceed $12,000.00; and

WHEREAS, Arthur R. Thibault, Jr., of Apruzzese, McDermott, Mastro & Murphy has completed and submitted a Business Entity Disclosure Certification which certifies that Apruzzese, McDermott, Mastro & Murphy has not made any reportable contributions to a political or candidate committee in the Township of Randolph in the previous one year, and that the contract will prohibit Apruzzese, McDermott, Mastro & Murphy from making any reportable contributions through the term of the contract, and

WHEREAS, funds are available for this purpose.

NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council of the Township of Randolph, County of Morris, State of New Jersey, authorize the Township of Randolph to enter into a contract with Arthur R. Thibault, Jr., of Apruzzese, McDermott, Mastro & Murphy as described herein.

BE IT FURTHER RESOLVED that the Business Entity Disclosure Certification and the Determination of Value be placed on file with this resolution.

CERTIFICATION OF AVAILABILITY OF FUNDS

Dated: April 7, 2011

As required by N.J.S.A. 40A:4-57, N.J.A.C. 5:30-14.5, and any other applicable requirement, I, Michael J. Soccio, Director of Finance of the Township of Randolph, have ascertained that funds are available in the 2011 Budget, Police, Other Expense, to award a contract with Arthur R. Thibault, Jr., of Apruzzese, McDermott, Mastro & Murphy for General Legal Services as Special Counsel for the Police Department in the amount not to exceed $12,000.00.

_____________________________
Michael J. Soccio
Chief Financial Officer

(2) Police Officer Disciplinary Matter—$5,000.00

R-104-11

WHEREAS, the Township of Randolph has a need to retain Arthur R. Thibault, Jr., of Apruzzese, McDermott, Mastro & Murphy pursuant to the provisions of N.J.S.A. 19:44A-20.4; and

WHEREAS, Gail Catania, Purchasing Agent, has determined and certified in writing that the value of the acquisition in addition to others may exceed $17,500.00; and

WHEREAS, the anticipated term of this contract is one year; and

WHEREAS, Arthur R. Thibault, Jr., of Apruzzese, McDermott, Mastro & Murphy has indicated he will complete the legal services with regard to a police hearing for an amount not to exceed $5,000.00; and

WHEREAS, Arthur R. Thibault, Jr., of Apruzzese, McDermott, Mastro & Murphy has completed and submitted a Business Entity Disclosure Certification which certifies that Arthur R. Thibault, Jr., of Apruzzese, McDermott, Mastro & Murphy has not made any reportable contributions to a political or candidate committee in the Township of Randolph in the previous one year, and that the contract will prohibit Arthur R. Thibault, Jr., of Apruzzese, McDermott, Mastro & Murphy from making any reportable contributions through the term of the contract, and

WHEREAS, funds are available for this purpose.

NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council of the Township of Randolph, County of Morris, State of New Jersey, authorize the Township of Randolph to enter into a contract with Arthur R. Thibault, Jr., of Apruzzese, McDermott, Mastro & Murphy as described herein.

BE IT FURTHER RESOLVED that the Business Entity Disclosure Certification and the Determination of Value is on file with the original agreement for 2011.

CERTIFICATION OF AVAILABILITY OF FUNDS

Dated: April 7, 2011

As required by N.J.S.A. 40A:4-57, N.J.A.C. 5:30-14.5, and any other applicable requirement, I, Michael J. Soccio, Director of Finance of the Township of Randolph, have ascertained that funds are available in the 2011 Budget, Legal, Other Expense, to award a contract with Arthur R. Thibault, Jr., of Apruzzese, McDermott, Mastro & Murphy for Special Counsel with Regard to Police Hearings in the amount not to exceed $5,000.00.

_____________________________
Michael J. Soccio
Chief Financial Officer

(3) Final Amendment for 2010—General Services—$2,032.75

R-105-11

WHEREAS, an agreement was a awarded to Arthur R. Thibault, Jr., of Apruzzese, McDermott, Mastro & Murphy on January 14, 2010, for General Special Police Counsel Services with regard to the Police Department; and

WHEREAS, additional funds are required; and

WHEREAS, the original agreement was in the amount of $6,000.00 and an additional $2,032.75 is needed; and

WHEREAS, the total of this contract with Amendment I will not exceed $8,032.75; and

WHEREAS, funds are available for this purpose.

NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council of the Township of Randolph, County of Morris, State of New Jersey, authorize the Township of Randolph to amend this contract with Arthur R. Thibault, Jr., of Apruzzese, McDermott, Mastro & Murphy as described herein.

CERTIFICATION OF AVAILABILITY OF FUNDS

Dated: April 7, 2011

As required by N.J.S.A. 40A:4-57, N.J.A.C. 5:30-14.5, and any other applicable requirement, I, Michael J. Soccio, Director of Finance of the Township of Randolph, have ascertained that funds are available in the 2010 Budget, Police, Other Expense, to amend the contract with Arthur R. Thibault, Jr. of Apruzzese, McDermott, Mastro & Murphy for Special Counsel Services on General Issues with Regard to the Police Department in the amount not to exceed $2,032.75.

_____________________________
Michael J. Soccio
Chief Financial Officer

K. Award Fire Truck Aerial Apparatus to Pierce Manufacturing for $874,465.00

Acted on separately

L. Re-Establish the Municipal Alliance Committee and Providing for the Appointment of Members

Acted on separately

M. Raffles

(1) On-Premise Merchandise Raffle, Academy for Visual & Performing Arts Education Foundation, May 7, 2011, 7:00 p.m. to 11:00 p.m., Skylands at Randolph, 792 Route 10 West, Randolph

(2) Off-Premise 50/50, Friends of Employment Horizons, October 31, 2011, 6:30 p.m. to 9:30 p.m., Meadow Wood Manor, 461 Route 10 East, Randolph

(3) Tricky Tray, Friends of Employment Horizons, October 31, 2011, 6:30 p.m. to 9:30 p.m., Meadow Wood Manor, 461 Route 10 East, Randolph

(4) On-Premise 50/50, Center Grove Elementary PTA, May 19, 2011, 5:30 p.m. to 7:30 p.m., Center Grove Elementary School, 25 Schoolhouse Road, Randolph

RE-CONVENE 1380 SUSSEX TURNPIKE LLC HEARING

Mr. Williams noted that, should the Council act favorably upon the person-to-person transfer, the license applicants would accept as a special condition that no member of 1380 Sussex Turnpike LLC could request or seek a place-to-place transfer to 1380 Sussex Turnpike.

Councilman Algeier expressed his appreciation to the license applicants.

Mr. Buzak and the Council continued questioning Mr. Stavrakis, Ms. Adler, and Ms. Hordes.

Mr. Buzak’s questions are as follows:

During the time that Mr. Hordes was the 50 percent share holder in Hornet Restaurant, did either Ms. Adler or Mrs. Hordes take any part in the operation of that entity? (Ms. Hordes responded no. Ms. Adler responded that she knew her father owned it but was out of the picture.)

Councilman MacArthur’s questions to Mr. Williams are as follows:

Would William Stavrakis be willing to forego any future ownership and any future use of the liquor license at 1380? (William Stavrakis is not part of the licensee. The only one who has an interest who is not present is Michele Williams.)

There is a long history in town with some individuals who have run establishments under various names. With that said, would Mr. Williams be willing to ask William Stavrakis if he would agree to not become involved in any liquor licensed establishment at 1380 Sussex Turnpike? (William Stavrakis is not a part of this application. The four members have agreed to not seek to activate the license at 1380 Sussex Turnpike. William Stavrakis can not activate the license.)

Is William Stavrakis a 25 percent owner in Eva Restaurant? (Yes.)

Is Eva Restaurant Corp supplying the funds to buy this license? (Yes.)

Why is Mr. Williams suggesting that William Stavrakis is not a party to any of this? (William Stavrakis’s money is being retained by him through that entity.)

Mr. Buzak stated that Councilman MacArthur’s comment is well taken. Eva Restaurant is a corporation. The funds in Eva Restaurant are not allocable funds from the corporation. William Stavrakis has a 25 percent interest in Eva Restaurant. There is nothing on the record and William Stavrakis is not present to disclaim the point that his share of the money has been put aside.

Mr. Williams responded that William Stavrakis is a member of the landlord company. If William Stavrakis should apply to activate the license at that location, he would be doing that on his own since none of the partners present this evening can be involved. The Council is protected because they would have the ability to allow the license to be placed at that location or not.

Councilman MacArthur’s questions continue as follows:

Why does Mr. Williams consider Mr. Buzak’s suggestion that William Stavrakis divest himself of any interest in an entity operating at 1380 Sussex Turnpike not viable? (William Stavrakis owns the property and is not going to divest himself as a landlord.)

The Councilman is unclear of the financial arrangement between the members of Eva Restaurant whereby funds flow back and forth with no written agreement. (The members have been together for 27 years. It is basically a family corporation but it is called a closed corporation.)

Councilman Algeier noted that the Council is dealing strictly with the applicant and William Stavrakis is not a part of the application for the liquor license transfer. The members of the Credit Shelter Trust have agreed that they will not place the liquor license at 1380 Sussex Turnpike. If the license were to be transferred to someone else for placement at that location, and if William Stavrakis were involved with that entity, then the Council would have the opportunity to review the matter at that time. The Councilman believes the Stavrakis brothers did not operate Obsessions properly and pointed to Mayor Mitsch’s former remarks concerning the judgment of the individuals operating the facility. Councilman Algeier noted that there are limits on what the Council can control and he is satisfied with the agreement reached with the applicants this evening.

Councilman Napoliello stated his concern that the Stavrakis brothers could someday operate a business in Randolph the same way they operated Obsessions.

Deputy Mayor Guadagno agreed with Councilman Algeier that the concession agreed to this evening is as far as the Council can go at this point and would support the liquor license transfer.

Councilman Obremski thanked Mr. Williams and his clients for agreeing to the concession. He noted that the concession has raised his comfort level with this issue and can support the liquor license transfer.

Councilman MacArthur stated his concerns, which included:

• He always worries about what he can not foresee and is concerned that somehow the applicants can find a way out of the agreement
• During the course of the three meetings regarding this liquor license transfer, the Council has had to repeatedly probe for straight answers in many instances
• He is concerned about the Council’s ability to review a future use of this license since it may be harder to say no later than it would be now
• If the Council agrees to the liquor license transfer, it has allowed the applicant to spend $250,000.00 on a pocket license and will that fact impact the ability to restrict the liquor license
• If the Council believes the past use of a prior license by fundamentally the same group of people is sufficient justification to deny the license, then he believes the time to say no is now
• He is still weighing the possibility of a lawsuit and a condition that he is not personally comfortable with

Mr. Buzak’s comments included:

• The comments have been well made
• The holding of a liquor license is a privilege, not a right
• The Council has an obligation to ensure to the best of its ability that the entity requesting the transfer of the liquor license meets state requirements
• In addition, in view of the history of some of the individuals involved, the Council has a unique opportunity to see how that prior liquor license was operated
• There are numerous documents and files that will help gauge and evaluate the qualifications of the applicants
• If the Council approves the liquor license transfer, he will draft a condition that will accomplish the objective that Councilman Algeier is seeking which would be acceptable to the applicant and would include waiving any right to appeal the condition (Mr. Williams interjected at this point that the applicants would waive their right to appeal the condition.)

Councilman Algeier made a motion that Council direct the Township Attorney to draft an appropriate agreement and final resolution approving the transfer of the liquor license to the applicant contingent upon the conditions as set forth tonight on the record by Councilman Algeier and Mr. Williams, and as necessary be memorialized in the agreement, and that the agreement will come back to the Council for final approval and passage of a final resolution approving the transfer. Councilman Obremski seconded the motion.

Councilman MacArthur asked the Township Attorney if the town would have a reasonable chance of succeeding with the state if the liquor license transfer were denied by the Council and the decision appealed to the state.

Mr. Buzak responded that, given the history of the operation of these individuals with a liquor license in Randolph, there may be a better opportunity to sustain a denial than the Council would otherwise have under different circumstances.

Mayor Mitsch asked what the next step for the applicant would be if the liquor license transfer is denied.

Mr. Buzak responded that the Council would need to set forth the reasons for a denial, which would be set forth on the record and in a resolution. The applicant then has a right to appeal the Council’s determination to the ABC, who would review the determination that has been made based upon the record that has been created at these meetings. An independent judgment will be made based upon the information as to whether the decision of this Council was reasonable under the circumstances.

Councilman Obremski asked if an appeal was heard and granted on behalf of the applicant, would it be safe to assume that the condition agreed upon tonight by the applicant would not be included.

Mr. Buzak responded that the condition would not be included.

Councilman MacArthur asked for confirmation that the Council would retain the right to review any future attempts to attach the pocket license to 1380 Sussex Turnpike.

Mr. Buzak responded that the Council would retain the right to review any future attempt to attach the pocket license to 1380 Sussex Turnpike.

The following roll call vote was taken:

AYES:
Councilman Algeier
Councilman Obremski
Deputy Mayor Guadagno
Mayor Mitsch

NAYS:
Councilman Loveys
Councilman MacArthur
Councilman Napoliello

COMBINED ACTION RESOLUTION—Continued

E. Urging Governor and Legislature to Exempt the Reserve for Uncollected Taxes From the Levy Cap

Councilman MacArthur noted that at the March 15 meeting, he had suggested adopting this model resolution from the League of Municipalities, which stated that the impact of the Reserve for Uncollected Taxes on municipal budgets is harsh and should be exempted. Since then, Assemblyman Carroll has proposed an alternative, which is instead of asking the state to exempt changes in the Reserve, they would apportion it. Councilman MacArthur agrees with Councilman Loveys that this is a preferable resolution to the problem.

Mayor Mitsch suggested this resolution be tabled entirely and a new resolution encompassing Assemblyman Carroll’s alternative be drafted.

I. Open Public Records Act Recommendations

R-106-11

Council indicated disapproval of a phrase in the original resolution referencing how municipalities have entered a renaissance of public responsibility and noted that Randolph has always acted responsibly. The suggestion was made to amend the resolution by removing that phrase.

Councilman MacArthur noted that there were no names listed on the resolution of the proper officials who should receive copies of the adopted resolution.

Councilman Algeier made a motion to approve the resolution with the amendments discussed. Councilman Obremski 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

WHEREAS, The Open Public Records Act (N.J.S.A. 47:1A-1 et seq.) was adopted to assure the public’s access to sufficient information to enable it to understand and evaluate the actions of public bodies by making accessible for inspection or copying all government records; and

WHEREAS, since the adoption of OPRA, there has been an escalating series of requests by private sector firms from all over the nation for voluminous public records, already freely accessible to the general public through government websites, with the intent of selling said information to the general public for a profit; and

WHEREAS, said information is already freely available to the public on government websites; and,

WHEREAS, this information freely obtained for resale to the public involves a treble extra cost to the general public, once upon its creation by government employees, second upon extraction, copying and frequently, conversion to specific formats by government employees, and thirdly by sale to the same public which has already paid twice for this information; and

WHEREAS, this constitutes additional substantial costs to the tax paying public solely to benefit a private entity; and

WHEREAS, unnecessary expenses by government should strictly be curtailed;

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

That the current Open Public Records Law be amended to preserve its original intent and reduce expenses to the public by providing that in situations where the requested documents are already available to the public on a downloadable government website, regardless of format, a referral of the requestor to the said website shall fully comply with the OPRA obligation of the governmental unit, with no need to convert the data contained therein to any other format.

L. Re-Establish the Municipal Alliance Committee and Providing for the Appointment of Members

R-107-11

Manager Lovell stated that the resolution has been reworked as follows:

• The MAC will consist of seven members
• The Mayor will appoint a member of the Council as liaison
• The Board of Education Superintendent will make one appointment
• The Chief of Police will make one appointment
• The remaining four positions will be appointed by the Council
• Future grant applications must be specifically approved by the Council
• The MAC will be in place until December 31, 2011

Deputy Mayor Guadagno suggested adding to the resolution that the accounts payable report for the MAC be reported to the Council quarterly.

Councilman MacArthur suggested stating in the resolution that the Council shall appoint between four and eight members.

Manager Lovell responded that it has been a problem to achieve a quorum for the meetings and when you have more people serving, that makes it more difficult to achieve a quorum. As an alternative, the Council could appoint more members to serve as Alternates.

Councilman MacArthur suggested the Council appoint the chairperson to the MAC and to have that position be directly responsible to the Council.

Councilman MacArthur made a motion to adopt the resolution with the amendments discussed. 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

BE IT RESOLVED by the Mayor and Council of the Township of Randolph, County of Morris, State of New Jersey, that in compliance with P.L. Chapter 51 and the Governor’s Council on Alcoholism and Drug Abuse, the Randolph Township Municipal Alliance Committee is hereby re-established.

BE IT FURTHER RESOLVED that the above mentioned Alliance will be recognized as an Ad Hoc Advisory Committee reporting to the Township Council.

BE IT FURTHER RESOLVED that the membership of the Randolph Municipal Alliance Committee shall be appointed annually and the terms of all appointees shall expire on December 31st of the year of appointment.

BE IT FURTHER RESOLVED that the following appointments shall be made:

1. The Mayor shall appoint a member of the Township Council who shall serve as the liaison from the Council.

2. The Chairman of the Municipal Alliance Committee shall be appointed by the Mayor and Council.

3. The Superintendent of Schools shall appoint a representative from the Randolph School system as the school’s liaison.

4. The Chief of Police shall appoint a representative from the Police Department as the department’s liaison.

5. The Township Council shall appoint four members representing various facets of the community.

6. The Township Council shall appoint alternates to the Committee.

BE IT FURTHER RESOLVED that the appointed Treasurer of the Municipal Alliance Committee will provide account payable reports quarterly to the Township Council.

BE IT FURTHER RESOLVED that the Municipal Alliance Committee shall work to develop and promote programs for community awareness, prevention, education and intervention for the purpose of reducing alcoholism and drug abuse in Randolph.

BE IT FINALLY RESOLVED that the Municipal Alliance Committee shall first receive Council authorization in the form of a resolution of approval before making application for funding grants.

OPEN TO PUBLIC

Judith Stewart, 114 Everdale Road, asked the Council to reconsider changes to the fee ordinance in that she believes many of the recreational fees discriminate against families with a single parent and one child.

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

COUNCIL AND MANAGER COMMENTS

Councilman Algeier noted that according to guidelines and prohibitions by the state, the MAC is forbidden from awarding scholarships and suggested that someone contact the high school with that information.

Councilman Napoliello nominated Joanne Veech to serve as a member on the Recreation Committee. 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

ADJOURNMENT

Mayor Mitsch adjourned the meeting at 10:40 p.m.

________________________________
Donna Marie Luciani
Township Clerk