MINUTES

BOARD OF COMMISSIONERS                             LOWER ALLEN TOWNSHIP

REGULAR MEETING                                         APRIL 23, 2018

The following were in ATTENDANCE:

BOARD OF COMMISSIONERS	TOWNSHIP PERSONNEL
H. Edward Black, President	Thomas G. Vernau Jr., Township Manager
Jack R. Simpson Jr., Vice President	Erin G. Trone, Assistant Township Manager
Richard F. Schin	David Holl, Public Safety Director
Dean W. Villone	Daniel Flint, Public Works Director
Carolyn Holtzman	Steven P. Miner, Solicitor
	Julie Echterling, Recording Secretary

President Black called the April 23, 2018 Regular Meeting of the Board of Commissioners to order at 7:00 pm followed by a prayer and the Pledge of Allegiance. He announced that Proof of Publication was available for review.

MEETING MINUTES
Commissioner SCHIN made a motion to approve the minutes from the March 31, 2018 Strategic Planning meeting of the Board of Commissioners. Commissioner VILLONE seconded the motion. Motion carried 5-0.

Vice President SIMPSON made a motion to approve the minutes from the April 9, 2018 meeting of the Board of Commissioners. Commissioner SCHIN seconded the motion. Motion carried 5-0.

AUDIENCE PARTICIPATION: ANY ITEM ON THE AGENDA
There was no response.

BID OPENING: LACP BARN HVAC UPGRADE PROJECT
The following bids were received:
          1. Spotts Brothers, Inc.             $50,600 with a bid bond.
          2. Thermotech, Inc.                  $40,474 with a bid bond
          3. H&H Service Company       no bid and no bid bond

CONSENT AGENDA
President Black asked that any Commissioner, staff member, or anyone in attendance who would like to have an item on the Consent Agenda removed for further discussion can request so now. There was no response.

Commissioner SCHIN made a motion to approve the following items on the Consent Agenda:

1. Department Reports for the month of March for Community Development, Township Engineer, Public Works, and Public Safety.
2. First Quarter 2018 General Fund Operating Statements.
3. Adopt Resolution 2018-R-16 proclaiming May 2018 as Building Safety Month.
4. Adopt Resolution 2018-R-17 authorizing the Township Manager to sign and submit Applications for Traffic Signal Approval for modifications to existing traffic signal installations to the Pennsylvania Department of Transportation.
5. Approve purchasing the Cargill Legacy upgrade from Accubrine RTF to Accubrine NXT-Gen with truck fill, from A&H Equipment through the COSTARS program, in the amount of $50,656.00.
6. Approve a reduction in Improvement Security for SLD Docket No. 2015-08, Arcona Highpoint Phase 1.5, establishing a new security amount of $522,647.39, and a new expiration date of April 23, 2019.
7. Approve a reduction in Improvement Security for SLD Docket No. 2016-04, Arcona Highpoint Phase 1.3, establishing a new security amount of $73,501.66, and a new expiration date of April 23, 2019.
8. Approve a reduction in Improvement Security for SLD Docket No. 2017-02, Arcona Phases 2.1 and 2.2, establishing a new security amount of $1,488,168.76, and a new expiration date of April 23, 2019.

Commissioner VILLONE seconded the motion. Motion carried 5-0.

PRESIDENT BLACK
Vice President SIMPSON made a motion to approve the Check Register of April 13, 2018 in the amount of $828,079.15. Commissioner SCHIN seconded the motion. Motion carried 5-0.

Resolution 2018-R-18 Eagle Scout-Luke Capper
Commissioner VILLONE made a motion to adopt Resolution 2018-R-18, a resolution of the Board of Commissioners of Lower Allen Township, Cumberland County Pennsylvania, recognizing, commending and honoring Luke Raymond Capper for the attainment of the rank of Eagle Scout. Vice President SIMPSON seconded the motion. Motion carried 5-0.

ANY BUSINESS PERTINENT TO THE TOWNSHIP
Commissioner Villone discussed the Strategic Planning meeting and asked about moving forward on the ideas discussed. He spoke about having workshops to discuss the Public Safety issues. He spoke about working on a mission statement and would like to talk about things before budget time. He asked Staff for a few ideas for the mission statement. President Black agreed and spoke about working on Economic Development and redevelopment. Mr. Vernau discussed the Strategic Planning process which should include a mission statement, goals and objectives. Vice President Simpson would like to have small sessions focused on one thing versus many. Mr. Vernau will send an email for setting up a meeting.

MANAGER
Update on Creation of a Memorial Field for Jim Chianos
Mr. Vernau showed the Board ballfields at Wass Park and LACP. He spoke about the original idea for a memorial field at Wass Park, but the family preferred the larger field, which is already named for Robert Yetter. The focus then switched to LACP. The Recreation Board agreed a field should be done to honor him and would support any field. Discussion ensued. The Board agreed to have a softball field at LACP dedicated to Jim Chianos.

Presentation -Pension Plans
Mr. Vernau provided the Board a presentation on pensions. He stated that the presentation is about non-uniformed, as Police pension plans are governed by Act 205. He described the Defined Benefit, Defined Contribution and the Cash Balance Plans in detail. He stated that the Township has a 457 plan but doesn’t contribute to it. He discussed each of the plans listed below and gave an example for each.

	Defined Benefit	Defined Contribution	Cash Balance Plans
Base Salary of Benefit	average of the last 60 months	A percentage of the employees’ pay	A percentage of the employees’ pay
Percentage of The Benefit.	45% of the salary base.	The benefit will be determined by the amount of assets that have accrued in the employee’s account at the retirement date.	The benefit will be determined by the amount of assets that have accrued in the employee’s account at the retirement date
The Age	full retirement-65 years old	The Plan will define the superannuation age.	The Plan will define the superannuation age.
Years of Service	20 years	The Plan defines it	The Plan defines it
Vesting Term	20% per year starting in Year 3.100% at 7 years.	The Plan defines it for the Township portion.	The Plan defines it for the Township portion.
Employer Contribution Calculation	interest assumption is 7.75%	Percentage of the employees’ pay.	Percentage of the employees’ pay. The employer also determines an interest rate that will be paid on the assets in each account.
Portable: To Go with Employee	No	Yes	Can be portable.  If the employee leaves, they can take a lump-sum payout of the cash balance in their account at the time of separation.
Risks	Township carries the investment risk and the responsibility to make sure that there are adequate assets to pay out benefits.	Employee assumes all the investment risk.  If their investments have performed poorly or there is a market correction, the employee may find themselves without enough assets to retire on.	The risk remains with the employer but is more limited.

 

Commissioner Schin spoke about the 2012 bond the Township sold because of the losses in the pension. Mr. Vernau spoke about how the bond was less expensive than the recovery plan offered by the state. Mr. Vernau spoke of additional costs with defined contribution, such as higher wages and health care premiums when employees are unable to financially retire. Vice President Simpson discussed the high cost of health benefits as a reason for delayed retirements. He doesn’t believe it is the Township’s responsibility to ensure their retirement. He asked if the 457 plan allows loans for employees for homes and college. Discussion ensued. Commissioner Villone would like to see a cost analysis of the three. Mr. Vernau stated that we would need to pay for that analysis. Mr. Vernau has lined up some professionals to discuss this issue with the Board, including the assistant manager of Upper Allen Township. These presentations will take place during regular Board meetings in May.

COMMISSIONERS REPORTS
Commissioner Villone attended a meeting of the Cumberland County Tax Collection Committee. They spoke about HB 866, which was passed recently, relating to local taxes, which attempts to clean up some loose ends and unintended consequences of Act 32. He stated that House Resolution 291 authorizes exploration into consolidating local taxes into a state-wide collection effort.

Vice President Simpson spoke about comments he has received about the landscape of Arcona. He drove over the area and could see what they meant. He spoke about no trees being in the landscape. He stated that a lot of people are comparing Arcona to other neighborhoods and are upset about the look. Commissioner Villone spoke about being vigilant with open space. Mr. Flint stated that trees will be added later. President Black stated that remember these comments when Charter comes back with new phases.

Commissioner Schin attended the Capital COG meeting. He spoke about a resident concern with a CO alarm in his house and asked about a phone number to the fire company. Director Holl stated that it is best to call 911 when this happens because they can check it out with meters and ensure it is a false alarm.

Director Holl stated that Engine 12 is in service.

Mrs. Trone stated that she submitted the grant application for the Fun Fort and hopes to hear by Fall whether we got it or not.

President Black spoke about Steve Duffy’s son and firm. Steve Duffy was our owner’s representative during the construction of our Township Building. His son would like to use pictures of our building on their website and a statement from President Black about the building. If anyone has an objective, please let me know.

ADJOURNMENT
The Regular Meeting of the Board of Commissioners adjourned at 9:01 pm.