A special meeting of the East Amwell Township Committee came to order at 9:05 a.m. Present were Mayor Larry Tatsch, Deputy Mayor Linda Lenox, and Committee Members Patricia Cregar, Peter Kneski, and Timothy Martin. Township Administrator Timothy Matheny arrived at 9:35 a.m.

In compliance with the Open Public Meetings Act, a copy of notice of this meeting was filed in the Clerk's Office, posted on the bulletin board, and sent to the Hunterdon County Democrat, Times of Trenton, and Star Ledger on January 11, 2008. The purpose of this meeting is to meet with the CFO/Treasurer and the Township Administrator to discuss the 2008 Budget. The public is invited to attend and comment. Action may or may not be taken.

Mr. Tatsch explained the budget process, including looking at each budget request and calling in departments if questions arise. He recommended going through the operating budget by page.

Mrs. Luhrs explained the packets of information she provided: 1) the sheets listing revenues, 2006 and 2007 adopted budgets and preliminary budgets; 2) the proposed operating budget with all requests listed; 3) background data for the individual department requests; 4) capital budget items.

Mrs. Luhrs provided two scenarios of the 2008 tax: 1) keeping revenues and appropriations the same as last year and reducing the reserve for debt service by $5,000; 2) using the same appropriations but funding all requests in the department budgets ($3,176,806.00). A recent Local Finance Notice indicates that municipalities cannot introduce their budgets until after March 11 (one month later than usual), and State numbers may not be available until well after that time. There is no directive from the State on the 4% property tax at this time either. Mrs. Luhrs met with Mayor Tatsch on Monday to go over the budget numbers, and there are two new numbers (in General Administration) since that time. Assessor Busher provided Mrs. Luhrs with the assessed valuation, which is $791,724,997; therefore, a tax point equals $79,172. To change the rate by a cent, the budget must be reduced by that amount or increase revenues by that amount or a combination of both. The increased assessed values came from added assessments, not from new construction. Mrs. Luhrs commented on "being in good shape." Mr. Tatsch asked specific questions about assessed values and decline in real estate sales; Mrs. Luhrs directed him to the Assessor with these questions. Mrs. Luhrs also noted that The Ridge at Back Brook tax appeal is still undecided, and this may have an affect on the assessment.

Mrs. Luhrs referred to the operating budget pages. Motion by Mr. Martin, seconded by Mr. Kneski, and carried unanimously to recess the meeting at 9:15 a.m. so that the Clerk could make additional copies of the budget packet for some members of the public. Motion by Mr. Martin, seconded by Mr. Kneski, and carried unanimously to resume the meeting at 9:25 a.m.

OPERATING BUDGET: The operating budget will be reviewed first, and the following departments will be present, as follows: 10:45 a.m. - DPW Superintendent George Howell; 12:45 p.m. - Recreation Chair Doug Paternoster; 1:30 p.m. - Tom Steele of the Amwell Valley-Ringoes Rescue Squad.

During the page review of the budget, Mr. Tatsch often asked Mrs. Luhrs to provide the adopted 2007 budget figures for different departments, noting that the modified budget included transfers.

Page 1 - General Administration - $6640 was added for Gypsy Moth Suppression treatment, based on 83 acres of a double treatment at a cost of $40.00 per acre; the area is on a border road with Delaware Township, who will also be treating. A question was raised about reduction in postage costs; some township mailings have been decreased. Mrs. Luhrs reminded the Committee that she was able to lapse $80,000 at the end of 2007, which equaled a tax point. She was reluctant to lapse any more on the advice of the Auditor since it was unclear how the State would be addressing the 4% property tax issue.

Page 2 - Mayor & Council - The Committee has not taken an increase in salary for many years. The increase from the 2007 figure of $12,518 to $15,533 was due to the fact that last year, a Township Committee member did not take a salary.

Page 3 - Municipal Clerk - The increase from $5,767 in the Deputy Clerk line item was because that position was not filled until the latter part of the year. The full year salary was calculated at $20,000. The increase in election costs was for the special Presidential Primary in February; it is anticipated that the township will be reimbursed, but it must be budgeted. The Office Assistant's salary comes out of the General Administration budget.

Page 4 - Financial Administration - The salary increase for the CFO/Treasurer is for the additional auditing responsibilities she will handle; the auditor reduced his line item in this budget accordingly.

Page 5 - Audit Services - The auditor increased his cost for the audit itself. It will not be known if a single audit at a cost of $2,400 would be necessary for 2007, but it will probably be necessary in 2008 since it is tied to the amount of grant funding a municipality receives. With the Back Brook Road project and other possible grants, a single audit would be most likely be required for 2008.

Page 6 - Revenue Administration - The Tax Collector added $1,000 for the conversion of the Edmunds software system into the Vital software system. The figure for Interest on Tax Appeals is a requirement to address possible appeals each year; $2,000 was the recommendation of the Tax Collector.

Page 7 - Tax Assessment Administration - The same budget as 2007 was requested, including $500 for mailing the farmland and certified letters. The Assessor also provided comments on the pending tax appeals for The Ridge at Back Brook and Brophy/Rutgers Nursery.

Page 8 - Legal Services - The governing body discussed this at length, with the following highlights: all attorney bills have been posted to date through December 2007; it was unclear how much of the employee claim bills will be paid by the insurance company - the Clerk will check on this; the Meszaros costs might be higher since the Township may be in negotiations for acquisition; a recommendation was made to set this budget at $60,000; Mr. Kneski would have preferred to see this number lowered, but the Treasurer felt that it was a reasonable figure.

Page 9 - Engineering Services - This line is for general engineering services, not for individual properties with inspection accounts for development applications or for capital projects. Examples of items covered included requests for individual inspections of road conditions, traffic concerns, etc. All agreed to keep the line at $9,000.

Page 10 - Historic Sites - This budget will be discussed on January 30. The Committee set their budget at $4,000, including a line item for a secretary. Mr. Tatsch spoke about the "invigorated committee" with the amount of work they are doing. Mrs. Luhrs spoke about grants acquired from Hunterdon County Cultural Commission, and she also noted that there is a donation of $500 and an outstanding grant, which Historic Preservation will be using. Mrs. Luhrs explained the $5,000 in grants shown in parenthesis in the budget, i.e., this amount is shown as revenues in the budget.

Page 11 - Agricultural Advisory Committee - Ms. Lenox explained this budget request, indicating that the Committee is planning a farm forum during the year. No changes were made.

Page 12 - Planning Board - Committee members noted the reduction in salary expense from past years, while noting no reduction in work product and a good transition in the position by the Administrative Officer. The increase in Other Expenses included an increase in attorney and planner line items since there will be work on the Master Plan, Land Management Ordinances, COAH, Larison's Corner and Route 31 land use matters. No changes were made.

Page 13 - Zoning Board of Adjustment - The increase in this budget was for attorney fees since there are some pending lawsuits, as explained by Mr. Kneski.

Page 14 - Affordable Housing Agency - Mrs. Luhrs explained that salary for the COAH Officer has come out of developer's fees in the past; however, no fees were paid this year. Some discussion took place on how developer fees are assessed. Mrs. Luhrs explained the process in West Amwell of having applicants pay $750 at the time of permit; there is some book-keeping involved with collecting the balance at the time of CO or of refunding the fee if it was not applicable to a development. Ms. Lenox provided some anecdotal information on having to pay the fee well after the time of CO. Mrs. Luhrs explained the need to develop a spending plan after December 31 of the year; she stated that there were no fees collected in 2007. Mr. Tatsch explained that with the new COAH regulations, these fees can be increased, and collecting the fees for development is very important. Mrs. Luhrs said that in the past, the fees were used for the COAH Officer's salary and for work on the Transition House owned by the Township; the funding is applicable to salaries and COAH expenses. Mr. Kneski agreed to discuss this matter with the Zoning Officer when he meets with him and Mr. Matheny next week on another matter. A copy of the current developer's fee ordinance will be provided to him. No decision will be made on this line item until after Mr. Kneski gets further information.

Page 15 - Uniform Construction Code Functions - Mrs. Luhrs explained that the increase is due to additional salary requirements, including increased secretarial hours in that department. In the OE budget, the increase is due to mileage reimbursement, which was also increased this year.

Page 16 - Liability Insurance - This is an actual figure provided by the insurance agent. The additional line for Lincoln Financial is the Township's contribution to the Township Administrator's account, as part of his contractual agreement.

Page 17 - Worker's Compensation Insurance - This is an actual figure provided by the insurance agent.

Page 18 - Employees Group Insurance - There will be a new enrollment period at the state for new programs going into effect, and new rates are not yet available. Increases also include the fact that employees can take advantage of a three year submission for dental/eye reimbursements (rather than an annual reimbursement of $525 per year); additionally, more employees, including a new employee, are joining the dental insurance plan.

Page 19 - Office of Emergency Management - This budget is the same as 2007, including an emergency account of $1,000 for emergency purchases, if necessary.

Page 20 - Aid to Volunteer Ambulance Companies - This is the same operating budget the squad has proposed each year.

Page 21 - Uniform Fire Code - Mrs. Luhrs explained that this is State aid, which comes into the Township and is passed on to the fire company.

Page 22 - Municipal Prosecutor - This is a salary line item.

Page 23 - Street & Road Maintenance - This will be discussed when Mr. Howell is present.

Page 24 - Solid Waste Collection - Mrs. Luhrs explained that the Clean Up Day and Roadside Clean Up Days are paid through the Clean Communities Grant; last year the grant was $8,000; it was not known how much the municipality will get this year. Specific items were discussed, including the charges for the special electronic clean up day in January, some of the charges which were assessed to the Clean Communities Grant. The Committee also purchased a special recycling container for Clawson Park. Their budget will remain as requested at $9,700.

Page 25 - Buildings and Grounds - Some discussion took place about the underground storage tank remediation on municipal grounds. Mr. Tatsch provided some insight into Handex Remediation personnel changes and difficulties in getting responses to inquiries. Mr. Tatsch explained that Handex has been doing the remediation work for a number of years, including various techniques, such as HEAT treatments (i.e., a vacuum extraction system). Handex has also been monitoring the wells continually. Last fall, quotes were solicited for a company to review Handex's performance and techniques; Dewberry-Goodkind was chosen to do the review based on the lowest quote, and they provided a very good report. The result was a recommendation to use an oxygen-generating chemical inserted into the well in a bag, causing an aerobic system, which will erode the hydrocarbons. The cost would be approximately $100-200 per well (i.e., less than $1,000 for treatment, if it works). Mr. Tatsch and Karl Posselt (who is overseeing the contamination matter) have been trying to get information from Handex on their well monitoring schedule, but there has been no communication from the company. Mr. Tatsch commented on not wishing to go with a new consulting company since Handex has been on the project for such a long time, but communication is an issue. Mrs. Stahl reminded the governing body that Handex was also hired to make the application to the NJ DEP for the biennial class exception area, and there was an extension requested to get additional well monitoring data.

Mr. Kneski asked about reducing other line items in this budget, i.e., the $15,000 for maintenance. Mrs. Luhrs recommended against this, noting that sometimes there are major expenses, such as air conditioning unit or electrical repairs.

Further discussion took place about the remediation line item; it was unclear if all the Handex bills have been paid for 2007.

Page 26 - Vehicle Maintenance - This will be held until Mr. Howell arrives.

Page 27 - Public Health Services - Salary was increased from $16,000 in 2007 to $17,000 in 2008 for the new position of a Board of Health Administrative Officer; the perc and soil log was reduced from $20,000 to $17,000, based on decreased testing in 2007; the Board of Health will continue their sodium testing for road salt applications in the amount of $750; the legal line item is $2,000, although Attorney Allen has not billed the Township in 2006 or 2007; the Board of Health will be preparing ordinances in 2008, and legal review may be necessary. No changes were made.

Page 28 - Environmental Commission - This budget will be discussed on January 30. Mrs. Stahl provided some information about the intent to catalog township easements, with the Environmental Commission taking on some responsibilities, along with the Planning Board Officer and the Office Assistant.

Page 29 - Animal Control Services - Mr. Matheny explained that the contract with Raritan Township cost the municipality $8,500 in 2007 and will be increased to $11,473 in 2008. Mr. Matheny spoke about difficulties in finding animal shelters and the intent to stay with the contractual arrangement with Raritan Township. Raritan Township is also hiring another employee to assist. Office Assistant Pam Dymek provided an excellent spread sheet showing animal control account figures. Last year, the municipality raised the dog license fee from $8.20 - $11.20 to $12 and $15 per dog even though the State allows the municipalities to charge up to $21 per dog. Mrs. Dymek was recommending an increase in the late fee from $5.00 per month to a set fee of $25.00 per dog. The licensing ordinance is a Township Committee ordinance, and it would have to be amended to incorporate the new late fee. Committee members were in favor of the increase in late fee. Additionally, it was noted that there would not be a census next year (i.e., costs will be reduced). The Township will have to budget $6,000, which was not covered with the dog fees collected last year. Mr. Martin commented on the efficiency of increasing the late fee (i.e., less book-keeping for the office).

Page 30 - Administration of Public Assistance - This is the same budget as last year.

Page 31 - Contribution to Social Service Agencies - The Township contributes $350 to the Senior Citizens Agency and $500 to the Drug/Alcohol Agency each year, and these figures have not increased.

Page 32 - Stormwater Permit - Public Health - This committee is looking for secretarial support in 2008. Some discussion took place on having one secretary cover this and the Historic Preservation Committee; Mr. Matheny reminded the governing body that the positions would have to be posted. The budget last year was $9,300 and $1,000 was transferred into it. The request this year was for $8,600 (including engineering reviews and DEP permit and compliance reports). No changes were made to this budget.

Page 33 - Recreation Services & Programs - This will be discussed when Mr. Paternoster is present.

Page 34 - Prior Year Bills - There are none.

Page 35 - Celebration of Public Events - This line item is now in the Recreation budget.

Page 36, 37, 38, 39 - Electricity, Street Lighting, Telephone Costs, Fuel Oil (natural gas) - Mrs. Luhrs said that these were all set figures.

Page 40 - Gasoline - The request was increased from $12,000 to $13,000, based on projects and in gas price increases. The governing body suggested increasing it to $14,000.

Page 41 - PERS - This is the retirement contribution made by the municipality. Mrs. Luhrs provided anecdotal information on the increased cost through the years.

Page 42 - Social Security - This is a set cost.

Page 43 - Unemployment Compensation Insurance - Mrs. Luhrs explained that there was a claim this year, which was paid, and there is another claim pending. She explained how the fund is increased over the years, with a balance of $16,873 as of 1/1/07, an increase in 2007 of $3,035, claims of $9,490 in 2007, and a balance on 12/31/07 of $10,418. She explained the importance of having funds in this account to cover potential claims.

Page 44 - Hunterdon County Open Space, Recreation, Farmland, Historic Preservation Trust Fund - Figures are not yet available for this year.

Page 45 - Clean Communities Grant - This was discussed during the Recycling Budget discussions. In 2006, the municipality received $10,032; in 2007, $7,883; it is unclear how much will be available in 2008.

Page 46 - Recycling Tonnage Grant - Mrs. Luhrs said that this line item "was a wash."

Page 47 - Matching Funds for Grants - There is an annual amount of $500 placed in the budget to keep the budget open for projected grants acquired throughout the year, i.e., there must be a mechanism to allow matching funds from a budget. Funding in this budget allows transfers to match grants acquired throughout the year.

Page 48 - Municipal Court - The budget remains the same as 2007 except for the increase in hours for the Deputy Court Administrator.

Page 49 - Public Defender - This is a salary line item.

Page 50 - Capital Improvement - This is the amount added to the budget to be raised for capital projects.

Page 51 - Purchase of Ambulance Equipment - Mr. Tatsch explained that two years ago, the squad was given $25,000 and last year they were given $30,000 towards their building campaign. Mrs. Cregar was recently advised that the squad took a vote and will not be going forth with their purchase of property; they will be renovating their existing building instead. Some discussion took place on what would happen to the funding already provided by the municipality and whether additional funding would be requested. A representative from the squad will be at the meeting this afternoon. Also in this budget is the usual request for $28,000 for capital improvements (in addition to the $29,000 in operating expenses). The request for this budget came from Jason Read via an email to the Treasurer asking for the same amount as last year.

Page 52, Page 53, Page 54, Page 55 - Bond Principal, Note Principal, Bond Interest, Note Interest - These are set figures. Mrs. Luhrs spoke about the possibility of paying off the notes with reimbursement funding.

Page 56 - Green Trust Loan - This is for Clawson Park.

Page 57 - NJ Economic Development Loan Payment - This is the final payment of the 15 year loan for municipal building improvements.

Page 58 - Emergency Appropriations - There are none.

Page 59 - Special Emergency Appropriations - Five Years - There were special appropriations for the tax maps (i.e., necessary for the revaluation) and the revaluation for East Amwell.

Page 60 - Deferred Charges Future Taxation - No changes to this budget.

Page 61 - Reserve for Uncollected Funds - This is a statutory calculation set after the budget is adopted and the school budget is adopted, and will be provided at that time.

Mr. Tatsch asked the governing body to consider the following:

1) The Higgins acquisition, which is a request for $1,000,000 over a course of 3 - 5 years. If the Township goes out to bond, 5% down payment is necessary, i.e., $50,000 which could come from Open Space, with no impact to the budget. Mrs. Luhrs recommended having bond counsel meet with the Township Committee to discuss all their bonding needs.

2) The renovation of the Clawson House is also a consideration. Many options are being considered, and this may include doing the work and looking for retroactive grants or perhaps waiting until funding is available.

3) COAH requirements have increased, and the purchase of a house for Easter Seals to lease from the municipality is still under consideration. Mr. Tatsch provided an example of purchasing a house at $500,000 and having to put $100,000 in improvements into the property - this may also require a bond. Mr. Tatsch spoke about the importance of meeting the COAH requirements.

Mrs. Luhrs felt that bond counsel could provide information on bonds for multiple purposes.

Mr. Martin asked about fund-raising for the Higgins property, i.e., how would the municipality handle it, or would it be done by non-profits. Ms. Lenox commented on Land Trust and D & R Greenway Land Trust's experience and expertise in fund-raising. All agreed on the importance of public awareness about this acquisition. Mrs. Luhrs also spoke about taking in donations for the purchase. It was unclear about how the municipality would be the fund-raiser, and further information may be obtained.

Motion by Mr. Kneski, seconded by Mr. Martin, and carried unanimously to recess at 11:05 a.m.

Motion by Mrs. Cregar, seconded by Mr. Kneski, and carried unanimously to reconvene at 11:15 a.m.

DEPARTMENT OF PUBLIC WORKS BUDGET DPW Superintendent Howell was present at this time, and the operating budget was discussed first.

Page 23 - Salaries - The increase was for an extra employee. The line for overtime remained the same as 2007, i.e., $3,500. Storm removal will be increased to $11,000 to cover unanticipated conditions. Under Other Expenses, the following were noted: Other Expenses will remain at $8,500; Calcium Chloride for dust control was not used last year, but will be used to prevent erosion in 2008 on Stony Brook, Rocktown, Van Lieu's, Burd, North Hill, and South Hill Roads; Storm Expenses is for outside contractors for plowing, as needed, at $6,000; Rolling Stock was reduced from $6,000 to $5,000; Cinder/Salt Contract was reduced from $35,000 to $30,000 - Mr. Howell explained the increase from 2007 due to increased transportation and fuel costs, and he noted that he is using his supplies sparingly, i.e., not using unnecessarily (e.g., during the last storm, no materials were used, counting on weather condition improvements to clear the roads after plowing); Mr. Martin appreciated Mr. Howell's "smart decisions" in assessing weather and road conditions; Road Repairs/Maintenance line included stone, sweeping, black top, pipe, etc. for road work not under capital projects; Mr. Kneski commented on using $16,000 in this line last year; the Committee agreed that they wanted the Department to be aggressive in their repair work, even though the line was being reduced from $35,000 to $30,000; Mr. Howell said that Lindbergh Road would be discussed during the capital budget; work on Losey Road was also mentioned; Mr. Howell wanted to add $1,500 to the signs line item since over 40 signs were spray painted recently - his Department is trying to salvage what they can; purchase of signs is from Deptcor and Griffin Signs, with prices being similar; Mr. Howell also spoke about getting blank signs, and tape to make their own signs.

Mr. Spiegel, in the audience, asked if the meeting would be open to the public while Mr. Howell was present. The Committee agreed to continue their review of the budget and open to questions at the end of Mr. Howell's presentation.

Page 26 - Vehicle Maintenance - This amount included outside repairs and in-house repairs. Jason Silverthorn and Joe Adamow, the new employees, have experience in repairs, including brake pads and rotary replacements. Mr. Martin asked about efficiency balance (i.e., repairing in house and use of trucks); if it is a daily use vehicle, it will probably be sent out for immediate repair and employees will handle their other responsibilities; Mr. Howell outlined specific repairs for the 1995 dump truck and the 1992 dump truck; the Committee agreed to reduce this line from $20,000 to $18,000.

Mr. Tatsch summarized the budget additions and losses.

Mr. Howell provided the 2008 Draft Capital Road Improvements Program sheet provided by Engineer O'Neal. He outlined the prioritized areas, as follows: 1) Lindbergh Road at a total cost of $204,695 for work done from Ridge Road to Burd Lane with overlay and road edge repair; 2) Rocktown Road from Mountain to Linvale and the S-curve at Losey Road overlay and road edges at a total cost of $142,192; 3) Back Brook Road (using the NJ DOT grant) with more detailed engineer planning at a total cost of $369,897. Mr. Howell explained that there was still $100,000 in the capital for road work not used and the $150,000 grant to use for Back Brook. The total budget request for raod projects was $466,784.

Continued discussion on road projects included the following: The DPW could stabilize Rocktown Road this year at a reduced cost and the full project could be incorporated into next year's plan. Priority 4) was Runyon Mill Road from Mountain Road to the Purcell driveway, a distance of 2,000 feet, for overlay and edges at a cost of $73,331. Mr. Howell explained that the engineer will charge $15,000 for plans for Lindbergh and either Rocktown or Runyon Mill Road, which ever was decided. Mr. Howell also noted that blacktop plants are closed now and should re-open in March, and patching will take place then.

Discussion took place about the Back Brook Road project, noting that the $150,000 grant will be used for part of the work. The scope of the work was discussed, and Mr. Howell provided specific details for what he considered three sections of the road. Mr. Tatsch spoke about tar and chipping roads to "buy time" for repairs; Mr. Howell did not think any of the roads on the project list would qualify for tar/chipping. Mr. Howell explained the process of stabilizing roads, tar/chipping, and life expectancy of roads.

Mr. Tatsch commented on road conditions on North Hill Road. Two-thirds of the road is paved now, with the top section being dirt. Mr. Howell noted drainage problems on the road, which are problematic.

Mr. Kneski wanted to meet with Mr. Howell and Engineer Dennis O'Neal to discuss a five-year capital program.

Discussion returned to Back Brook Road, which had to be done since grant funding was available. Mrs. Luhrs cautioned the Committee about the budgeted figure of $397,000 for all capital projects. The Committee felt that $200,000 could be appropriated to Back Brook Road and the Lindbergh Road project should remain on the list.

Mr. Howell spoke about the overlay project on Rocktown Road, providing specific conditions from the S-curve to the hill on Mountain Road. He felt that the DPW could fill in the edges and stabilize the road this year at a lower cost, i.e., approximately 300 tons of material at $64.00 per ton; he explained what the repair would entail and look like. While the full scope of the work on the project list was for 5,000 feet, it was suggested that the major problem area for stabilization could be reduced to 2,500 feet.

Committee members spoke about adding the Runyon Mill Road project onto the list at a cost of $73,331. Specific road conditions were discussed. The Committee calculated project costs as $205,000 for Lindbergh; $22,000 for Rocktown; $200,000 for Back Brook; $73,000 for Runyon Mill. Mr. Tatsch asked about stabilizing North Hill Road with tar and chip. Mr. Howell commented on sending back information to Hunterdon County that East Amwell would not participate in their road treatment program this year; however, he may be able to contact them and add East Amwell to the list.

Mr. Martin spoke about Mr. Kneski's intent to speak with Mr. Howell and Mr. O'Neal to review projects.

OPEN TO THE PUBLIC:

A member of the public asked that the meeting be open to the public at this time since she had to leave for a 1:00 p.m. meeting. Motion by Mr. Martin, seconded by Mr. Kneski, and it was carried unanimously to open to the public.

Deidre Kleber, 46 Stony Brook Road, spoke about unpaved road conditions on Stony Brook Road. She provided specific details, including large potholes; huge boulders; soft, clay conditions, which account for poor traction; a statement from the East Amwell Board of Education indicating that buses will not go on the road to her house because of unsafe conditions; inability of the rescue squad to get to dwellings; among other items. She urged the Township Committee to work on Stony Brook Road.

Richard Spiegel, 1 Mountain Road, commented on his previous statements and his previous discussions with the Township Attorney on safety conditions on roads, particularly for emergency vehicle traffic. He commented on the inability of emergency vehicles to turn around on Stony Brook Road. Mr. Spiegel believed that Stony Brook Road should be the first priority road on the project list.

Mr. Spiegel agreed with the plans to repair Runyon Mill Road from Mountain Road to the Purcell property. (It was noted that the reference on the engineer's project list was incorrectly listed as Orchard Road to the Purcell property.) Mr. Spiegel spoke about specific safety concerns on this road.

Discussion took place about the scope of the Stony Brook Road project, with the following highlights: currently the DPW puts stone on the road on a regular basis; boulders cannot be moved unless blasted; there are drainage problems also; this road could be added to the five year project list, and funding could be anticipated on a regular basis for the intended repair; grants may also be acquired.

Ralph Lanni, 68 Stony Brook Road, commented on a major recession and the need to keep the tax levy reduced. He felt that roads should be a priority for the Township Committee, and they should limit their acquisition projects. He asked the Committee to be cautious in their budgeting, and he felt that the Stony Brook Road repair should be added to the project list.

Mr. Tatsch asked Mr. Howell how the soft section of the road could be repaired, and Mr. Howell provided specific details of the major project (e.g., digging 4-5 feet, use of different type of stone, blacktopping, blasting boulders, etc.). All present also agreed that eliminating the clay completely was improbable. Mr. Spiegel suggested using rip-rap installed with a bull-dozer to control the clay problem.

Mr. Spiegel asked about the width of road repairs at 20 feet; Mr. Howell stated this was an average calculation. On a question of DPW involvement on road repairs, it was stated that they do pipe repairs and leveling courses of stone.

Ms. Kleber asked why D & R Greenway Land Trust properties were not taxed, and a lengthy dialogue about taxes on easements as opposed to taxes on non-profit owned property took place. Mr. Tatsch explained that the municipality is grateful for the ability to partner with D & R Greenway Land Trust in acquisition of land. He provided factual information on the cost to educate one child at Hunterdon County Regional High School at $14,000. He also spoke about other infrastructure costs, such as police, construction of new schools, etc., noting that the philosophy of the Township is to continue to acquire land to control taxes. He felt that D & R Greenway Land Trust was making a contribution to the municipality, and the tax exemption for their property was "still a deal" for the municipality. He spoke about the Township's involvement in paying for soft costs for D & R Greenway Land Trust's acquisitions. Ms. Lenox also provided information on easements in the municipality, particularly for trails. Ms. Kleber spoke about land value differences for developed and undeveloped parcels.

Mr. Lanni also spoke about easements, and he commented on the amount of land he owns in East Amwell. He further commented on losing the ability to subdivide lots since the zoning changes were made in the Sourlands. He suggested zoning for farmland. The Committee recommended that Mr. Lanni bring his concerns to the Planning Board.

Mr. Spiegel asked Mrs. Luhrs about her calculations for paying off debt, asking for information on monies obtained at the Omick closing. Mrs. Luhrs stated that there was a reimbursement for the Kanach acquisition, and there had been some discussion on using the money to pay off the bonds for the Reiter property.

Mr. Spiegel commented on the border road agreements with surrounding municipalities, noting that Stony Brook Road is a border road and he did not believe Hopewell Township would share repair costs.

Mr. Lanni asked about salary increases on page 23 of the road budget. A fifth roadman was hired in fall.

Motion by Mr. Martin, seconded by Mr. Kneski, and it was carried unanimously to close to the public.

Motion by Mr. Martin, seconded by Mrs. Cregar, and it was carried unanimously to recess for lunch at 12:35 p.m.

Members of the public left the meeting during this time.

Motion by Ms. Lenox, seconded by Mrs. Cregar, and it was carried unanimously to resume the meeting at 12:55 p.m.

DPW BUDGET, CONTINUED

Mr. Howell provided handouts from Bucks County International and Cornell Equipment Company for the purchase of a new dump truck. Highlights of the discussion include the following: the DPW is looking to acquire the same type of dump truck as purchased last year, with a better rear and gear ratio for shifting; the estimate for the cab and chassis is $80,011.74 from Bucks County International; Cornell Equipment provided an estimate of $60,000 for the body and basic equipment, which includes a plow and a "hot belt" sander for asphalt and stone applications for multi-functional use, among other items. This truck would replace the 1995 model, which is in poor condition and used only for work in proximity to the building (not the Mountain area) because of the condition; trade-in value may be up to $18,000 (according to Bucks County specifications). There is a dump truck on state bid, but it will not meet the Township's needs. Mr. Howell explained that there were several bid options, including having one or multiple vendors providing the necessary equipment. It is anticipated that the truck would be picked up locally. Reference was made to the cost page provided by Buck's County International. Specifications of a dump truck vs. a mason dump truck were discussed, i.e., a dump truck has a 10-12 yard capacity while a mason dump has 4 yard capacity (i.e., more travel time for projects).

Mr. Martin asked about specific township needs, i.e., was any equipment optional or was all parts necessary. Mr. Howell felt that the multi-purpose "hot belt" sander would be beneficial for all different types of work. Mr. Howell also spoke about his desire to get a vehicle rotation system in place to effect better trade in value on equipment. He spoke about the need to replace the 1995 dump truck, while the 1992 dump is still in working order (with a possible sensor problem). An older mason dump will be kept for use at Clawson Park. Some discussion took place on the possibility of auctioning old equipment by sealed bid. The Township is unable to sell equipment as scrap metal because of public law contracts. Cost effectiveness of trade-in versus sealed bid auctions with a specific minimum bid were discussed.

The Committee also mentioned the non-working generators in the grit-yard, which are owned by the municipality. Mr. Howell provided information on trying to have the equipment repaired; however, since they are military surplus units, Catepillar (a repair contractor) was unable to repair them. The possibility of getting rid of the generators was also mentioned. Mr. Matheny provided information about the current OEM's input on getting a transfer switch installed at the building to hook up generators when needed.

Mr. Howell again spoke about his plan to purchase single axel trucks in three-year cycles, with the intent to replace on the 12th year. He also spoke about the life expectancy of pick up trucks being 7 years. Mr. Howell mentioned that the Township could bond for the purchase of the dump truck. Mrs. Luhrs commented on bonding for equipment with future payments, which would possibly put the municipality in a cycle of continued bonding (i.e., as bonds mature, trucks would age, depreciate, and need replacement); Mr. Kneski agreed with Mrs. Luhrs.

The Committee was in favor of purchase of the truck. Mr. Howell explained that the figures provided today were estimates (i.e., $140,000 total), and this figure may come in lower. He asked if he would be able to purchase replacement parts (blades, etc.) with the balance of the $140,000. The Committee was willing to make the truck purchase, not parts, at the lowest determined cost. Mr. Kneski was in favor of the rotation plan. Mr. Howell also mentioned that he is using a 20 year-old plow on the truck purchased this year.

RECREATION COMMITTEE BUDGET: Chairman Doug Paternoster was present during this discussion.

Mr. Paternoster asked about having the municipality lease vehicles and equipment. Mrs. Luhrs explained that leasing comes from the operating, not the capital budget, which is a problem with the CAP.

Page 33 - Recreation Services & Programs - Salaries were addressed by the Township Committee in the Salary & Wage ordinance. The Senior Citizen's group receives $4,000 through this account, and Summer Playground Expenses are also out of this budget (although the Recreation Committee does not monitor these expenses).

Mr. Paternoster explained the Recreation Budget as follows: $3,100 for field maintenance by GT Services, a local company who also contribute extra value beyond what is paid (i.e., sometimes they deliver extra material not used elsewhere, they helped with the erosion problem on T-3, etc.). The lacrosse program anticipated last year will not be in this year's budget. The Events line is $500 for the egg hunt and holiday tree lighting. Port-a-johns for the municipal field for soccer and baseball is $850; the League pays for the units on the firehouse and school fields. An outdoor movie night program is anticipated for the municipal field (not Clawson Park because of ordinance restrictions); the cost is estimated at $500. Additionally, a resident is interested in setting up a game night at the school.

The Music in the Park Program at Clawson Park is anticipated for two events at a total cost of $2,500. Mr. Paternoster provided information on the first event last July. This year the first event will be held on a Saturday or Sunday before school gets out in June; the second one will be after September but before weather conditions prevent it.

Committee members commented on the expanded vision of the Recreation Committee in meeting sports and arts/leisure needs of the community. No changes were made to the budget.

Mr. Paternoster provided an update on the irrigation well at the school. Last year the Township budgeted $20,000 for an irrigation well to maintain the soccer fields at the school. Mr. Paternoster said that Recreation Vice Chair Dennis Hajek has the electrician, well driller, and irrigation system items in separate bids. Mr. Paternoster will have Mr. Hajek call Mr. Matheny to make sure that the appropriate township quote forms are used for this project, which may be completed this spring. The School will get the necessary permits.

Mr. Paternoster provided a handout regarding the proposed relocation of the existing T-3 field from a flooded area to behind the septic system area on the existing soccer field. This field is for play by 5-6 & 7-8 year olds. Mr. Paternoster provided information on trying to maintain the existing T-3 field with no real success. The handout provided a sketch of the existing and proposed fields, and the soccer league has signed off on the plan. The new T-3 field will be a grass field with only the base plates filled with dirt. While a dug-out was proposed, it can be eliminated in the cost and built later. The estimate for the work is $45,000, and the baseball league is asking for $30,000 from the municipality, i.e., the league will contribute $15,000 and labor. Specifications of the construction were noted.

Discussion took place at length, with the following highlights: games may be placed simultaneously on T-1 & T-3 fields, as well as on the softball field; all fields will get significant use during the annual tournament; the revenue from the tournament is usually around $10,000, with the money being reinvested into the league and fields; the Committee asked if the Township's commitment could be reduced to $20,000 and additional fund-raising be done by the league; Mr. Paternoster provided information on teams/clubs who use the fields; while East Amwell School originally stated that the league could rebuild a smaller field on their existing 90 foot field, the School rescinded the offer and asked the league to build a brand new field off the 90 foot field, which was not cost effective; the time line for construction is to begin the work in November 2008 and complete it for possible spring baseball in 2009 or for fall soccer in 2009 and spring baseball in 2010.

Additional comments included the following: Committee members felt that once the new T-3 field was built closer to the municipal building, visitors would be reluctant to park on the lower lot to watch the games (i.e., more traffic in the main lot); there have been past concerns with parking problems particularly during the tournament; Mr. Paternoster asked about property ownership on the other side of the bridge near the lower parking lot in terms of additional parking.

Ms. Lenox and Mrs. Cregar spoke about getting the word out to residents, especially in the VIP, stating that people may be willing to donate to the creation of the field. Additionally, businesses may want to contribute. Mr. Kneski asked about the dug-outs, and Mr. Paternoster provided financial information (i.e., materials at cost were $3,500 and labor provided by the league). Mr. Paternoster stated that the Amwell Valley Little Baseball League is a 501C.3 non-profit.

Mr. Paternoster read the following proposed costs: $10,000 for excavation; $22,000 for field construction and fence; $5,000 for netting; $3,000 for electrical to move a light pole; $5,000 for a dugout. Quotes were received from local vendors, Renda Excavating, U.S. Athletics, and York Fence. Some discussion took place about past funding by the Township for the snack shack and the batting cages, done by ordinance. All present discussed the best way to proceed in the bidding process, i.e., either to have the League be the applicant or the Township, since work is being done on municipal property. The latter would involve specific bidding specifications for prevailing wage and public contract work. Mrs. Luhrs will talk to Auditor Case about this, and a call may be made to Local Government Purchasing.

At the conclusion of the discussion, the governing body agreed that they would consider up to a maximum of $15,000 to be provided for the project over two years, i.e., up to $7,500 this year and up to $7,500 next year. It is hoped that fund-raising by the League will reduce the Township's cost. Committee members also noted that funding for future budget years (i.e., in 2009) is only a recommendation from the current Township Committee and it would be up to the Committee in power in 2009 to either honor the commitment or cut the budget if they so desire.

Mr. Paternoster left the meeting at 2:15 p.m., and the representatives from the rescue squad (who were previously waiting in the audience before the sirens sounded) had not returned from their call. Mr. Tatsch suggested waiting until a reasonable time to see if they returned.

AMWELL VALLEY RINGOES RESCUE SQUAD (AVRRS): Mr. Tatsch explained that the Township contributed $25,000 in 2006 and $30,000 in 2007 to the building campaign. This was part of a request by the squad to consider a five-year contribution of $150,000 in total. Mrs. Luhrs said that she received an email from Jason Read of the squad asking for the same budget allocation as last year. Mrs. Cregar received information from squad member Margaret Case at the end of the December that there was a vote taken by the squad not to build at the new location and to renovate the existing building. When squad members were present earlier at today's meeting, they provided Mrs. Stahl with a drawing for the proposed renovations to the site on Route 179, which was distributed to the Committee. Committee members discussed specifics, including the following: a financial statement provided by the squad was provided last year after numerous requests, and this year's statement may not be available until May or June 2008; Mr. Kneski, who was on the rescue squad in the 1980's, provided information about the current building and the proposed location of rooms in the renovation plans; Mr. Martin spoke of the need for quality work space; Mr. Tatsch commented on the need to keep and maintain a volunteer squad, noting increased expenses if a paid squad is employed; Ms. Lenox asked what would become of the donations and funding provided to the squad for their campaign, among other items. Committee members agreed that they would want information from the squad. Mrs. Cregar noted that the squad had previously agreed to send a representative to the next regular Township Committee meeting. Mrs. Stahl explained that the squad was invited to today's meeting to discuss budget concerns.

CAPITAL BUDGET ITEMS Mrs. Luhrs asked the governing body to look at the 2008 Capital Projects list, stating that they have already addressed roads and recreation. Open Space will come to the January 30 meeting to discuss their requests.

Mrs. Luhrs asked if only the $202,444 funding from the Economic Development Authority was all that would be funded in this year's budget for the Meszaros property. Mr. Tatsch explained that this funding is for the remedial investigation costs to determine site conditions by ERM, the consultant who prepared the application for the investigation. The second phase of this would be for the remedial action (clean up) of the site. Mr. Tatsch further explained that a second part of the picture was to acquire the three parcels of land, and he spoke about negotiating techniques in terms of purchasing the land (i.e, working with Green Acres and D & R Land Trust on the acquisition for open space, using the clean up funds as a bargaining chip in negotiations, value differentiations in clean land versus land identified for clean up, etc.). The final intent of the township is to obtain a "No Further Action" letter from the state and have the land preserved as open space.

At this time, AVRRS President Tom Steele returned to the meeting room after the rescue call.

AMWELL VALLEY RINGOES RESCUE SQUAD (AVRRS), CONTINUED: Mr. Steele explained that he was just elected as President of the squad two weeks ago, and Bill Reiter will serve as Vice President. A vote was taken by the squad not to build at the new location and to renovate the existing facility. He sited the fact that it was not feasible to build at the new location, with an outside accountant speculating that the squad would be bankrupt in 4 years if they did. He provided specific financial information on cost to build versus cost to renovate. Mr. Steele said that one member of the squad has threatened a lawsuit if the building does not go forth, and there may be a challenge to the recent vote taken.

Mr. Steele provided statistical information on calls by the squad last year and spoke about the way calls are routed (i.e., sometimes four squads are called before their unit is called). He also mentioned that there is some turmoil within the squad at this time; however, members are a united front when responding to calls.

Mr. Steele referenced the budget request for capital, explaining that the squad will need a new vehicle this year. A replacement vehicle costs $105,000 or $150,000 if a four-wheel drive vehicle is purchased. The squad would prefer the four-wheel drive vehicle because of rural road conditions. The squad has been able to purchase used equipment in the past, including a $10,000 truck from Lambertville

Mr. Steele spoke about efficiency in calls, noting there were 259 calls last year at $347 per call. Private ambulance companies charge $500, so this is still a bargain. He spoke about having paid crews covering daytime shifts if volunteers were not available during these hours and the potential to have the volunteers request payment also. Mr. Steele spoke about good money management at the squad. He also spoke about keeping the squad's vehicles housed in the renovated building, which will have two new bays. The squad is also looking for a new first responder's vehicle. There will be no service disruption when the renovation takes place.

Mr. Steele spoke about the risks taken by volunteer members, e.g., disease, accidents, vehicular deaths, etc., all risks taken without pay. He also spoke about morale problems within the squad.

A question was raised about the budget assumptions for the new building. Mr. Steele stated that he had a report from the independent auditor with some spreadsheets, which he would make available to the governing body. The report showed that the cost for the building would be $1,346,700 and at a 6.75% rate, annual mortgage costs would be $72,000 per year. A question was raised as to whether one or two independent auditors reviewed the books.

Committee members commented on their hope that the dissent within the squad would subside and that all members would work as a team. Mr. Steele felt that the majority of the squad was in favor of the renovation, which would cost about $450,000 based on $150/per square foot.

Mr. Steele also noted that the new location was not a viable one for several reasons, including the fact that the church (on Old York Road) would not allow an access to the squad, as previously stated, and calls going south or east bound would have to travel up Route 202 North to Cornet Way and turn onto Route 202 South to respond.

Mr. Tatsch commented on changing times and changes in conditions, noting that the vision held by those in the planning stages may not be appropriate at this time; the governing body agreed that this is a valid statement and that a change in plans is not a failure but a change in course of action. Mr. Tatsch also noted that the Township Committee was sympathetic to the squad's issues, which must be handled within the organization since it is not a Township function.

Mr. Tatsch asked for a thorough accounting of the expenses for the building campaign to date and information on use of the collected donations. Mr. Steele indicated that the funds would be used for costs associated with the building, including $14,000 for the unauthorized well drilled on site. The public will be advised of the change in plans and asked about their donations.

The squad has appointed new officers at this time. Mrs. Stahl asked for a copy of officers, which Mr. Steele provided to her. She also asked and was advised that Mr. Steele should now be the authorized contact for the squad.

Committee members reviewed the budget, with the following highlights: $29,000 in the operating budget is recommended; $28,000 in the capital budget will remain for purchase of equipment. The Township Committee agreed that they would hold the campaign contribution request in abeyance. Mr. Steele was directed to provide further information on a five year plan, to provide the current financial information he referenced earlier, and to provide information on where donations previously made by the Township are going. Budget meetings will continue through February, and Mr. Steele was asked to provide information during this period if a request for the $30,000 towards the campaign was still to be considered.

The Committee felt that it was imperative for the squad to keep the public advised about the building issue so they can be aware of the plans. A suggestion was made to have an article in the VIP.

OPEN TO THE PUBLIC Motion by Mr. Martin, seconded by Ms. Lenox, and it was carried unanimously to open to the public. There being no public in attendance, motion by Ms. Lenox, seconded by Mr. Martin, and it was carried unanimously to close to the public.

ADJOURNMENT: Motion by Mrs. Cregar, seconded by Mr. Martin, and it was carried unanimously to adjourn the meeting at 3:05 p.m.

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Teresa R. Stahl, RMC/CMC

Municipal Clerk