-BOARD OF CHOSEN FREEHOLDERS

MORRIS COUNTY, NEW JERSEYJune 10, 2015

ANNOUNCEMENT: Adequate notice of this meeting held the 10th day of June has been provided through resolution adopted by this Board at its Stated Annual Meeting held at the Administration and Records Building on January 2, 2015 and by electronic mailing to the Star Ledger, the Daily Record and the Record, through posting on the County website and by filing a copy of same with the Morris County Clerk and the Clerk of this Board.

ROLL CALL: Director DeFillippoDeputy Director Cesaro

Freeholder CabanaFreeholder Krickus

Freeholder LyonFreeholder MastrangeloFreeholder Scapicchio

SALUTE TO THE FLAG4:00 p.m.CLOSED SESSION: Identify Topic – PERSONNEL

Non-Bargaining Unit StaffLABOR NEGOTIATIONS

Status of Proposed PBA 298 Corrections Officers ContractStatus of Proposed PBA 151 Sheriff’s Officers Contract

APPOINTMENTSNew County Counsel One – Morris County Board of Transportation

CONTRACT NEGOTIATIONS Managed Medicaid Contracts/Morris View Healthcare Facility

PURCHASE, LEASE OR ACQUISITION OF REAL PROPERTY - NonePENDING OR ANTICIPATED LITIGATION MATTERS FALLING WITHIN THE ATTORNEY CLIENT PRIVILEGE - None

5:30 p.m.OPEN SESSION:PRESENTATIONS:

NORWESCAPCelebrating 50 Years of Service to the Community

Accepted by:Marty Miller, NORWESCAP Board Member

“Parents Who Host Lose the Most”Accepting:

Vince Fiorito, Municipal Alliance Committee of the ChathamsJoe Plescia, Parsippany-Troy Hills Alliance

Robin Ghebreal, Wharton Municipal AllianceBarbara Kauffman from Morris County Prevention is Key

Steve Nebesni, Municipal Alliance CoordinatorPROGRAM:

2014 County Audit Raymond Sarinelli, Registered Municipal Accountant, Nisivoccia & Company

ADMINISTRATOR’S REPORT CLERK OF THE BOARD’S REPORT

COUNTY COUNSEL’S REPORT DEPARTMENT HEADS’ REPORTS

FREEHOLDERS’ REPORTS REVIEW RESOLUTIONS

CORRESPONDENCE: None

DISCUSSION:

-15-10 - The Township of Jefferson to open Berkshire Valley Road to install a DIP Force Main.

(not a newly paved road – paved 6/2005)

*Additional information about any resolution or ordinance that appears on the agenda can be obtained by calling the office of the Morris County Counsel at 973-829-8060.

The public informal work session of the Board of Chosen Freeholders of the County of Morris was called to order by Director DeFillippo at 4:10 p.m. on June 10, 2015 at the Knox Conference Room, Administration and Records Building, Court Street, Morristown, New Jersey.

Deputy Clerk of the Board Susan Allard read the open public meeting announcement as to the scheduling resolution and the publication of notice as required by law.

The Board of Chosen Freeholders went into executive session at 4:12 p.m. and resumed open session at 5:30 p.m. with the following in attendance:

Freeholders In Attendance:Director DeFillippoFreeholder Cabana Freeholder Cesaro

Freeholders Absent: Freeholder Krickus

Staff PresentCounty Administrator BonanniAssistant Administrator BurdClerk of the Board KetchumDeputy Clerk of the Board AllardCounty Counsel Daniel O’MullanAssistant County Counsel Bush

Others Present:The meeting was open to the public and press

Freeholder LyonFreeholder MastrangeloFreeholder Scapicchio

Director CarpinteriDirector DiGiralomo Director KovalcikDirector LearyDirector SantucciCIO Tugman Communications & Social Media Mgr. Ragonese

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The meeting began in open session at 4:10 p.m.

Those present were Director DeFillippo, Freeholders Cesaro, Cabana, Lyon and Scapicchio.

Also present were John Bonanni, County Administrator, Cathy Burd, Assistant Administrator, Daniel O’Mullan, County Counsel, Randy Bush, Assistant County Counsel, Jenn Carpinteri, Human Services Director; Alison Stapleton, Labor Relations Manager.

Counsel O’Mullan read the closed session resolution:

WHEREAS, pursuant to the Open Public Meetings Act, the Board of Chosen Freeholders of the County of Morris in the State of New Jersey may exclude the public to discuss matters as are provided under the Act (N.J.S.A. 10:4-12(b)).

NOW, THEREFORE, BE IT RESOLVED that this Board hereby excludes the public in order to discuss six (6) such matters:

1. As it pertains to contracts and appointments, to discuss the appointment of a new County Counsel effective July 1, 2015 pursuant to N.J.S.A. 10:4-12(b)(7) and (8);

2. As it pertains to an appointment to the Morris County Board of Transportation pursuant to N.J.S.A. 10:4-12(b)(8);

3. As it pertains to labor negotiations and contracts to discuss the status of the proposed labor contract with PBA 151 pursuant to N.J.S.A. 10:4:12(b)(4)(7) and (8);

4. As it pertains to labor negotiations and contracts to discuss the status of the proposed labor contract with PBA 298 pursuant to N.J.S.A. 10:4:12(b)(4)(7) and (8);

5. As it pertains to contracts to discuss managed Medicaid provisions as it applies to Morris View Health Care Center pursuant to N.J.S.A. 10:4-12(b)(7); and

6. As it pertains to personnel to discuss non-bargaining unit employee compensation pursuant to N.J.S.A. 10:4-12(b)(7).

The Board reserves the right, as the Board exchanges ideas related to the above matters and attempts to develop appropriate plans of actions as it may be suggested by individual Freeholders

or staff members, to broaden discussion and to attempt to arrive nonbinding consensus provided such broadening of discussion continues within the limits set forth in N.J.S.A. 10:4-12(b)(1) through (9). Matters discussed in Executive Session will be made public at the earliest point in time that the need for confidentiality for each such matter shall no longer be necessary.

BE IT FURTHER RESOLVED that this Resolution shall take effect immediately and be in full force from and after its passage.

At 4:12 p.m. the meeting went into closed session and returned to open session at 5:35 p.m.

NORWESCAPDirector DeFillippo asked Marty Miller to come forward to receive the proclamation. She stated that this organization is dedicated to the welfare of the needy residents of Morris County and neighboring counties. It supports low income households as they develop family and community relationships to sustain self-reliance. Norwescap has been working to help our residents since the days of President Lyndon Johnson as part of the nation’s “war on poverty.” This organization operates fifteen major programs. It helps 35,000 individuals in four of the surrounding counties. Mr. Miller thanked the Freeholder Board for supporting Norwescap.

Parents Who HostDirector DeFillippo presented the resolution to Ms. Ghebreal, Mr. Plescia, Mr. Fiorito and Mr. Nebesni. Parents who allow alcoholic beverages at underage youth parties are risking the wellbeing of the teenagers as well as setting themselves up for possible arrest and/or community service. Mr. Nebesni noted that this campaign runs in May and June to coincide with the graduation and prom season. The campaign encourages not to host underage parties where alcohol is served. The County could not do this without the alliance coordinators.

Ray Sarinelli – 2014 County AuditMr. Sarinelli reviewed the audit process. The process is long, starting the end of January in which they exchange information and then in the beginning of March their team of eight auditors work in the Treasurer’s Office through the end of March reviewing the records. They prepare the draft document and it is reviewed by County staff. When everyone agrees with the findings it is distributed.

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HighlightsCurrent Funds

Cash balances are up $4.6 million (new high). Last three year’s cash balance has increased by $18.5 million. Total fund balance is $60.2 million

Discussed dynamics of the fund balance and why the fund balance goes up and down. It was stable for about ten years, fluctuating slightly at $45 million. In the last few years it is up to $60 million. This will start to decline. He would like to see a little decline and have it stabilize again for another ten years.

Some dynamics going into the fund balance generation are unanticipated revenue in 2014 (may not be recurring again)

Rating agencies look for a minimum of 5 – 10% of budget held in reserve that is $16 to $32 million of uncommitted funds. From the rating agencies standpoint, the County is very strong.

Open Space Trust Fund. The Open Space balance ended the year at $71.5 million - about a $35 million decline over the last three years. There are commitments against those funds. Cash has declined as property taxes have been reduced.

The County has an accumulated absence account reserve of $2.8 million (excellent planning) that is 25 to 30% of the total liability that will have to be paid out for the current employees on their accumulated sick and vacation time. That reserve has kept the County out of having to bond those expenses like many local governments have needed to do. A snow removal reserve (storm related expenses) is $2.7 million.

Capital Fund – the cash balance is down by $10.4 million this past year primarily because more projects are being completed than capital projects are being authorized. Seven years ago the County implemented a policy of not to authorize more new debt than pay down.

Debt guaranteed through the MCIA is down from $195,000 in 2012, $187,000 in 2013 to $177,000 in 2014. He discussed the renewable energy debt. This liability exposure has been discussed significantly with the rating agencies and the County is still able to maintain its rating.

Other post retirements – increased last year to $896 million. Still a large number. They have discussed extensively how to reduce that future

liability. Progress has been made to try to reduce that for the future.

They have been talking with the budget subcommittee of the possibility of removing the reporting level from the departments to the financial office where all the accountants are. This will continue to be discussed.

ADMINISTRATOR’S REPORTAt the Improvement Authority meeting earlier this afternoon he reported that the following SRECs were sold:

Solar I - 2,421 at $547,700, $225/SRECSolar II – 1,500 at $348,500.

Mr. Bonanni attended the Lake Hopatcong meeting. The DEP is looking for additional assistance. Their goal is to get the towns and County to participate more to help clean up the lake.

Over the past 1 ½ weeks he has been providing information to the media to balance information coming from the Sheriff’s Office on jail staffing and overtime. The media was told that the spike in overtime was a direct result of the mass departure experienced through non-competitive salaries. Mr. Bonanni noted typically over the past seven years there have been six resignations per year. The Sheriff reported during 2013 – 2014 that 39 individuals left the facility. Mr. Bonanni said that factually 16 individuals resigned, 13 retired, 7 resigned in lieu of termination, 2 accepted transfers to the Sheriff’s Office and one tragically passed away. With those departures the facility needed to run on additional overtime. The new changes in Chapter 78 implementation also increased departures for retirement.

COUNTY COUNSEL’S REPORTHis department reviewed fifty-two resolutions. There are fifteen ordinances for introduction scheduled for tonight’s meeting and the public hearings will take place in two weeks.

FREEHOLDER LYONHe had no report at this time.

FREEHOLDER MASTRANGELOFreeholder Mastrangelo had the following to report on Office of Information Technology:

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Virtual Desktop Proof of Concept:  OIT in conjunction with a corporate team consisting of VMWare, EMC and CDI is running a Virtual Desktop test to evaluate the potential merits of this technology. OIT is evaluating the physical infrastructure and software application hosting aspects of this technology to include Thin and Zero client desktop configurations.   In addition to the basic desktop tools; testing includes the ability to support the County’s Purchasing (MSI), Payroll (Kronos) and key OTA applications (NJKids, and DIMS). 

FREEHOLDER CESAROFreeholder Cesaro reported on the following: The last night of presentations by

applicants for the 2015 Historic Preservation funds is tonight. Once presentations are complete, the Historic Preservation Trust Fund Review Board will deliberate and present recommendations to the Board of Chosen Freeholders on June 24th.

Applications to the 2015 Morris County Open Space Program are due on June 19th.

Relative to Mosquito Control, Resolution #18 will allow for the execution of an annual use agreement for utilization of state-owned equipment.

FREEHOLDER SCAPICCHIOFreeholder Scapicchio reported on the following: Staff completed review of proposals

for the design of the realignment of Schooley’s Mountain Road at Camp Washington Road. The scope includes the design of two bridges. Passage of Resolution #33 will allow for award of the contract and design is expected to be completed within a year.

Work to replace the Main Street Bridge in Mendham Township will begin on July 6th.

Roadway resurfacing is well underway. Staff is hosting pre-construction meetings with the contractors and impacted municipalities regularly.

FREEHOLDER CABANAHe reported on Law and Public Safety:

The Madison Police Department joined the County Police Record Management System as of June 2nd. 

The EOC has been designated as an official training location by the National Association of Emergency Medical Technicians.  We are now authorized to host NAEMT courses at the complex. 

The Communications Center participated in developing an emergency response plan for an 11 year old in Chatham Borough who was on a transplant list.  On May 27th a call was received at the center to activate the plan. The boy had to be in Philadelphia within a 2 hour window.  The plan was to utilize the NJ State Police Helicopter but due to weather conditions the helicopter was unavailable.  The Comm. Center staff improvised and coordinated with several agencies to arrange an escort of an ambulance to Philly.  The child made it within the two hour window and underwent the transplant.

There are many untold events that our Communications staff take care of in the course of their job. This one is particularly gratifying and this is worth recognition.

He attended the Giralda Farms Park opening ceremony. This was the biggest parcel of land that the County has been involved in purchasing. Many partnerships contributed to supporting the purchase including the County, Park Commission and MUA. Dave Helmer did a particularly good job at this event in telling the history of this piece of property.

Freeholder Mastrangelo attended the ceremony and he noted after seeing this parcel of land how much he appreciates open space and what it means to the County and its residents.

FREEHOLDER DeFILLIPPOShe reviewed her recent activity in attending/ participating in the following events:

Energy Consultant Evaluation Committee, the DEP meeting at Lake Hopatcong, Budget Presentation, Employee Service Awards, Giralda Farms (the enthusiasm of the people attending was remarkable).

She had a telephone conference call regarding the Highlands Act.  The conference call was initiated by Warren County Freeholder Ed Smith to set up a meeting with Senator Smith from Piscataway.  Senator Smith was one of the sponsors of the Highlands Act. Warren County is looking to get out of the Highlands Act.  They contend that

FREEHOLDER CONFERENCE MEETING – JUNE 10, 2015- 5 -

water supply flows directly into the Delaware River and is not used for consumption by NJ residents.

Morris County and other counties have issues with the Act, such as property owners have not been reimbursed in the Highlands Preservation Area for their devalued property.  There is no funding mechanism in place.  They discussed several examples of property values plummeting since the Act was legislated. This is an economic hardship for those counties the way the act is written.  These items will be brought to the table at today’s meeting.   

Ms. Leary noted that she just received an email from John Donnadio of NJAC who summarized the meeting.  It seems that the most viable issue to pursue is to try to get the highway/roadway corridors that were wrongly placed in the preservation area out of that area so economic development can occur along those corridors.  It did not seem that they could get much leverage with the other items.  The next step would be to meet with the environmental groups that are advocates of the Highlands Act.  

Director DeFillippo attended the Mental Health 21st annual Public Forum for Consumers and Families. This was very well attended.

Heritage Commission – It was reported at the meeting that some actions are coming out of Trenton that could affect the Morris County programs. She will find out more information on this.

Director DeFillippo reviewed two resolutions that were up for consideration: The first one, to request additional funding in the State’s 2016 budget to bring the County paratransit transportation funding back to 2012 levels; and the second, to endorse Senate Bill No. 192 that reauthorizes the Older Americans Act of 2015. The Board approved placing these resolutions on tonight’s meeting agenda.

Clerk’s ReportThe next Freeholder meetings (June 24) will take place in Chatham Township. She will email the Board with the additional away meetings schedule for the remainder of the year.

DEPARTMENT HEADS REPORTSThere were no reports.

RESOLUTIONS

There was discussion by the Board about Resolution No. 39, which endorses the recommendations of the Morris County Improvement Authority Energy Project and Construction Management Consulting Services RFP Committee. Mr. Bonanni discussed the findings of the evaluations committee and the upcoming process that will be taken regarding the Improvement Authority and Solar II. The evaluation committee consisted of Freeholders Mastrangelo, Lyon and Director DeFillippo. Some members of the Board felt that the RFP should be restructured to get a more competitive bid. The Board decided to keep Resolution No. 39 on the agenda and the deciding vote can be taken at the evening meeting.

ROAD OPENING PERMITThe Board reviewed the permit and approved placing the permit on the evening’s agenda.

On motion by Freeholder Mastrangelo and seconded by Freeholder Lyon, the meeting adjourned at 6:50 p.m.

Sincerely,

Susan AllardDeputy Clerk of the Board