June 24 Town Council meeting

Council approved proposals to award $1.4 million in contracts for street improvements, increase the personnel contract for the jitney bus service nearly 6%, and send third-quarter property tax bills that are estimated rather than actual at the June 24, 2014, meeting.

The meeting agendas and related materials are here. Video of the meeting -- downloadable and indexed so you can quickly find the topics you’re looking for – is here.

Council approved two competitively bid street-reconstruction contracts:

- $825,000 for street improvements on Whittlesey Avenue and Mayfair Drive, to Reggio Construction of Fort Lee. The cost would be offset with a $276,300 state grant.

- $560,856 for street and sewer improvements on Moore Terrace, to A&J Contractors Group of Monroe Township.

In addition, council approved awarding three professional services contracts:

- $15,950 to Suburban Consulting Engineers of Mt. Arlington, to design and draw up contract specifications for street improvements for Oxford Terrace, Dartmouth Road and Winding Way. The firm was the best of three solicited firms that provided proposals.

- $3,200 to Suburban Consulting to design four sanitary sewer connections for homes on Luddington Road. The firm had an earlier $8,110 contract to determine the feasibility of switching the sewer connections from a major trunk causing problems for these homes.

- A not-to-exceed $60,000 to Associated Appraisal Group of Newark, for real estate appraisal services related to inspections for building permits and to assessments related to property tax appeals. The contract was awarded through the state “fair and open” process that requires advertising of the contract opportunity.

Council also approved an extension and expansion of the town’s contract with Mobility Coach of Monroe Township to provide drivers for the jitney bus service, which runs five routes at morning and evening rush to two South Orange train stations. The two-year contract, which takes effect July 1, raises the base cost for four bus routes 5.9% to $278,400 from $262,800. (The basic contract cost will have increased 16% from mid-2012.) In addition, the 2013 addition of a fifth bus route adds another $70,135 over the two years of the contract, bringing the total cost of jitney drivers to $348,535 (or $174,268 annualized).

At my request, the administration provided an initial cost analysis indicating the annual cost of the jitney service is $260,440. This analysis is based on the current contract; the extension will bring this cost to approximately $270,198 annually. The analysis indicates 225 “daily ridership,” and Town Engineer Leonard Lepore clarified that this is the average number of people served daily ($1,200 per rider annually). The town does not charge riders for the service (the only town in Essex County that I know of that doesn’t charge for jitney service). The administration's analysis is here.

The analysis indicates that if the town begins charging for the service, it will incur an additional $35,800 in costs related to increased regulatory compliance. That would bring total annual costs to $305,998 (or $1,360 per person annually). The administration did not respond to my request for a survey of what other municipalities charge for their jitney service and how they implement that charge.

The analysis shows that charging:

- 50 cents per day/$130 per year would reduce the town’s subsidy by $29,250

- $1 per day/$260 per year would reduce the subsidy by $58,500

- $2 per day/$520 per year would reduce the subsidy by $117,000

- $150 annually, as South Orange does, would reduce the subsidy by $33,750.

The analysis shows the cost of a New Jersey Transit parking space near a station as $840 annually.

As I have argued at several recent council meetings, I urged the council to consider implementing a charge to reduce the subsidy. I noted that the town charges for pool membership and recreation services to help offset those costs. Councilman Jerry Guarino opposed any charge, saying the service is valuable to riders and open to all residents. Councilman Victor Cirilo opposed any charge, saying the jitney provides intangible support to property values. Council President Susan McCartney closed debate by saying that the council could perhaps consider the issue for the 2015 municipal budget.

Council also approved the administration’s request to send out third-quarter property tax bills with an estimated tax, because Essex County has not finalized its budget. When the administration moved to adopt the 2014 municipal budget at the May 6 council meeting – months ahead of the traditional closing – it argued that this would allow the town to send out third-quarter bills with the actual, rather than estimated, taxes.

The town is estimating the total 2014 tax levy, including the county, school and two Open Space taxes, at $209,622,730, a 1.8% increase from last year. The tax levy is the total tax revenue needed to fund a budget. The tax rate is the percentage of total assessed value of property in the town needed to fund the levy. When total assessed value is declining -- as it has done the last several years in West Orange -- the tax rate must rise to make up for the reduced revenue from the shrinking total assessed value. The total 2014 property tax rate increase is estimated at 2.8%. You can see the town’s estimate here.

The adopted 2014 municipal budget raises the tax rate 0.9%, with the average residential tax rate rising 1.2% because of a projected increase in average assessed value. You can see the relevant page from the budget here. The estimate also includes an adopted 3.5% increase in the school tax rate and the estimated 3% increase in the county tax rate.

Typically, the town will get state approval to send out the estimated tax bills and then “true up” in the fourth-quarter bill when the levy and taxes become final.

Three proposed ordinances moved forward at the meeting:

- On second and final reading, a proposed definition for parking meters.

- On second and final reading, proposed handicapped parking spaces for Shepard Terrace and Llewellyn Avenue.

- On first reading, a proposal that sets salary ranges for various municipal jobs related to previously approved or mandated increases.

Other proposals approved included:

- A $48,434 purchase of two motorcycles for the police department.

- Grants for recreation and social services to the Police Athletic League ($12,000), Mountain Top League ($9,500) and Community House ($45,000).

- $150,019 to reimburse 20 private communities for 2013 snow removal costs. These fees proportionally reflects the town’s costs.

- $68,544 to reimburse Llewellyn Park for 2013 leaf collection costs. The fee proportionally reflects the town’s costs.

The meeting also featured public comments against the council majority’s approval at the last meeting of a $60,000 project to build new bleachers to improve the sight line on the third-base side of the high school baseball field, as well as the appropriateness of the town paying for projects on school property and issuing bonds for projects on school to help the school district avoid the state requirement of voter approval of most school bonding.

If you’d like to contact the council with your thoughts on any of these issues, please send an e-mail to council@westorange.org or call 973.325.4155 to leave a message.

I’m a West Orange Township councilman since 2010, reachable at jkrakoviak@westorange.org. I'm a business communications consultant in my spare time.