PALMER TOWNSHIP BOARD OF SUPERVISORS

GENERAL BUSINESS MEETING

JUNE 23, 2009

A general business meeting of the Palmer Township Board of Supervisors was held on Tuesday, June 23, 2009 at 7:00 p.m. in the Community Room of the Palmer Library with four Supervisors in attendance. Supervisor Mitchell was absent. Also in attendance were the Planning Director, Police Chief and Township Solicitor. The Township Manager and Director of Public Services were absent. Christopher Knight from the Express Times and Andrew McGill from the Morning Call represented the news media. Colver convened the meeting and led those present in the Pledge to the Flag.

2. APPROVAL OF DISBURSEMENT OF FUNDS – JUNE 23, 2009

INFORMATION

The report will be provided at the meeting.

DISCUSSION

On motion by Panella, seconded by Smith, and agreed by all, the Board approved the disbursement of funds for June 23, 2009.

3. APPROVAL OF MINUTES – JUNE 15, 2009

DISCUSSION

On motion by Lammi, seconded by Smith, and agreed by all, the Board approved the minutes of June 15, 2009.

Colver said we typically do our public comment section at the end of the meeting but since we have a large group of residents representing the Fox Run development we will discuss their issue first. Colver said he had asked the township solicitor to get an update from the developer’s attorney for tonight’s meeting.

Solicitor Bruno said he spoke with Mr. Davis regarding the purpose of his letter and he said it is notice of their intent to file a mechanic’s lien claim. Bruno said Atlantic VanBuren Companies had a contract with Allan Myers to do work throughout the subdivision. Allan Myers is owed approximately $150,000 for work they did as contracted by Atlantic VanBuren. Bruno said their attorney attempted to give notice of the mechanic’s lien law to all residents of the subdivision. Bruno said they have not yet filed the lien but the letter gives the required 30-day notice of their intent to file a lien. Bruno said he was told the developer’s attorney has been in contact with the contractor’s attorney but nothing has been agreed upon to date.

Bruno said the mechanic’s lien operates as a property lien and if there would be a sale of a property the lien would have to be paid to clear the title. The lien represents a potential title problem for the residents. Bruno said they want security interest as collateral. Bruno said Ryan Homes has their attorney in attendance tonight that would like to be heard. Bruno said unfortunately the Board of Supervisors and Palmer Township are not in a position to do anything about this situation because the township does not have standing in this matter. The township did not have a contract with Allan Myers. Bruno said the township is limited to asserting its rights under the improvements agreement. A developer must make a commitment to complete public improvements in a development and those improvements are secured in a letter of credit. In this case it was between Atlantic VanBuren and the township. Atlantic VanBuren has a certain period of time to complete their public improvements. Bruno said, at this time, the developer is in breach of that agreement. At the last Board of Supervisors meeting, this board authorized me to draw down on Atlantic VanBuren’s letter of credit to be able to complete the public improvements that remain. Bruno said he spoke with the developer’s attorney regarding the letter of credit and they stated they want to work with the township to allow them to complete the project. Bruno said he has not yet made a demand on the letter of credit since both parties are working on a conclusion to the problem. Bruno said the township cannot get involved in the private matter between Atlantic VanBuren and Allan Myers, but the township will get involved in the issues related to the public improvements that remain to be completed. Bruno said the Fox Run residents have a title issue and they have the right to contact an attorney. Bruno said they should all know there are methods of filing objections to mechanics’ liens’.

Colver said the letter of credit is for $800,000 that the township will be able to use it to complete the paving, curbing, sidewalk, streetlights, street trees, etc. If we have to pull the letter of credit to finish the work and there would be an overage of costs, the township would have to go after Atlantic VanBuren for the difference. Colver said if the work can be done for less, what happens to the remaining money? Bruno said if anything is left over you are obligated to return the funds to Atlantic VanBuren. Bruno said the secured money covers technical review fees, legal fees and any other costs associated with the development. Colver asked if there were any questions from the Board for the solicitor. There were none.

Andrew McReynolds, Attorney representing Ryan Homes, said he was asked to attend this evening to express Ryan Homes’ apology for you having to come out tonight. McReynolds said this letter is a nature of dispute not between you and anyone, but Atlantic VanBuren and Allan Myers. McReynolds said Ryan Homes feels there will be no validity to the mechanics’ liens’ because Allan Meyers did not do any work on any of your individual properties. McReynolds said the work under dispute is part of the public improvements and there is security posted to cover those costs. Again McReynolds apologized that the residents had to get involved. McReynolds said each resident will be getting a letter from Ryan Homes in the near future.

Purvi Shas, 110 Lower Way Road, asked if they need to worry about refinancing their homes. McReynolds said the Pennsylvania law requires a 30-day notice be given of intent to file a lien. McReynolds said we feel if they try to file a lien it will not have validity to it and would be struck down by the court. Colver asked if the work Allan Myers performed was work done in the public right-of-way. McReynolds said he’s been told all the work in dispute has to do with the public improvements in the development.

Paula Styles, 33 Upper Way Road, said there were people paving driveways this week that paved driveways a few years ago.

Joe LaDuca, 2 Upper Way Road, said it was Keystone Paving Company who did his driveway today.

Amit Mehta, 3028 Fox Hill Road, said he didn’t understand what road work they are talking about. Mehta said all the work has been sloppy work and incomplete. Colver explained what work falls under public improvements. Mehta said when we purchased our homes isn’t it implied we already paid for these services.

Jody Smith, 115 Lower Way Road, said if it does come out that the work was public improvements does that mean the Board of Supervisors will cover the expenses. Bruno said the Board of Supervisors has to make sure we have adequate money to finish the jobs. Bruno said, assuming there is adequate money, after the roads and work is done if there is money available it would be up to Allan Myers to try to collect any money owed to them. The township cannot pay a third party contractor. Smith said 150 homes have had liens put on their properties - does the homeowner have to pay twice for their homes. Smith said so does that mean we could also be hit for sewer lines, electric lines that weren’t paid for. Bruno said we can speak to what has happened not to what could happen. Bruno said there is nothing the township can do about the mechanics lien attached to your property. The township cannot get involved in private disputes. As much as the township is concerned we can only protect the public issues. Bruno said the last work has to have been done within six months of the notices for a mechanic’s lien to be attached to a property.

Township Engineer Brian Dillman said this is a dispute about payment not about work being completed. Dillman said if the work was completed satisfactorily the township is not the guarantor. The contractors have not been paid by the developer.

Tanya Renee, 3004 Fox Hill Road, said she spoke to a representative of Allan Myers and was told that they want all the help of the homeowners to put pressure on Atlantic VanBuren.

Matthew Puzio, 37 Upper Way Road, moved in his home in 2007 and no one has done any work since then. Pizio said their lawyer told us the improvements they are making benefit all of us. Bruno said since all homeowners benefited they believe they have a right to file the lien. Colver said this is a first for us too, I’ve been a part of this Board for 12 years and we never saw this before. Mathew asked if they filed with the county or the township. Bruno said it gets filed through Northampton County. Does someone review it to say it is frivolous? Bruno said you can challenge it and then a ruling would be made.

Kevin Joshua, 219 Lower Way Road, asked if Ryan Homes will take charge of this and see that it is cleared up. Joshua said he is worried that two or three years down the road we’ll find out a lien will still be attached to the house. Will someone keep us informed? Who will take the lead or do we all have to file individually? McReynolds said a letter will be coming to all the homeowners shortly from Ryan Homes. McReynolds said it was his understanding that Ryan Homes’ position is that any mechanic’s lien filed would not be valid. Bruno said you should know if a lien is filed they have to notify you at that time and there will be instructions about challenging the lien. Bruno said the notice you just received states their intent to file the lien, another notice will come if they actually file the lien.

Dennis Brown, 3024 Fox Hill Road, asked if the lien is not challenged is it automatically accepted. McReynolds said if a lien is filed you need to take action to defend it.

Michael Sartini, 135 Clover Hollow, said he wanted the township to know that people on Clover Hollow are still getting a lot of storm water on their properties.

David Behar, 18 Lower Way Road, asked if Mr. McReynolds could elaborate on why they think the lien is meritless. McReynolds said in essence there was no work done by this contractor on your property so they have no right to file a lien on your property. Behar asked if a case could be made because of the benefit the property owners get from the improvements. McReynolds said Pennsylvania is one of a few states that allow mechanics’ liens’ and they are very tricky with a lot of procedural elements that need to be met. He said they are governed by statutes on how they can be done. Behar said we are disappointed with Ryan Homes because that is who we contracted with. McReynolds said the dispute is not between Ryan Homes, it is between the developer and the contractor. Behar asked for clarification on procedures for the developer. Again the solicitor reviewed the letter of credit process that developers have to follow. Colver said the initial escrow amount that Atlantic VanBuren had to secure was probably around three or four million dollars. Behar asked if Ryan Homes is allowed to continue to build in the township. Colver said the dispute is not with Ryan Homes it is between Atlantic VanBuren and Allan Myers. Behar said then there should be enough money to cover the improvements that are left. Bruno said the money left should be the cost to finish the project.

Dean Cooley, 102 Lower Way Road, asked who is responsible for the catch basin off of Lower Way Road. Cooley said Allan Myers redid the catch basin in February. Colver said Atlantic VanBuren is responsible. Lammi said that is a public improvement. Cooley said Allan Myers still has cones and a mess they left behind. Cooley said Allan Myers did the detention pond work and asked if that is the township or developers responsibility. Lammi said it is part of the public improvements.

Varsha Desai, 3100 Fox Hill Road , asked if the escrow account has a time limit. Bruno said the letter of credit expires at the end of July. Bruno said the township will have to take action before the end of July to draw down on the letter of credit unless an agreement is worked out in the meantime with Atlantic VanBuren.

Tracy Demaria, 22 Lower Way Road, asked if there were records of what work has been done and approved so when we get an attorney we have that information. Colver said there is a detailed breakdown and all the letter of credit releases are done at these Board meetings.

Art Schlessinger, 19 Canterbury Lane, said there are about 30 people in attendance from the Glenmoor development for an item that is on the agenda. We would like to know how long we have to wait to get back on the agenda items.

Lammi made a motion requesting a letter be written by the solicitor to both Atlantic VanBuren and Allan Myers companies indicating that the Board of Supervisors are not happy that this is happening to the residents and we hope the issue can be resolved in favor of the residents. The motion was seconded by Smith, and agreed by all.

4. JOSEPH I FINAL PLAN

INFORMATION

The Board needs to approve/disapprove stage II of the plan.

DISCUSSION

Planning Director Cyndie Carman said we saw this project back in April and you gave approval for the revised preliminary plan and Phase I for a bank to be located in Lower Nazareth with the parking lot in Palmer Township. The second phase retail building will be at a later date. Carman said at that meeting the Board of Supervisors asked for them to come back with their phasing plan for final approval.

Colver asked if there was anything outstanding from the township engineer’s office. Dillman said there were no outstanding items. Colver said if he remembers correctly the applicant was going to make a voluntary traffic contribution of $25,000 and recreation fees of $30,000 at the time of plan recording. Mark Hintenlang, engineer for the applicant, asked if both fees could be paid when the Certificate of Occupancy permit is issued to the bank. Bruno said typically it is paid prior to recording the plan. Colver said we have always asked for these fees when recording the plan. Bruno said recreation fees could be secured as an improvements security for a period of six months following plan recording. Bruno said that is permitted by our ordinance.

Lammi made a motion to approve the final phase I and II land development plan with the following conditions: the applicant address the comments in the township engineer letter dated June 12, 2009, satisfy any remaining departmental comments dated April 9, 2009, comply with the previously granted preliminary land development conditions set in July 2004 – as applicable, pay a voluntary traffic contribution of $25,000 paid at time of plan filing and secure for recreation fees in the amount of $3,000 per acre for a total of $30,000, enter into an improvements agreement to the satisfaction of the township solicitor, submit financial security in a form acceptable to the township solicitor. The motion was seconded by Smith. Colver asked to clarify that the fees cover both parcels for phases I and II. Lammi and Smith amended their motion to include Colver’s clarification. The motion was voted on and agreed by all.

5. REQUEST TO ENTERTAIN ZONING AMENDMENTS

INFORMATION

The Board needs to approve/disapprove entertaining the zoning amendment request.

DISCUSSION

Attorney Paul Harak, from Boyer, Holzinger, Harak and Scomillio, 1216 Linden Street, said he is representing several residents from the Glenmoor Development. Harak said residents were very concerned about the HDR2 zoning district as it related to the recent life care center that was proposed near their neighborhood. Harak said the residents thought these proposed changes may be appropriate. Harak said some of the issues probably would have been hashed out if the Weston Project went any further. Harak said they met with Jim Raudenbush and Cyndie Carman and he attempted to write a letter noting where we feel the changes would go in the township ordinance. If the township is willing to entertain the request, we will post escrow and go through the planning process and then to the Board of Supervisors for approval. Harak said we are proposing paper changes only and we ask that you consider the $5,000 escrow requirement be reduced to $2,500 since it is only language changes. Colver asked Supervisor Lammi if we can take this under advisement and asked if it is really something that needs security posted. Lammi said it requires work by the township staff as well as from a legal and engineering standpoint. Lammi said that is why we ask for the escrow to be set up. Carman said it would also require a public hearing that requires advertising. Smith asked if it has any bearing on any other area of the township. Lammi said it is specifically related to HDR2. Lammi said since the Weston project has not progressed, everything stopped. Harak said it was his understanding that certain amendments were made to the ordinance related to the life care center. Lammi said the life care center was a conditional use, but there were no regulations for a life care center so that is why we put them in the ordinance.

Bill Dengler, 138 Glenmoor, said there are seven items, four effect the HDR2 and three pertain to section 190-210 related to life care centers. Dengler said we had concerns about some of the things that were added like the setback of 25 feet. Colver said Weston already has a plan filed and if they decide to proceed with it they would be grandfathered with their prior approval to any changes you make in the future. Bruno said Weston is considering keeping their plan preserved for the future. Dengler reviewed some of the concerns they had. Lammi said after sitting in on the meetings and listening to your concerns as far as setback and building height I have to agree I would have a problem with it too if I was the neighbor. Lammi said whether in HDR2 or HDR there needs to be some protection for the existing residents. Lammi said he agrees the township needs to look at this further. Colver asked if this is more of an advisement to consider township wide or just specific to this location. Lammi said it would be for anywhere a life care center would be proposed. Bruno said if the township wants to entertain the request as presented you have the discretion to do it. If you feel it is part of a bigger picture to be looked at, take it under advisement for overall consideration, there will be no need to set up an escrow. Harak confirmed that the residents understood if these proposed changes to the ordinance do happen at a future date they would not apply to the Weston plan because it was approved before the changes took effect.

Bruno asked Mr. Harak if he is asking the Board to take this letter under advisement. Harak said yes. Lammi asked the township planning director to look at the township ordinance and make comment regarding the proposed changes.

Art Schlessinger, 19 Canterbury, confirmed that if Weston decides to move forward they would fall under the old rules. Colver said only for the parcel they were approved for. Schlessinger said if the ordinance changes are made they would apply to anyone who would want to build on that property in the future. Lammi said just in HDR2 and HDR zones.

6. TOWNSHIP ENGINEER CAPITAL PROJECTS UPDATE

INFORMATION

The township engineer will update the Board on the status of all capital projects.

DISCUSSION

Dillman said the specifications for the Greenwood Avenue extension project were delivered to the township today. Colver said this project is not going to happen this year. We’re just going out to bid in July.

Colver said the township engineer’s office is marking up a plan to get started on the western entrance of the community center. Lammi said we also have the work that needs to be done at the pool that we received a matching grant for. Lammi said with the recreation account balance getting low, I’m concerned we won’t have the money to do the pool work and maybe we should be using the funds we allocated for the community center entrance. Lammi asked if it was critical that we do the community center entrance now. Colver said we have a couple issues, the expiring Penndot permit and the benefactor’s willingness to continue working.

7. PUBLIC COMMENT

Ms. Suzanne Baer, 201 Berks Street, said Scott and his crew were courteous and professional and she was surprised considering the agreement she had to sign. Baer said there are areas where the two foot terrace is less than two feet. She’ll have to dig it out at a later date. Baer said she raked off most of the straw and she is reseeding some areas but finally after twenty months she has something she can work with.

8. REPORTS

Solicitor

· Bruno had the conditional use letter for the Finelli application for the Chairman’s signature. On motion by Lammi, seconded by Smith, and agreed by all, the Board authorized the Chairman to sign the letter.

· Bruno had an extension request to complete public improvements for Knobhill requesting an extension until September 30, 2009. Colver said this is the group that residents had concerns with the gates, roads and street signs. Lammi recommended a notice be included with the extension stating this will be the last extension from the Board. On motion by Lammi, seconded by Smith and agreed by all, the Board approved the extension request for Knobhill, noting it will be the last extension approved.

· Bruno had a one year extension request from Mr. Kharecha for his minor subdivision on Nicholas Street in order to complete improvements. It is coupled with my next request from Mr. Cahill who is also requesting a one year extension due to economic conditions preventing them to move forward at this time. Smith made a motion to approve the extension request until June 30, 2010, it was seconded by Panella. Lammi asked why Mr. Kharecha was making the request. Bruno said there was no specific note on why he wanted the extension. Smith and Panella amended their motion to have Mr. Kharecha provide a schedule to the township within 30 days. The motion was voted on and agreed by all.

· Bruno had an extension request from Mr. Cahill requesting a one year extension for recording of their plan until June 30, 2010. Bruno noted Mr. Cahill’s request is based on current economic conditions. On motion by Smith, seconded by Lammi, and agreed by all, the Board approved the extension request.

· Bruno had an extension request from Dr. Mittal asking for a 180-day extension of time for recording their plan in order to satisfy outstanding conditions. On motion by Lammi, seconded by Smith, and agreed by all, the Board approved the extension request.

· Bruno had an extension agreement for CMC Development, Maple Shade Estates, requesting an extension of time with no extension date noted. Lammi suggested we give them a 60-day extension and ask them to provide additional information. On motion by Lammi, seconded by Smith, and agreed by all, the Board approved an extension until August 31, 2009.

Planning Director

· Carman said we requested an increase in the security for the Estates of Penns Grant South in the amount of $195,987.37. Carman said the increase was recommended by the Pidcock Company. Carman said they came back to us and said they believe they can do the work for less. Colver said because of what we had happen tonight with the Fox Run residents we need to make sure the township is protected. The Board agreed.

· Carman said the Anthony Court paving, streetlight, curb and sidewalk work was done last week. Carman said the clean-up of the vacant lot still needs to be done but they have until the end of next week. Carman said Mr. Pugliese assures us they will be done next week.

Police Chief

· Chief Fretz said the Junior Police Academy is being held this week at the Chrin Community Center. There are 20 kids attending, two dropped out because they felt it was too strict but they were replaced by two that were on a waiting list. Fretz said Sue Siegfried and Ricky Umstead do an excellent job with this program.

Supervisors

· Smith said baseball has ended and the tournaments are now running. Softball is ending and football starts in five weeks.

· Lammi said last week we talked about the density ordinance. Lammi said he would like the Boards approval to use Brian Dillman’s services to meet with Cyndie and myself to brainstorm the whole issue. Lammi said he thinks it is important to have in our ordinance. The Board members agreed.

· Colver reminded everyone that tomorrow night at the Charles Chrin Community Center the BIP will be dedicating the playground and awarding their scholarships.

· Colver said Thursday night from 7 p.m. to 9 p.m. the public meeting related to the Route 33 interchange will be held at the Charles Chrin Community Center. Colver said they received a few more letters of support from companies supporting the interchange.

· Colver said a few months ago he suggested we have the township manager bring department heads in to give us a 10-minute review of any issues related to their budgets. Colver said this should give us a snapshot of the situation before our November budget meetings begin. Colver suggested they begin the end of August. Smith said we are asking the same from the Recreation Board.

On motion by Panella, seconded by Smith, and agreed by all, the meeting was adjourned at 9:10 p.m.

Respectfully submitted,

Robert G. Anckaitis

Township Manager