Conference/Public Meeting Agenda/Documents — Packet

197-12 October 16, 2012 RESOLUTION WHEREAS, pursuant to a public bidding process the Township of West Orange (the “Township”) entered into an agreement with ConQuest Industries, LLC (“ConQuest”) for certain construction work to be timely completed by ConQuest in connection with the Downtown West Orange Streetscape and Traffic Improvement Program (the “Agreement”); and WHEREAS, the Agreement provided that ConQuest would, among other things, replace traffic signals, perform electrical work, reconstruct sidewalks, replace curbing, improve drainage and install landscaping and site amenities (the “Work”) within the downtown area of the Township; and WHEREAS, on April 11, 2011, ConQuest was given a “Notice to Proceed” date of May 2, 2011 with respect to the Work, and the Agreement contemplated a completion date of October 29, 2011; and WHEREAS, ConQuest has still not fully and finally completed the Work; and WHEREAS, the Township asserts that the delays in completing the Work have caused the Township damages, including additional engineering and police coverage costs; and WHEREAS, ConQuest has agreed to amicably resolve these issues that have arisen in connection with the Agreement and the Work without the need for litigation, and both the Township and ConQuest intends to memorialize the release and resolution of these issues by execution of a Stipulation of Settlement in the form annexed as Attachment “A” (the “Stipulation”); and WHEREAS, ConQuest has agreed to remit $60,000 to the Township for damages the Township has incurred in connection with the Agreement; and WHEREAS, on September 11, 2012, following a settlement meeting with Conquest, the Township Council approved Resolution No. 176-12. ConQuest has refused to sign the Stipulation approved September 11, 2012 and negotiated certain modifications which are reflected on the annexed Revised Stipulation; and

WHEREAS, the Township Attorney recommends that the Township enter into the Stipulation; NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE TOWNSHIP COUNCIL OF THE TOWNSHIP OF WEST ORANGE, that the Mayor and Township Clerk be and hereby are authorized to execute and attest to the Revised Stipulation in the form annexed hereto; BE IT FURTHER RESOLVED, that a true copy of the Agreement shall remain on file with the Township Clerk for inspection by the public. Karen J. Carnevale Victor Cirilo Municipal Clerk Council President Adopted: October 16, 2012

Best Practices Worksheet CY 2012/SFY2013 West Orange Township (Essex) 0722 Please see Color Key at bottom of sheet for limits on answers Answer Question Comments Sharing services has been promoted for many years as a means to control costs. In addition to sharing resources such as labor, facilities and equipment with a county or with neighboring communities, shared services include similar agreements with school boards, independent authorities and fire districts. Shared services do not include 1 Yes cooperative purchasing, cooperative pricing or commodity resale agreements. Did your municipality actively negotiate (i.e. meet with representatives from a neighboring town, your county or another local unit) and/or enter into at least one new shared service agreement in 2011? N.J.S.A. 40A:65-4b requires municipalities to file a copy of their shared service The Township has a number of shared agreements, including amendments and renewals thereof, with the Division of Local service agreements, but it is unclear Government Services. Has your municipality filed a copy of all shared service agreements 2 Prospective whether any have been submitted to presently in effect, along with any amendments thereto, with the Division? This response the DLGS. Those that have not yet shall not include cooperative purchasing, cooperative pricing or commodity resale been provided will be sent to the DLGS.

ive pricing or commodity resale been provided will be sent to the DLGS. agreements. Has your municipality adopted a vehicle use policy prohibiting personal use of municipal vehicles, and providing that employees authorized to use such vehicles for commuting 3 Yes to/from work have a fringe benefit value added to the gross income reported on the employee's W-2 (unless the vehicle meets the "qualified non-personal vehicle" criteria specified by the IRS)? Does your municipality’s legal counsel and/or qualified purchasing agent review and 4 Yes approve procurement specifications and professional service contracts before contracts are executed? Municipalities and their agencies are allowed to prohibit the award of public contracts to business entities that have made certain campaign contributions exceeding $300 and to limit the contributions that the holders of a contract can make during the term of a 5 No contract to $300. A model ordinance concerning pay-to-play can be found at Currently Enforcing State Regulations www.nj.gov/dca/lgs/muniaid/pay_to_play_ordinance-contractor.doc. Has your municipality adopted a pay-to-play ordinance pursuant to N.J.S.A. 40A:11-51 that is more restrictive than state statutory requirements?

Best Practices Worksheet CY 2012/SFY2013 West Orange Township (Essex) 0722 Please see Color Key at bottom of sheet for limits on answers Answer Question Comments Does your municipality maintain an up-to-date municipal website containing at minimum the following: past three years adopted budgets; the current year's proposed budget including the full adopted budget for current year when approved by governing body; most recent annual financial statement and audits; notification(s) for solicitation of bids 6 Yes and RFPs; contact information for elected and appointed officials, municipal administrator or manager, municipal clerk, police chief, municipal court administrator and all department heads; and meeting dates, minutes and agendas for the governing body, planning board, board of adjustment and all commissions? Does your municipality require its elected officials to attend on an annual basis at least one course offered by the Rutgers University Center for Government Services (or a 7 Yes similar education provider such as the NJ League of Municipalities) covering the responsibilities and obligations of elected officials (for example: ethics, municipal finance, labor relations, capital planning, shared services)? Are ordinances codified on an annual basis, with both the code and any uncodified 8 Yes ordinances made available online? Financial Standards - FS

Best Practices Worksheet CY 2012/SFY2013 West Orange Township (Essex) 0722 Please see Color Key at bottom of sheet for limits on answers Answer Question Comments With regard to your municipality's collective bargaining agreements that replaced contracts expiring on or after 1/1/11, is the overall impact of the aggregate economic costs limited to an average increase of 2% or less per year over the contract term? An 9 Yes example of such analysis can be found on the "PERC Summary Form; Public Sector; Non- Police and Non-Fire; Section V Impact of Settlement" and "PERC Summary Form; Police and Fire; Section VII Impact of Settlement" While the CFO does discuss these issues Internal accounting control processes, procedures and authorizations are designed to with the administration and governing safeguard assets and to limit the risk of loss or misstatement. Does your CFO evaluate body as issues arise during the regular and discuss this risk assessment annually with your governing body or an appropriate 10 Prospective course of business, no formal meeting subcommittee of the governing body (Audit or Finance Committee) with a focus on to discuss such has occurred. We will developing accounting control processes, procedures and authorizations designed to work to include such discussions in limit the risk of loss or misstatement?

work to include such discussions in limit the risk of loss or misstatement? future finance work sessions. Internal Controls are clearly discussed An accounting policy manual documenting all internal accounting control processes, with staff in order to obtain compliance. procedures and authorizations is of great value for staff to understand these safeguards. 11 Prospective We will work toward establishing a Are internal accounting control processes, procedures and authorizations documented formal document specifying the and communicated to staff? extensive existing internal controls. Are all General Ledger cash balances reconciled to bank statements (e.g. receipts postings to bank deposits; disbursement postings to cleared checks and wire transfers) 12 Yes with all reconciling differences verified (e.g. deposits in transit, outstanding checks and posting differences)? Municipalities have the potential to save significant money by auditing their telephone lines annually, and other utilities on a less frequent but nonetheless regular basis. Does 13 Yes your municipality perform an audit of its utility accounts (e.g. telephone, electric meters, streetlighting) at least once every three years to ensure that inactive accounts are cancelled? In submitting your corrective action plan for findings cited in your annual audit, are these 14 Yes items reviewed by the CFO with the governing body or an

cancelled? In submitting your corrective action plan for findings cited in your annual audit, are these 14 Yes items reviewed by the CFO with the governing body or an appropriate subcommittee of the governing body (e.g. finance or audit committee)?

Best Practices Worksheet CY 2012/SFY2013 West Orange Township (Essex) 0722 Please see Color Key at bottom of sheet for limits on answers Answer Question Comments Audit findings address areas needing improvement. Ignoring these findings devalues the While the Township is in compliance process; therefore, municipalities should correct noted deficiencies. Have all audit with item 1, information on item 2 is 15 N/A findings from the 2010 audit been 1) identified in the corrective action plan and 2) not yet available because the 2011 audit addressed such that they are not repeated in the 2011 audit? If the answer is no, please has been delayed due to a transition of list the repeat findings in the comments section. CFO's in late 2011. The CFO should prepare both the annual financial statement and annual debt statement. Excessive auditor assistance on these documents could create a perception that the auditor is not truly independent of the client in auditing the client’s financial statements. At an absolute minimum, each CFO should prepare audit-ready financial records including books of original entry, general ledgers, subsidiary ledgers and other computer reports that accurately analyze and reflect the municipality's financial position. These records should have sufficient detail for an accountant with sufficient knowledge of New CFO does complete the AFS and 16 N/A Jersey's municipal accounting system to extract the information necessary in preparing presents the financial records in a the annual financial and debt statements. This requires that all financial transactions complete and audit ready condition. (both cash and non- cash) be posted in the general ledger and that all general ledger accounts be supported by subsidiary ledgers, reports, reconciliations or are otherwise analyzed. If your CFO does not prepare the annual financial statement or annual debt

accounts be supported by subsidiary ledgers, reports, reconciliations or are otherwise analyzed. If your CFO does not prepare the annual financial statement or annual debt statement, and does not present the financial records in a complete and audit-ready condition, are you retaining outside assistance to do so from an individual or entity separate from your municipality's audit firm? The CFO should prepare a municipality's annual budget. If your CFO does not prepare the 17 N/A municipality's annual budget, are you retaining outside assistance to do so from an CFO does prepare the municipal budget individual or entity separate from your municipality's audit firm? Grant programs can create a significant burden on a municipality's cash flow if program expenses are either not timely reimbursed or are charged to other operating accounts instead of to the grant. Are all grant revenues reviewed at least quarterly to determine 18 Yes that all program expenses have 1) been filed for reimbursement and 2) have been properly charged to the grant, with follow up communication to grantor agencies in instances where payments are delayed? Budget Preparation and Presentation - BP