Town officials in River Vale and Montvale were thinking cold thoughts in early July when both agreed to set up a joint snow account to help weather “unplanned or extraordinary costs” due to winter’s ice and snow.
A snowstorm’s cleanup cost in 2018 that once caused icy relations between Montvale and River Vale leaders—and almost ended their shared DPW—was officially resolved with both towns taking action to make equal $50,000 deposits to a shared services snow-removal account.
The original dispute occurred in April 2018 when River Vale filed a breach of contract suit in Superior Court against Montvale for failure to pay a $42,222.62 invoice for snow-removal costs incurred during a series of March 2018 nor’easters.
Both towns resolved their fight over snow costs last September by deciding to jointly fund a snow-removal account for extraordinary expenses. In addition, the two towns revised and renewed their shared services agreement for a Pascack Valley Department of Public Works through 2029.
The shared services pact began between the two towns in 2014 when Montvale disbanded its own DPW. Initial cost savings were estimated up to $400,000 annually but it’s unclear what savings have accrued so far.
“Funds in the snow storm trust may be utilized by River Vale to address unplanned or extraordinary costs incurred by the DPW in addressing storm-related response and/or cleanup. Such funds may only be utilized if the current year’s budget for snow or storm-related costs has been exhausted,” says the mutual shared-services agreement signed Sept. 24, 2019.
Both towns’ resolutions establish Valley Bank as holder of the snow storm trust fund account. In addition, River Vale passed a resolution that notes the Pascack Valley DPW will salt and plow county roads there. The county will reimburse the DPW at $110 per hour during snow events. Montvale has its own separate contract with the county for plowing its county roads.
Should funds need to be used from the joint account, both towns agreed to replenish the trust fund to $50,000 within six months of its depletion, notes the shared services agreement.
The 10-year shared services agreement lays out two options to help resolve disputes before heading to Superior Court. First, disputes are referred to the advisory committee for informal negotiation. If that fails, the two towns agree to “engage in mediation in good faith.”
A recent Montvale community survey found a majority of residents calling for more shared-service agreements to reduce the local tax burden. Several suggested consolidated public safety departments, and others urged reducing costs for or exiting the Pascack Valley regional school district.
The shared DPW pact is unique in Bergen County, although many towns in the Pascack and Northern valleys have shared-service agreements on items such as public works vehicles and equipment, police dispatch services and volunteer ambulance corps.