WANAQUE BOROUGH

SEWERAGE AUTHORITY MEETING

 

MINUTES

 

Regular Meeting

 

January 9, 2007

 

          Prior to the opening of the regular meeting, Mayor Mahler swore into office, Mark Reuter, Joseph Garland and Andrew Bolduc (WVRSA).

 

          The regular meeting of the Wanaque Borough Sewerage Authority was held on January 9, 2007 at 579 Ringwood Avenue, Wanaque, New Jersey at 7:30 P.M.

 

          Chairman DiMeglio presided and read the following Sunshine Statement:

 

          “Adequate notice of this meeting has been provided by mailing notice of this meeting to the Trends and Herald & News newspapers on March 27, 2006 stating therein that this meting would be held at 579 Ringwood Avenue, Wanaque, New Jersey including agenda therefore, and a copy of this notice was posted in the Wanaque Municipal Building on March 27, 2006.”

 

ROLL CALL

         

          On roll call, the following commissioners responded:

 

                                                Bolduc

                                                Covelli

                                                DiMeglio

                                                Garland

                                                Reuter

 

          Professionals Present:

 

                                                Jim Cerullo, CPA

                                                Jeffrey M. Kassover, Esq.

                                                William J. Kelly, Eng

                                                Mayor Dan Mahler

                                                Penny Schlagel, Office Mgr.

 

 

MINUTES:

 

          The regular meeting minutes of December 12, 2006 were presented. 

                            

          No corrections or deletions.

 

          Cmsr. Garland moved for the approval of the above-mentioned minutes, seconded by Cmsr. Bolduc.

 

          On roll call, all voted yes except for Cmsr. Reuter who abstained, and then the chairman declared this set of minutes adopted.

 

5.  PUBLIC HEARING:

 

          a.  2007 Connection Fee:

 

          Since no one from the public entered any discussion, the chairman closed this portion of the meeting.

 

          Cmsr. Covelli moved that:

 

          WHEREAS, by virtue of N.J.S.A. 40:14A-8 (b) and (c), as amended, the Authority is required to establish connection fees for connection of properties to the Authority’s sewer system; and

          WHEREAS, the Authority’s auditor has conducted an analysis of the Authority’s financial records through the end of the current fiscal year; and

          WHEREAS, pursuant to N.J.S.A. 40:14A-8 (c) the Authority held a public hearing pursuant to notice duly published on December 20, 2006 in the North Jersey Herald & News and on December 20, 2006 in the Suburban Trends, two newspapers of general circulation in the Authority’s service area, and duly served upon the Clerk of the Borough of Wanaque on December 13, 2006.

 

          NOW, THEREFORE, BE IT RESOLVED, by the Wanaque Borough Sewerage Authority:

 

          1.  The Authority hereby makes the following findings:

 

                   Applying the statutory formula, based upon the Authority’s prior debt service, the actual number of service units on the Authority’s system ($4,246) the maximum sewer connection fee chargeable by the Authority is $8,310.00.

          2.  The Authority hereby establishes a sewer connection fee of $8,310.00 commencing January 9, 2007 for each new unit, plus the actual costs incurred by the Authority with respect to the connection, including but not limited to inspection and supervision.

          3.  A dwelling unit intended for use by one family (including but not limited to a detached dwelling, condominium unit, townhouse or apartment) shall be considered as one service unit.

          4.  For all other users, the number of service units to be attributable to a particular use shall be calculated by dividing the estimated daily flow of water for such user by 230.  The estimated daily flow of water shall be calculated by the Authority following the review of plans submitted by the applicant, seconded by Cmsr. Garland.

 

          On roll call, all voted yes, and the Chairman declared this resolution adopted.

 

          b.  2007 Budget:

 

          Since no one from the public entered any discussion, the chairman closed this portion of the meeting.

 

          Cmsr. Garland moved for the adoption of the 2007 WBSA Budget, seconded by Cmsr. Reuter.

 

          On roll call, all voted yes, and the chairman declared this resolution adopted.

 

5. (a) PUBLIC DISCUSSION:

 

          1.  Paul Farrantino

               Pulte Resident

 

          Mr. Farrantino stated that he has noticed that some members sitting on the board tonight also sit on the regional board.  However, at the town meeting last night there was a resolution to dissolve the regional authority.  What happens to the negotiations that are presently underway between the Pulte residents and the WVRSA?

          Mr. Kassover stated that if the WVRSA is dissolved all of the assets, obligations, contracts, etc. pass to this authority that is taking over the plant.

Nothing will change except for the participation of members from West Milford and Ringwood.

          Cmsr. Covelli stated that the mayor and council appointed himself and Cmsr. Bolduc to the WVRSA so that all matters discussed between both boards would go back and forth to each other.  When the regional is dissolved, two commissioners will already be on board and know what negotiations are on the table with Pulte.

          Cmsr. Bolduc stated that Mr. White would also still be at the WVRSA. 

          Mr. Farrantino then read the following to the board:

 

          “We at the Wanaque Reserve are upset with regard to the additional $60.00 per year assessment we are being charged for the purpose of maintaining the odor control equipment.  It should be noted that this assessment should be applicable to the authority and then to the Pulte residents.  This would be much fairer since we all know this odor will always be there. If this facility were just being built in this now residential area, several things would be different.  It would be built indoors, more state of the art equipment for containing odors, and there wouldn’t be a single thought of assessing Pulte residents for maintenance control.”

 

          Cmsr. Bolduc replied that some points are true, but don’t reflect reality.  The plant is not being built today.  It has been here 20 years before Pulte was even thought about.  The odor control system was proposed by the developer.

 

          Mr. Kassover stated that as part of a developer’s agreement, Pulte wanted an odor control system put in as part of the upgrade to the plant.  In turn this led to negotiations and the final outcome was that the developer would pay half and this authority would pay half.  In this agreement as well, it contains the $15.00 additional charge for the maintenance of the odor control system.  It is in the Public Offering Statement that was given to anyone that purchased a unit at Pulte.  This odor control system only benefits those that live at Pulte. 

          Mr. Farrantino replied that if we are legally obligated then so be it.  We are here to say tonight it is wrong and you can change your position if you want.

          Cmsr. Bolduc stated that it is wrong to charge anyone for anything other then what services they receive.  For twenty years the plant operated without an odor control system.  This system was installed for one group of people.  As such, we did not think it was right to solely obligate this expense to the 3,000. other users of this system, who are not benefiting from it, didn’t ask for it, and who don’t need it.  The residents of Wanaque already paid $250,000.00 for this odor control system.  Residents can in turn come back to this board and say why did we pay for it when it only benefits 755 units.

          Cmsr. Covelli stated also that the initial investment of the odor control system was installed for Pulte.  The connection fees that were paid by Pulte which were based upon the debt service of the plant, $250,000. of that fee was paid for odor control system.  This $250,000. represented half of the cost of the odor control system.  Pulte then paid the other half.  The maintenance, upgrade, replacement of the capital equipment over time will have to be paid for.  As such, we have developed a mechanism to do this in order to minimize the cost to all the other people in town.  This board represents 3,755. users.  Seven hundred and fifty five are Pulte residents, therefore we have to be as fair and impartial as possible. 

          The WVRSA had incurred and additional $30,000. plus dollars on an additional control chemical system that was implemented.  Pulte residents came to us with their concerns and we addressed it, and now we have a solution to the problem.  We have been told that this new chemical has been very effective on cutting back on odors.  This $30,000. was paid by the WVRSA to address the concerns of the Pulte residents.

          Mr. Farrantino replied that is not true, as Mr. White has stated on several occasions that as long as Pulte pays for something we want done, he will gladly do it.

          Cmsr. Covelli stated that if Mr. White did make this statement, it was probably with regard to the shrubs and vegetation that the residents of Pulte want planted, as we believe that the developer needs to address this issue. These trees can not be planted on our property.  However, we do encourage the developer to do it.

          Mr. Farrantino asked why the trees could not be planted on WVRSA property.

          Cmsr. Covelli replied because we can not infringe anymore on the property.  There is very little property now that we are working on. 

          Mr. Farrantino stated that he is not telling the authority not to collect money that is needed for the maintenance of the odor control system, he is saying that is should be shared by the entire community.  It is not just Pulte residents complaining.  Neighbors in the area are complaining and they are thrilled that we are fighting this odor problem.  If it is necessary to take surveys, we will.

          Mr. Kassover asked if any of those neighbors were in the audience tonight?

          Mr. Farrantino replied no, as the committee of Pulte is just here tonight.  We are actually called Wanaque Reserve. 

          Cmsr. Bolduc stated that we are talking two issues, one is who should pay the $60.00 and the other is the odor.  The $60.00 charge is through this board, so we can address this issue.  As for the odor, you have to appear before the WVRSA.  Legally, and morally this authority feels we did the right thing.  $250.000. was expended by Wanaque residents who don’t need odor control.

          The Pulte Committee appeared before the regional last month and your concerns with regard to the smell were addressed, and we are working on it. 

          Mr. Farrantino stated that they do appreciate what the WVRSA has done however, the smell is still there and overwhelming.

          Mr. Kassover stated that the smell problem that is being addressed here tonight should be addressed to the WVRSA.  We can only discuss the billing charges that are paid to this Authority.

          Mr. Farrantino replied that he is being charged for an odor that he still has.  You are maintaining devices that are not working.  This does not make sense.

          Mr. Kassover replied that the authority is not going to appeal the $15.00 quarterly charge tonight. 

          Mr. Farrantino stated that he would now have to make a decision as to whether or not to involve the other residents in Wanaque with regard to the smell.  We did not want to proceed this way, but apparently this is what this Authority wants.

          Cmsr. Covelli then thanked Mr. Farrantino for coming out tonight.

 

          2.  Harold Gordon

               Bldg. 8

 

          Mr. Gordon stated even though this authority receives money for the odor control maintenance, this committee has to appear before the WVRSA with our complaints about the odor?

          Cmsr. Covelli replied yes.

          Mr. Gordon replied but this authority takes the money, so we should come to you.  We are very thankful what the WVRSA has done, but the smell is still there. What about when the warm weather comes?   Will the sewer rate ever go down?        

          Chrm. DiMeglio replied that we are hoping to lower the rates when all the Pulte units come on.  Every year we ask if we can lower the rate $5.00 per quarter, and our auditor says no, as there is not enough money coming in to pay the WVRSA.  The $60.00 that the residents at Pulte are paying for is for the maintenance of the odor control system.

          Cmsr. Covelli also stated that new chemicals have been added at the WVRSA and they’re estimated cost is $30,000.00 per year.  These chemicals are solely for odor control.    Every year now the authority knows $30,000. will be spent for chemicals.  Our goal is the same as the residents at Pulte, to eliminate the odor.  It would be less then honest to say that you will never not smell it, but as a commission, we will do our very best to minimize the odor as much as possible.  We are also putting away money out of the odor control funds for capital improvements to the odor system, as these machines will not last forever.  We have already asked the auditors to create an account for capital improvements strictly for odor control.  Also, we want an accounting analysis that this money is not being used to operate the plant whatsoever. 

          Mr. Gordon then stated that when he purchased his condo, no one told him about the extra sewer charge.  There are about 50 families that are directly facing the plant, and they have suggested putting trees in, does anyone have any idea how much it would cost to put in some trees?

          Cmsr. Covelli replied that he does not know, but at the last WVRSA meeting we had asked Mr. White to contact several landscapers for a price to put in trees.  Then we would like to bring this cost to Pulte. 

 

          Mr. Gordon then thanked the board.

 

          3.  Ted Roberto:

               Building 8

 

          Mr. Roberto stated to Cmsr. Covelli that he realizes he sits on both the regional and local sewerage authority but he cannot believe Cmsr. Covelli can sit here tonight and say he is satisfied with what the WVRSA has done with regard to fixing the odor.  If you ask any one of us that live at Pulte, the odor is still there as of yesterday, so it is very disheartening to hear this.

          Cmsr. Covelli replied that he was at the WVRSA for two hours yesterday from 5:45 pm until 8:30 p.m.  and he smelled no odor during these

hours. 

          Mr. Roberto stated that first we were told you had the wrong media.

          Cmsr. Covelli replied no, it was defective media.

          Mr. Farrantino stated that this is what Mr. White told him.

          Mr. Roberto asked if Cmsr. Covelli finds this odor acceptable?

          Cmsr. Covelli replied that he feels that Mr. Roberto came tonight armed to bear.  What do you mean by acceptable, as he never has used the term acceptable?  We are making progress and we have earnestly tried to address the odor, and there as been tangible results.  However, you have all the right to disagree with me.

          Cmsr. Bolduc then suggested that questions addressed to this board should be relevant to the issues that this board is competent to address.  Even though two commissioners sit on this board as well at the WVRSA, we cannot address the issue of the odors, only the charges. 

          Mr. Roberto replied that this is an absolute shame.  This is the only town that charges a separate charge for odor control.  If the odor is there, it affects the entire town.  The leaf site operation that was previously on this property affected the entire town. 

          Cmsr. Bolduc replied that the Wanaque Commissioners try to do what is fair and equal to all the constituents in town.  We could get 200 people to come here and say they had no idea they had contributed $250,000. towards an odor control system. 

          Chrm. DiMeglio then stated that Pulte suggested an odor control system.  That system cost $500,000.  As such, Pulte paid for half and this authority paid for half. 

          Cmsr. Bolduc stated that 3,000. users paid for an odor control system. These residents could come back and ask why they had to pay for a system that has no benefit to them. 

          Mr. Roberto replied that it is unfortunate Cmsr. Bolduc and Covelli represent both authorities.

 

          4.  Lois Wolfer

               Building 8

 

          Ms. Wolfer stated that she is very satisfied how well the WVRSA has worked with Pulte.  However, the entire town should be paying for the odor control system, not just the residents of Wanaque Reserve.  Wanaque Reserve residents pay for school taxes, yet they do not have children in school.  Therefore, all residents of Wanaque Borough should pay.

 

          5.  William Holt

               Building 8

 

          Mr. Holt stated he is very disappointed on what is being here said tonight.  Points of people’s views have just been thrown around, and no one is listening.  The fees should be equal amongst all the users of the sewer system.  The people that require pumps in order to pump their sewerage are not charge separately. Therefore, we are asking the board to repeal this charge.

          Cmsr. Bolduc asked if he could ask Mr. Holt a question.

          Mr. Holt replied no, not tonight.

          Cmsr. Bolduc stated that this board couldn’t make everyone happy.  If all the residents of Pulte said that they were not aware of the additional $60.00 charge, then maybe the board could consider an alternative.  This board has been informed that the sewer charge was in the public offering statement, as well as told from the realtor who sold you your unit.  There is also a sign when you enter the street that says Wanaque Valley Regional Sewerage Authority.  We could have those residents that have contributed to the odor control system come back and say we want our money back, as we didn’t ask nor need it.  This board cannot make everyone happy. 

          Mr. Holt stated that any facility of this nature is a public nuisance.  This public nuisance needs to be rectified.  If the Wanaque Reserve residents make this a public nuisance issue, we are all going to pay for it. 

          Mr. Farrantino then stated that when he purchased his unit, he was not aware that there was a sewerage treatment plant there, but this is not the issue we are discussing. If you want me to, then I will. 

          Mr. Holt replied that we are guilty.  Pulte told us we were moving next to a water treatment plant.  This issue, is a different issue, and whether we seek to pursue it legally we have yet to decide.  The plant does process water however.

          Mr. Kassover then stated that this issue is with Pulte.

          Mr. Farrantino then replied that he is going nuts here, as that is why he did not want to address this issue.

          Mr. Kassover then stated again that the authority is not acting on the $60.00 charge tonight, but maybe in future.

          Mr. Farrantino then stated that his committee would seek other avenues.

 

          5.  Mayor Mahler:

                   a.  WVRSA Dissolution:

 

          Mayor Mahler stated that within the next 30 days Wanaque would be meeting with West Milford with regard to dissolving the regional.

The council re-introduced the dissolution ordinance again for 2007.

 

          2.  WVRSA Tree Issue:

 

          Mayor Mahler stated to the residents of Wanaque Reserve that a developer at the lower end of town cut down trees and was fined by the DEP and ordered to put in new trees.  If the trees are re-planted, they will be cut down again within the next couple of years.  As such, the borough administrator has been instructed to contact the DEP to see if these trees can be planted somewhere else in the community.  If DEP agrees that the trees can, we will then plant them at the plant.

 

          Since no one else entered any public discussion, the chairman closed this portion of the meeting.

 

6.  COMMUNICATIONS:

 

          None

 

7.  UNFINISHED BUSINESS:

 

          1.  Copy Cat Copy Machine

               Held for Closed Session

 

          2.  Penny Schlagel

              Re:  2007, 2008, 2009 Raise

 

          Cmsr. Covelli stated that Ms. Schlagel is following suit with what was negotiated at the WVRSA, which was a three-year deal, 3 1/2%, 3 1/2% and 4%.  Usually, we only do one year. 

          Cmsr. Reuter asked if Mrs. Schlagel is on contract.

          Mr. Kassover replied no.

 

          Cmsr. Bolduc moved a resolution authorizing a percentage raise to the office manager, Penny Schlagel who is an employee at will the following:

                   2007  3.5%

                   2008  3.5%

                   2009  4.0%

 

          seconded by Cmsr. Garland.

 

          On roll call, all voted yes, and the chairman declared this resolution adopted.

 

          3.  WVRSA Plant Upgrade Expenses:

 

          Mrs. Schlagel stated that Cmsr. Covelli asked her to do prepare a report as to what this authority has paid to the WVRSA on the plant upgrade.   

          Cmsr. Covelli replied that since this is a working document, he suggested that it be dated.

          Cmsr. Bolduc stated that the WVRSA does have an accounting analysis, however it would not include the funds that this authority expended out of the Pulte connection fee for their projects. 

          There are bills on the voucher list tonight for plant upgrade expenses, which this authority does not have funds to meet them.  However, the WVRSA secured a line of credit for 1.4 million dollars.  Therefore, since the regional does have funds to pay these expenditures, Ms. Schlagel should send a letter to the regional advising them that we do not have the funds.

          All commissioners agreed.

          Cmsr. DiMeglio stated that he met with Mr. White to advise him that this authority did have the funds to pay these bills.  Mr. White then informed him that this money is wrapped up in CD’s, which are making interest, and he does not want to break them.

          Cmsr. Bolduc replied that Mr. White should of left some of this money in the money market like Ms. Schlagel did, so that if we need funds immediately, we had them.  The bottom line is that we do not have the money.

         

8.  NEW BUSINESS:

 

          1.  Penny Schlagel

               2006 Sick Time Buyback

 

          Cmsr. Bolduc moved a Resolution authorizing the purchase of sick time buy back for Penny Schlagel for the year 2006, seconded by Cmsr. Garland.

 

          On roll call, all voted yes except for Cmsr. Covelli voted no due to the fact that he did not have a copy of the personnel sick time buy back procedures.

 

9.  PROFESSIONAL/COMMITTEE REPORTS:

 

          1.  William J. Kelly, Eng.

 

                   a. Passaic County Community College

                       Re:  Leach Field Meter

 

          Mr. Kelly stated that he has sent the college a letter with his findings and recommendations on the leach meter on January 5th, and as of today he has not had a reply.

          The commission then directed Mr. Kelly to send another letter to the college advising them that they must come up with a positive solution with regard to the excessive infiltration prior to our February meeting.

 

                   b.  Waterview at Wanaque

 

          Mr. Kelly stated that the engineer for this project has responded to his review letter however, they do not agree on the amount of flows.  Therefore, the engineer is going to re-calculate his figures.

 

          2.  Jeffrey M. Kassover, Esq.

 

                   1.  Copy Machine

 

          To be discussed in closed session.

 

          3.  Jim Cerullo, CPA

 

          Mr. Cerfullo had nothing further to report.

 

          4.  Cmsr. Frank Covelli

 

                   a.  Fair & Open

 

          Cmsr. Covelli moved a resolution authorizing the WBSA purchasing agent, Thomas Carroll to advertise for professional services for the year 2007 under the Fair and Open Act, seconded by Cmsr.  Bolduc.

 

          On roll call, all voted yes, and the chairman declared this resolution adopted.

 

10. FINANCE REPORT:

 

          Cmsr. Covelli moved a resolution to approve the following bills for payment when the funds of the authority are sufficient to meet them, seconded by Cmsr. Bolduc:

 

          Voucher 1 through 19 (auto debit-Health Benefits)            $471,959.99

          Payroll & Processing                                                       $    9,667.76

                                                                                                __________

                                                                   TOTAL:               $481,627.25

 

          It was then noted that the authority does not have sufficient funds at this time for Vouchers: 1-4 payable to the WVRSA in the amount of $443,393.38 for plant upgrade expenditures.

 

          On roll call, all voted yes, and the chairman declared this resolution adopted.

 

                                      RESOLUTION

 

REQUISITION REQUESTING FROM THE REVENUE FUND TO THE OPERATING FUND BY THE WANAQUE BOROUGH SEWERAGE AUTHORITY PURSUANT TO THE SECTION OF THE BOND RESOLUTION ENTITLED “RESOLUTION” PROVIDES FOR THE ISSUANCE OF BONDS OF THE WANAQUE BOROUGH SEWERAGE AUTHORITY IN OCTOBER, 1987 AS AMENDED OR SUPPLEMENTED THEREAFTER.

         

          1.  Requisition is hereby made by the authority to the trustee for funds from the revenue fund established under a resolution to be transferred to the credit of a special account in the name of the authority to be paid to the persons, firms or corporations in the amount of $481,627.75 and for the purposes set forth herein on the attached “Exhibit A”.

 

                   a. The authority has incurred the obligations in the stated amounts and that each item thereof was properly incurred in the operating, maintaining the system and has not been paid.

                   b.  There has not been filed with or served upon the corporation named in such requisition, or if any such lien, attachment or claim has been released and discharged by the authority.

 

          On roll call, all voted yes, and the chairman declared this resolution adopted.

 

CLOSED SESSION:

 

          Cmsr. Covelli moved that:

 

          WHEREAS, Section 8 of the Open Public Meetings Act, Chapter 231, PO 195, (N.J.S.A. 10:4-1) permits the exclusion of the public from a meeting in certain circumstances and;

          WHEREAS, this public body is of the opinion that such circumstances presently exist.

          NOW, THEREFORE BE IT RESOLVED, by the Commissioners of the Wanaque Borough Sewerage Authority, County of Passaic, State of New Jersey as follows:

          1.  The public shall be excluded from discussion of action upon the hereinafter subject matter.

          2.  The general nature of the subject matter to be discussed is as follows:

                                      Possible Litigation

          3.  The commissioners shall release and disclose to the general public the discussion and action taken on the subject matter of the above-mentioned closed session when the reasons for discussing and acting on the matter in closed session no longer exists, but no later than one month of the commissioners arriving at a final decision on the specific subject matter.

 

          On roll call, all voted yes, and the chairman declared this resolution adopted.

 

RESULTS OF CLOSED SESSION:

 

          Cmsr. Covelli moved a resolution authorizing the purchase of a copy machine from Copy Cat Associates at a cost not to exceed $3,000.00, seconded by Cmsr. Bolduc.

 

          On roll call, all voted yes, and the chairman declared this resolution adopted.

 

11.  ADJOURNMENT:

 

          Cmsr. Covelli moved for the adjournment of this meeting, seconded by Cmsr. Reuter.

         

          On roll call, all voted yes, and the chairman declared this meeting adjourned.

                                                         

______________________________

John DiMeglio, Chairman