WANAQUE BOROUGH
SEWERAGE AUTHORITY
Minutes
Regular Meeting
April 10, 2007
The regular
meeting of the Wanaque Borough Sewerage Authority was held on April 10, 2007 at
Chairman Bolduc 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 January 12, 2007 stating therein that this meeting would be held at
ROLL CALL:
On roll call, the
following Commissioners responded:
Bolduc
Covelli (arrived at 7:40 P.M.)
DiMeglio
Reuter
Professionals Present:
Jeffrey M. Kassover, Esq.
William J. Kelly,
Penny Schlagel, Office Manager
MINUTES:
The regular
meeting minutes of March 13, 2007 were presented. No corrections or deletions.
Cmsr. DiMeglio moved for the approval of the
above-mentioned Minutes, seconded by Cmsr. Reuter
On roll call, all
voted yes, and the Chairman declared this set of minutes adopted.
PUBLIC DISCUSSION:
Odor Control Surcharge:
Chairman Bolduc
stated that before he opens the meeting to the public, he would like to make a
statement with regard to the $60.00 odor control charge the Pulte residents are
paying.
This Authority has previously addressed the odor control
charge issue and our opinion has been rendered.
That opinion is that the charge will stand unless there is a change in
financial circumstances. However, Mayor
Mahler has asked me to advise the public from Pulte that he and the council
discussed at the council meeting last night of making a proposal to this
Authority pertaining to the $60.00 charge.
Once the Authority receives the proposal from the Borough of Wanaque, we
certainly will give it our utmost consideration and then make a decision. Since we do not have a proposal in front of
us tonight, there is no way that the board can formally address it. It would be most appreciative that if anyone
from the public would like to discuss this matter that they wait because we
will not discuss it until we receive the proposal.
1. William Holt
319
Mr. Holt stated that usually public discussion normally
comes at the end of the meeting.
Chrm. Bolduc stated that public discussion has been in the
beginning of our meeting for the past 20 years.
Mr. Holt stated that the people here tonight are Wanaque
residents and most of them reside at the Wanaque Reserve, which Pulte developed. Please remember we are Wanaque residents not
Pulte residents. We are here tonight to
find out how this board was going to respond to the mayor’s
letter which is on your
agenda tonight.
Chrm. Bolduc replied that he stated earlier that the mayor
and council would be submitting a proposal to this commission. However, we have yet to receive it. The letter that is on our agenda from the
mayor will be received and filed.
**********Cmsr. Covelli arrived.**********
2. Dave DiSilva
Mr. DiSilva stated that he did address the mayor last night
on the odor control charge, and the mayor said he was going to speak to
Chairman Bolduc. However, last month the
board had asked your attorney to draft a legal opinion on the odor control
charge has this been done?
Chairman Bolduc replied yes it has, and our attorney will
be reporting on it tonight.
Due to the ringing of cell phones, Chairman Bolduc stated
that anyone wishing to talk on his or her cell phone to please do so outside,
as it is very distracting.
Mr. DiSilva stated that he would like to have a copy of the
opinion.
Mr. Kassover replied that Mr. DiSilva or anyone else is
more then welcome to a copy, however he does not have copies with him.
Chairman Bolduc directed Mr. DiSilva to contact the office
manager, Penny Schlagel to obtain his copy.
Since no one else from the public entered any more
discussion, the Chairman closed this portion of the meeting.
Cmsr. Covelli apologized for arriving late and then stated
that there
are some revisions that need
to be made to our March minutes. They
are typographical errors.
However, before they are
corrected, we need the board’s approval:
Corrections: Page 3
(Mr. Kelly further stated that the gpd per seat varied very much.
Cmsr. Covelli asked if this is what Mr. Kelly wanted to say
in the minutes.
Mr. Kelly stated yes.
Page 4: (Cmsr.
Covelli stated that he suggests 30% should be 20 gpd
Page 7: (Cmsr.
Covelli stated that Mr. Kelly is a good engineer, but Mr. Carroll is the one
who can tell us whether we are in legal bounds, should be legal authority
to determine this problem an emergency.
Cmsr. Covelli moved a resolution to amend the March 2007
meeting minutes with the noted corrections, seconded by Cmsr. DiMeglio.
On roll call, all voted yes, and the Chairman declared this
set of minutes adopted.
6. COMMUNICATIONS:
1. Ltr. from Jeffrey M. Kassover, Esq.
Re: Legal Opinion on Odor Control
Mr. Kassover stated that per the request of this commission
at our last meeting, he has prepared a letter of opinion as to the validity of
the surcharge for odor control.
Mr. Kassover then read his opinion letter:
TO: Wanaque Borough Sewerage Authority Dated:
March 19, 2007
Cmsr. Covelli then stated that Mr. Kassover’s cover letter
stated that it was his recommendation that this matter be discussed in closed
session prior to being released to the public.
Mr. Kassover replied that prior to Cmsr. Covelli’s arrival,
the Chairman in response to a question stated that he nor the rest of the
Commissioners had no
objection with releasing his opinion to the general public.
Cmsr. Covelli replied that he was in attendance when that
question was asked. However since we are
just reviewing this letter as a body for the first time, should we discuss it
first and then release it.
Chairman Bolduc stated to Cmsr. Covelli that all the
commissioners receive there meeting packages well in advance. Therefore, we have all reviewed Mr. Kassover’s
opinion. If the commissioners as a whole
in order to expedite the process have no objection to releasing this letter,
then so be it. We all agreed that we had
no objection.
The commissioners then re-iterated that they had no
objection with discussing this letter in open session.
Mr. Kassover then read his opinion letter:
Gentlemen:
You have requested my opinion as to the legal basis for the
$15.00 quarterly surcharge, which applies only to the development known as
Wanaque Reserve. Such opinion requires a
preliminary discussion of the
factual/historical background.
The charge was established in the December 9, 2003
Developer’s Agreement between the Wanaque Borough Sewerage Authority (WBSA),
the Wanaque Valley Regional Sewerage Authority (WVRSA) and Pulte Communities,
NJ Limited Partnership. That agreement
established a payment schedule for the connection fees payable by the developer
(approximately $5,000.000.00) and required the WVRSA to include in the project
to repair and upgrade the treatment plant, such modifications as would enable
the plant to treat the additional flow to be generated by 755 new condominium
units.
Under the terms of that agreement, the condominium
association is to be formed by the developer which would assume the
responsibility for payment of sewer service charges, since the individual
condominium units would not have separate water meters. The terms of the agreement relating to the
payment of sewer service charges and relating to the responsibility of the
condominium association were required to be included in the Developer’s Public
Offering Statement, which each unit purchaser would receive before entering
into a binding contract.
Prior to this project, the sewerage treatment plant did not
have an odor control system, presumably because there were no residences in
sufficient proximity to the plant to be affected by odors emanating from the
plant. After the representatives of the
parties to the agreement had negotiated a preliminary agreement, the developer
notified both authorities that the first draft of the agreement would have to
be revised to include a provision whereby the WVRSA agrees to install an odor
control system in the treatment plant.
Further negotiations produced a final agreement whereby the
WVRSA would install an odor control system, the cost of which would be divided
equally between the developer and the WBSA.
The cost to design, construct and install the odor control system,
originally estimated to be around $150,000.00, escalated to about $500,000.00. The developer paid 50% of this cost and the
WBSA paid the balance. The $15.00
quarterly surcharge applicable to each condominium unit was intended to cover
the estimated cost ($40,000.00 - $50,000.00 per year) to maintain the
components of the odor control system for a plant which would now service an
additional 755 users.
The agreement with the developer required the developer
(and then the condominium association) to pay the quarterly sewer service
charges (then, and now, $200.00 per quarter) and a surcharge of $15.00 per
quarter for the maintenance of the odor control system.
The determination of sewer service rates, fees and charges
is governed by NJSA 40:14A-8(b). The
statute requests the charges to be “as nearly as the sewerage authority shall
deem practicable and equitable to be uniform...for the same...class of use...” Factors which an authority may consider in
varying from the goal of uniformity within a class of users include “the
capacity of the improvements on or connected with the ...property” and “any
other special matter affecting the cost of treatment and disposal (of sewerage
and other wastes)”. Since the odor
control system benefits only the occupants of the Wanaque Reserve condominium
project, this class of users may be required to pay more than a quarterly
service charge.
The WBSA after approving and signing the agreement amended
its rules and regulations to require the $15.00 quarterly surcharge for this
project. Under NJSA 40:14A-7(3), a
sewerage authority has the power to make and amend regulations “for the use,
maintenance and operation of the sewerage system . . .”.
At a recent meeting of the Authority a resident of Wanaque
Reserve addressed the Authority during the public discussion session, and
stated that the $15.00 quarterly surcharge was not permitted without approval
of the Board of Utilities. I informed
the resident that sewerage authorities and municipal utilities authorities are
not subject to the jurisdiction of the Board of Public Utilities and that he
was, therefore, in error. The BPU has
jurisdiction over “public utilities” as defined in NJSA 49:2-13, but for over
70 years the courts have consistently held that municipal corporations, such as
sewerage treatment plants and water systems are not “public utilities” within
the meaning of that section of the law and are therefore not subject to BPU
jurisdiction unless such jurisdiction is expressly granted by another
statute. Ridgewood v. Hopper, 13
N>J> Misc. 775 (1935), affirmed 116 N.J.L. 413 (1936), In Re Glen
Rock, 25 N.J. 241, 246 (1954) In Re South Lakewood Water co., 61
N.J. 230, 246 (1972), Freehold Borough v. Freehold Township, 193 N.J.
Super. 724, 726 (App. Div. 1984).
The statute (NJSA 40:14A-1 et seq.) which authorizes the
creation of sewerage authorities such as the WBSA and the WVRSA contains no
such grant of BPU jurisdiction. The
statue, which authorizes the creation of municipal utilities authority desire
to sell water at retail outside the boundaries of the municipality (NJSA 40:14B-20
(6).***
In my opinion, the $15.00 quarterly surcharge which was the
product of a negotiated agreement between a developer and the local and
regional sewerage authorities, is permitted under WBSA regulations and under
the laws of the State of
***Prior to the completion of the WVRSA plant, the
existing sewer facilities in Wanaque were unable to treat the sewerage
emanating from the newly constructed
2. Ltr. from Mayor
Mahler
Re: Odor Control Charge
Chrm. Bolduc stated that this letter was dated March 23,
2007, in which Mayor Mahler asks the board to re-consider the issue of the
$60.00 charge. As previous stated, the
mayor contacted Chrm. Bolduc earlier today and stated that he would be
submitting a proposal on behalf of the council.
Until such time that said proposal is received, this letter shall be
received and filed.
3. Resolution to
adopt Risk Management Agreement for 2007.
Cmsr. Covelli moved a Resolution authorizing the adoption
of the Risk Management Consultants Agreement for 2007, seconded by Cmsr.
DiMeglio. (See Attached Agreement)
On roll call, all voted yes, and the Chairman declared the
resolution adopted.
7. NEW BUSINESS:
None.
8. UNFINISHED BUSINESS:
Mrs. Schlagel stated that she was able to get one quote for
a dial up alarm. Mr. Kelly can further
update the board.
Mr. Kelly stated that there was suppose to be another
proposal submitted to the Authority for a dial up alarm, and it has yet to have
been received. Cmsr. Covelli had asked
as to whether or not we could go with a wireless system or a dial up phone
system. One quote was received for both
ways. The proposal to install just the
equipment is $2,589.00. We would now
have to find out what the cost would be for a wireless system vs. a phone
system. It is recommended that Mrs.
Schlagel find out from the telephone company exactly what the charge would
be. It is further recommended that the
Commissioners accept the proposal from Pumping Services.
Cmsr. Covelli asked if the sum of $2,589.00 was for the
equipment only?
Mr. Kelly replied yes.
We currently have a lease line, which is probably quite costly. It is now recommended that we either go to a
dial up or a wireless system. We should
get a couple of more proposals.
Cmsr. Covelli stated that he would like at least one more
quote. He would like to see a breakdown
on costs so that we could see our actual cost savings.
Mr. Kelly stated that the borough is currently paying the
cost for the
Cmsr. Covelli replied that he is sure that the borough
would have no problem telling us how much they pay each month.
Chrm. Bolduc stated that Mr. Kelly could do further
research on the costs and report back to the board next month.
Cmsr. Covelli asked if the borough uses wireless on their
tanks?
Mr. Kelly replied no, they changed over to a dial up system
that connects right to the police department’s computer.
Re: Maintenance Pumps
Mr. Kelly stated that Mr. Reiff has submitted a memo in Mr.
Kostro’s absence with regard to the pumps on
Cmsr. Covelli moved a resolution authorizing the sum of
$2,000.00 for the inspection of the pumps at the Union Ave Pump Station,
seconded by Cmsr. Reuter.
On roll call all voted yes and the Chairman declared the
resolution adopted.
9. PROFESSIONAL/COMMITTEE REPORTS:
1. W. J.
a.
Mr. Kelly stated that at the last meeting he was authorized
to prepare the necessary documents for bids for construction for the work on
Since the line is in
wetlands, it will require a stream encroachment permit.
If the bids come in before
our next meeting, I will need approval to award the contract. Mr. Kassover will oversee all the legal
issues.
Mr. Kassover replied that we should get something in
writing from Mr. Carroll stating that as the Public Purchasing Agent, he feels
that this matter is an emergency issue.
Chrm. Bolduc stated that we were hoping to get about
$50,000. from Pulte for the cost of this line, plus we have about $30,000. left
in the I & I fund, so that would leave this Authority with a cost of about
$50,000.00.
Mr. Kelly replied that the board must remember that this
figure does not include engineering costs nor permit application costs.
Chrm. Bolduc stated that even though Mr. Ferraioli is not
here tonight to discuss how we are going to pay for the line, we have no choice
but to proceed. The videotape of the
pipe in its present condition is quite scary.
Mr. Kelly then stated that if the pipe were to fail right
now, the fine could be $20,000. to $30,000. per day until it was fixed. It is recommended that we move on this matter
immediately.
Cmsr. Covelli then stated that we could either do a
telephone phone poll vote or call a special meeting to approve the
contract.
Chrm. Bolduc agreed with Cmsr. Covelli.
Cmsr. Covelli moved a resolution for W.J. Kelly,
On roll call all voted yes and the Chairman declared the
resolution adopted.
b.
Mr. Kelly stated that this project should be commencing
around April 25th.
c. Water’s Edge:
Mr. Kelly stated that he attended a meeting with the
developer and Mr. Carroll. The project
is in the vicinity of the Elk’s
d. Wastewater
Management Plan:
Mr. Kelly stated that he has been reviewing the
requirements of the plan amendment.
However, there is one item to be included in the report, which is called
a constraints analysis. The consultant
that worked for Purcell’s office who started working on this can no longer do
so. As such, a letter has been sent to
Boswell Engineering and they do have the expertise to perform this analysis and
we are now awaiting their proposal to see how much they would charge.
2. Jeffrey M.
Kassover, Esq.
a.
Restaurant Connection Fee Resolution
Mr. Kassover stated that he has prepared the resolution and
would like the board to review it for adoption next month.
b. Jet Vac
Log Book
Mr. Kassover stated that he has sent a letter to the
regional requesting that the logbook be copied on a monthly basis and submitted
to Mrs. Schlagel.
3. Penny Schlagel,
Office Manager
a. Capital
Improvements:
Mrs. Schlagel stated that Mr. Ferraioli asked her to remind
Mr. Kelly to continue working on the capital improvements so that he can give
him a total amount of funds that will be needed.
b. Cash
Receipts:
Mrs. Schlagel stated that our cash receipts are down
$38,000. compared to this time last year.
However, we will be doing shut offs tomorrow for non-payment. Hopefully,
we will re-coup.
10. FINANCE REPORT:
Cmsr. Reuter
moved a resolution to approve the following bills for payment when the funds of
the Authority are sufficient to meet them, seconded by Cmsr. DiMeglio:
Voucher 51 through 67 $20,671.66
(The Authority has
insufficient funds for
Voucher 52 and 53 (WVRSA) for
the amount
of $59,996.34.)
Payroll & Processing
4,684.60
__________
$25,355.66
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, firm or
corporations in the amount of $25,355.66 and for the purposes setforth 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 and maintaining the system and
has not been paid.
b. There
has not been filed with or served upon the corporation named in such
requisitions, 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 the
Resolution adopted.
Cmsr. DiMeglio stated that he
has one item he would like to discuss in closed session:
CLOSED SESSION:
Cmsr. DiMeglio moved that:
Whereas, Section 8 of the Open Public Meetings Act, Chapter
231, PO 195, (NJSA 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,
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:
Personnel
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 closed session no
longer exists, but no later than one month of the Commissioners arriving at a
final decision on the specific subject matter.
Seconded by Cmsr. Reuter.
On roll call all voted yes and the Chairman declared the
resolution adopted.
RESULTS OF CLOSED SESSION:
Chrm. Bolduc
stated that the personnel issue raised in closed session should be addressed to
the Wanaque Valley Regional Sewerage Authority.
ADJOURNMENT:
Cmsr. Reuter
moved for the adjournment of the meeting, seconded by Cmsr. Covelli.
On roll call all voted yes and the Chairman declared the
meeting adjourned.
__________________________________
Andrew R. Bolduc, Chairman