REGIONAL SEWERAGE AUTHORITY MEETING
MINUTES
January 30, 2008
Regular Meeting
The WANAQUE VALLEY REGIONAL
SEWERAGE AUTHORITY conducted a Regular Meeting, which commenced at
ANNOUNCEMENT
Mrs. Maas, Recording Secretary read the following announcement:
This
is the Regular Meeting of the Wanaque Valley Regional Authority. In accordance with the Open Public Meetings
Law, notices of the meeting were furnished to the respective Municipal Clerks
of Ringwood, Wanaque and West Milford together with a
request that an additional copy of the Notice be placed in each
SALUTE TO THE FLAG
The Chairman led the Salute to the Flag.
ROLL CALL
Commissioners present: Thomas Bigger, Andrew Bolduc, Frank Covelli, Robert Hadley, Robert Moshman and Patrick Murray
Commissioners absent:
Also present: Richard Miller, Esq., Williams, Caliri, Miller & Otley
James Kelly, P.E., Boswell Engineering
Gregory White, Facilities Manager
Margaret Maas, Recording Secretary
Chairman Covelli stated that he
would like to welcome back, Thomas Bigger as Commissioner from
The Chairman asked if there were any documents that needed signing. Commissioner Bigger stated that he signed all
the necessary documents today at
CONSENT AGENDA
The Chairman stated that this will be the first month we will be using the Consent Agenda. The Chairman directed everyone's attention to the bottom of the Agenda. He stated in the future you will see it written Consent Agenda - Resolutions. The Chairman proceeded to read aloud the list of resolutions for tonight's meeting. Upon completion, the Chairman asked if any Commissioner at this time would like to pull any of those resolutions off the Consent Agenda for individual discussion. Upon hearing no response, he stated that later in the evening we will take one vote to approve the Consent Agenda at that time. The Chairman stated there will still be an opportunity during the meeting to pull something from the Consent Agenda.
At this time that the Chairman asked for the Facilities Manager's report.
REPORTS
Facilities Manager
Noise
& Odor Control Report
Mr. White reported that there were no new additions to the report. Mr. White reported that the media in all the odor control units will be sampled in February; so we can have a determination of the life expectancy of the media; to make sure we have new media in all the units before the start of the warm weather, in late March or April.
Good Neighbor Meeting
Mr. White reported that there was a Good Neighbor meeting, with representatives of Wanaque Reserve (WR), held last Thursday. Mr. White stated that budgetary questions were answered and again discussed the landscaping/tree planting proposal.
Capacity
Assurance Program (CAP)
Mr.
White reported that the Authority is required to submit a CAP report to NJDEP
on a quarterly basis. He stated that he
has submitted the most recent report, for October 1, to
REPORTS
Facilities
Manager
Request
for Proposals (RFP) - Professional Services
Mr.
White reported that the Authority advertised for RFP for Professional Services. The proposals were opened on
Mr. White stated that there is a list of all the proposals presented in each of the Commissioner's folders tonight. Mr. White asked the Chairman how he would like to proceed with the review of those proposals.
The Chairman then asked the Commissioners for their thoughts on whether they would want to form a committee to review these proposals or refer it to a standing committee. Discussion ensued and the decision was that it be referred to the Finance Committee as they were more familiar with the Budget and that they come back with a recommendation. The Chairman stated the Finance Committee is comprised of Commissioners Moshman, Murray and Bolduc, with Commissioner Bigger as alternate.
The Chairman asked for motion to refer the RFP proposals to the Finance Committee for review and a report/ recommendation before the next meeting.
MOTION Moved by Andrew Bolduc, 2nd by Robert Moshman to adopt Resolution #06-08 referring the Request for Proposals received to the Finance Committee for their review and recommendation.
On Roll Call Commissioners Bigger, Bolduc, Hadley, Moshman, Murray and Covelli all voted yes.
MOTION
CARRIED
Reorganization Meeting Date
Mr.
White stated that we must pick a date for our annual Reorganization Meeting
next month. Mr. White suggested
MOTION Moved by Robert Moshman, seconded by Thomas Bigger to adopt Resolution No. 07-08 authorizing Tuesday, February 26, 2008 as the date for the annual Reorganization Meeting, to be immediately followed by the February 2008 Regular Meeting and further authorize the advertisement of the meetings in the newspapers and to the respective municipalities of Wanaque, West Milford and Ringwood.
The Chairman asked that everyone in favor to please signify as such up by saying Aye.
Commissioners
Bigger, Bolduc, Hadley, Moshman,
MOTION
CARRIED
Energy Efficiency Audit (EEA)
Mr. White stated that he wrote a letter to all of the Commissioners regarding a meeting that he and Chairman Covelli had with Bob Gerard of PMK Group. Mr. White stated that PMK Group is the Environmental Consultant to the NJUA-JIF. Mr. White stated that the meeting centered on the energy needs, demands and the costs of the Authority and the fact that our energy costs have skyrocketed over the last few years. Mr. White stated that in fact our energy costs have doubled over the last two years. Mr. White reported that Mr. Gerard thought it best and recommended that this Authority perform an Energy Efficiency Audit. Mr. White stated that Mr. Gerard has submitted a proposal, to the Authority, to do so. Mr. White stated there should be a copy of that proposal in everyone's packet or folder. Mr. White stated the cost to perform the Audit is $7,500. Mr. White stated that the Authority did not budget any money for this audit; however, he stated we can utilize a portion of the NJUA-JIF Dividend reimbursement. Mr. White reminded the Commissioner's that the Authority is to receive a reimbursement of approximately $10,600 and we could use a portion of that money to pay for the Audit. Mr. White stated that he feels it would be very important to have PMK conduct this audit, and that it will benefit us now and in the future.
Commissioner Bigger asked about the deregulation of energy providers that was going on when he was last on this commission. The Chairman informed Commissioner Bigger that the deregulation attempts were abandoned several years ago. The Chairman stated that currently the Authority is a member of the NJUA-JIF which is a part of the MEL. He stated that the MEL will be going out on behalf of 374 Municipalities, 69 Utilities Authorities and 83 Housing Authorities and they are trying to use that as a block to negotiate.
The Chairman stated that there are two things that he would like to add to this discussion. He stated first this audit could set us up as a preamble to that negotiation; and second thing is that PMK initially came in with a proposal to do not only an energy audit but to build us an energy master plan. He stated in other words we would look, going forward, to not only identifying what we are doing now in terms of efficiencies and purchasing, but to see how we can make the Authority greener and use less energy going forward in our plans. The Chairman stated that it was a very nice proposal but it was a little bit too heavy on the finance side.
REPORTS
Facilities
Manager
Energy Efficiency Audit (EEA) Cont.
The Chairman report that we asked PMK to scale it back and said that we would like to take this in steps. The Chairman agreed that we have the money available from the Dividend to do the audit.
The Chairman stated in addition when that is done, we can go to the Commissioner's with some positive news to report on how to reduce some costs and then go forward with a whole entire master plan.
The Chairman stated at this point, on the Consent agenda, there is the authorization for the Energy Efficiency Audit for $7,500.
Elected Official Liability Training
Mr.
White stated that tomorrow night,
Mr. White stated that Mr. Kelly will address this subject during his portion of the meeting tonight.
Alum
Contract Bid Preparation
Mr. White reported that it is time again to go out on bid for Furnishing of Aluminum Sulfate Solution (Alum) for the Authority. He stated that we use Alum for phosphorus removal here at the plant. Mr. White stated that the contract expires at the end of April. Mr. White stated he will be working with Mr. Carroll and Mr. Miller to prepare a bid package to be offered and advertised as required.
Personnel Committee Report
Tim
Johnson - Mr. White reported that one of our operators, Tim Johnson, has
had his 16 month performance evaluation, which was
superb. Mr. White stated that he
recommends that he be moved up to the next salary step and therefore will be
entitled to an increase in his base salary wage from $18.12 to $18.85 per hour,
effective
Operational
and Laboratory Data for 2007
Mr. White stated that everyone should find in their folders a packet of operational and laboratory data for the year 2007. Mr. White stated there is a lot of information there and if anyone has any questions he'd be happy to answer them.
Plant Status
Mr. White reported that the plant is operating extremely well. He stated that everyone is doing a wonderful job. Mr. White stated that his report was complete.
The Chairman asked if there were any questions of Mr. White and his report, upon hearing none he moved on to the Auditors' report.
Auditor - The Chairman stated there would be no Auditor report this evening.
Engineer
Mr. Kelly reported that in the past few weeks he has been working with the Facilities Manager and the financing arm of the Authority; relative to putting together the technical input for the capital improvement projects that are anticipated for later this year.
Mr. Kelly stated that the items that we have zeroed in on are those that were recommended in our recent report on the Facilities Operations and Odor Control. Mr. Kelly stated that it includes the various items relative to the relocation of the septic receiving station and the other venues that we have spoken about. Mr. Kelly stated that in addition we anticipate including in that an item for the repaving work associated with the parking lot and other areas within the facility. Mr. Kelly explained that the parking lot was part of the original installation and it has reached the end of its useful life. Mr. Kelly stated that this is an appropriate time to direct attention to that, for if it is left undone - it will require much greater repairs in the future, so it is our recommendation that we addressed it at this time. Mr. Kelly stated their thoughts were to include, as part of the overall project, some appropriate landscaping work. Mr. Kelly stated that this has been a subject of much discussion and he is aware there will be more, but he is looking for some input relative to the scope and breadth of the type of improvements desired. Mr. Kelly stated they envisioned, when giving the finance people some planning figures, that the Authority will have some flexibility in planning these improvements. Mr. Kelly stated that he will summarize all of what he just stated in a report and will have it submitted to you before the next meeting.
Mr. Kelly stated that his second item for discussion is something that Mr. White, himself and Frank Rossi, of his office, have been discussing, which is additional aeration for the oxidation ditches. Mr. Kelly stated that as you may recall Mr. White has indicated that in the summertime he has marginal levels of available oxygen in the oxidation ditches. Mr. Kelly stated that there is a real need for providing additional aeration in order to maintain a minimum oxidation level. Mr. Kelly stated that he will incorporate that into the report, as a separate line item. Mr. Kelly stated that the reason he is culling it out separately is that the timing associated with the capital improvement project for the balance of 2008 going forward into 2009 is such that by the time the package has been completed and will go before the Finance Board we are talking about an April/May type of timeframe. Mr. Kelly stated that Mr. White would like to see, and he concurs with Mr. White's recommendation, that we would want to have the additional oxygen available, if at all possible, for this summer. Mr. Kelly cautioned that as your septage receipt increases you will want to be sure that you have sufficient oxygen to properly process it.
REPORTS
Engineering Cont.
Mr. Kelly stated that if you have to wait until April/May; there is no chance of having the additional aeration this summer and we are not sure if it even can be done for this summer. Therefore, Mr. Kelly stated that his recommendation is as follows; if it is the Commissioner's desire to proceed with this project, he will put together a formal proposal just for the aeration and have it ready for them next month. Mr. Kelly stated that the cost would be stated as not to exceed $15,000 and he will outline that in his proposal. Mr. Kelly said that he would like to get started on that during the course of the next couple of weeks, once we can come to an agreement with Mr. White as to what type of additional aeration makes the most sense, finalize the specifications at the next meeting and go out to bid by the end of March/ beginning of April. He stated we will then be in a position to award it at the end of April and if all goes well have it installed in May or in June at the latest.
Mr. Kelly stated that if it is the Authority’s pleasure; he will formalize that proposal and have it for you for the next meeting. The Chairman asked Mr. Kelly, in light of the fact that our next meeting will be on February 26th , will there be time for you to have this prepared and delivered to our office in time for Mrs. Parrinello to put it out in our monthly packets. Mr. Kelly responded that he would have the proposal to the Authority next week. The Chairman stated that he appreciated Mr. Kelly's efforts in providing the proposal so quickly; as it will then give the Commissioner's sufficient time to acquaint themselves with the
particulars and be prepared to act upon it at the next meeting. Mr. Kelly stated that his report was completed.
The Chairman stated that at this time he would like to commend Boswell Inc. for an excellent report and for the Sludge, Dewatering and Disposal Study. He stated that it was very well written and obviously, while the conclusion was not what we wanted to hear, but engineering wise and financially they stated what was the course of action which was best for the Authority. Mr. Kelly thanked the Chairman and stated that in the future it would need just a few hours of work to update, when we find out what the disposal costs are at the other facilities, as they change.
MOTION Moved by Robert Moshman, 2nd by Andrew Bolduc to adopt Resolution #08-08
directing the Engineer to prepare for us, prior to the next scheduled meeting, a proposal for the acquisition of additional aeration equipment for the oxidation ditch’s.
The Chairman asked for all those in favor to please signify by saying Aye.
Commissioners Bigger, Bolduc, Hadley, Moshman Murray and Covelli all stated Aye.
There were no Nays or Abstentions.
MOTION
CARRIED
At this time the Chairman asked for the Legal Report.
Legal
Mr. Miller reported that there was a very preliminary meeting held Monday morning here with representatives of Bond Counsel, representatives of the Underwriters that work with our Bond Counsel, himself, Chairman Covelli, Counsel for Local Authority, Bill Kelly, Engineer for the Local Authority, Mr. Ferraioli and Mr. White. Mr. Miller stated that it was a very, very preliminary look at the existing bond structure and debt situation of the Regional and the Local, the preliminary capital improvement program for both Authorities and how this may fit and work together going forward. In dealing with the existing bond indebtedness when it comes due as well as financing some of the much needed capital improvement work. Mr. Miller stated that what we came away with from that meeting was some assignments that people are going to look at and hopefully have a report, on an approach to the issue, for the February meeting.
Mr. Miller stated that he feels it was a very productive meeting, looking at the capital needs and looking at the financial situation and having Bond Counsel and the Underwriter along with Mr. Ferraioli together discussing this bonding situation.
Mr. Miller stated that it that this is a particularly attractive time to move forward, with the current rate structure and with the anticipation that the rates will get even better, in the short term period here to do some refinancing and financing. Mr. Miller stated that there may be a chance to save some money on the existing indebtedness and do some really cheap financing going forward.
Mr. Miller stated that it was a very productive meeting and hopefully we will have more details for people to look at, on both Authority levels, at the February meeting.
The Chairman added that he was very impressed with the caliber of people we have working for us with respect to the Bond Counsel and the Bond Underwriters. He stated that the scenario that they ran for us, looking at the debt that we are allowed to call - because it is callable this year, is the debt that the Authority refinanced back in 1998. The Chairman stated that he believes the amount we are talking about is approximately $6,000 000 dollars worth of debt that can be called and refinanced at approximately $400,000 savings, on the life of that debt and that is quite substantial. The Chairman stated that this is an opportune time to be looking at refinancing; and at the same time we are working with the Local Authority in terms of utilizing, to whatever degree that we can, the Underwriter and the Bond Counsel which will limit the cost on both ends,
Mr. Miller added that we cannot do joint financing, but we can do it at the same time and save some of the professional costs.
The Chairman stated that Commissioner Bolduc has expressed some concern with the bond insurance relating to those sales, as the Bond Insurance Companies are having problems also at this time.
REPORTS
LEGAL Cont.
The Chairman stated that the time frame for this refinancing puts us before the Local Finance Board somewhere in or about April and the sale to be held around June; based on the time frame of when we are allowed to call the bonds.
Certificate of Deposit (CD) - Bond Reserve Fund
Mr. Miller stated that we have a Certificate of Deposit coming due on February 13th, which is before our next meeting date. Mr. Miller stated that, as has been done in the past, we should have a resolution authorizing himself and Mr. Ferraioli to obtain proposals from at least three or four different banks on terms and rates. We will then discuss it with the Chairman of the Finance Committee and then roll it over for a period of one year. Mr. Miller stated that the CD is currently held at Lakeland Bank.
Litigation
Mr. Miller reported that he recently had several conversations with Mr. Richard Clemak, who is the newly appointed counsel for Ringwood Borough, concerning our pending litigation with the Borough of Ringwood. Mr. Miller's reported that the last communication we had from their Special Counsel, who has been handling this matter, was an offer of $9,000. Mr. Miller reported that Mr. Clemak seemed to be very sincere in his desire to understand why they are paying all this money, for special counsel to fight over paying a $13,000 bill. Mr. Clemak stated that he was also aware of the mediation schedule, which is requiring many people to appear for the mediation. Mr. Miller stated that he has asked that I furnished him personally with some of the backup material data. Mr. Miller stated that he took care of that yesterday, and at the same time restated our position, that we are merely looking for the amount that we spent to be reimbursed: we are not looking for any counsel fees, interest etc.
The Chairman asked Mr. Miller if he would, for Commissioner Bigger’s benefit, give a one-minute synopsis of the litigation he was speaking about. Mr. Miller did so. In conclusion, Mr. Miller stated that hopefully all will be resolved shortly.
OLD BUSINESS
The Chairman asked if there was any Old Business to be brought before this Authority. Upon hearing no response he moved on to New Business.
NEW BUSINESS
The Chairman asked if there was any New Business to be brought before this Authority.
Commissioner Moshman reported that he has been made aware that the
West Milford Municipal Utilities Authority (WMMUA) Executive Director has
retired and it seems there is a potential for this Authority to provide certain
services to West Milford and be reimbursed for it; which would help us in the
terms of Revenue and help West Milford in terms of what they have to do to
replace their Executive Director.
Commissioner Moshman stated that he was not aware of what legalities
there are, if any, for this Authority to provide services to an MUA. He stated that the WMMUA is autonomous of the
Mr. White stated that approximately 10 years ago this Authority had some very preliminary discussions as to whether this Authority would operate the West Milford MUA plants. Mr. White stated that he toured the plants at that time. Discussion followed.
There was discussion on having Mr. White contacting the MUA acknowledging their position, and offering our assistance. Commissioner Bolduc stated that he had a problem with Mr. White writing such a letter, that he would prefer the MUA approach us with a proposal, Commissioner Murray agreed.
The Chairman stated that he did
not have a problem with Mr. White reaching out to the MUA, but his concern was
that the
Commissioner Bigger stated that he would think that if we were to take on additional services the additional help you would have to put on would be reimbursed back and that he does not feel it would cost the Authority anything.
Commissioner Bolduc stated he still does not feel comfortable unless he sees something in black and white from the WMMUA, requesting assistance/cooperation. He stated that he feels that it is up to them, and then consider letting Mr. White take a look at it.
At this time Commissioner Moshman asked that this discussion be held over until next month's meeting.
The Chairman stated that this time he would ask if there was anyone that wished to amend the Consent Agenda. Upon hearing no indications for changes to the agenda he stated that he would open the meeting to the Public.
The Chairman stated that in addition we need to have an Executive Session, with regard to contract negotiation, that well not result in any action being taken this evening.
PUBLIC PORTION
The Chairman asked if there was anyone from the public that wish to discuss any matter with this Board this evening. Upon there being no response the following motion was moved to close the Public Portion
MOTION Moved by Thomas Bigger, 2nd by Robert Moshman to adopt a resolution authorizing closing the public portion of this meeting.
The Chairman asked that everyone in favor to please signify as such by saying Aye.
Commissioners
Bigger, Bolduc, Hadley, Moshman,
There were no Nays or Abstentions.
MOTION CARRIED
At this time the Chairman asked for a motion authorizing the adoption of the Consent Agenda.
MOTION Moved by Robert Hadley, 2nd by Robert Moshman to adopt a resolution adopting and approving all items on the Consent Agenda containing the following Resolutions:
NO. 01-08 -
Correspondence -
02-08 -
03-08 - Voucher - M-10658 (FY'07)
Vouchers - M-10659 thru M-10707 (FY'08)
04-08 - Energy Efficiency Audit
05-08 - Personnel Committee Recommendation - Tim Johnson
On Roll Call Commissioners Bigger, Bolduc, Hadley, Moshman, Murray and Covelli
all voted yes.
MOTION CARRIED
CLOSED SESSION
The Chairman stated that this time he would like a resolution to go into Closed Session to discuss contract negotiations and that there will be no action taken on these matters this evening. The Chairman asked Mr. Kelly if he would please remain for the Closed Session.
MOTION Moved by Andrew Bolduc, 2nd by Robert Hadley to adopt a resolution authorizing going into Closed Session to discuss contract negotiations and that there will be no action taken on these matters this evening.
On Roll Call Commissioners Bigger, Bolduc, Hadley, Moshman, Murray and Covelli
all voted yes.
MOTION
CARRIED
Closed Session commenced at
MOTION Moved by Thomas Bigger, 2nd by Patrick Murray to adopt a resolution authorizing
Returning to Open Session.
The Chairman asked that everyone in favor to please signify as such by saying Aye.
Commissioners
Bigger, Bolduc, Hadley, Moshman,
There were no Nays or Abstentions.
MOTION
CARRIED
ADJOURN
MOTION Moved by Robert Moshman, 2nd by Patrick Murray to adopt a resolution authorizing
adjourning this meeting.
The Chairman asked that everyone in favor to please signify as such by saying Aye.
Commissioners
Bigger, Bolduc, Hadley, Moshman,
There were no Nays or Abstentions.
MOTION
CARRIED
The meeting was adjourned at 7:50 PM.
Minutes Respectfully Submitted by,
Margaret M. Maas, Recording Secretary