WANAQUE VALLEY REGLIONAL SEWERAGE AUTHORITY

WANAQUE VALLEY
REGIONAL SEWERAGE AUTHORITY

MINUTES

October 24, 2007

Regular Meeting

The WANAQUE VALLEY REGIONAL SEWERAGE AUTHORITY conducted a Regular Meeting, which commenced at 6:12 PM, in the Wanaque Valley Regional Sewerage Authority Administration Building, Wanaque, New Jersey with Chairman, Frank Covelli, presiding.

ANNOUNCEMENT

Mrs. Maas, Recording Secretary read the following announcement:

This is the Regular Meeting of the Wanaque Valley Regional Sewerage 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 Municipal Building. Notices were also sent to the following newspapers: the Herald News, the Trends and the Record. A copy of the notice will be filed with the minutes of this meeting.

SALUTE TO THE FLAG

The Chairman led the salute to the flag.

ROLL CALL

Commissioners present: Andrew Bolduc, Frank Covelli, Joseph Elcavage and Robert Moshman

Commissioners absent: Robert Hadley and Patrick Murray

Also present: Richard Miller, Esq., Williams, Caliri, Miller & Otley

Charles Ferraioli, Jr., M.P.A., Ferraioli, Wielkotz, Cerullo & Cuva

James Kelly, P E., Boswell Engineering

Gregory White, Facilities Manager

Margaret Maas, Recording Secretary

CorrespondenCE

The Chairman asked if everyone had reviewed the correspondence list for the period September 8, 2007 through October 18, 2007. When there was no response the Chairman stated that the correspondence would be placed on file.

MINUTES OF 8/8/07 and 9/12/07

The Chairman stated that we have two sets of minutes this evening, we will take each separately. The Chairman asked for a motion approving the Regular Meeting Minutes for August 8, 2007.

MOTION Moved by Andrew Bolduc, 2^nd by Joseph Elcavage to adopt Resolution 009-07 accepting the Regular Meeting Minutes of August 8, 2007 as presented.

On Roll-Call Commissioners Bolduc, Elcavage, Moshman and Covelli all voted yes.

Commissioners Hadley and Murray were absent.

MOTION CARRIED

The Chairman then asked for a motion approving the Regular Meeting Minutes for September 12, 2007.

MOTION Moved by Joseph Elcavage, 2^nd by Andrew Bolduc to adopt Resolution 010-07 accepting the Regular Meeting Minutes of September 12, 2007, as presented.

On Roll-Call Commissioners Bolduc, Elcavage, Moshman and Covelli all voted yes.

Commissioners Hadley and Murray were absent.

MOTION CARRIED

REPORTS

Facilities Manager

Capacity Assurance Program (CAP)

Mr. White stated that he filed the CAP report for the period of July 1^st thru September 30 of 2007. He stated he was quite pleased that the report reflects that we have a positive 219,000 gallons of capacity available at this facility. Mr. White stated that he has been filing these reports for many years and that this is the first time he has ever seen a positive number to that extent.

Mr. White reported that he attributed it to several things: the replacement of the pipe down on the corner, underneath the bridge which reduced a significant amount of I & I and the Local Authority is replacing some old lines down in the Whistler Place area, which is currently underway. He stated that we also cannot ignore the dry weather we have been having either.

Mr. White stayed that he is pleased to report that we have a large volume of capacity available at the current time.

Medical and Dental Insurance Report
Mr. White reported that at last month's meeting we approved the medical and dental premium reimbursement for four employees of this Authority. He stated that that resolution was based on six months of medical premium reimbursement. Mr. White stated that as noticed in your packages, the State has sent out notification of the medical rates for 2008 which are going to remain the same for the entire year. Mr. White stated that originally he had calculated the numbers on a six month period; he has now recalculated those numbers for the entire fiscal year.

Mr. White stated that he needs to get those amounts approved this evening. He stated that he will revisit this later during the meeting, as he does not have the numbers with him at the moment.

Lead Issue

Mr. White reported that in your folders this evening there is a copy of a draft settlement we received from the Deputy Attorney General of the State of New Jersey, with regard to our Final Discharge Permit – the Lead issue that we have been contesting for several years. Mr. White stated that he has forwarded it to our attorney Mr. Miller, for his review. Mr. White stated that it is a standard form of agreement. He reported that he has spoken with the attorney that is handling the issue for us, Ms Diana Alexander.

Mr. White stated the only thing of substance to report now is that we are still reviewing the agreement. Mr. White stated that we are going to try to petition the State for removal of the Lead Monitoring entirely or a reduction in monitoring frequendy from the permit. He reported that NJDEP has already stated in writing,

“That the petitioner’s discharge of lead does not cause or does not have a reasonable potential to cause an excursion of surface water quality standards for lead”. Mr. White stated as far as he is concerned there is no reason to monitor us on a frequent basis; if they have already stated we do not have the potential to cause concern. Mr. White stated that it would be a cost savings for us if we could eliminate the lead monitoring or have it reduced significantly. Mr. White stated that he and Mr. Miller will continue working with Ms. Alexander to provide comment back to the State. Mr. Miller stated that bottom-line this is a positive result. Mr. White stated that they are giving us everything we want.

Noise and Odor Control

Mr. White stated that he has distributed his noise and odor control report. He stated that there are two additions to the document this month. With regard to noise; Mr. White stated that he has received several complaints from a resident in Building 10 that there was a trucker coming into the facility before the start of our liquid waste acceptance hours of 6:00 a.m. Mr. White stated that he spoke to that hauler and reminded all the haulers of the hours of operation and the quiet zone area.

Mr. White stated with regard to Odor Control, the vent pipe canisters were installed on the by-pass line last month and we also placed them on the comfort station vent pipes (2). He stated that it was noticed that there were odors emanating from them and we immediately placed canisters upon them. Mr. White stated that we had extra vent pipe canisters on hand and we thought it prudent to resolve the problem. Mr. White stated the question still remains as to how long the carbon will last in the canisters. Discussion ensued.

Stone Hill Construction (SH) – Retainage Release

Mr. White stated that SHC provided him with a written notice that they would take care of the unresolved matters on the list and he stated that they have completed two of the three outstanding items. Mr. White stated that the only remaining item was the paving of the disturbed areas. Mr. White stated that he feels it is now OK to release their retainage and he has released the check today, as he was instructed to do.

REPORTS

Plant Status

Mr. White stated that the plant is running extremely well, there were a few minor problems but nothing substantial. Mr. White stated his report was complete.

Public Hearing on the Wanaque Valley Regional Sewerage Authority 2008 Fiscal Year Budget for the Period Ending September 30, 2008

Mr. Ferraioli stated that tonight is the Public Hearing for the Wanaque Valley Regional Sewerage Authority 2008 Fiscal Year Budget for the period ending September 9, 2008. Mr. Ferraioli stated that after the public hearing there will be a resolution to adopt the budget.

Mr. Ferraioli stated that this year’s budget is up less than $60,000 or 1.7%. He stated that the Service Agreement between this Authority and the Local Authority has increased less than $108,000.

Mr. Ferraioli stated that the main reason for generating the increase is the Power line item which is up from $200,000 last year to $255,000 this year. He stated that the Sludge Removal line item has also increased from $275,000 to $290,000. Discussion ensued.

Upon the conclusion of the discussion, the Chairman stated that he would entertain a motion to open the Public Hearing on the 2008 Budget to the public.

MOTION Moved by Joseph Elcavage, 2^nd by Andrew Bolduc to adopt Resolution Number 011-07 authorizing opening the Public Portion of the Public Hearing on the WVRSA Budget for the period ending September 30, 2008.

The Chairman asked for all those in favor to signify by saying AYE.

Commissioners Bolduc, Elcavage, Moshman, and Covelli all stated AYE.

There were no Nays or Abstentions.

Commissioners Hadley and Murray were absent.

MOTION CARRIED

Public Portion

The Chairman stated at this time the Public Hearing is open to the public and that we will take questions and comments, dealing with our 2008 Fiscal Year Budget. He stated that anyone wishing to address this Board to please step toward and identify themselves

Paul Ferrantino. Mr. Ferrantino asked, based upon what we spoke about at the meeting on the 19^th, is there anything in the budget for trees or construction etc.

The Chairman stated that is something we will be working with Mr. Kelly on as part of our Capital Improvements.

The Chairman asked if there's anyone else from the public wishing to address the 2008 Budget. Upon hearing none, the Chairman stated that he would entertain a motion to close the Public Portion.

MOTION Moved by Joseph Elcavage, 2^nd by Robert Moshman to adopt Resolution Number 012-07 authorizing closing the Public Portion of the Public Hearing on

the WVRSA 2008 Fiscal Year Budget, for the period ending September 30, 2008.

The Chairman stated for all those in favor to signify by saying AYE.

Commissioners Bolduc, Elcavage, Moshman, and Covelli all stated AYE

There were no Nays or Absetentions.

Commissioners Hadley and Murray were absent.

MOTION CARRIED

Mr. Ferraioli stated that he is requesting a motion authorizing the adoption of the WVRSA 2008 Fiscal Year Budget for the period ending September 30, 2008, with a total Revenue of $3,596,732.50 and a total Appropriations of $3,596,732.50.

MOTION Moved by Joseph Elcavage, 2^nd by Robert Moshman to adopt Resolution

Number 013-07 authorizing the adoption of the Wanaque Valley Regional Sewerage Authority 2008 Fiscal Year Budget for the period ending September 30, 2008 as presented.

On Roll Call Commissioners Bolduc, Elcavage, Moshman and Covelli voted yes.

Commissioners Hadley and Murray were absent.

MOTION CARRIED

REPORTS

Accounting

Mr. Ferraioli stated that with regard to the report from the engineer Mr. Kelly, he would like to receive the final figures for the Capital projects as soon as they're available. Mr. Ferraioli then stated he would take those numbers and add them to the Capital project numbers he receives from the Local Authority and create the amount we will submit to the Underwriter to give us some amortization schedules. Mr. Ferraioli stated our goal has been that we will keep the debt service line items the same for both Authorities; we are just going to add it to the end.

Mr. Ferraioli stated that once he has the schedules he will bring them back to the Authority for its approval. He stated that then the next step would be a resolution to the Local Finance Board for their approval and then we will move forward and sell bonds. Mr. Ferraioli stated that the only thing that may delay that schedule would be the federal interest-rate at that time and then we would have to go on hold. Mr. Ferraioli stated that looking forward it may be a three month process providing there are no delays.

Commissioner Bolduc asked Mr. Ferraioli about the difference of a $60,000 increase in the budget for the Regional and the increase of $108,000 to the Service Agreement with the Local Authority. Mr. Ferraioli explained that it was partly due to less revenue having been received here at the Authority and also do to the rollover of our short-term notes, the interest-rate we were able to get was not as good as the original and therefore there was a loss there also. Discussion ensued.

Mr. White asked Mr. Ferraioli when is the right time to do the “Approval of the quarterly charge to Local Authority”. Mr. Ferraioli stated that should be done next month.

Mr. Ferraioli stated that his report was complete and he was excused for the evening.

The Chairman asked for the Engineering Report.

Engineering

Consulting Engineer’s Certificate

Mr. Kelly stated he had several things to discuss this evening. He stated the first item was the Consulting Engineer’s Certificate. Mr. Kelly stated that he has prepared the Certificate for the Accountant and for the Authority. Mr. Kelly stated that he has reviewed the FY 2008 Budget and has found the figures, as stated, acceptable from an Engineering standpoint. Mr. Kelly stated that he is aware that this Certificate is a requirement the original Bond documents and must be presented to the Bank of New York annually.

Proposal - Sludge Dewatering and Disposal Study

Mr. Kelly stayed that as Mr. Ferraioli reported, a large part of the increase in the coming 2008 Budget is due to the increase in the sludge hauling costs. Mr. Kelly stated that that number is now up to $320,000. Mr. Kelly stated, as was discussed at last month's meeting, we are now hauling sludge at 6% solids. He stated that there is another technology, which is used as a standard in this industry, whereby you can dewatering it to 22 or 24% solids, to decrease the volume significantly. Mr. Kelly stated that instead of pumping a liquid you are removing what is referred to as a cake. That cake is in turn trucked out and disposed of. Mr. Kelly stated it has been suggested that that may be an alternative to effectuate some savings. Mr. Kelly stated they he has started to do some preliminary paper work. Mr. Kelly stated he had a meeting with Mr. White where they reviewed several considerations. Mr. Kelly stated that they're almost ready to put it together and to report to the Commissioners. Mr. Kelly stated that that is the subject of the proposal he submitted on October 18, 2007, the proposal for Engineering Services on providing dewatering and disposal services.

Mr. Kelly stated that this report, when completed, will enable us to recommend whether or not to proceed with the improvement project, whereby we feel that the dewatered sludge be a greater savings than our current operation. Mr. Kelly stated that in order to proceed with an improvement, obviously there are capital costs associate with it. Mr. Kelly stated that while we would have potentially lower disposal costs; the question will be- how that compares from a cost-effective standpoint to the current system we already have.

Commissioner Elcavage asked will our current disposal site, Passaic Valley Sewerage Commissioners (PVSC) charge us more money for disposal of this type of sludge. Mr. Kelly stated actually that PVSC doesn’t accept this type of sludge – they only accept liquid sludge. He stated that we will have to seek a new disposal site.

Commissioner Elcavage stated that Mr. White and/or Mr. Miller will also have to look into our contract with PVSC. Mr. Kelly stated that Mr. White would probably be able to provide us with that information and we will then include that in the study.

REPORTS

Engineering Cont.

Mr. Kelly stated that any improvements at the south end of the plant with the other items we have discussed at prior meetings - should all come together nicely. Mr. Kelly stated that this can only be done if it is cost-effective. If it will save the Authority money it would be worth considering. If it will cost the same or more then it will most likely not be worth proceeding.

Commissioner Bolduc stated that along with what Commissioner Elcavage said, if we have a contract that binds us for another three years, he was wondering if at this time a study might be premature. Commissioner Bolduc stated that findings you would come up with now - may not be the same findings you come up with two years down the road. He stated that he would prefer that we look at that contract. Mr. White stated that if it is decided that this project is a go and Mr. Kelly will have an answer, yes or no - it will not be a guessing game - we are looking at least a year and half to two years before anything gets constructed. Discussion ensued.

At the conclusion of the discussions the Chairman stated that he would like to see a provision be added to Mr. Kelly’s previous authorization, subject to review of our current sludge disposal contract, to include a study of the Sludge Dewatering and Disposal Operation. He stated that the study needs to quantify the numbers, the cost of the new equipment, where to locate this operation and what the capital cost will be.

Commissioner Elcavage stated that as this is a state of the art facility he would like for this operation to be built within an enclosure, in order to contain any odors that might emanate. He stated that under those conditions he has no problem authorizing Mr. Kelly to complete said study.

Mr. Miller stated that in the interim he will look at the contract to see exactly where we stand with PVSC.

MOTION Moved by Joseph Elcavage, 2^nd by Andrew Bolduc to adopt Resolution

# 014-07 authorizing our engineer Mr. James Kelly to proceed with the study of WVRSA Sludge Dewatering and Disposal Operation.

On Roll Call Commissioners Bolduc, Elcavage, Moshman and Covelli voted yes.

Commissioners Hadley and Murray were absent.

MOTION CARRIED

The Chairman asked Mr. Miller for the Legal Report.

Legal

Mr. Miller stated he has been in contact with Mr. White on Authority matters whenever they arose. Mr. Miller stated that they did wind up the Bond Closing since last meeting. Everything went as expected.

Litigation -Mediation

Mr. Miller reported that the mediation that was rescheduled for November was put off until December; because in November the mediator is litigating some other matters, so they are looking for a date.

Mr. Miller stated that that was the extent of his report.

Medical and Dental Reimbursement

Mr. White stated that he distributed to the Commissioners the spreadsheet on the FY 2008 total Health Benefits costs. Mr. White then explained the spreadsheet. Mr. White stated that there are four employees that have agreed to waive their medical and dental coverage. He stated that the amount they are due, which is 50% of the premium that the Authority would have had to pay, is also listed on the report.

Mr. White stated at the very bottom of the sheet is listed the FY 2008 health benefits costs. The cost for Dental, L T D and Life Insurance coverage is $17,523.36, the cost for 12 months of Medical Insurance is $91,294.20 and the waiver reimbursement cost is $23,305.44, which comes to a total cost of $132,123.00. Mr. White stated that the total cost for FY 2008 is slightly below the cost for FY 2007. Mr. White stated that if anyone has any questions, he would be happy to answer them. When there were no responses Mr. White asked for a resolution granting approval of the four individual premium reimbursements.

The Chairman stated that it would not be necessary to list the individual employees or the individual amounts as last month the waiver reimbursement was approved.

REPORTS

Medical and Dental Reimbursement Cont.

MOTION Moved by Joseph Elcavage, 2^nd by Robert Moshman to adopt Resolution

#015-07 accepting this amendment to the previous resolution, #008-07, which now states what we actually know the medical premium that we will be paying for FY 2008, based on subsequent correspondence with the State Health Benefits Program. We are just affirming the calculations by the Facilities Manager for the buyout program.

On Roll Call Commissioners Bolduc, Elcavage, Moshman and Covelli voted yes.

Commissioners Hadley & Murray were absent.

MOTION CARRIED

Vouchers

The Chairman stated that we have before us this evening for approval Vouchers M-10512 thru M-10553 (FY07) and M-10554 thru M-10587 (FY08). He asked Commissioner Elcavage if all the Vouchers were in order and the following motion was moved.

RE: Vouchers M-10512 thru M-10553 (FY07)

M-10554 thru M-10587 (FY08)

RESOLUTION – Read by Title

“RESOLUTION REQUISITIONING FROM THE REVENUE FUND TO THE REVOLVING FUND BY THE WANAQUE VALLEY REGIONAL SEWERAGE AUTHORITY (“AUTHORITY”) PURSUANT TO SECTION 506 OF THE BOND RESOLUTIN ENTITLED “RESOLUTION PROVIDING FOR THE ISSUANCE OF BONDS OF THE WANAQUE VALLEY REGIONAL SEWERAGE AUTHORITY AND FOR THE RIGHTS OF THE HOLDERS THEREOF, AND AUTHORIZING $12,500,000.00 PRINCIPAL AMOUNT THEREOF (“RESOLUTION”) ADOPTED BY THE AUTHORITY ON AUGUST 26, 1987, AS AMENDED OR SUPPOLEMENTED THEREAFTER”

MOTION Moved by Joseph Elcavage, 2^nd by Robert Moshman to adopt Resolution

# 016-07 approving the payment of Vouchers M-10512 thru M-10553 for FY 07 and Vouchers M-10554 thru M-10587 for FY 08, subject to availability of

funds.

On Roll Call Commissioners Bolduc, Elcavage, Moshman and Covelli voted yes.

Commissioners Hadley and Murray were absent.

MOTION CARRIED

At this time Mr. Miller stated with regard to the previously approved vouchers he wanted it noted that his bill was higher than usual this month, due to the work done on the Bond Closing.

He stated this work was completed over several months but was only billed on this month's voucher.

OLD BUSINESS

Good Neighbor Meeting

Chairman Covelli reported that there was a Good Neighbor Meeting held on October 19th. In attendance at the meeting were James Kelly our engineer from Boswell Engineering, Gregory White Facilities Manager, himself and several residents of the Wanaque Reserve.

Chairman Covelli stated they had a very productive meeting. He stated he believed they have come to an understanding of each other's goals with respect to the landscaping issues which was the focus of that meeting. The Chairman stated there are some issues to be discussed in closed session later this evening, regarding the legal issues involved connected to the landscaping project..

The Chairman stated overall it was a very good meeting. He stated that Mr. Kelly provided the group with some information and agreed to look into the environmental factors with regard to wetlands etc. which might impact the planting of trees in this area. The Chairman stated that it was agreed that there will be more meetings in the near future.

The Chairman asked if there was anything further to discuss under Old Business and there was no response he stated that he would move on to New Business..

NEW BUSINESS

The Chairman asked if there was anything to be discussed under New Business. Upon receiving no response He stated he would move to the Public Portion of the meeting.

PUBLIC PORTION

The Chairman stated that anyone from the public should feel free to address us on any topic of interest or concern. He stated that he welcomes everyone, and asked if they wish to speak to please step up to the microphone and state their name and address.

Paul Ferrantino – 8323 Warrens Way. Mr. Ferrantino stated that first he would like to thank everyone for the meeting on October 19th. He stated that he also feels it was a very productive meeting and hopefully a lot of what was discussed will come to fruition. Mr. Ferrantino asked if Mr. Kelly would be in attendance at the meeting on the 29th of this month with Mayor Mahler. He was told yes that Mr. Kelly would be in attendance.

Mr. Ferrantino asked Mr. White what the hours were for the trucks to be coming into the Authority and what were the different seasonal dates. Mr. White stated that the winter hours are 7 AM –9 PM and begin on December 1st and run through March; the summer hours are 6 AM

– 9 PM. Mr. White reported that the haulers are more active with the longer daylight hours in the summer, spring and fall.

Mr. Ferrantino asked Mr. Kelly, with regard to the sludge cake he mentioned, will that be more odorous or noisier than the current method of disposal. Mr. Kelly said it would be less to all your questions. Mr. White agreed with him that the dewatered dry sludge is much less offensive than the liquid and stated there will be one quarter less trucks than there are for the liquid.

Mr. Ferrantino stated that there is a State campaign to Go Green. He stated that one of the people on his committee suggested that maybe it would be possible to find some funding sources in either the Federal or the State programs to help cover cost of this landscaping project. Mr. White stated that there are many other sources of that same nature available that we could look into. Mr. White stated some of those sources are the Nature Conservatory and the Audubon Society.

Bill Holt – 8311 Warrens Way. Mr. Holt stated that he also would like to thank everyone for that good neighbor meeting and that he thought it was a very productive meeting also.

Paul Ferrantino -He stated there was another thing he wished to speak with the Commissioners about; one of them being how much money is the Authority willing to contribute to the landscaping, tree planting project. He was not sure if the Board had discussed this yet or if they had come to any decision.

The Chairman stated that earlier this evening he asked for a Closed Session to be held later this evening and that he believed that would be one of the topics. Mr. Ferrantino asked if there would be a decision by the meeting of the October 29th. The Chairman stated that we will be discussing that during the Closed Session, but we will not be taking a vote on it as all voting must be done at the public meeting.

John Di Meglio – 414 Ringwood Avenue. Mr. Di Meglio stated that he had read the report from Mr. Kelly and understands that if you go through with that project it would cost close to a quarter of a million dollars to correct the problem. He wanted to know if that is correct and if when completed will it correct the problem. Mr. Kelly stated that the number he stated was correct, but he would categorize it differently- to be making improvements that will facilitate the operation of the treatment plant. Mr. Di Meglio stated that in other words you cannot guarantee that it is going to solve the problem.

Mr. Kelly stated that the issue you are referring to is an issue of odor. Mr. Kelly stated that we all have a general understanding that the nature of the material that we are dealing with here is such that there always is an odor opportunity. The material lends itself to odor being emanated. He stated that the issue is to take steps to enhance limiting the odor to the immediate area of operation and not emanating off the plant. He stated that he thinks it's only fair to state that there is always a potential for odor at the operation of this facility and depending upon such factors as; quality of material, which can vary from day-to-day, the concentration of inflow, weather circumstances, temperature and wind direction to name a few – that there is always a potential for an odor situation.

Mr. Kelly stated that the Authority undertook the recent expansion and improvements to include odor control at various locations. He stated that the recommendation in this report -is our intention to provide for increased improvements to accept septage material and to further incorporate steps to mitigate any odors that may be emanated

Mr. Di Meglio then asked how are the trees going to help stop the odor. Mr. Kelly stated that the trees as such will have more of a sight consideration and there is a blocking of wind that along with the general aesthetics will hopefully enhance elimination of odors.

PUBLIC PORTION

John Di Meglio Cont.

Mr. Di Meglio stated that along with Pulte you have already spent over $500,000 on Odor Control thus far it looks like it is not working. Bill Holt stated that would disagree with that and that he believes it is working well. Mr. White stated that what we have in place works very well . Mr. White stated that there are some areas of the plant that were not considered in the past, but what we have in place now is working extremely well . Mr. Di Meglio stated some of the residents are still experiencing some odors, and now you’re considering spending a lot of money again, and you are not even sure it's going to work. Mr. White stated that if something is built and put in place, with the current technology and engineering design, he believes that we can be confident that it will work very well. Mr. White stated as we all heard Mr. Kelly say - due to the nature of the facility there is always a potential for an odor to be produced and we cannot totally eliminate all odors at all times. Mr. White stated he feels that this will be a thorough review , a thorough plan , a thorough engineering design and he believes they will take all matters into consideration, and that what ever technology is put into place will work well.

Paul Ferrantino – Mr. Ferrantino stated that it is his belief that trees would also produce oxygen and that oxygen will help dilute any odors remaining. Mr. Ferrantino added that with regard to the cost of the trees, it is not Pulte, but it is the residents of Wanaque Reserve that are putting up a big chunk of the money. He stated that Pulte is chipping in also. He stated that the y, the residents, feel that this Authority and even the town should be chipping in as well .

There was some discussion on why there should be any talk of the rates going up for the entire town, when there are so many new rate payers on the system.

The Chairman stated that while he did not want to get into debate with the audience; he would like to make a statement for the record for clarification purposes. The Chairman stated what has been talked about - going forward - has to do with money that would be bonded and the total bond, the total debt load of this Authority, would not increase; because of the fact there will be the retiring of some debt as well as reducing the cost of existing debt . So with that said, we will be amortizing, over time, the cost of the improvements that are to be made with respect to the operations of the plant and the improvement and efficiency of the plant . The Chairman stated he would like it noted that all the improvements that were made in the last phase, that we just completed, were paid for with cash. So this Authority did not go into debt nor did the Local Authority go into debt to do approximately $5,000,000 worth of upgrades to this plant . The Chairman stated with th at said; he thinks one always needs to keep in focus what we're talking about. He stated that this Authority and certainly the Local Authority has not thrown money at problems and has not been reckless, in fact he feels they have been very prudent in how they focused attention on improving this plant, maximizing use of the dollars that came in for the first phase and now we have identified some additional areas that need some improvement and we are going to do the prudent thing.