WANAQUE VALLEY

REGIONAL SEWERAGE AUTHORITY MEETING

 

MINUTES

 

February 25, 2009

Regular Meeting

 

 

The WANAQUE VALLEY REGIONAL SEWERAGE AUTHORITY conducted a Regular Meeting, which commenced at 6:45 P.M., 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 Meeting 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 stated that we will dispense the Salute to the Flag as it was pledged earlier this evening. 

 

 ROLL CALL

Mrs. Maas, Recording Secretary took Roll Call.

Commissioners Present:            Andrew Bolduc, Harry Clark, Robert Hadley, Robert Moshman, Patrick Murray and Frank Covelli

Also present:                            Richard Miller, Esq., Williams, Caliri 8, Miller & Otley

                                                Charles Ferraioli, Jr., Ferraioli, Wielkotz, Cerullo & Cuva

                                                James Kelly, P.E., Boswell Engineering

                                                Gregory White, Facilities Manager

                                                Margaret Maas, Recording Secretary

 

CORRESPONDENCE LIST - 01-24-09 - 02-22-09

The Chairman stated everyone should have in their package this evening the Correspondence List for the period of 01-24-09 - 02-22-09 for your review.   The Chairman stated they will be filed accordingly. 

 

MINUTES - Regular Meeting 01-29-09

The Chairman asked for a motion to accept the minutes of 01-29-09. 

 

MOTION        Moved by Robert Hadley, 2nd by Patrick Murray to adopt a Resolution

                        accepting and approving the minutes the 01-29-09 Regular Minutes.

The Chairman stated that he had additional language regarding the need to conduct this meeting pending state deadlines for Grant/Loan applications consistent with the impending Federal Economic Stimulus Package legislation.  He stated that he had some further additions as noted.

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

Commissioners Bolduc, Hadley, Moshman, Murray and Covelli all stated Aye. Commissioner Clark abstained.

                                                                                                            MOTION CARRIED

 

REPORTS

            Facilities Manager

            Monthly - Noise and Odor Control Report - Update

            Mr. White reported that all odor control units are operating and functioning properly.  Mr. White stated that the manufacturer will be here next month in March. They owe us two service days as per the last contract and we're going to utilize those days before the contract runs out.

            PMK Energy Consultant - Update

            Mr. White reported that he received information via the e-mail about one hour before this meeting and that he copied it to Chairman Covelli. Mr. White reported that the information related to the Natural Gas Co-operative Purchasing Group.  Mr. White reported that PMK is continuing to question prospective municipalities and the Utility Authorities. 

            Mr. White stated that PMK has presented another proposal as they are considering drilling a test well to determine whether the Geothermal heat system would be feasible here.  They have included a proposal for our review as well.  Mr. White stated that the proposal is for $18,000 .00.

            Mr. White stated that once he and the Chairman have reviewed this information; he will see that everyone receives a copy.

            Mr. White reported that with regard to the determination of our Carbon Foot Print or greenhouse gas emissions; PMK was ready to release that document to us until they found out that the State had changed the formula for the calculation of that assessment.  Mr. White stated that as they wanted to be in full compliance with the state regulations, they have asked to be given another two weeks in order to properly calculate the number based upon the current formula

 

REPORTS

            Facilities Manager

The Chairman stated that in the e-mail from PMK, regarding to the Natural Gas

Co-op., the Borough of Wanaque, West Milford MUA, the city of Garfield and Andover Township have expressed interest in joining with us, in addition to the Jersey City MUA, the East Orange Water Commission, Bernard Township and the city of East Orange.  The Chairman commented that looks as if we might have a decent sized group to start with.

            West Milford Municipal Utilities Authority (WMMUA) Sludge Treatment Update

            Mr. White reported with regard to the WMMUA sludge, he had another conversation with Miss Judy Kerr, Executive Director; she is still awaiting information regarding their new PVSC sludge disposal costs.  He stated that she is not yet able to confirm that number and therefore cannot calculate her costs.  Mr. White stated that he has our disposal cost determined exactly and that we are ready to go, whenever she is.  Mr. White stated that what is paramount in making this feasible - is that we ensure that we will be able to thicken the MUA sludge.  Mr. White stated that to make it absolutely positive in his mind that this will work he wants the Authority to accept another load of sludge to see if dewatering their sludge is feasible.  He stated that if the numbers remain the same then he will know, beyond the shadow of a doubt, what the thickening factor will be and it will be easier for us to sit down at the table the MUA.

 

The Chairman stated that he would like a motion authorizing the Authority receive another truckload of sludge delivered from WMMUA.

 

MOTION        Moved by Robert Hadley, 2nd by Harry Clark to adopt Resolution authorizing Mr. White to contact West Milford MUA to send us another truck load of sludge to be tested to determine the feasibility of dewatering the sludge.

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

Commissioners Bolduc, Clark, Hadley, Moshman, Murray and Covelli all stated Aye.

                                                                                                            MOTION CARRIED

 

            Mr. White reported that he received a call from Mr. Carmine Scangarello, Chairman of the WMMUA. Mr. White stated that Mr. Scangarello inquired about the sludge treatment options and what was transpiring.  Mr. White reported that he had informed him that we were awaiting additional information from the MUA. 

            Mr. White reported that the second item that Mr. Scangarello inquired about was that he wanted to inform us that the WMMUA was going out on public bid for the operation and maintenance of their water and wastewater systems and he asked if this Authority would be interested in submitting a bid proposal. 

 

REPORTS

            Facilities Manager

            West Milford Municipal Utilities Authority (WMMUA) Sludge Treatment Update Cont.

            Mr. White reported that he told Mr. Scangarello that he would have to query the Board to determine their interest, and he also stated that it would be paramount that I get a chance and members of this Authority have a chance to view the plants to determine 1) what condition they're in and then 2) look at some past records to determine what their compliance has been with their permits.

            Mr. White then asked the Commissioners first - what is the interest of the Authority - second -would they like to proceed with the initial discovery process where members of this Authority look at their Facilities.  Mr. White stated that he was offered an invitation to go around with Mr. Scangarello to view these plants.  Mr. White stated that if this Authority chooses to do this he is extending the invitation to any member(s) of the board that wished to participate.  Mr. White stated that it has been more than 10 years since he visited any of the West Milford plants.    Commissioner Bolduc asked how many plants are we speaking about.  Mr. White responded he believes there are six wastewater plants and several water systems.  Discussion ensued. 

            Mr. White stated that if everyone was in agreement he would like to get authorization to view these facilities with any member(s) of the Board, in the near future, and then report back either to the Board or group of Commissioners.  The Chairman asked for a voice vote and everyone appeared to be in agreement.  Almost all of the Commissioners indicated that they would be interested in accompanying Mr. White on the tour.   The Chairman stated that it was not necessary for him to go as he is already seen the plants, and he would like it placed on the record, that he insures the WMMUA.

            Plant Flows - Operations

            Mr. White reported that currently we are running approximately 900,000 to 950,000 gal. per day, which is typical for this time of year.   Mr. White reported that our plant is operating extremely well even with the frigid weather we've experienced recently.  We haven't had any problems whatsoever.   Mr. White reported that the truck deliveries have been very sporadic due to the weather.  When the weather is good they get very busy but when it gets very cold the deliveries almost halt.  

            Revenue

            Mr. White reported that the revenues are down $57,000.00, as compared to the first four months of FY ‘08.  Mr. White stated that he was hoping for a strong summer to boost revenues.  

 

REPORTS

            Accounting

            Bond Sale

            Mr. Ferraioli thanked the Board for his appointment.   Mr. Ferraioli stated that as you know we have been trying to sell Bonds.  He then reviewed the state of Bond Market from the end of 2008 to now.  Mr. Ferraioli stated that rates that are coming out are terrible.  He reported that Wanaque Borough sold bonds this week the rate they received was 2.95% which is not great but they did sell their Bonds.  Mr. Ferraioli stated that he was hopeful that the Authority’s rating will get upgraded by Standard and Poor's, who have been coming out with higher ratings than Moody’s recently.  He stated if that happens we should be able to get a better rate.  Mr. Ferraioli stated that if we get upgraded it will not only get us a better interest rate, hopefully we will be able to do the Refunding Bonds - sell new Bonds at a lower rate than the old Bonds. 

            Mr. Ferraioli stated that the next issue that we must look at is the new money for our construction.  He stated that we are looking to sell about 2.2 million, and that was in the form of zero coupons Bonds, which we would begin paying off in 2023.  Mr. Ferraioli stated that they were structured that way because our current debt ends in 2022.  He stated the problem is that there hasn't been one of these sales in about six months.  Mr. Ferraioli stated that Brian Burke, our Bond Underwriter, has commented that he cannot guarantee selling all the money, but we have asked him to move forward as we are going to need the cash.

            Mr. Ferraioli reported that regarding the Stimulus Bill from the Federal government; it has not yet been authorized by the State of New Jersey.  Mr. Ferraioli stated that he had a conversation with former Congressman Robert Roe who also noted that we need to tie in with the Grant.

            Mr. Miller stated that he also spoke with former Congressman Roe, regarding the Grants, and he reported that as of Monday it looked like it was going to be all Loans; but today he stated that they were going to be voting today, regarding making it 50% Loans and 50% Grants.   Mr. Miller reported that Congressman Roe asked if it turns out to be 50% Loan - 50% Grant were we still interested.  Mr. Ferraioli gave a thumbnail explanation of the upgrade that we are planning. 

            The Chairman asked that Mr. Miller and Mr. Ferraioli have additional discussions with Bond Counsel to stay on top of this situation.

            Mr. Kelly, of Boswell Engineering stated that they got a clear message from the DEP regarding the upcoming project.  He reported that Mr. Stan Cash, of NJDEP stated that it will likely be Grant money.  Mr. Kelly stated that he has had many meetings with NJDEP, in preparation for this.  He stated that he will be in Trenton on Monday morning with our project in hand to submit to the DEP.   

 

REPORTS

            Accounting

Mr. Kelly said the goal now is to get the State to sign off on the Additional Aeration Project and not jeopardize the rest of the project.  We then can make a judgment on the rest of the package if the money does come through.

            Mr. Ferraioli suggested that we go forward with the Bond sale as planned.

The Chairman thanked Mr. Miller for his diligence in getting a meeting with former Congressman Roe and for getting his assistance for the Authority

            Audit Report

            Mr. Ferraioli distributed copies of the Resolution accepting the FY 2008 Audit Report, as prepared by his firm.  Mr. Ferraioli then went over the report.  He stated that he had two comments the first one is regarding the Operation and Maintenance Reserve Account at Bank of New York.  Mr. Ferraioli explained that when this account was originated it was based on a six month operating budget, back when the Authority was in the construction phase.   He stated that according to the Bond wording, we do not comply.  Mr. Ferraioli stated that as today's budgets are so very much higher it would not be financially possible to comply.  He said that this is a common finding in many budgets.  Mr. Ferraioli stated that the second comment is regarding the Authority’s payroll service. They still do not move the monies that they deduct for unemployment to their proper destinations.  He stated that he will have one of his employees assist the Authority in looking into that.

Mr. Ferraioli stated that the resolution approving the Fiscal Year 20008 Audit Resolution is on the Consent Agenda for this evening.  Mr. Ferraioli stated that he will also be needing signatures on the Audit Report that must be submitted.  Mr. Ferraioli also reminded Mr. White that the Audit must be submitted to the newspapers, for publication.

            Engineering

            Mr. Kelly stated that the majority of his report had been discussed earlier. 

Mr. Kelly reported that he will need two checks this evening for permits, one for Johnson Soil – the Boring Fee and one addressed to the Treasurer, State of New Jersey for the application fee.  Mr. Kelly stated that he has the background paperwork necessary here this evening.   Mr. White stated that he has had these checks prepared and that they will be listed on next month’s Bill List as prepaid.

 

REPORTS

            Legal

            WVRSA Bylaw Amendment

            Mr. Miller reported that at the January meeting of the Authority, the issue of a Commissioner participating in a meeting by telecommunication was discussed.  The Commissioners present indicated a desire to permit that to occur, and to formalize those arrangements.  Mr. Miller stated that in order to do so, it is recommended that the Authority's Bylaws be amended to make specific reference to that procedure.

            Therefore, I have prepared the following amendment to the Bylaws:

                        Section 3.09 Quorum and Voting Requirements.  A majority of the entire authorized membership of the Authority shall constitute a quorum at any meeting thereof. Action may be taken and motions and resolutions adopted by the Authority at any meeting of the members thereof by a vote of a majority of the members present.  The names of the members voting for and against each action proposed before a meeting shall be entered upon the minutes thereof.  The presiding officer of any meeting of the Authority, including the Chairperson or the Vice-Chairperson, shall have the right to vote.  Any or all Members may participate in, and be regarded as present at, any meeting of the Authority or a committee of the Authority by means of a conference telephone or any means of communication by which all persons participating in the meeting can hear each other at the same time.

 

            Mr. Miller stated that attached to the Resolution is the Legal Authority behind this Resolution.  Commissioner Moshman indicated that he had some comments, and changes to the form of the proposed amendment.  Mr. Miller then suggested that this proposal be tabled until the next meeting in order to give all Commissioners sufficient time to review it.  Mr. Miller then stated that his report was completed.    

 

OLD BUSINESS

The Chairman asked if there was anything that needed to be addressed under Old Business.  Upon receiving no response he stated that he would move on to New Business.

 

NEW BUSINESS

            Recording Secretary - Request for Fee Increase

            Mr. White reported that Mrs. Maas, Recording Secretary has submitted a written request for a fee increase.  Mr. White stated that Mrs. Maas is requesting an increase of $10 .00 for attending meetings and an increase of $10 .00 to produce the minutes of each meetings.  The Chairman opened the floor for discussion.

            Commissioner Bolduc asked Mrs. Maas how long she had been functioning in this position.  Mrs. Maas stated that she retired as March 31, 2007, which means is that she is about to begin her third year as Recording Secretary.            

 

NEW BUSINESS

            Recording Secretary - Request for Fee Increase Cont.

            Commissioner Bolduc stated that his only concern was the possibility of other employees of the Authority being concerned with this increase as compared to the percentage increase that they have they received .  Mrs. Maas stated that she is not an employee of the Authority, but that she is a contractor to the Authority, but had she been an employee, she would have received a percentage increase in October 2007 and October 2008 and would be looking forward a percentage increase in October 2009. 

            The Chairman polled the Commissioners for any further comments. Commissioner's Hadley, Murray and Moshman all stated they had no problem with granting this increase.

            Mr. White stated that this Resolution is on tonight’s Consent Agenda.  

 

PUBLIC PORTION

            The Chairman stated that anyone from the public wishing to address this Board, identify themselves for the record.  Upon receiving a response The Chairman stated that you entertain a motion to close the Public Portion of the meeting.

 

MOTION        Moved by Robert Hadley, 2nd by Andres Bolduc to adopt a Resolution authorizing closing the Public Portion of this meeting. 

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

Commissioners Bolduc, Clark, Hadley, Moshman, Murray and Covelli all stated            Aye.

                                                                                                            MOTION CARRIED

 

CONSENT AGENDA

            The Chairman asked for a motion approving the Consent Agenda.        

                        Resolution # 17-09 - Vouchers - M-11234 - M-11282 Fiscal Year '09

                                             NOTE:  Payment subject to availability of funds.

                                             #18-09 - Recording Secretary Fee Increase

                                             #19-09 - Fiscal Year 2008 Audit Resolution

 

MOTION        Moved by Robert Hadley, 2nd by Andrew Bolduc to adopt a Resolution adopting and approving all items on the Consent Agenda.

On Roll Call Commissioners Bolduc, Clark, Hadley, Moshman, Murray and Covelli all voted yes.

                                                                                                            MOTION CARRIED

 

ADJOURN

            The Chairman stated that he would entertain a motion to adjourn the meeting.

 

MOTION        Moved by Andrew Bolduc, 2nd by Patrick Murray to adopt a resolution authorizing adjourning this meeting.

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

Commissioners Bolduc, Clark, Hadley, Moshman, Murray and Covelli all stated Aye.

                                                                                                            MOTION CARRIED

 

 

 

The meeting was adjourned at: 7:50 P.M.

 

Minutes respectively submitted by,

Margaret M. Maas, Recording Secretary