WANAQUE V ALLEY REGIONAL SEWERAGE AUTHORITY

The WANAQUE VALLEY REGIONAL SEWERAGE AUTHORITY conducted a Regular Meeting, which commenced at 6:10 P.M., in the Wanaque Valley Regional Sewerage Authority Administration Building, Wanaque, New Jersey with Chairman, Frank Covelli, presiding.

ANNOUNCEMENT

Chairman Covelli 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 North Jersey Herald News, the Trends, and the Record. A copy of the notice will be filed with the minutes ofthis meeting.

SALUTE TO THE FLAG

The Chairman led the salute to the flag.

ROLLCALL

Commissioners Present: Andrew Bolduc, Frank Covelli, Joseph Elcavage, Robert Hadley, and Patrick Murray

Commissioners Absent: Robert Moshman

REPORTS

Facilities Manager

Noise and Odor Control Report

Mr. White directed everyone to the second page of his report where there were two new items listed under April 25, 2007 with regard to Noise Control. Mr. White stated that one ofthe odor control units, the one on the septage receiving area, the bearing and the shaft went on the unit which were causing excessive noise and rumbling. Mr. White stated that the bearing and the shaft were replaced by the contractor, Stone Hill Contracting yesterday. Mr. White stated that the unit is no longer producing additional noise.

Secondly, Mr. White stated that we have been turning the odor control units off at night from approximately 9:00 pm until 6:00 am to help reduce any potential noise during the late evening and early morning hours.

1) Media samples were taken from all bays of all odor control units on March 1, 2007 and sent to Purafil for analysis.

REPORTS

Facilities Manager

Noise and Odor Control Report

Mr. White directed everyone to the last page of the report. He stated that regarding Odor Control -last month he reported that the odor mix media in the grit chamber unit had been found to be spent, therefore we replaced it on the 4^th of April.

Mr. White stated that scattered throughout the Pulte development and our Interceptor Line we have carbon media inserts within the manholes. That carbon media was changed on April 5, 2007.

Mr. White asked if there were any questions on the report. Hearing none he moved on. Capacity Assurance Report (CAP)

Mr. White stated that this Authority is required to submit a quarterly CAP report to DEP.

He stated that the most recent submittal was for the period January thru March 2007. Mr. White stated that that report reflected that we had 106,421 gallons of capacity available at this plant.

Mr. White stated that the next item - and you can forget what I just said because with the April 16^th storm, the facility was inundated with excessive Inflow and Infiltration, as you can see by my letter authored to NJDEP Enforcement Agency. On Sunday, thel5^th, Monday, the16^th and Tuesday, the 1 i^h we had to perform intermittent bypassing of dilute raw sewage around the treatment facility and again it was because we were being inundated by flow from the Inflow and

Infiltration. Mr. White stated that on a normal day we receive about a million gallons per day

of flow, we were receiving in excess of four million gallons per day of flow, at peale times during the rain event. Mr. White reported that our Haskell Pump Station (BPS) which normally pumps between 450,000 and 500,000 gallons per day of flow was pumping well over 2,000,000 gallons per day. He stated that the entire area surrounding the HPS was flooded and we also had the manholes adjacent to the HPS surcharging - which means there was raw sewage coming up out ofthe manholes. He stated that it either comes up through the holes in the manhole cover or it actually lifts the cover up off the manhole. Mr. White stated that the surcharging lasted for several hours on Monday.

Mr. White stated that it was nothing unusual, we have seen this in the past- we performed the normal procedures- and we have no other choice when we are as inundated as we were. He stated that he expects no enforcement action to be taken against the Authority. Mr. White stated that all other facilities in this area and he believes the entire state were in a similar position. Mr. White stated that all proper procedures were followed everything was documented, the hot line was called as required and letters followed up immediately. Mr. White stated that he would be surprised if any enforcement action was taken. Mr. White asked if there were any questions on what occurred. I-Iearing none he moved on.

o & M Cost - Septage Receiving Program

Mr. White stated that he had a request from Mr. Carroll to provide him with the costs associated with the liquid acceptance program. Mr. White stated that there is a draft letter in all the Commissioners files. Mr. White stated that it is still in draft form as he wanted everyone to review the letter; to see if you would like anything added or deleted. Mr. White stated that he has broken it down into five categories.

The Chairman stopped Mr. White in his report and asked Mr. Miller ifthis can be addressed in Closed Session as it relates to contractual issues. Mr. Miller stated that yes it would be a valid issue for Closed Session,

TreesNegetation Plans

Mr. White stated with regard to trees and vegetation; if you recall in the past several months there has been discussion with the residents ofthe Wanaque Development and this Authority as well as the Borough with regard to planting some additional trees and/or vegetation around the facility and within the facility grounds. Mr. White reported that there have been two meetings - in attendance were himself, Mr. Bill Holt, Mr. Farrantino and a landscaper for the development PLMC owner, Anthony. Mr. White distributed aerial photos of the facility. He described what the photo was depicting as to the proposed plantings and/or shrubbery. Mr. White stated that this discussion is in the initial stages, that they are currently reviewing this initial schematic. Mr. White stated that there has been no cost projection associated with this at this time, so it will be an ongoing discussion between all parties. Mr. White stated that he believes that the one question that we will be faced with is will this Authority contribute towards the cost of any plantings. Mr. White stated that we can discuss it tonight or leave it for the future. The photo was discussed briefly. Mr. White stated that as soon as we get some estimates from Anthony we will be meeting again.

REPORTS

Facilities Manager TreesNegetation Plans Cont.

Mayor Dan Mahler stated that regarding this topic he would like to inform the Commissioners that the Waters Edge project, in Haskell, is going to be clearing the whole side of that mountain. He stated that any tree they remove that is over 12" in diameter, they are going to be required to replace. He stated that they are only going to be able to replace a limited amount of trees in that development. One of the things that may occur is that they will need to have a place to plant the remaining trees here in town. The Mayor stated that this is a possible source of trees, as they have to plant them somewhere. He stated that they still have to go before the Planning Board and then DEP so this is not going to happen tomorrow, but it is down the road. Mr. White stated that there will be additional discussion on this subject and that he will probably be meeting in another two weeks with Mr. Holt, Mr. Farrantino and Anthony with regard to this subject.

Compressor

Mr. White reported that we have a portable air compressor which we tow around with our truck. We use the compressor to blow down our final clarifier siphon collector units and we use it around the facility for general purposes. Mr. White stated that the compressor is over twenty (20) years old and has been repaired so many times that it is just shot. He stated that it is a 190 CFM compressor, the standard is about 175 CFM. Mr. White stated that the bottom line is that we need a new one very quickly. Mr. White stated that we have been borrowing the Borough's this past week, but we need this device on a daily basis and it does not lend itself to borrowing. Mr. White stated that he would like to get approval to go out and look for a used one. He stated that he had some feelers out to some local contractors that may be looking to get rid of one. Mr. White stated that he believes it will cost between $6,000.00 and $8,000.00, for a used one. Mr. White stated that he had not looked into a new one. Discussion ensued. The Chairman suggested that Mr. White should ask Mr. Carroll to find out ifthere is a State Contractor for this item and what the price would be. The consensus was that Mr. White should look into a new one rather than a used one. Mr. White stated that in the interim he will continue to borrow the Borough's unit and if that is not possible he will rent one.

St. Catherine's - Ringwood

Mr. White reported that he has been contacted by Father Pat, the Pastor at St. Catherine's Church in Ringwood. Mr. White explained that they have a water system servicing the school, rectory and other buildings. Mr. White reported that they have requested that he or the WVRSA be the licensed operator for their water system. Mr. White stated that he has no problem doing that as it would entail just a few hours of his time per year. Mr. White stated that he has the proper license to do so and they have requested that we perform the service for them. Discussion ensued. Some things discussed was the legality of performing this at no cost for a religious entity; what would be the most nominal charge for such a service and will this open a door for other non-profit entities to come through. Mr. Miller stated that he would look into the legal questions. Mr. White stated that he would develop a cost estimate for this service. Mr. Boswell, our engineer added that Mr. White might want to check with DEP as there may be a maximum number of entities you are allowed to serve on that license. Mr. White stated that he would look into that.

DEP - Planning Process

Mr. White stated that, as reported in the newspapers recently, regarding DEP's proposed amendments to the Planning process; they propose placing a Category 1 protection to numerous waterways within the state of New Jersey. Several are within the northern New Jersey area and he believes that the Wanaque River is one of the rivers listed. Mr. White stated that the impact on us is unknown at this time, but certainly our life will not get any easier in the future. We will be looking at more stringent effluent limitations etc. Mr. White stated that Wastewater Management planning issues will come in to play here as well. Mr. White stated that these are only proposed regulations. He stated that he feels quite sure that the DEP will be challenged by numerous entities in the coming months and year, regarding this issue.

REPORTS

Facilities Manager

CPR Course

Mr. White reported that all the employees ofWRSA and the Chairman were certified for CPR, for a two year period. He reported that Chilton Hospital sent three trainers, who did a fabulous job. Mr. White reported that part of the training involved the use of a Automatic External Defibrillator (AED). Mr. White reported that he and Chairman Covelli have been discussing that it would be a good idea to and AED here at the Authority. Mr. White stated that the cost of such a unit is somewhere between $1,000.00 and $1,500.00. Discussion ensued. Commissioner Elcavage, who is a EMT, stated that the price Mr. White quoted is pretty close and that he highly recommends the Authority purchasing one.

Chairman Covelli reported that he had taken advantage of the opportunity and took the training course here at the Authority and became certified in both the First Aid and the CPR. He stated that part of the presentation was a demonstration of the AED by a member of the 1 sl Aid Ambulance Corp. Chairman Covelli reported that part of the discussion he had with Mr. White was that as we have a 24/7 operation and we have staff here at all times, we have situations that could emerge where a member of our staff or the public that uses this facility could be in need of this unit. He stated that both he and Mr. White are in complete agreement that we should have an AED at the Authority. Mr. White stated that he will contact Mr. Carroll to see ifthere is a State Contract Vendor for this equipment.

Plant and Septage Receipt

Mr. White reported that the plant is running extremely well. The septage receipt is going very strong with the exception that we had to close for four (4) days due to the April 16^1h rain event.

New Gate

Commissioner Elcavage asked Mr. White for a status report on the new gate. Mr. White reported that the gate is working fine, but we still have concern with the EZ Pass system. Mr. White reported that the vendor was here again today. Mr. White explained that the card should be able to be read a minimum of 8ft away. He stated that right now it can only be read at a distance of 2 - 3 feet. Mr. White stated that the vendor is not sure why that is occurring, so the vendor has sent a couple of the cards back to the manufacturer to determine if they are defective. Mr. White stated that is the only issue - the distance at which the EZ Pass card can be read everything else is working fine. Mr. White reported that we put a phone/intercom system on the outside so we can open the gate from inside the facility, at any phone within the

facility.

The Chairman stated that at the last meeting, Mr. White stated that he was withholding any further payments and ifthis was still the case. Mr. White responded that they have not been paid another cent.

Mr. White stated that his report was complete other than one item he had for Closed Session regarding Personnel.

Accounting

The Chairman stated that he would dispense with the Accounting Report due to the absence of the Accountant. He then asked for the Engineering Report.

Engineering

Mr. Kevin Boswell of Boswell Engineering stated that he would like to follow up on what Jim Kelly had said at the last meeting. Mr. Boswell stated that his firm is very pleased to have been appointed Consulting Engineers for the Authority and we look forward to serving you.

Water Edge- Wastewater Management Plan Amendment

Mr. Boswell stated that his firm was asked to sit with the Board to make sure that any waivers are done correctly. Mr Bosell stated that on April 23^rd he received from Bill Kelly a document that stated that a revision of the WMP would be necessary in the not too distant future.

REPORTS Engineering

Waters Edge - Wastewater Management Plan Amendment Cont.

He stated that with the new C-I designations that Mr. White spoke about earlier, that are coming out - the planning areas - they all need to be reflected in the WMP revision. There are some substantial changes that can affect the full build out with the realistic development potential of the surface area.

Noise and Odor Control Proposal

Mr. Boswell stated that the one deliverable that he was asked to provide was a proposal

to evaluate the Noise and Odor issue, in further support of what Mr. White has been doing so far. He stated that they submitted a proposal dated Aprill9^tl" which is essentially a five-step proposal. Mr. Boswell stated that the first two are for interviewing Mr. White and other plant personnel to see where the anticipated changes could occur to best initiate some sort of improvements in those areas. The second task would be to physically go out and view what is out there in the field such as piping and various operations and to see what available areas there are to relocate such items as the Septage Receiving Area; which is the one area that has been discussed specifically. Mr. Boswell stated that the area on the south side, down by the phosphorus reactor, we may be able to be utilize some of those tanks for that purpose. Mr. Boswell stated that when we look at that we would obviously be looking at the revised truck access to inside the plant. Mr. Boswell stated that the ancillary benefits to the plant process itself - to have a regulated flow coming in because, as we know, the septage comes in as a slug, both in terms of volume as well as the quality of waste that is coming in. Mr. Boswell stated that this will give Mr. White a much better handle on what will be coming in and how to address it .

Mr. Boswell stated that they will be making specific recommendations under that note and the last thing was that we will prepare a report to you that would talk about costs, estimates for design and construction for all recommended facilities. The proposal will not include detail design, foundation investigation, permits or surveys. Discussion ensued.

Commissioner Elcavage asked, when you prepared this proposal did you have a cost estimate of what this project would be. Mr. Boswell stated he and Mr. Rossi have discussed what it would cost to set up a wet well with a pump system and a control vessel that Mr. White could regulate flow into the plant. He stated that the cost of that would be between $200,000.00 and $400,000.00 probably around $250,000.00 depending on constmction. Mr. Boswell stated that he did not want to start throwing numbers around yet.

Mr. Rossi stated that you might take into consideration the tank that is out there - using the existing tank with minor modifications will of course help cut the price down, but depending on where the taking of that inner structure out, which was part of the phosphorus tank, what happens when you remove that structure. He asked, what will be the structural integrity of that tank and what modifications will have to be made to that tank. He stated that it might not be feasible and you might have to build another tank alongside that tank and that is where the costs will start to incur.

Mr. White stated that as some of you may not have been on the Board back in the late '80s and early '90's when this tank in question was built as part of the Housing Group Module, that tank was intended for phosphorus removal purposes, it is actually a solids contact treatment unit. Mr. White stated that recently he had a conversation with Mr. Ed Stevens, of Boswell Engineering, and he made a very good point. Mr. Stevens said that if that tank is converted to a holding tank we would loose the capability to remove phosphoms - it cannot be used for its intended purposes; it would be dedicated as a holding or septage receiving tank. Mr. White stated that he has no concern with that, because we remove phosphorus within the main treatment plant. Mr. White stated that we have phosphorus removal chemical feed system within the main facility, which we just upgraded with the recent construction project. He stated that we have been removing phosphorus and complying with a 1.0 mg/llimit since 1989. Mr. White stated that he is fully confident that we can continue to do so in the future if the limitation is reduced to a reasonable level. He stated that we have been averaging a 0.15mg/l phosphorus effluent concentration for 18 years.

Mr. Boswell stated that his firm is capable of doing an analysis on the structure. He also stated that by moving this process 200 feet further away and with the vegetative cover he feels this will be a viable project. The noise control factor was discussed again and it was stated that there are decibel readings prior to this development going up in this area that we can use them to compare with.

Highland Avenue Bridge/ Warren Hagstrom Boulevard

Mr. Rossi gave a report on the situation regarding the Highland Avenue Bridge project.

He stated that Bill Kelly is working diligently on getting emergency permits from the State. Mr. Rossi stated that they have informed Mr. Bill Kelly that they are available for support should he need it. Mr. White stated that Bill Kelly is soliciting proposals from five contractors to do the work as well. Mr. Rossi stated that their report was completed.

The Chairman called for the Legal Report.

Legal

Inflow and Infiltration 0&1) Work

Mr. Miller stated that following up on the I & I work, one of the things he is working on is the 2^nd Amendment to the Developers Agreement, with regard to the payment for this work. Mr. Miller stated that the WBSA is really carrying the ball principally on this. Mr. Miller stated that he has received several emails from Pulte's Counsel- they haven't made a final decision yet. Mr. Miller stated that the issue being a minimum of$50,000.00 that they would contribute and that they are being asked to put the money up front; so we will be spending their money first. Mr. Miller stated that we have not gotten a response on that. Mr. Miller reported that they have asked if we had anything to add at tonight's meeting and according to Mr. White we have some minor things but nothing major that would change the form of the agreement. Mr. Miller stated that hopefully that will be resolved in a week or so.

Litigation

Borough of Ringwood

Mr. Miller reported that we have a firm date for the first mediation session on the Ringwood litigation. He stated that there will be a conference call mediation hearing on May 10, 2007 at 4:00 pm with the mediator. Mr. Miller stated that he will need a representative of the Authority to take part in that telephone conference who can speak with some authority. Mr. Miller stated that if we are going to go into Closed Session, he would like to go into more detail at that time on strategy.

Mr. Miller stated that his report was completed and the Chairman asked for the Voucher Report.

Vouchers

RE: Vouchers M-I0272 thru M-I0325 - FY '07

All payments subject to availability offunds.

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 RESOLUTION 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 SUPPLEMENTED THEREAFTER”

OLD BUSINESS

The Chairman asked if there was anything to be discussed under Old Business. When there was no response, he stated he would move onto New Business.

NEW BUSINESS

The Chairman asked if there was anything to be discussed under New Business. When there was no response he stated that he would open the meeting to the Public.

PUBLIC PORTION

The Chairman stated that at this time he would like to open the meeting to the public. He stated that anyone that would like to address this Board to step up to the microphone and identify themselves.

Daniel Mahler, Mayor of Wanaque - Mayor Mahler asked for permission to address the Board in Closed Session, on his subject related to contract negotiations. Permission was granted and the Mayor took his seat.

Bill Holt - Resident of 8319 Warrens Way. Mr. Holt stated that he would like to go back to the first time he addressed this Board and present the concept of being neighbors. He stated that there have been occasions where we have gone off in different directions and have been less friendly than neighbors. Mr. Holt stated that he would like the Board here to consider implementing some sort of "good neighbor" program where instead of your neighbors having to come here in this mode, we can have some other means of discussing certain issues before having to get to here. Mr. Holt stated that he would just like to present that as a concept for your consideration. Mr. Holt stated that he knows that there are other entity's that have implemented "good neighbor" type programs.

Mr. Holt stated that he would like to again thank Mr. White for his effort in cutting back some of the noise by our pointing out that he had a noisy bearing on the odor control system and having it corrected immediately and also attempting, on a trial business right now, of tuming off the equipment at night. He stated that it may not be needed any longer and what Mr. White has done now is created a situation where we now hear how loud these frogs are around here and it is wonderful. Mr. Holt stated that there have been some very peaceful nights.

The Chairman informed Mr. Holt that we will do everything we can do on odor and noise but we cannot control the frogs. The Chairman asked Mr. Holt, with regard to your "good neighbor" policy, did he have a specific proposal or process in mind. The Chairman asked if they had a functioning Board to sit down with for these types of discussions.

The Chairman stated that he, speaking as himself, would be happy to schedule with your Board or with you as liaison, for a time that he and Mr. White would come to meet with you on a prescribed basis; possibly on a monthly basis - at a mutually convenient time for all parties.

Mr. Holt stated that the Ad Hoc committee represents some of the Wanaque Reserve residents, not necessarily all of them, because it is an Ad Hoc committee. Mr. Holt stated that the official Board of the Wanaque Reserve Association, is still controlled by Pulte, therefore, we cannot have someone from that Board interact with you at this time, because you are still negotiating with Pulte, therefore, it is a conflict of interest there. That is why we still are an Ad Hoc committee. Mr. Holt stated that for the time being, for the type of issues we have discussed here, it has to be with the Ad Hoc committee. He stated that once the residents are in control of the Board then the conflict of interest goes away.

Mr. Miller concurred that until there is a transition from Pulte to the Condo owners, Pulte is still in control of the situation.

The Chairman stated considering the familiarity that we have with one and another over time, his offer still stands. He stated that he believes that Mr. White would not be too angry for him for volunteering him, as he will go with him to these meetings. The Chairman stated that we will coordinate a set interval to meet over coffee where we can discuss these matters.

The ChaiIman stated that based on the discussion held in Closed Session, we have an issue with regard to the litigation with the Borough of Ringwood that will be coming up on a mediation conference on May 10^th• The Chairman asked if there was a motion on that issue.

MOTION Moved by Joseph Elcavage, 2^nd by Robert Hadley to adopt a resolution appointing

Andrew Bolduc, with an alternate of Robert Moshman, to be representatives in the litigation discussions along with a representative of Mr. Miller's office on May 10,2007 at 4:00 pm

The Chairman asked if there was any discussion on the motion. Upon hearing none he asked for a Roll Call.

On Roll Call Commissioners Bolduc, Elcavage, Hadley, Murray and Covelli voted yes. Commissioner Moshman was absent.

MOTION CARRIED

The Chariman stated with regard to a personnel issue he asked Mr. White to respond. Timothy Johnson. Mr. White stated that based upon a successful performance evaluation on April 11^th , he recommends that Mr. Johnson be removed from probationary status and placed on non-probationary status, effective April 11, 2007 and that he receive the corresponding hourly wage increase and all benefits afforded all non-probationary employees.