WANAQUE VALLEY

REGIONAL SEWERAGE AUTHORITY

MINUTES

REGULAR MEETING

May 23, 2007

The WANAQUE VALLEY REGIONAL SEWERAGE AUTHORITY conducted a Regular Meeting, which commenced at 6:09 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 of this meeting.

SALUTE TO THE FLAG

The Chairman led the salute to the flag.

ROLL CALL

Commissioners Present: Frank Covelli, Joseph Elcavage, Robert Hadley, Robert Moshman

and Patrick Murray

Commissioners Absent: Andrew Bolduc

Also Present: James Kelly, Boswell, P.E. Boswell Engineering

Gregory White, Facilities Manager

Dan Mahler, Wanaque Mayor

Margaret Maas, Recording Secretary

CORRESPONDENCE

Correspondence List for April 18, 2007 to May 18, 2007

The Chairman asked if there were any questions on the Correspondence List as presented. When there was no response he stated that the Correspondences would be placed on file.

MINUTES

Regular Meeting – April 25, 2007

The Chairman asked if anyone had any questions or comments on the Regular Meeting Minutes of April 25, 2007 as presented. When there was no response the following motion was moved.

MOTION Moved by Joseph Elcavage, 2nd by Robert Hadley Murray to adopt a resolution accepting the Regular Meeting Minutes of April 25, 2007 as presented.

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

MOTION CARRIED

REPORTS

Facilities Manager

Noise and Odor Control Report

Mr. White stated that he will not circulate the Noise and Odor Control Report tonight because there has been nothing new that transpired over the past month. He stated that all the odor control equipment is running, we have done nothing additional with respect to the noise and we are still turning the equipment off at night. Mr. White stated that when he makes a change to the report he will again circulate the report and discuss it.

Annual NJDEP Inspection

Mr. White reported that we had our annual inspection by the NJDEP-Northern Enforcement Bureau last week. He stated that all was found to be in order – there were no deficiencies found. Mr. White stated that there is a report in everyone’s file with regard to the inspection.

Liquid Waste Disposal Rates/Lab Fee’s

Mr. White stated that he and Mr. Covelli have been reviewing the disposal rates, which we charge our liquid waste haulers. Mr. White stated that he will also start to review our lab fees, as well as fees that we charge outside entities for contract lab services. Mr. White stated that our lab costs have gone up and we should carefully review those. Mr. White stated that the contract lab here generates revenue for the Authority through the analysis of samples etc for outside customers.

REPORTS

Facilities Manager

Liquid Waste Disposal Rates/Lab Fee’s Cont.

Chairman Covelli stated that earlier this evening, we had a meeting of the Finance Committee. The meeting was composed of himself, several Commissioners and Mr. White.

He stated that the purpose of the meeting was that we wanted to re-evaluate the disposal rates that we are charging. The Chairman stated that Mr. White did some research and found that we have not adjusted those fees in awhile. He stated that given our increased costs, with respect to contractual services i.e. Sludge Removal, cost of chemicals and the like, which are petroleum based, that it was appropriate to review those fees. The Chairman stated that Mr. White gave us an approximation of the volume that we have been accepting and in addition, with the assistance of Mr. Kelly our Engineer, we reviewed the rates of other facilities that accept this material and what they are charging as compared to what we are charging.

The Chairman stated that there were two sheets handed out, the Liquid Waste Disposal Rates Comparison with other facilities as opposed to ours and the Liquid Waste Acceptance – Disposal /Rate Increase Projections. Mr. White then explained that there are four classifications of Liquid Waste Rates: Greywater, Septage, Sludge and Grease. Mr. White stated that there is a recommendation to increase the Greywater rate by $0.004 of a cent per gallon; increase the Septage rate by $0.002 of a cent per gallon; the Sludge rate by $0.04 per gallon and the Grease rate by $0.06 per gallon charge to our haulers, effective July 1, 2007.

MOTION Moved by Robert Hadley, 2^nd by Patrick Murray to adopt a resolution to authorize accepting the above Disposal Rate increases, effective July 1, 2007, as outlined in the report.

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

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

MOTION CARRIED

Northeast Water Quality Management Plan Amendment(NWQMP)

Mr. White reported that we have received correspondence from NJDEP over the past several months regarding the Total Phosphorus issue and the State is proposing an amendment to the NWQMP, wherein they are proposing to lower all surface water discharger Total Phosphorus Effluent limitations to 0.4 mg/l. Mr. White stated that this is a proposed amendment, there is a hearing being held next month on this issue. Mr. White stated that this proposal will have no impact on this Authority whatsoever. He stated that if the new limit was imposed upon us; we can meet that limit very easily. He stated that it will not cost this Authority any additional money for treatment. Mr. White believes that it will severely impact many treatment plants in this area.

Pipe Replacement – Warren Hagstrom Boulevard

Mr. White reported that the section of pipe running alongside W. Hagstrom Boulevard and crossing the stream and intersecting with our 1-3A Interceptor is now being replaced by Montana Construction. He stated that the work was initiated on Monday, May 21^st, and is scheduled to be completed by the end of this week. Mr. White explained that it is the replacement of a portion of the pipe which is eroding and deteriorating underneath the bridge. Mr. White stated that when completed it will significantly reduce the amount of infiltration into this facility. Mr. White stated that this work is being done on an emergency basis; we have received verbal approval from NJDEP to do the work. Mr. Bill Kelly, of the WBSA drew up the plans and specifications and things are proceeding smoothly. Responding to a question from a Commissioner, Mr. White stated that he believed that the low bid for this work was approximately $90,000.00. Mr. James Kelly, our Engineer stated that was a very good price. He stated that when his office looked at the project they felt it would cost around $100,000.00 - $125,000.00. Mr. Kelly stated that at this time there is not a lot of construction work coming out. He stated that Montana Construction is a good contractor, who bid the job with very low margins. He stated that he feels that the Borough and the Regional are very fortunate to have such a qualified contractor.

Mr. White stated that the only impact on this Authority will be that he has asked Mr. James Kelly’s firm to inspect the tie-in to our 1-3A Interceptor line. He explained that when they are finished constructing the line they have to tie it into our 1-3A Interceptor, which runs in a North/South direction and he has asked that an Engineer from their firm be present when that takes place; to be sure it is done properly.

REPORTS

Facilities Manager

Pipe Replacement – Warren Hagstrom Boulevard

Mr. White asked that they also make sure that they properly seal off both ends of the old line as well.

Plant Operational Update

Mr. White reported that the plant is running very well. He reported that we have had no operational problems.

New Gate

Mr. White reported that the manufacturer came in and tested the sensoring device for the E-Z Pass system. He stated that the sensor was found to be defective. Mr. White stated that the manufacturer is supplying us with a new sensor. Mr. White stated that the sensor was not picking up the signal at the required distance. Mr. White informed the Commissioners that we have not paid them anything further and will not until it is functioning as designed. The Chairman asked about a bill that was on the Monthly Bill List for tonight’s approval for the gate. Mr. White explained that the bill in question was for the gate telephone that was installed by our telephone provider; so anyone coming into the facility, when the gates are closed, can call in and request admittance.

New Compressor

Mr. White stated that at last month’s meeting he was authorized to seek quotes for a new air compressor. He stated that he received numerous quotes. He stated that the lowest quote was $12,175.00. Mr. White reported that he consulted with Mr. Carroll, our Certified Public Purchasing Agent, and that he received verbal authorization to purchase the unit.

AED Unit

Mr. White reported that we found the State Contract Vendor for the AED unit. He stated that the AED unit plus the storage cabinet comes to $1,100.00. Mr. White stated that he feels that we got a very good price on the unit. He stated that they do have a back log of orders so we will have to wait for approximately 4 to 5 weeks. Commissioner Elcavage asked if the unit was the one with the new protocol. Mr. White stated absolutely.

Trees/Vegetation Plans Cont.

Mr. White reported that he and Commissioner Covelli met with representatives from the Pulte community – Dominick Cortellessa, Bill Holt and Paul Farrantino, several weeks ago. Also present at the meeting was Anthony, owner of PLMC Landscaping, the firm that is in charge of the landscaping at WR. Mr. White reported that they were given a tour of the new clubhouse at Wanaque Reserve (WR) and then they all came over and walked the WVRSA facility. Mr. White distributed two documents that Mr. Holt had provided, a map of the facility and a price list of the proposed planting of trees and shrubbery. Mr. White then went over the map with the Commissioners. He discussed the locations which were proposed to grant additional coverage with regard to sight, sound and odor control. Mr. White stated that the proposal from PLMC is $63,069.96 to purchase and plant these trees and shrubs.

Mr. White stated that Mr. Holt confirmed that the WS residents have agreed to contribute 50% or up to $29,000.00 for this work. Mr. White reported that Pulte and the Borough of Wanaque have been asked to share the balance of the cost of this work.

Chairman Covelli stated that he would recommend that we take this matter up in Closed Session, as it pertains to contractual matters. Commissioner Elcavage asked about the validity of that action as the issue has already been discussed in open session. Chairman Covelli stated that the issue of actually negotiating the deal has a contractual nature to it.

Commissioner Moshman stated that he not only agreed with the Chairman on this matter, but would like to add that there is a legal component as well. He stated that in the absence of our Legal counsel here to advise us as to whether we can even contract for such a matter requires that it be held for Closed Session.

Commissioner Elcavage requested that Mr. White reach out to Mr. Miller with a request that he review the documents and research the validity of our taking such action. He asked that Mr. White send a Closed Session Memo along with copies of these documents to assist him in this review.

Mr. White then asked if anyone had any further questions on either the map or the proposal. He stated that the purpose of this venture is for screening of certain portions of the facility – along the border, along the tanks, planting along the fence lines, shrubbery planted along our fence line which would give off a fragrance during different portions of the year. When he received no response he informed the Chairman that his report was completed.

Accounting - The Chairman stated that there would be no Accounting Report.

REPORTS

Engineering

Mr. Jim Kelly reported that he is working on the Odor Evaluation and Assessment that was requested previously. He stated that he is in the process of collecting the data and doing the necessary background research. He stated that he has met with operations personnel and he is busy working on that. Mr. Kelly stated he plans on having a draft proposal prepared for preliminary discussion and review at next month’s meeting and to have the finalized document shortly thereafter. Mr. Kelly stated that his report was completed.

Legal

The Chairman stated that there would be no Legal report this evening

Vouchers

RE: Vouchers M-10326 thru M-10369 - FY ’07

With the exception of M-10335

All payments subject to availability of funds.

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"

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

approve the payment of Vouchers M-10326 thru M-10369 – FY’07, with the

exception of M-10335, which he would like to discuss in Closed Session. All payments subject to the availability of funds.

The Chairman asked if there was any discussion on this motion. Commissioner Elcavage had a question on Voucher # M#10332, Verizon. Commissioner Elcavage stated that it is quite a large bill and that upon reviewing it – it seems that there are many, many calls that he feels are questionable. Commissioner Elcavage asked Mr. White if he checked this bill. Mr. White stated

that yes he had checked it, as he does every month. He stated that all the items on the bill are valid and that this bill in a combination of our cell phones, facilities phones and DSL Internet Service. Once Commissioner Elcavage was satisfied he withdrew his objection and asked if any of the Commissioners had any further questions on the bill list. Upon receiving no response the Chairman asked for a Roll Call.

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

MOTION CARRIED

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

Employee Dental Coverage

Chairman Covelli reported that he and Mr. White met with the Risk Management Consultant for the Authority today. He stated that the issue was the Dental Plan that we have for the employees. Chairman Covelli explained that several months ago we had asked the Bergen Municipal Employees Benefits, (BMEB) which is the Regional Health Insurance Fund to look at our Dental Program and they came back with some numbers. He stated that we are currently with Standard Insurance Co. for the dental coverage for the employees. Chairman Covelli stated that BMEB uses Delta Dental, which is a pretty well known commodity for public employees.

The Chairman stated that there would be an approximate 8% savings for the Authority to put

this thru the BMEB Fund versus what we are paying now. In addition to that they would match the benefits and actually the employees would have the benefit of using in and out of network benefits which they do not have now. The Chairman stated that in his professional background in reviewing this; he sees this as a win/win for both the Authority and for the employees.

NEW BUSINESS

Employee Dental Coverage Cont.

The Chairman stated that it is a relative simply process for this Authority to join the BMEB. He stated that the Borough of Wanaque recently rejoined the BMEB several months ago for their employees. He stated that he thinks that it is a prudent measure, as it will be a savings for the Authority and it is beneficial to the employees. Commissioner Elcavage asked what the cost was, per employee, with our current provider. Mr. White stated with 8 employees currently having coverage it comes to approximately $120.00 per employee or roughly $1,000.00 per month.

The Chairman stated that there is no formal action to be taken tonight, that they wanted the consent of the Board to meet with the employees and present them with the option. He stated that at the next meeting he will be asking the Board to pass a resolution to join BMEB and enter into an indemnity and trust agreement. After meeting with the employees and getting their feedback; we would be looking for either a July or August implementation.

Liquid Waste Disposal Rates Increase

The Chairman stated that we passed a resolution authorizing the increase in the fees we charge for the septage receiving program, and in the past the WBSA has indicated to us that they want to do away with the surcharge being billed to the Wanaque Reserve residents. He stated that one of the components of that is the fact that we are billing the WBSA for that surcharge to pay for the additional cost to this Authority, to deal with odor control. Therefore, the Chairman stated that he feels that it would be appropriate for us to pass a motion, and we can ask Mr. Miller to draft a resolution, that we will do away with that billing to the local to coincide with the institution of the increase in the Disposal Rates effective July 1, 2007.

MOTION Moved by Joseph Elcavage, 2^nd by Robert Hadley to adopt a resolution authorizing the Attorney and the Auditor to draft a resolution, for our next meeting, to do away with the charges that this Authority passes through to the Wanaque Borough Sewerage Authority relative to the odor Control costs.

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

MOTION CARRIED

The Chairman asked if there was anything further to be discussed under New Business. Upon receiving no response he stated that he would open the meeting to the Public and that anyone from the public wishing to make a statement or ask a question may do so. He asked that anyone wishing to speak to step up to the microphone and identify themselves for the record.

PUBLIC PORTION

Bill Holt - 8319 Warren’s Way. Mr. Holt stated that the meeting that was held recently was a good meeting. He stated that we did more work than was anticipated. He stated that hopefully they would meet again soon. Mr. White stated that he will arrange another meeting probably after the Memorial Day holiday. Mr. Holt stated that he believed that Mr. Paul Farrantino had sent a letter/email to the Authority stating that the Wanaque Reserve (WR) residents were planning to participate in the landscaping and tree planting. Mr. Holt stated that if he did send such a letter/email - could he have a copy of that letter of what the residents were proposing. Mr. White stated that he did not receive such a letter, but that he would check his email.

Mr. Holt stated that with regard to the new pipe that they are installing, it seems that there is a lot more pipe than he would have expected. The Chairman asked Mr. Kelly if 800 feet was the correct amount and Mr. Kelly confirmed that number. Chairman Covelli explained that the actual amount of damaged pipe was approximately 100 feet but rather than digging the whole thing up they abandoned that plan and decided to replace the entire line to insure that there would be no further problems. He stated that we now have a new line and it was more cost effective. Mr. Holt stated that you just used the term that the old line would be abandoned; who will have responsibility for the old line. He asked if there is a collapse of the abandoned line; who would be responsible for that. Mr. Kelly gave an explanation of the pipes in the ground and assured Mr. Holt that those pipes should last for 100’s of years. He stated that the eminent need to fix the portion of that collapsed pipe, in say a one foot section, it would cause a severe damaged to the environment and to this Authority. He stated that in order to get at it to repair it would be a disaster, but that there is no concern about the pipe collapsing.

PUBLIC PORTION Cont.

Bill Holt - Mr. Holt asked about a manhole in that same immediate area that had problems in the past. Mr. White stated that if Mr. Holt noticed it again would he let him know and he will look at it.

Mr. Holt asked Mr. White if he was going to be giving all the truckers a sensor or has that been done yet. Mr. White stated that if you are referring to the E-Z Pass system; they have not been given anything yet. Mr. Holt asked Mr. White if it would be possible to also hand out a flyer to the truckers stating that the Access Road is a quiet zone. Mr. White responded yes.

There was discussion of the hours which the haulers and or sludge pickups come into the Authority.

Tom Mulhearn – 7118 Warren’s Way. Mr. Mulhearn stated that back in February, Mr. Carroll held a meeting at the Borough Hall. He stated that at that meeting he had suggested a Cost – Benefits Analysis for taking in the septic waste. He stated that he gave a copy to Mr. White. He believed that Mr. Carroll is doing such an analysis. Mr. Mulhearn stated that tonight Mr. White read off the increases for the rates charged to the haulers, and in light of having previously asked for an analysis, he wanted to know if there was an analysis done and if so could he have a copy of that analysis. Mr. Mulhearn stated that he heard the increases that were announced, but as he did not know the base rate, he cannot understand the amount of the increases.

Mr. Mulhearn asked if the Authority had a projection of what those increases will mean as far as revenue. The Chairman stated that the projection he has is based on last year’s volume and we have no way of guaranteeing volume. The Chairman stated that if the volume stays consistent it should generate approximately $80,000.00 a year. Mr. Mulhearn asked what the annual volume was. Mr. White responded that we accepted 19,514,050 gallons in 2006. Mr. Mulhearn asked Mr. Kelly when he spoke of doing background research for his report, could he state what was entailed in that research. Mr. Kelly stated he was researching odor – the literature – the standards in the industry. Mr. Mulhearn stated that he did some research himself. He stated that the treatment plants that he got in touch with stated that they do not accept septage. He stated that they were smaller treatment plants than this one. There was further discussion on the Authority’s plans for possibly utilizing a tank already on the site by changing it into a holding tank and moving the septage trucks to the back of the plant and further removing them from sight and keeping any odors back there and to facilitate the septage entering the plant flow under a controlled manner. Mr. Kelly stated that issue was not whether the Authority should continue to accept septage. He stated that regardless of what the literature might say, the best information is always what can happen at the facility. He stated that we have a track record at this facility, from a treatablity standpoint, and we know what we can take. Mr. Mulhearn stated that he knows that they are taking it and treating it, because they are creating odors. Mr. Kelly stated that you must have also heard tonight that the facility was inspected recently by NJDEP and met all its discharge requirements. Mr. Kelly stated that the focus of our work at this point is because we know that there are odors at various times and we are looking for additional ways to alleviate them.

Mr. Mulhearn stated that he had one other request and that was; what was the Authority’s sludge hauling costs. Mr. White asked if he wanted to know our annual sludge disposal cost. The Chairman stated that we have a contract for that. Mr. White stated our annual sludge disposal budget is $275,000.00. Mr. White stated that it is important to understand that only approximately $100,000 to $150,000 of that is a direct result of the trucks. Mr. White stated that we have disposal costs even if truckers did not come into this facility, because we still have solids that need to be removed from this facility. Mr. White stated that of the total of $275,000.00 annual cost; $100,000.00 to $150,000.00 is directly related to the trucks coming into the facility. Mr. Mulhearn asked Mr. White how he calculated that figure. Mr. White stated that he compared what we were spending years ago as to when the trucks started coming. Mr. White stated that we were in business many years before we started taking in trucks, therefore, he can look at our base line with normal operation and compare it to the increase over the years after we accepted the liquid waste. Mr. Mulhearn stated that his view of an extended aeration treatment plant – it does not generate a lot of waste product. He stated that was his professional viewpoint, but he cannot argue if you have data that says otherwise.

Daniel Mahler, Mayor of Wanaque

Mayor Mahler stated that he wanted to thank the Authority for the two motions that were moved tonight. He stated that it shows that we are all working together.

MOTION Moved by Robert Hadley, 2^nd by Joseph Elcavage to adopt a resolution to close the Public Portion of this meeting.

On Roll Call Commissioners Elcavage, Hadley, Moshman, Murray and Covelli

voted yes. Commissioner Bolduc was absent.

MOTION CARRIED

The Chairman stated that at this time he would entertain a motion to go into Closed Session .

MOTION Moved by Joseph Elcavage, 2^nd by Robert Hadley to adopt a resolution authorizing going into Closed Session for the purpose of discussing contractual matters and contractual litigation.

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

MOTION CARRIED

Closed Session commenced at 7:03 PM and was concluded at 7:25 pm..

MOTION Moved by Joseph Elcavage, 2nd by Patrick Murray to adopt a resolution authorizing returning to Open Session.

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

MOTION CARRIED

Upon returning to Open Session the following motion was moved.

MOTION Moved by Joseph Elcavage, 2^nd by Patrick Murray to adopt a resolution to

approve the payment of Voucher M-10335 – FY’07. Said payment is subject to the availability of funds.

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

Commissioner Hadley abstained and Commissioner Bolduc was absent.

MOTION CARRIED

The Chairman stated that he would entertain a motion regarding the proposal that was presented this evening by Mr. Holt from the Wanaque Reserve Residents Ad Hoc Committee.

MOTION Moved by Robert Moshman, 2^nd by Robert Hadley to adopt a resolution authorizing Mr. White to forward to Mr. Miller the proposal that was

presented tonight regarding the purchase and planting of trees, shrubbery and vegetation on and around the WVRSA facility for his review and comment and

asking his legal opinion on whether this project would be legally acceptable.

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

MOTION CARRIED

The Chairman stated that if there was nothing further to come before the Board he would entertain a motion to adjourn the meeting.

MOTION Moved by Robert Hadley, 2^nd by Joseph Elcavage to adopt a resolution authorizing adjourning the meeting.

The Chairman asked for a voice vote. Commissioners Elcavage, Hadley,

Moshman, Murray and Covelli all stated aye. Commissioner Bolduc was

absent.

MOTION CARRIED

The meeting was adjourned at 7:27 pm.

Minutes respectively submitted by,

Margaret M. Maas, Recording Secretary