WANAQUE VALLEY
REGIONAL SEWERAGE AUTHORITY

 

MINUTES

 

Regular Meeting

June 25, 2008

 

 

The WANAQUE VALLEY REGIONAL SEWERAGE AUTHORITY conducted a Regular Meeting, which commenced at 6:05 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 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.

 

Chairman Covelli stated that before we do Roll Call he wanted to report that he had the pleasure of visiting Mr. Bigger the other day. He reported that Mr. Bigger sends his regards to everyone and I'm pleased to report that he is making a very quick recovery.

He reported that Mr. Bigger told him that his goal is to be present at the next meeting. The Chairman said he told him we would welcome you with open arms; so get better and get back.

 

ROLL CALL

Commissioners present:            Andrew Bolduc, Frank Covelli, Robert Hadley, Robert Moshman and Patrick Murray

Commissioners absent:              Thomas Bigger

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

                                                Robert Bienfield of Hawkins, Delafield & Wood

                                                Marc Freschi P. E., Boswell Engineering

                                                Gregory White, Facilities Manager

                                                Margaret Maas, Recording Secretary

 

REVIEW OF CONSENT AGENDA

            The Chairman stated that we are going to substitute Bond Supplemental #9 for existing Resolution 50-08. The Chairman asked if there were any other changes are modifications to the Consent Agenda. The Chairman stated that upon hearing none he would proceed.

 

The Chairman stated that before going into Reports he was going to change the Agenda and asked Mr. Bienfield to come up and give his presentation with regard to our Bonding.

            Mr. Beinfield thanked the Chairman for moving his report up to the front.  Mr. Bienfield went over our Official Statements and Insurance. He explained that these are the documents that we have produced that describe what we are preparing to distribute to the investors and the investment public, with respect to your Bonds.  Mr. Bienfield stated that we have two different types of Bonds; one to raise money for Capital Projects and another to replace existing Bonds that we have and to get a lower interest-rate.  Mr. Bienfield explained that there are two items that we are waiting for; one is the Moody's rating and the second is the Insurance rating.  Mr. Bienfield stated that the underwriter has sent packages to the Rating Agency and the Bonding Insurance companies to get their quote on what they're going to charge for insurance and a rating.   Mr. Bienfield stated that he spoke with the underwriter today and he said that he is hopeful that he will have the quote and a rating by the end of this week.

 

BOND SALE REPORT Cont.

            Mr. Bienfield stated that once we have those figures; we can fill in all the blanks and give it out to the public.  He stated that once it sets out there for about a week or so for the people to decide whether or not they're interested at the interest rate that has been set.  Mr. Bienfield stated that we are very close to being able to sell the Bonds.  

            Mr. Bienfield reported that the Refund portion is only done to save money; that is its sole purpose. He stated that the Local Finance Board requires that there must be at least a 3% percent savings over the old Bond rate.  He stated that all depends upon the interest rate and if that interest rate can generate a 3% savings for this Authority, then the sale would move forward. 

            Mr. Bienfield explained that the document titled New Bond Resolution #9 is a more in depth statement than the previous Bond Resolution #9 and that this resolution would be the last of several documents necessary for the Bond Sale and there is a possibility that we will not do the refund. The refund depends upon the interest rate. If all goes as anticipated we will be looking for a closing around the end of July.

            Mr. Bienfield stated that what will be necessary this evening is the approval of a resolution entitled “Bond Resolution Supplemental #9”, which authorizes the debt generally and allows us to publish an estopel notice in the newspapers, which we can run for a three week period.  Mr. White asked if when we are ready, would it be necessary to poll the Commissioners for approval.  Mr. Bienfield stated that this resolution delegates power to the Authority officials/members, so that you do not have to actual convene and/or wait for your meeting next month, if the time is right you would want to move.  This resolution will approve this resolution going out to the public in this form; it approves what is called an escrow agreement, where we have to hold the Refunding Bond money for a couple of months as you cannot actually reclaim your old bonds until September 1st.  It also contains Financial Disclosure Agreement, which is something that you do every year with your Auditor.  Mr. Bienfield stated that he believes the approval of this Resolution will be the last official action setting the authorizing, within the parameters stated, of letting it happen when the time is right.   He stated that it will be for a both “Series A” and the “Series B”.  Discussion ensued relating to the procedure to be used for approving the release of this Bond Issue to the investors, when the time is right. Mr. Miller stated that he thought that polling the Board, on this size bond issue, would be the proper way to insure compliance on such action.   The Chairman asked Mr. Miller if he had reviewed these documents.   Mr. Miller stated that yes he had reviewed it and discussed it with Bond Counsel and with the Underwriter.  The Chairman asked Mr. Bienfield if it would be OK with him, that this resolution be addressed within the Consent Agenda, later this evening and that he be excused for the evening.   Mr. Bienfield stated that that he would like to have one certified copy, forwarded his office as proof that it has been adopted, and he would appreciate being excused for the evening.

 

The Chairman asked for the Engineering Report. 

 

            Engineering

            Mr. Marc Freschi, of Boswell Engineering, reported that he had a meeting earlier this evening with the Long Range Committee (LRC) to discuss the proposal as prepared by Boswell Engineering.  

            Chairman Covelli reported to that Boswell Engineering has provided the Authority a preliminary estimate on all the projects we have been talking about as part of our Capital Improvements Program.  He stated that this evening Mr. White added a few miscellaneous items that were not included in the original draft.   The Chairman stated with that we have asked Mr. Freschi to take this information back to the office and to have the estimates updated and have a final draft available to the Commissioners before next month's meeting for their review.  Once a final estimate is available, reviewed and approved they will be authorized to begin the design phase. 

 

REPORTS

            Engineering Cont.

            The Chairman asked Mr. Freschi if a time frame of December sounded feasible, for bid advertisement.   Mr. Freschi stated that December or January at the latest was possible.       

            The Chairman asked if anyone had any further questions for Mr. Freschi. Upon hearing none The Chairman stated that Mr. Freschi was also excuse for the evening and

thanked him for his time.

 

The Chairman asked Commissioner Moshman, Chairman of the Finance Committee, if he would like at this time to go into Closed Session to discuss the results the Finance Committee meeting.   There was discussion on the possibility of other topics for discussion in Closed Session.  The Chairman asked if he were referring to Resolution #50-08 on the Consent Agenda and stated that that Resolution #50-08 was going to be removed.  Commissioner Moshman agreed.

 

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

 

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

                        #52-08 stating that:

                        WHEREAS; N.J.S.A. 10-4:4-12 of the N.J. Open Public Meeting Act permits the exclusion of the public from a meeting in certain circumstances, generally including any matter of that involves pending or anticipated contract negotiations in which the Authority is or may become a party.

                        WHEREAS: the Commissioners of the Wanaque Valley Regional Sewerage Authority are all of the opinion that such circumstances                                                 presently exists:

                        NOW, THEREFORE, BE IT RESOLVED by the Wanaque Valley Regional Sewerage Authority as follows:

A.     The Public shall be excluded from discussions of the hereinafter specified matter(s):  The Liquid Waste Disposal Rates and Lab Fee's                                                                                                                                                                         

      Increase and the Ringwood Board of Education Agreement.

B.     If is anticipated at this time that there will be action taken upon the return to Open Session and that the discussions on this matter will be made public when the rates have been formally adopted and the  agreement with Ringwood Board of Education has been fully executed.

C.     This Resolution shall take effect immediately.

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

                         Commissioners Bolduc, Hadley, Moshman, Murray, and Covelli all stated Aye.  There were no Nays or Abstentions. Commissioner Bigger was                                     absent.

                                                                                                            MOTION CARRIED

 

Closed Session commenced at 6:30 PM and was concluded at 7:15 PM with the following motion

.

MOTION        Moved by Robert Hadley seconded by Robert Moshman to adopt a resolution authorizing returning to Open Session.

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

                         Commissioners Bolduc, Hadley, Moshman, Murray, and Covelli all stated Aye.  There were no Nays or Abstentions. Commissioner Bigger was

absent.

                                                                                                            MOTION CARRIED

 

 

At this time the Chairman stated that he would move to Old Business and asked Commissioner Moshman, Finance Committee Chairman to give the report.

OLD BUSINESS

            Finance Committee Report

            Ringwood Board of Education Agreement

            Commissioner Moshman stated that the Finance Committee has been considering this question of the Water and Sewage Operations Agreement for the Ringwood Board of Education for two months.  He stated that we have held two separate Committee Meetings, discussed it at the last Regular Meeting and after two Closed Sessions, including the one that was just concluded; the consensus reached in Closed Session, which we can now vote on, came to the conclusion that as prices have increased radically, and that we should offer the Ringwood Board of Education a 2-year contract, which would involve an increase of approximately 20% a year, which would come to $42,500.00 for the first year and $50,400.00 for the 2nd year.  Therefore, the Ringwood Board of Education Agreement would go from the current $34,167.00 to $42,500 00 this year and then for the 2nd year of the two-year package it would be $50,400 .00. 

The Chairman stated that hearing nothing further that will be what is on the Consent

Agenda as Resolution #48-08 - Ringwood Board of Education Agreement.  

The Chairman stated that the Maintenance Fees are also built in as a part of that Agreement.

 

The Chairman asked if anyone had anything else to add to this report.  Upon hearing no response The Chairman asked for the Facilities Manager Report.  .

            Facilities Manager

            Noise & Odor Control Report -Update

            Mr. White reported that there is no update due to no additional work being done. Mr. White stated that all odor control units are working well and that he has not had a single odor complaint in the past several months, which included the heat wave we recently experienced.  Mr. White stated that if we do get any complaints I will include them in the Odor Control Report.

            Plant Flow, Operations, Revenue-Update

            Mr. White reported that the Plant Flow is back to average, about 900,000 gallons per day.  He stated that the Revenue is continuing steadily; that the trucks are rolling in as we hoped and that the plant is running extremely well with no problems.

            TWA Application – Gorge Drive

            Mr. White reported that he received Treatment Works Approval (TWA) Application from Mr. William Kelly, Engineer for WBSA.  He stated that it is for a Sewer Extension on Gorge Drive. Mr. White stated that, basically, they are going to abandon the Roger Avenue Pump Station and extend the sewer line, a gravity line, to be able to connect the homes up in that area to the sanitary sewer system. Mr. White stated that we have the application here, which has been endorsed by the Wanaque Borough Sewerage Authority Chairman, Mr. Bolduc, and they are asking for this Authority’s endorsement.   Mr. White stated that if all are in favor; it is listed on the Consent Agenda as Resolution #49-08, for the Chairman to sign. 

The Chairman asked if there any questions or if anyone wished to have a discussion.   Upon hearing no response Mr. White continued with his report.

            Disposal Rate and Lab Fee Schedule

            Mr. White stated that the schedule that is in everyone's packet reflects the increase in rates that was discussed at last month’s meeting.   He stated that the increase is $0.0025 (2.5/10 cent). Mr. White stated that it is all reflected on the schedule, all the rates have been increased by the same amount.   Mr. White stated that if everyone is in favor he would like to have the schedule approved as a whole, effective 8/1/2008.  Mr. White stated that the Haulers will be so notified.  Mr. White stated that this increase in the rates will realize us approximately $49,000 .00 of additional revenue, based upon last years volume.  Mr. White stated that this is also on the Consent Agenda as No. 51-08.

 

REPORTS

            Facilities Manager Cont.

            Mr. White reported that he was subpoenaed to attend a hearing in Newark at the Office of Administrative Law, during this past month, with regard to Mountain Lakes Estates.  Mr. White stated that he was asked to identify some documents.  Mr. White stated that there was no agreement between the N.J. D.E.P. and the plaintiff, so the matter was actually tried while I was in attendance.  Mr. White stated that he did not know what the outcome of the trial was.  Mr. White stated that if anyone had any other questions he would try to answer them.

            Mr. White stated that earlier in the meeting Chairman Covelli alluded to, during our Closed Session, was that we have been getting a lot of bad financial news here at the Authority on the anticipated increases in hauling costs, fees, etc.  He stated that one thing that is on the horizon is our Sludge Hauling Contract which expires at the end of this year.  Mr. White stated that we will have to go out on bid for Sludge Hauling to begin on January 1, 2009.  Mr. White stated that we are currently paying 2.1 cents per gallon.  Mr. White stated that the numbers he is hearing from the haulers are in the range of 5 to 6 cents per gallon.  Mr. White stated that if fuel rates continue to escalate we will probably be looking at a 200 to 300 percent increase in Sludge Hauling costs. 

            Commissioner Bolduc asked what would be the dollar equivalent.  Mr. White stated possibly $50,000 .00.  Mr. White stated he would try to get a more accurate figure once his report has been completed.    Mr. White stated that his report was completed.

 

Chairman asked if anyone had any questions of Mr. White on his report.  Upon hearing none; the Chairman asked for the Legal Report.

            Legal Report

            Mr. Miller stated that there was not a lot happening since the last meeting. He stated that he worked with Bond Counsel and with the Underwriter on the Bond Sale.  Mr. Miller stated that he worked on the Resolution and the Official Statement and that portion of the Official Statement that describes the operation of the Authority the factual

portion.  Mr. Miller stated that as Bond Counsel indicated earlier; the documents appear to be ready to go when the insurance and the rates justify it.

            Mr. Miller stated that he worked with Mr. White on the subpoena, on what documents had to be produced.

            Mr. Miller stated that he has a form of resolution that deals with going into Executive/Closed Session.  Mr. Miller stated that this came out of last meeting at which Chris Erd attended in his absence.   Mr. Miller stated that it relates to the various reasons why this Authority can go into Executive/Closed Session and how they should be expressed. Mr. Miller stated he would like to distribute it to the Commissioners and to the Recording Secretary.   Mr. Miller stated that this has been copied directly from the New Jersey State Statues and sets out the twelve reasons why you're entitled to go into Executive/Closed Session.

            Mr. Miller stated that he did do a revision on Mr. White's employment contract, again based on what Mr. Erd indicated was discussed at the last meeting. Mr. Miller stated that we will be holding onto that, as it is being tabled for this evening.   Mr. Miller stated that he will have the final form ready possibly for the next meeting.

            Mr. Miller stated that his report was completed.

            The Chairman asked if anyone had any questions of Mr. Miller.  Upon hearing none the Chairman asked there was any other Old Business to be discussed.   Upon receiving a response, the Chairman stated he would move on to New Business.

 

NEW BUSINESS

            The Chairman asked if there was anything to be discussed under New Business. Upon hearing none the Chairman stated he would go to the Public Portion of the meeting.

 

PUBLIC PORTION

            The Chairman stated that anyone wishing to address the Authority may do so at this time. He asked that they step up to the microphone and identify themselves for the record.

            Ted Roberto, 8101 Warrens Way. - Mr. Roberto stated that the one thing he hoped was that the Authority took into consideration was the cost of getting rid of the sludge - as the increased sludge fees for the sludge coming in, as reported this evening, was not as large an increase.

            Dan Mahler, Mayor of Wanaque.  The Mayor stated that he agrees Mr. Roberto's comments.  The Mayor asked if the Ringwood Board of Education will be charged for any gray water they send here.  He was told yes.   The mayor asked if they will be back charged for deliveries made in the previous year.   After some discussion, Mr. Miller was asked to research the issue.

            John Di Meglio, Wanaque resident.  Mr. Di Meglio stated that upon visiting the W B S A offices a few weeks ago, during the heat wave, he discovered that the Secretary, Mrs. Schlagel, had a window open as it was too cold in her office, due to the low temperature the air-conditioning system created.   Upon leaving, Mr. Di Meglio reported that he noticed a window Mrs. Parinello’s office was likewise open.  Mr. Di Meglio reported that he spoke with Mr. White regarding this situation.  He stated that Mr. White informed him that there was no automatic temperature control on the air-conditioning system and that, due to the age of the unit; they were pleased that it was running and keeping them cool.   Mr. Di Meglio voiced his concern at what appears to be a waste of energy.   Mr. Di Meglio stated that he feels the Authority should have taken the monies that were spent planting trees on the grounds and used it to upgrade the air-conditioning system. 

The Chairman asked if there was anyone else that wish to address this Board. Upon hearing no response he stated that you entertain a motion to close the Public Portion of this meeting.

 

MOTION        Moved by Patrick Murray, 2nd by Robert Hadley 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, Hadley, Moshman, Murray, and Covelli all stated Aye.  There were no Nays or Abstentions. Commissioner Bigger was

absent.

                                                                                                            MOTION CARRIED

 

CONSENT AGENDA

The Chairman stated we are now ready to address the Consent Agenda. The Chairman reminded everyone that Resolution #50-08 has been changed to Bond Resolution Supplemental #9.  He then asked for a motion approving the consent agenda with Resolutions #45-08 thru #51-08 as stated.

 

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

                        No. 45-08 – Correspondence – 05-23-08 – 06-20-08

                               46-08 – May 28, 2008 Regular Meeting Minutes

                               47-08 – Vouchers – M-10912 – M-10949

                                             NOTE: Payment subject to availability of funds.

                               48-08 – RBOE Agreement

                               49-08 – TWA Application – Gorge Drive – Endorsement

                               50-08 – Bond Resolution Supplement #9

                               51-08 – Disposal Rate and Lab Fee Schedule Approval

 

CONSENT AGENDA Cont.

The Chairman asked if there were any questions or if anyone wishes to discuss any of the above stated Resolutions.

            Commissioner Bolduc asked Mr. White, regarding the Disposal rates that we are going to charge, for such as Gray Water, Septage and Grease, and may be changed by us at any time.  Mr. White stated yes.   Discussions concluded, the Chairman asked for a vote.      

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

                                                                                                            MOTION CARRIED

 

The Chairman stated at this time he would entertain a motion to adjourn this meeting.

 

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

                        authorizing closing this meeting.

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

                         Commissioners Bolduc, Hadley, Moshman, Murray, and Covelli all stated Aye.  There were no Nays or Abstentions. Commissioner Bigger was absent.

                                                                                                            MOTION CARRIED

 

The meeting was adjourned at 7:30 PM

 

           

Minutes respectively submitted by,

Margaret M. Maas, Recording Secretary