REGIONAL SEWERAGE AUTHORITY
REGULAR MEETING
JULY 26, 2006
MINUTES
The WANAQUE VALLEY REGIONAL SEWERAGE AUTHORITY conducted a
Regular Meeting, which commenced at
SALUTE TO THE FLAG
The meeting was called to order by Chairman Hadley with a Salute to the Flag.
ANNOUNCEMENT
Chairman Hadley 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
ROLL CALL
Commissioners Present: Andrew Bolduc, Robert Hadley, Robert Moshman, Patrick Murray
Commissioners Absent: Joseph Elcavage, Frank Covelli
Also Present: Richard Miller, Esq., Williams, Caliri, Miller & Otley
Lee T. Purcell, Jr., P.E., Lee T. Purcell Associates
Gregory White, Facilities Manager
CORRESPONDENCE
Correspondence
List for
The Chairman stated that if there were no comments or questions on any of the Correspondence, he would declare that they be placed on file.
MINUTES
Regular
Meeting –
The Chairman asked if anyone had any questions or comments
on the Regular Meeting Minutes of
MOTION Moved by Patrick Murray, 2nd by Andrew Bolduc to adopt a resolution accepting the Regular Meeting Minutes of June 26, 2006 as presented.
On Roll Call Commissioners Bolduc, Hadley, Moshman and Murray voted yes. Commissioners Elcavage and Covelli were absent.
MOTION
CARRIED
REPORTS
Facilities Manager
Mr. White stated that he had a few updates for the Commissioners.
Pulte – I & I Work
Mr. White reported that everyone had in their folders a handwritten summary on the I & I work to date. Mr. White stated that this is a summary of all the TV work, inspections and flushing work costs, Boswell’s costs and anticipated repair costs. Mr. White stated that they anticipate the total costs to be $235,000.00. He stated that the total budget was $250,000.00, which should leave approximately $15,000.00 left over in the budget, for use as desired.
Mr. White reported that the point repairs are ongoing as we speak. The National Water Main truck has been in town for the entire week. They are doing several repairs a day. Mr. White reported that the excavation work, which is being done by Fitzpatrick & Son will commence shortly.
Mr. White
stated that all repairs should be done within a short period of time. He stated that the only outstanding item we
will have is the problem we have on the
Note: Commissioner
Joseph Elcavage arrived at
REPORTS
Facilities
Manager
Wanaque
Reserve – WVRSA Meeting
Mr. White reported that in everyone’s folder is an Agenda of a meeting of the Committee from Wanaque Reserve and WVRSA, which he attended.
Mr. White reported that they said that they were still experiencing the odors. He stated that they described the odors to him, but he stated that he cannot understand what the odors could be. Mr. White stated that the odor control units that were installed have been operational for several months and are working extremely well in this heat/hot/humid weather that we have been having. Mr. White stated that he hasn’t experienced any odors outside what-so-ever. Mr. White reported that he has had other people walking on the grounds that have also commented on the lack of any odor.
Mr. White reported that the media inside the odor control units was tested last week, to determine how much of the media has been used up and/or the absorptive capacity of what remains. Mr. White stated that the manufacturer recommends that they be tested every two or three months, until we can determine the lifespan or longevity of that media. Mr. White stated that once the media is used up and it no longer has any more absorptive capacity, it will have to be replaced.
Mr. White stated that they asked how much money was given to the Authority by Pulte for Construction and that he told them $5 million. Mr. White stated that they also asked how much was being used for odor containment and that he told them $500 thousand.
Mr. White stated that they wanted to know why we have to keep on taking in trucks and will we be able to continue to do so, once we reach full capacity. Mr. White stated that he told them again that the need for the liquid waste acceptance was for revenue. Mr. White stated that he told them we desperately need the revenue to balance our budget.
Mr. White reported that the Committee would like the Authority to plant large evergreen trees along the fence line to block the view and also to help absorb any odors. Mr. White reported that he told them that we would discuss the issue. He stated that he also told them that we would discuss it with Pulte as they may plan on putting additional vegetation in that area.
Along that same issue, Mr. White reported that there is stagnated water standing on both sides of the property line between the plant and Building 8. This is causing a breeding ground for mosquito’s and adds to the odor problem. Mr. White stated that they would like this Authority to resolve the drainage issues there. Mr. White stated that he told them that we would discuss it and that we would consult with Pulte to see what their plans are. Mr. White stated that the other outstanding problem in that area is that we have a gas line that runs under the ground through the middle of that area and our power lines are directly overhead.
Mr. White stated that they were asking questions regarding the articles that have been in the newspapers recently with regard to the dissolution of the authority and they asked what effect it would have on them. They were concerned with the possibility of their sewer bills going up. Mr. White stated that he told them that would not be the case.
Mr. White stated that they asked him to get back to them with any decisions that had been made.
Mr. Miller
stated that he would like to discuss the first item on their list. He reported that there was a sign placed on
Health Insurance Rates Increase
Mr. White
reported that everyone should have a letter in their folders from Standard Insurance
notifying us that our Dental Insurance Rates will increase as of
REPORTS
Facilities Manager cont.
Mr. White
reported that there are three manholes on
Employee Resignation
Mr. White reported that we had an employee resign. Kip Webster, one of our operators, has submitted his resignation to the Authority. He has accepted a new job with another employer so we will need to hire an immediate replacement operator. Mr. White stated that he had two very qualified candidates, one of which he needs to interview again. Mr. White stated that he needs authorization to hire a replacement employee at an hourly rate equal to the qualifications of the individual. Discussion followed. The outcome of the discussions was that Mr. White would like authorization to hire an individual, with the approval of the Personnel Committee who will be involved in this process, and to have someone hired within the next two or there weeks.
MOTION Moved by Andrew Bolduc, 2nd by Patrick Murray to adopt a resolution authorizing the Facilities Manager, Gregory White to complete the interviews
and with the approval of the Personnel Committee hire a replacement for the employee that recently resigned.
On Roll Call Commissioners Bolduc, Elcavage, Hadley, Moshman and Murray
Voted yes. Commissioner Covelli was absent.
Personnel Committee
Mr. White stated that there will be a meeting of the Personnel Committee and the employees in the very near future. He stated that there was a meeting scheduled for earlier today but Commissioner Murray was the only one able to attend. Mr. White stated that the meeting is to discuss the employee’s requests and concerns for the coming year.
Plant status
Mr. White reported that the plant is running extremely well.
Mr. White stated that Mr. Purcell has a very large report this evening what with all new equipment coming on line. Mr. White reported that things are moving along very smoothly.
Mr. Purcell stated that the best thing that the Authority has done was to replace the old microstrainers, which are now standing .out behind the microstrainer building. Mr. Purcell stated that should anyone want to take a walk out there, they can see what was taken out, and what advance stages of disrepair those microstrainer units were in. Mr. White added that the new units are vastly improved. Mr. Purcell stated that they have a different drive unit and the materials are upgraded from the original.
Mr. White
reported that last month the committee from the Wanaque Reserve had asked if we
could limit the hours of our operation, as other septage facilities in the area
did not have 24/7 hours at their facility.
Mr. White stated that he has
contacted Passaic Valley Sewerage Commissioners facility in Newark, which is
the major facility in the area for liquid waste disposal and found that they
are open 24 hours a day everyday of the year.
Twin Bridges Authority, which could be considered our main competitor,
is also open 24 hours a day, seven days a week. Mr. White stated that he knows the Manager
there and the reason he gave me as to why they are a 24/7 facility is that they
must remain open in order to compete with
Mr. White concluded by stating that his recommendation is that unless you want to see a reduction in revenue – we really cannot afford to restrict the hours.
REPORTS
Facilities
Manager
Mr. White reported that he looked into the road signs for no parking on the Access Road and to change the speed limit from 15 mph to 10 mph. Mr. White stated that the No Parking signs have been put into place and it was decided that changing the speed limit would not be effective. Mr. Miller added that his office is preparing the paperwork to request Wanaque assume enforcement authority over the roadway and t hat the Police patrol the road. Mr. White stated that the “NO JAKE BRAKE” signs are being worked on.
Accounting
No Report
Engineering
Mr. Purcell stated that he had an Agenda and an Engineering Report with him tonight which he proceeded to distribute. (copies attached)
Item #1
Engineering Report Status on Contract 1-25
Septage Receiving Facility
Mr. Purcell reported that there was no work this month.
Influent Pumping Station (IPS).
Mr. Purcell reported that the temporary wiring was installed and other preparatory work has been completed. Stonehill is scheduled to start the modification work in the influent pumping station on August 3rd and is targeting the completion of that work by the end of August. Mr. Purcell stated that that sequence of work has been discussed with Mr. White, our office and the contractor to make sure that the IPS is operating correctly during the upgrade. Mr. Purcell stated that they hope to be completed and will have turned over another piece of equipment to Mr. White for use.
Mr. Purcell stated that since February/March we have been taking pieces of equipment and turning them over for beneficial use by the Authority. So as the contractor completes a unit of work we can turn it into the system we have. We have two brand new micro strainer units up and running and they are doing a very good job. He stated that if anything gets through the process – the micro strainers catch it. Mr. Purcell stated that if it is at all possible he recommends the Commissioners take the time to look at what was replaced and what has been put in.
Grit
Chambers and Grit Chemical/Building
Mr. Purcell stated that the Alum pumps were placed online.
Aeration Basins Nos. 1-3
Mr. Purcell reported that the wireway and conduit for the new control panels were installed.
The wires for the new control panels were pulled.
The noise barriers were constructed around the aerator drive units, as per Mr. White’s request. The contractor prepared them and installed them and they are doing a very good job at this time.
Mr. Purcell stated that in the oxidation ditches or aeration process, the dissolved oxygen should be maintained in there at about 2% mg/l. Mr. Purcell stated that we have been testing the oxygen levels with probes that are the oxygen measuring devices. Mr. Purcell stated that there is an oxygen depletion in those tanks of more than 50%. Mr. Purcell stated that the septage coming into the plant is anaerobic, it is driving the aerobic process in a negative direction while in processing. Mr. Purcell stated that you can see the result of that when there is a subsidence of septage receiving, the oxygen level will try to come back. Mr. Purcell stated that all he is saying is that at some point you are going to have to make a decision to stop stressing the heart of the treatment process – that is the biological treatment - by reducing the amount of the septage you receive or starting it over a longer period of time with the septage receiving system. Mr. Purcell stated that he wanted to bring this up because it is not the way the system is designed. He stated that the revenue stream is fine, but you are depositing solids into the oxygen tank. Mr. Purcell stated that the tanks will have to be cleaned out more frequently and it is causing a lot of solids to carry over into the secondary clarifier, which it shouldn’t. So it is a point of concern for the Authority - you really have to make a decision to reduce the number of trucks or get that other system up and running .
REPORTS
Engineering Cont.
Commissioner Bolduc asked if Mr. Purcell meant the Septage Holding Tank and Mr. Purcell stated yes – it is called the Septage Holding Tank System. Mr. Purcell explained that it means taking the septage in and placing it in a holding tank and adding it to the process over a 24 hour period as opposed to adding it to the IPS as it comes in.
Final Clarifiers
Mr. Purcell stated that there was no work done this month.
Mr. Purcell reported that the roof over Microstrainers #1 and #2 was removed.
He reported that the new roof plank was installed over Microstrainers #3 and #4.
The new Microstrainer #4 and Control Panel were installed and placed on line.
Mr. Purcell stated that the existing Microstrainer #1 and the control panels were removed.
The new control panel for Microstrainer #1 was installed and the installation of Microstrainer #1 is in progress.
The
manufacturer’s start-up for Microstrainer #1 is scheduled for
that third microstrainer unit will be on line full time and will be turned over for beneficial use to the Authority. Mr. Purcell stated that brings us down to one unit to be dealt with.
Mr. Purcell stated that the contractor is expected to have that unit and up and running by the end of August, then the entire Microstrainer Unit will be up and running.
Mr. Purcell reported that the existing Non-Potable Water Pump #2 was removed and the new Non-Potable Water Pump #2 was installed. Mr. Purcell stated that the manufacturer’s start-up of the pump and control panes is scheduled for next month.
Treatment Module
Mr. Purcell stated that there is some remaining work on the ship’s ladders.
Shop Drawing Review and Processing
Mr. Purcell stated that all of the following items relate to the Influent Pumping Station.
Seal Water
Systems – Influent Pump Station and sludge
Construction Plan – Influent Pump Station Modifications
Level Control Instrument Layout – Influent Pump Station
Limit Switches – Influent Pump Station
Control Panel Pilot Lamps - Instrumentation
Mr. Purcell stated that Shop Drawing Review and Processing for the entire project is 95% completed and that the overall project completion is over 75%.
Mr. Purcell stated that the contractor will be completed with all of his work pborably before the end of December.
Mr. Purcell stated that this is a very well constructed project.
Item #II
– Contract 1-30 – Replacement of the
Mr. Purcell reported that the work was completed and the contractor was paid last month less his retainage. The contractor may provide a Maintenance Bond to secure the release the cash that is being withheld by the Authority.
Item #III
– Inspection of Interceptor Sewer –
Mr. Purcell stated that Mr. White has already reported on this issue. Mr. Purcell stated that he would like to see that entire line cleaned out all the way in from Ringwood
Avenue.
Item #V – Authority’s Request for Change Order Cost Proposals from Stone Hill Contracting – Septage Holding Tank System.
Mr. Purcell stated that there were three requested change orders. Mr. Purcell stated that all three have been given to the Authority. Mr. Purcell stated that as per the decision at last month’s meeting – should the Authority decide to go forward with that project you will not do it through a change order, but you will do it on a publicly bid contract. Mr. Purcell cautioned that the Authority should not go forward without getting that Septage Holding Tank System on line or without backing off some of your septage receipt.
Item # IV LTPA Proposal –
WMP – Response to NJDEP’s Letter Dated
Mr. Purcell stated that we are awaiting authorization to proceed with this assignment.
REPORTS
Engineering
Commissioner Bolduc stated that as we have not received an answer from NJDEP with regards to our request for a ruling regarding the situation with Ringwood, would it be advisable that we send a second letter requesting a decision. Discussion ensued and the results were that Mr. White would make a phone call and then send a letter of inquiry to NJDEP, regarding this matter.
Commissioner Bolduc asked Mr. Purcell if he would explain why he is so concerned with the amount of septage we are taking in by truck and what actual harm he feels will come if we continue at the current rate we are receiving now
Mr. Purcell stated that in the treatment process we have, which is a biological treatment process, we do not have primary clarification - so all of the solids that come into the IPS go through the Grit Chamber and go right into the Oxidation Ditches. The Oxidation Ditches are where your microorganisms that need the presence of oxygen at the rate of about 2 parts per min in order for them to eat up the material.
Commissioner Bolduc asked Mr. Purcell what was the oxygen level now. Mr. Purcell stated ½ percent to 1 percent at best. Mr. Purcell continued that if it becomes septic there will be an odor and the septage coming in is going to cause the tank to have septage deposits and sludge deposits in the bottom at a more rapid rate than it has in the past.
Mr. White explained that we are fortunate to have oxidation ditches as our process here. He stated that he believes in them whole heartedly. They are tremendously resilient, you can put just about anything into them and it just absorbs it and you see very little effect. Mr. White stated that Mr. Purcell is correct that we do have low dissolved oxygen levels at times – we have run at those levels for years – they are stressed at times, but we have not had any operational upsets as a result of that stress. Mr. White stated that he has found that we can run our plant very efficiently at those low oxygen levels. Mr. White stated that we do have less margin for error but we have not seen a problem with the level of acceptance we are currently experiencing. However, should we have an operational failure or our aerators fail we would be in trouble.
Commissioner Hadley commented that over the last few years we have picked up a considerable amount of septage receipt.
Commissioner Moshman stated that he did not hear what the cost would be if we were to experience a failure. Mr. White stated that an operational failure which results in our exceeding one or more of a permit limitations there could be penalties and fines in the amounts of several thousand dollars depending on the duration of the problem. Mr. White stated that if there were ever a situation where there was an operational failure – he would immediately stop any and all dumping until it was rectified.
Mr. Purcell stated that his report was completed.
Legal
Land Swap Deal
Mr. Miller stated that the Land Swap transaction has been concluded. The deed is to be recorded tomorrow at the Passaic County Registrar’s Office.
Cash
Flow Deficit
Mr. Miller stated that Mr. White has prepared some numbers for everyone. Mr. Miller stated that it looks like we are going to have a cash flow deficit in the month of September as we have a bond payment due, we have ongoing construction costs and other matters.
Mr. Miller stated that he talked with Mr. Ferraioli as well as with Bond Counsel during the past week. He stated that if it is a temporary cash flow situation , one that we can work our way out of, say by the end of the year, then we can have Short Term Financing. Mr. Miller stated that we would have to present the Local Finance Board with a layout showing that we are going to have a cash flow deficit, we are going to do that 30 days before you close the loan. Mr. Miller stated that tonight if that is the direction you are going to go, which has been recommended by both Mr. Ferraioli and Bond Counsel – without seeing the actual numbers - you should authorize notifying the Local Finance board that we are going to have a cash flow deficit and here is what the projections look like for the next several months. Mr. Miller stated that they need 30 days notice which would mean that we have another meeting and during those thirty days we would arrange for short term borrowing to cover the deficit.
REPORTS
Legal
Cash Flow Deficit Cont.
Mr. Miller stated that a question was raised at a pre-meeting meeting tonight on finances about the Bond Reserve Fund that we maintain. Mr. Miller stated that we have $1,400,000.00 in a Certificate of Deposit at Lakeland Bank in our Bond Reserve Fund. Mr. Miller stated that part of the shortage is that we have a Bond Payment due on September 1st, in the amount of $980,000.00. Obviously it would be very helpful if we didn’t have to pay this. Mr. Miller stated that a question was raised whether that fund would be available to tap to make that payment and help carry us over and then we would have to replenish the fund as we went along. Mr. Miller stated that he did not know the answer to that question and would consult with Bond Counsel.
Mr. Miller suggested that what he thinks we should do is adopt a resolution tonight authorizing notice to the Local Finance board that we are going to have a cash flow deficit and that we may have to do short term borrowing. Mr. Miller stated that the fact that we put them on notice doesn’t mean we have to go through with it, if you are able to work it out otherwise. Then at the next meeting, if that is the route we have to go we will have in the interim negotiated to cover the deficit; and authorize the borrowing before the September deadline. Mr. Miller stated that in the meantime we would explore the Bond Reserve Fund and the implications of that and how that would work.
Mr. Miller asked if everyone had a copy of the numbers and Mr. White stated yes and went over them. Mr. White stated that there are two sheets, one Excel spread sheet showing our anticipated obligations through the end of the year and then the other document on WBSA letterhead showing the anticipated available funds, which includes the final two payments from Pulte. Mr. White stated that Pulte has agreed to make one payment by the end of July and the second and final payment by the end of August. Mr. Miller then stated that on the projections laid out by Mr. White, we come up with a short fall of $639,000.00.
Mr. Miller stated that the concern is - if we go to short term borrowing, that has to be cleared up by the end of the next fiscal year.
Mr. Miller stated that at this point he is suggesting that we keep all our options open by authorizing Short Term Borrowing Notice to the Local Finance Board.
MOTION Moved by Joseph Elcavage, 2nd by Andrew Bolduc to adopt a resolution to authorize providing Notice to the Local Finance Board of our intent to do
to Short Term Borrowing, due to a Cash Flow Deficit.
On Roll Call Commissioners Bolduc, Elcavage, Hadley, Moshman and Murray
voted yes. Commissioner Covelli was absent.
MOTION
CARRIED
Mr. Miller stated that that does not commit us to any course of action it only keeps the options open.
Mr. White stated that on Monday when Mr. Ferraioli returns to work, we will sit down with him immediately and determine a course of action.
Mr. Miller stated that his report was complete.
REPORTS
Vouchers
The
Chairman asked for the voucher report.
RE: Vouchers M-9853 thru M-9902 - FY ‘06
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, 2nd by Patrick Murray to adopt a resolution to approve payment of Vouchers M-9853 thru M-9902 for FY '06, all payments to be subject to availability of funds.
On Roll Call Commissioners Bolduc, Elcavage, Hadley, Moshman and Murray voted yes. Commissioner Covelli was absent.
MOTION CARRIED
OLD BUSINESS
The Chairman asked if there was anything to be discussed under Old Business. When there was no response the Chairman stated that he would move on to New Business.
NEW BUSINESS
The Chairman asked if there was anything to be discussed under New Business.
Commissioner
Elcavage stated that there has been a lot of talk recently about the
potential dissolution of this Authority.
And that seems to hinge on the decisions of the three governing bodies
and what they would like to do.
Commissioner Elcavage then asked Mr. Miller for copies of the Judgments
against Ringwood and
PUBLIC PORTION
The Chairman opened the meeting to the public and stated that anyone that wished to address the Board may do so at this time. When no one approached the microphone the Chairman requested a motion to close the Public Portion.
MOTION Moved by Joseph Elcavage, 2nd by Patrick Murray to adopt a resolution authorizing the closing the Public Portion of this meeting.
On Roll Call Commissioners Bolduc, Elcavage, Hadley, Moshman and Murray
voted yes. Commissioner Covelli was absent.
MOTIN
CARRIED
ADJOURN
MOTION Moved by Joseph Elcavage, 2nd by Robert Moshman to adopt a resolution to adjourn this meeting.
On Roll Call Commissioners Bolduc, Elcavage, Hadley, Moshman and Murray voted yes. Commissioner Covelli was absent.
MOTION
CARRIED
The meeting was concluded at
Minutes respectively submitted by,
Gregory White, Facilities Manager
Hort