Minutes: August 11, 2011

The regular meeting of the Municipal Utilities Authority (MUA) of the Township of Vernon was convened at 7:00 p.m. on Thursday, August 11, 2011 in the Vernon Municipal Center, 21 Church Street, Vernon, New Jersey.

Statement of Compliance

Adequate notice of this meeting had been provided to the public and the press on August 4, 2011, and was posted on the bulletin board in the municipal building in accordance with the Open Public Meetings Act, N.J.S.A. 10:4-6.

Salute to the Flag

Mr. Rolando led the assemblage in the salute to the flag.

Roll Call of Members

Present were members Ed Rolando, Sr., Thomas Buchney, Barbara Chorzepa, Gloria Frato-Gallo, and Vincent Zinno. Also in attendance were John E. Ursin, Esq., utility attorney, and Mayor Vic Marotta.

Open to Public Comments

Mr. Rolando opened the meeting to public comments at this time.

Closed to Public Comments

There being no one in the audience, Mr. Rolando asked for a motion to close the meeting to public comments.

Moved: Gloria Frato-Gallo
Second: Thomas Buchney
All members were in favor.

Presentation—Ferraioli, Wielkotz, Cerullo & Cuva, PA, Auditor for the MUA

Mr. Ursin explained his knowledge of Mr. Ferraioli’s experience in the auditing field with regard to such utility authorities.

Mr. Ursin advised the members of the other professionals presenting at the September 8 meeting: Risk Manager, Wayne Dietz; and Engineer, John Ruschke of Hatch Mott MacDonald.

Mayor Marotta asked Mr. Ursin to explain why the resolutions from the last meeting were back on the agenda for action. Mr. Ursin noted that there had been a resident who released the door to save on air conditioning, not knowing that the door was still locked. By having a locked door, it made the meeting closed to the public, which made all actions taken invalid.

Chuck Ferraioli made his presentation for auditing services. He noted some problems that need to be addressed, i.e., manholes—which need to be replaced. He noted that they can be done in batches to be able to budget for them. He advised that by replacing them it would eliminate rainwater that has been entering the system.

He outlined the various stages and timelines for getting started; and explained how the budget is developed, connection fees, sewer rates, and staffing. He advised that staffing can be accomplished through an inter-local agreement with the township.

Mr. Rolando asked about the amount of money to be bonded. Mr. Ferraioli reviewed the numbers: $3.75 million cost of United Water purchase with 2.33% rates right now. 1) cost of purchase of the United Water system, 2) reimbursement to the township for sewer outlays, 3) amount sufficient to make payments to SCMUA in the foreseeable future. Things that would come into play would be Vernon bonds, Intrawest/Mountain Creek, and SCMUA debt.

The members discussed these costs.

Mr. Ferraioli noted he would need to discuss the numbers with the CFO to get started. He advised that they would be looking at a 20-year amortization schedule to pay off at least the United Water portion, and possibly a 25-year schedule for the SCMUA debt.

A discussion continued on these fixed costs, the projected costs presented from the beginning, as well as rate increases.

Mr. Ferraioli advised that the budget, once determined, should be able to be adopted by only 2 meetings (introduction and adoption).

Mayor Marotta asked about offering a payment plan for some customers to cover the connection fees.

This idea was discussed, as well as charging interest to offset the interest the township would be paying.

Mr. Ferraioli was thanked for his presentation. He promised to have more details by the next meeting.

Mayor Marotta asked for a reasonable time frame when a functioning system would be on-line.

Mr. Ursin advised that all inspections by the DEP, SCMUA, etc. should be fairly easy, but rules for connection would still be needed (which could be accomplished in September). He also noted that anyone who wishes to connect to the system will have to get approval and pay a fee to the MUA as well as SCMUA.

Various scenarios were looked at for how calculations are made.

Mr. Ursin further advised that in addition to connection fees, there will be costs for customers to install the pipes on the private property—contractors, plumbing inspections by township and MUA engineer, etc.

Mr. Ferraioli left at this time. 9:10 p.m.

A brief discussion was held on the use of septic systems to discharge water softener water.

Minutes for Approval

Minutes of the reorganization meeting of July 28, 2011

Mr. Rolando noted a minor amendment to the minutes—it should read: “...purchase of the Vernon sewer portion of United Water.”

Motion to accept the minutes as amended.

Moved: Vincent Zinno
Second: Gloria Frato-Gallo

Ayes: Tom Buchney, Barbara Chorzepa, Gloria Frato-Gallo, Vincent Zinno, Ed Rolando
Nays: None
Minutes of the reorganization meeting of July 28, 2011 were approved as amended.

Consent Agenda

Resolutions #11-01, #11-02, #11-03, #11-04, #11-05, #11-06, and #11-07

Moved: Vincent Zinno
Second: Barbara Chorzepa

Ayes: Tom Buchney, Barbara Chorzepa, Gloria Frato-Gallo, Vincent Zinno, Ed Rolando
Nays: None
Resolutions #11-01 through #11-07 were adopted.

Resolution #11-01: Designation of Official Newspaper for 2011

WHEREAS, N.J.S.A. 40:53-1 et al. of the Open Public Meetings Act requires that the governing body of every municipality designate an official newspaper or newspapers for the publication of all advertisements and notices required by law to the published by the municipality; and

WHEREAS, the second newspaper designated by this body must be one which has the greatest likelihood of informing the public within the jurisdictional boundaries of this body of such meetings; and

WHEREAS, The New Jersey Herald/Sunday Herald is hereby designated to receive all notices of meetings as required under the Open Public Meetings Act and The Advertiser News and the Vernon Aim will be designated as the alternate newspapers; and

WHEREAS, it is the opinion of this public body that The New Jersey Herald/Sunday Herald, have the greatest likelihood of informing the public within the jurisdictional area of this public body of such meetings.

NOW, THEREFORE, BE IT RESOLVED by the Township of Vernon Municipal Utilities Authority, County of Sussex, State of New Jersey that The New Jersey Herald/ Sunday Herald is hereby designated as the official newspaper for the 2011 calendar year and will receive all notices of meetings of the Vernon Township Municipal Utilities Authority as required by the Open Public Meetings Act, and The Advertiser News and the Vernon Aim will be designated as alternate newspapers of the Township of Vernon Municipal Utilities Authority.

This resolution shall take effect immediately.

Resolution #11-02: Designating Meeting Dates for 2011

BE IT RESOLVED, in accordance with the Open Public Meetings Act, N.J.S.A. 10:4-1 et. seq., the reorganization meeting of the Vernon Municipal Utilities Authority shall convene at 7:00 p.m. on July 28, 2011 at the Vernon Township Municipal Center, 21 Church Street, Vernon, New Jersey. Formal action will be taken at the reorganization meeting.

BE IT FURTHER RESOLVED, in accordance with the Open Public Meetings Act, N.J.S.A. 10:4-1 et. seq., the regular meetings of the Vernon Municipal Utilities Authority shall convene on the third Mondays of each month at 7:00 p.m. at the Vernon Municipal Center, 21 Church Street, Vernon, New Jersey for the following meeting dates:

August 15, 2011
September 19, 2011
October 17, 2011
November 21, 2011
December 19, 2011

BE IT FURTHER RESOLVED that all meetings shall be opened to the public and public participation will be entertained at all meetings but limited to five (5) minutes for each speaker to provide the Governing Body sufficient time to complete its work.

BE IT FURTHER RESOLVED that all Notices required by the Open Public Meetings Act shall be published in The New Jersey Herald and if needed as alternate newspapers, The Advertiser News and The Vernon Aim, and shall be posted on the bulletin board in the municipal building.

This resolution shall take effect immediately.

Resolution #11-03: Authorizing the Award of Contract for Professional Services for Township Attorney

WHEREAS, there is a need for General Legal Services for the year 2011 for position of Municipal Attorney to the Township of Vernon Municipal Utilities Authority; and

WHEREAS, N.J.S.A. 40A:11-5 specifically exempts professional services from provisions of public bidding as provided in the Local Public Contracts Law; and

WHEREAS, said specified professional services are to be rendered or performed by a person or persons authorized by law to practice a recognized profession, and whose practice is regulated by law within the meaning of N.J.S.A. 40A:11-1 et seq., as amended; and

WHEREAS, the performance of said professional services requires knowledge of an advanced field of learning acquired by a prolonged formal course of specialized training and study as distinguished from general academic instruction or apprenticeship and training; and

WHEREAS, the Township of Vernon Municipal Utilities Authority is desirous to appoint John E. Ursin, Esq. of the law offices of Courter, Kobert & Cohen, PC, as a non-fair and open contract pursuant to the provisions of the Local Public Contracts Law, N.J.S.A. 40A:11-1 et seq.; and

WHEREAS, the Local Public Contracts Law N.J.S.A. 40A:11-1 et seq., as amended, requires that this resolution be publicly advertised.

NOW, THEREFORE, BE IT RESOLVED by the Township of Vernon Municipal Utilities Authority that they hereby authorize and approve the award of contract of a professional service agreement to John E. Ursin, Esq. of the law offices of Courter, Kobert & Cohen, pursuant to a non-fair and open contract pursuant to the provisions of the Local Public Contracts Law, N.J.S.A. 40A:20-1 et seq. to provide General Legal Services in accordance with the attached contracts for professional services.

BE IT FURTHER RESOLVED, that the award of contract shall be contingent upon the completion and receipt of the following:

  1. A fully-executed professional services agreement detailing the scope of services, established fees for said professional services, mandatory Equal Opportunity Language and Affirmative Action Certificate; and
  2. Receipt of all statutorily mandated “pay to play” political contribution forms pursuant to N.J.S.A. 19:44A-20.4 et seq.;
  3. New Jersey Business Registration Certificate; and
  4. Upon the aforementioned professional being a member in good standing in his respective profession.

BE IT FURTHER RESOLVED, that the Township of Vernon Municipal Utilities Authority and MUA Recording Secretary or Township Clerk are hereby authorized and directed to execute, seal and deliver the attached contracts for professional services on behalf of and in the name of the Township of Vernon Municipal Utilities Authority, and that the Township Clerk shall publish the award of contract as required by law within ten (10) days of passage of this resolution.

Resolution #11-04: Authorizing the Award of Contract for Professional Services for Municipal Sewer Utility Authority Auditor

WHEREAS, there is a need for Municipal Auditing Services for the Township of Vernon Municipal Utilities Authority; and

WHEREAS, N.J.S.A. 40A:11-5 specifically exempts professional services from provisions of public bidding as provided in the Local Public Contracts Law; and

WHEREAS, said specified professional services are to be rendered or performed by a person or persons authorized by law to practice a recognized profession, and whose practice is regulated by law within the meaning of N.J.S.A. 40A:11-1 et seq., as amended; and

WHEREAS, the performance of said professional services requires knowledge of an advanced field of learning acquired by a prolonged formal course of specialized training and study as distinguished from general academic instruction or apprenticeship and training; and

WHEREAS, the Township of Vernon Municipal Utilities Authority is desirous to renew the current agreement with the firm Ferraioli, Wielkotz, Cerullo & Cuva, PA for Municipal Utilities Authority Auditing Services as a non-fair and open contract pursuant to the provisions of the Local Public Contracts Law, N.J.S.A. 40A:11-1 et seq., as amended; and

WHEREAS, the Local Public Contracts Law N.J.S.A. 40A:11-1 et seq., as amended, requires that this resolution be publicly advertised.

NOW, THEREFORE, BE IT RESOLVED by the Township of Vernon Municipal Utilities Authority that they hereby authorize and approve the award of contract of a professional service agreement to the firm of Ferraioli, Wielkotz, Cerullo & Cuva, PA pursuant to a non-fair and open contract pursuant to the provisions of the Local Public Contracts Law, N.J.S.A. 40A:20-1 et seq. to provide General Legal Services in accordance with the attached contract for professional services.

BE IT FURTHER RESOLVED, that the award of contract shall be contingent upon the completion and receipt of the following:

  1. A fully-executed professional services agreement detailing the scope of services, established fees for said professional services, mandatory Equal Opportunity Language and Affirmative Action Certificate; and
  2. Receipt of all statutorily mandated “pay to play” political contribution forms pursuant to N.J.S.A. 19:44A-20.4 et seq.;
  3. New Jersey Business Registration Certificate; and
  4. Upon the aforementioned professional being a member in good standing in his respective profession.

BE IT FURTHER RESOLVED, that the Township of Vernon Municipal Utilities Authority Chair and MUA Recording Secretary or Township Clerk are hereby authorized and directed to execute, seal and deliver the attached contract for professional services on behalf of and in the name of the Township of Vernon Municipal Utilities Authority, and that the Township Clerk shall publish the award of contract as required by law within ten (10) days of passage of this resolution.

Resolution #11-05: Resolution Appointing Risk Management Consultant for Property & Casualty Insurance

WHEREAS, the Township of Vernon Municipal Utilities Authority (hereinafter “Local Unit”) has joined the Statewide Insurance Fund (hereinafter “Fund”), a joint insurance fund as defined in N.J.S.A. 40A:10-36 et seq.; and

WHEREAS, the Bylaws require participating members to appoint a Risk Management Consultant, as those positions are defined in the Bylaws, if requested to do so by the “Fund”; and

WHEREAS, the Local Unit has complied with relevant law with regard to the appointment of a Risk Management Consultant; and

WHEREAS, the “Fund” has requested its members to appoint individuals or entities to that position.

NOW, THEREFORE, BE IT RESOLVED by the Township of Vernon Municipal Utilities Authority, in the County of Sussex and State of New Jersey, as follows:

The Township of Vernon Municipal Utilities Authority hereby appoints Wayne Dietz, D & H Alternative Risk Solutions as its local Risk Management Consultant for Property & Casualty Insurance.

BE IT FURTHER RESOLVED, that the Township of Vernon Municipal Utilities Authority Chair and MUA Recording Secretary or Township Clerk are hereby authorized to execute the Risk Management Consultant’s Agreement for the year 2011 on behalf of and in the name of the Township of Vernon Municipal Utilities Authority, and that the Township Clerk shall publish the award of contract as required by law within ten (10) days of passage of this resolution.

Resolution #11-06: Authorizing Contract for 2011 Recording & Correspondence Secretary

WHEREAS, there exists a need for a Recording & Correspondence Secretary for the Township of Vernon Municipal Utilities Authority for the year 2011; and

WHEREAS, Aida Cahill is the current Municipal Utilities Authority Recording Secretary and desires to continue in this capacity according to the attached exhibit ‘A’; and

WHEREAS, the Township of Vernon Municipal Utilities Authority desires to contract with Aida Cahill for the term July 28, 2011 - December 31, 2011; and

WHEREAS, the Chief Financial Officer has certified that funds are available for this purpose subject to the adoption of the 2011 Municipal Budget.

NOW THEREFORE BE IT RESOLVED, this 11th day of August, 2011, by the Municipal Utilities Authority of the Township of Vernon, County of Sussex and State of New Jersey as follows:

  1. The Township of Vernon Municipal Utilities Authority is authorized to contract with Aida Cahill for 2011 Recording & Correspondence Secretary.
  2. The Township of Vernon Municipal Utilities Authority is hereby authorized and directed to execute the attached contract with Aida Cahill.

A copy of this resolution shall be published in the New Jersey Herald by the Township Clerk as required by law and a true copy of same and the contract shall be available for inspection in the office of the Township Clerk.

Resolution #11-07

In accordance with the Open Public Meetings Act, N.J.S.A. 10:4-1 et. seq., the regular meetings of the Township of Vernon Municipal Utilities Authority shall convene at 7:00 p.m. at the Vernon Municipal Center, 21 Church Street, Vernon, New Jersey on the following meeting dates:

Thursday, September 8, 2011
Monday, September 19, 2011
Thursday, October 6, 2011
Monday, October 17, 2011
Thursday, November 3, 2011
Monday, November 21, 2011
Thursday, December 1, 2011
Monday, December 19, 2011

BE IT FURTHER RESOLVED that all notices required by the Open Public Meetings Act shall be published in The New Jersey Herald/Sunday Herald and if needed as alternate newspapers, The Advertiser News and The Vernon Aim, and shall be posted on the bulletin board in the municipal building.

Mr. Rolando asked about limiting the time to speak for the public, as well as limiting the total time for meetings.

Motion to limit individuals to 5 minutes each during open public comment sessions until the official rules are adopted; and to limit the total open public comment session not to exceed 30 minutes; as well as limiting meetings to 3 1/2 hours total, starting at 7:00 p.m. and running no later than 10:30 p.m.

Moved: Vincent Zinno
Second: Gloria Frato-Gallo

Ayes: Tom Buchney, Barbara Chorzepa, Gloria Frato-Gallo, Vincent Zinno, Ed Rolando
Nays: None
Motion approved.

Mr. Buchney asked about changing the time limit if more people are present. Mr. Ursin advised that it can be done on a case-by-case basis or at the beginning of the session, but that it would not be necessary to make it a policy.

Mr. Ursin advised the members that “public comment” portion of the meeting is for public comments only, and not for discussion back and forth with the public and the members.

Adjournment

There being no further items of business to be conducted on the agenda, a motion for adjournment was made by Barbara Chorzepa; motion seconded by Gloria Frato-Gallo with all members voting in favor.

The regular meeting of August 11, 2011, of the Municipal Utilities Authority of the Township of Vernon was adjourned at 9:26 p.m.

Respectfully submitted,
Susan S. Nelson
Municipal Clerk

Minutes approved: September 8, 2011