Minutes: December 1, 2011

The regular meeting of the Municipal Utilities Authority (MUA) of the Township of Vernon was convened at 7:00 p.m. on Monday, December 1, 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.

Roll Call of Members

Thomas BuchneyP
Barbara ChorzepaA
Doug DobrzynskiP
Gloria Frato-GalloP
Vincent Zinno, Vice ChairmanP
Ed Rolando, ChairmanP

Also in Attendance

John Ursin, Esq., MUA Attorney
Chuck Ferraioli, MUA Auditor
John Ruschke, MUA Engineer
Aida Cahill, MUA Secretary

Salute to the Flag

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

Minutes for Approval

Minutes of the regular meeting from November 21, 2011

Moved: Thomas Buchney
Second: Gloria Frato-Gallo
All commissioners voted in favor.
Minutes were approved.

Memorandum of Agreement

Mr. Ursin explained that the updated agreement being reviewed was the same as the first draft, with two exceptions. Negotiations with Mountain Creek are actively being discussed, but not complete, and therefore would not be a part of the MUA/township agreement. There would be no reference to the CFO amounts because they too are not complete.

A motion authorizing the chairman to sign the Memorandum of Agreement on behalf of the MUA was made by Mr. Zinno; seconded by Gloria Frato-Gallo with all commissioners voting in favor.

Proposals

Mr. Rolando advised that he spoke to Jerry Kastner regarding his proposal for licensed operation of the sewer system. Mr. Rolando stated Mr. Kastner’s proposal was very reasonable. Mr. Zinno questioned the fees being charged by Mr. Kastner. Mr. Rolando explained that the fee is $800 per month plus $19.50 per hour if he has to go out on site. Mr. Ruschke suggested retaining Mr. Kastner on an hourly basis until the sewer system is operational. Mr. Ferraioli advised that under New Jersey state law, authorizations cannot be made unless there is a way to pay for it.

A motion was made by Vincent Zinno to retain Mr. Kastner as licensed operator of the sewer system effective Jan. 1, 2012 subject to funding availability; seconded by Doug Dobrzynski with all commissioners voting in favor.

A motion was made by Thomas Buchney authorizing Mr. Ursin to draft an interlocal agreement between the VTMUA and Vernon Township for CFO services and DPW services, seconded by Gloria Frato-Gallo with all commissioners voting in favor.

Applications

Mr. Ruschke advised that Vernon Valley Investors would need to apply for a Treatment Works Approval (TWA) with the DEP in order to make a connection to the sewer system because they are greater than 8,000 gallons per day. A revision to the submitted application would need to include the proper DEP forms and meet DEP requirements for a TWA, which includes a generator, before moving forward.

Mr. Zinno questioned the time frame for DEP approval. Mr. Ruschke advised that the DEP must act on the TWA in 90 days.

Resolutions Requiring Action

Resolution #11-12

A motion to adopt Resolution #11-12, amendment of Resolution #11-10 authorizing signatures on MUA checks, was made by Mr. Zinno; seconded by Ms. Frato-Gallo with all commissioners voting in favor.

Open to Public

There was no one present from the public.

Closed to Public

Financial Update

Mr. Ferraioli distributed an overview of the Estimated Cash Projection for 2012 and 2013. Using $700 per EDU, current United Water (UW) expenses and the SCMUA debt service, the cash projection showed a deficit. A list of ways to eliminate the deficit was offered including an EDU rate increase, while being sensitive to the cost increase for the users. Connection fee revenue, as well as using the proceeds from the $2,800,000 bond, was also discussed. It was noted that the debt to SCMUA increases, substantially, over time, and these increases must be taken into consideration.

A motion to enter into executive session was made by Vincent Zinno for the reason of attorney client privilege with respect to the legality and enforceability of connection fees and the legal enforceability of it; seconded by Gloria Frato-Gallo with all commissioners voting in favor. The VTMUA entered into executive session at 8:00 p.m.

A motion to come out of executive session was made by Gloria Frato-Gallo; seconded by Vincent Zinno with all commissioners voting in favor.

The VTMUA entered into regular session at 8:45 p.m.

A sub-committee of two commissioners, Vincent Zinno and Gloria Frato Gallo, was formed to meet with Mr. Ferraioli and Mr. Ursin for the purpose of researching projected costs from 2014 to 2020.

Engineer Update

Mr. Ruschke advised that he followed through with finding out if all papers were filed for the Town Center sewer, and they were not. Mr. Ruschke further advised that he submitted the paperwork to the DEP. Mr. Ruschke also found that the TWA for the Appalachian was never filed. Mr. Ruschke is working on getting the TWA filed so that there will be no problem in moving forward with sewer operation.

Mr. Ruschke discussed the resolution of issues with SCMUA and Mountain Creek regarding metering, as well as the capacity of pump station #1. Mr. Ruschke noted that this issue would become more critical as a date for operation of the sewer system nears. Mr. Ursin advised that he had expected to receive an engineering update from Mountain Creek to include flow, remaining capacity and an upgrading plan however the deadline had been missed.

Mr. Ruschke advised that the construction and testing of the Missing Link was now complete. It was noted that a bill of sale for the easement and infrastructure for the pipe had been requested.

MUA Discussion

Mr. Rolando suggested cancelling the next VTMUA meeting on December 19th.

A motion to cancel the December 19th meeting and authorization for the secretary to notice at least the first 6 meetings for the year of 2012 was made by Thomas Buchney; seconded by Doug Dobrzynski, with all commissioners voting in favor.

Adjournment

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

The regular meeting of December 1, 2011 of the Municipal Utilities Authority of the Township of Vernon was adjourned at 8:50 p.m.

Respectfully submitted,
Aida Cahill
MUA Secretary

Minutes approved: February 9, 2012