Minutes: November 21, 2011

The regular meeting of the Municipal Utilities Authority (MUA) of the Township of Vernon was convened at 7:01 p.m. on Monday, November 21, 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 Buchney
Barbara Chorzepa
Gloria Frato-Gallo
Vincent Zinno, Vice Chairman
Ed Rolando, Chairman

Also in Attendance

John Ursin, Esq. MUA Attorney
Chuck Ferraioli, MUA Auditor
John Rolak, 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 3, 2011

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

Correspondence

Re: Vernon Valley Investors, LLC
Block 145 Lot 1.05
Sanitary Sewer Connection
KZA File No. 11-0320

KZA Engineering forwarded a $1,000 check for the escrow fee on behalf of the A&P Shopping Center. Hatch Mott MacDonald (HMM) will contact KZA to set up an appointment to discuss the requirements for future connection to the sewer system.

Memorandum of Agreement

A draft form of the Memorandum of Agreement between Vernon Township and the MUA was reviewed and discussed.

Notable Points in the Agreement

  • MUA endorses purchase of United Water (UW).
  • MUA endorses Bond Ordinance 11-22 in amount of $4,000,000.00.
  • MUA endorses Bond Ordinance 11-23 in amount of $2,800,000.00.
  • Proceeds from Bond Ordinance 11-22 after purchase of UW deposited into MUA account.
  • MUA responsible for debt service relating to Bond Ordinance 11-22.
  • Proceeds from Bond Ordinance 11-23 used to reimburse town for sewer costs paid over the past two years.
  • MUA responsible for Bond Ordinance 11-23 to the extent they were used for SCMUA bill.
  • MUA not responsible for Vernon bonds.
  • Grant money will be paid to MUA for sewer related capital expenditures.
  • Township will assist MUA in collecting payments, as per 2005 agreement with Mountain Creek.
  • PILOT payments from Mountain Creek to MUA.
  • Township to provide CFO, billing and bookkeeping services to MUA.

Motion to table Memorandum of Agreement until December 1, 2011 meeting.

Moved: Vincent Zinno
Second: Gloria Frato-Gallo
All members voted in favor.
Memorandum of Agreement tabled until 12/1/2011

MUA Discussion

There was discussion regarding the past proposals submitted by Hardyston Township for shared services and Gerald Kastner, Collection System Licensed Operator. A new proposal from the Vernon Township Department of Public Works (DPW) was also reviewed. It was noted that Mr. Kastner, as licensed operator, and Vernon DPW for operation and maintenance would be considerably more cost effective, as opposed to shared services with Hardyston. Mr. Rolando will contact Mr. Kastner for clarification on questions regarding services and fees proposed.

Ms. Frato-Gallo questioned communication between the MUA, Building Department, Land Use Board and Board of Health when applications are submitted. Mr. Ursin stated that there will be a detailed process followed.

Ms. Chorzepa questioned the timing for the MUA to advertise the available sewer allocation. Mr. Ursin will send the Vernon Economic Development Committee (EDC) a letter notifying them of the current status of the sanitary sewer system.

Mr. Rolando advised that he directed the Purchasing Department to arrange for service of the generator and repair of the pump station.

Mr. Rolak questioned who would dispose of the material cleaned out of the pump station, when it becomes operational.

The United Water closing date was questioned. Mr. Ursin advised that he has reached out to UW and expected that the closing would be some time during the first quarter of 2012.

Mr. Rolando advised that the MUA checking account had been opened with the $1,000.00 escrow fee submitted by Vernon Valley Investors.

The status of the missing link was questioned. Mr. Rolando advised that the project would be complete no later than next week.

Public Comments

There were no public comments

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 Barbara Chorzepa with all members voting in favor.

The regular meeting of November 21, 2011, of the Municipal Utilities Authority of the Township of Vernon was adjourned at 8:32 p.m.

Respectfully submitted,
Aida Cahill
MUA Secretary

Minutes approved: December 1, 2011