Minutes: November 3, 2011

The regular meeting of the Municipal Utilities Authority (MUA) of the Township of Vernon was convened at 7:00 p.m. on Thursday, November 3, 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
Doug Dobrzynski
Gloria Frato-Gallo
Vincent Zinno, Vice Chairman
Ed Rolando, Chairman

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 October 17, 2011

Moved: Vincent Zinno
Second: Doug Dobrzynski
Abstain: Barbara Chorzepa
All other members voted in favor.
Minutes were approved.

Correspondence

Vernon Valley Investors, LLC—A&P Plaza submitted preliminary sewer connection plans. Mr. Ursin will respond to the applicant regarding the current status of the Rules & Regulations. In addition, Mr. Ursin will offer the applicant the opportunity to post an escrow, enabling them to have a meeting with the chairman and engineer to help expedite their application.

Rules & Regulations

The Rules & Regulations were reviewed by the commissioners along with Mr. Ursin, Chuck Ferraioli, and John Ruschke.

Notable Points Discussed

Public Properties (Definitions Section)
Addition of “federal” to language.

Sewer Connection Application
Land Use Board approval for new construction, alterations, modifications and change of use.

Grease Traps
Existing facility regulations.

Ms. Chorzepa requested a list of businesses requiring grease traps.

Completed Construction
Dedicated pump stations.

Payment of Fees
Quarterly billing
Penalties

Sewer Allocation Permit Fees
Addition of “as an incentive” in language.

Inspection of Construction
7 a.m. to 4 p.m.

Discharges Restricted
Cat litter

Schedule of Equivalent Dwelling Units (EDU)
Schedule A

Motion to adopt Rules & Regulations with the changes discussed, not including connection fees and EDU rates.

Moved: Vincent Zinno
Second: Barbara Chorzepa

A roll call vote was taken:
Ayes: Thomas Buchney, Barbara Chorzepa, Doug Dobrzynski, Gloria Frato-Gallo, Vincent Zinno, Ed Rolando
Nays: None
Rules & Regulations were approved, as discussed.

Executive Session

At 7:45 p.m., Gloria Frato-Gallo made a motion to close the meeting to the public and enter into executive session to discuss matters of attorney client privilege. Motion seconded by Vincent Zinno with all members voting in favor.

The Vernon Township Municipal Utilities Authority entered into executive session at 7:45 p.m.

The meeting was reopened to the public at 8:00 p.m. Present were commissioners Thomas Buchney, Barbara Chorzepa, Doug Dobrzynski, Gloria Frato-Gallo, Vincent Zinno and Ed Rolando. Also present were John Ursin, MUA attorney, Chuck Ferraioli, MUA auditor and John Ruschke, MUA engineer.

Financial Report

Mr. Ferraioli advised that he applied for a Tax Id# for the MUA, and when the Tax Id was received, the bank account could be opened. Mr. Ferraioli further advised that Mr. Zuckerman, Chief Financial Officer (CFO) would be having vouchers and purchase orders printed in the name of the VTMUA.

The 2012 SCMUA bill was distributed to all members for review.

Mr. Ferraioli stated that an approximate EDU count of 1,834, submitted by Mr. Ruschke, would generate an additional $260,000 of revenue over the BPU number previously used.

Mr. Ursin advised that a draft of the contractual agreement between the township and the MUA would be forwarded shortly. The Agreement would detail the dollar amount the MUA would be willing to accept as the township’s payment on the sewer utility thus far. Mr. Ursin further advised that the MUA would endorse the purchase price of the United Water sewer system, and the two bond ordinances. It was explained that the Agreement would state that once the town accepted the $4MM and purchased United Water, the MUA would receive the amount left over, in exchange for the MUA picking up the debt service on the 4MM. Mr. Ursin further explained that the MUA would also endorse the cash flow bond ordinance and agree on a dollar amount that the town could take off the top of that, to be reimbursed for money spent on the sewer utility. There would be a list that the town would be submitting to the MUA, which would primarily consist of the SCMUA payments the township had made over the past couple of years. The MUA would then require that the balance of that money be deposited to the MUA bank account. This would create the bottom line debt service for the MUA. The Agreement would also state that financial services would be provided through the CFO office.

Mr. Ferraioli noted that the bond ordinance and grants for the town center would need to be controlled by the MUA, in some fashion.

Mr. Rolando questioned the time frame for the United Water closing. Mr. Ursin stated that he was unaware of an exact date, but expected the closing to be some time in the beginning of 2012.

Resolutions Requiring Action

Resolution #11-11 for adoption of a connection fee—Section 3.2A of the Vernon Township MUA Rules & Regulations.

Moved: Vincent Zinno
Second: Doug Dobrzynski

A roll call vote was taken:
Ayes: Thomas Buchney, Barbara Chorzepa, Gloria Frato-Gallo, Vincent Zinno, Ed Rolando
Nays: None
Resolution #11-11 was approved.

Resolution #11-11: Resolution of the Vernon Township Municipal Utilities Authority for Adoption of a Connection Fee—Section 3.2A of the Vernon Township Municipal Utilities Authority Rules and Regulations

WHEREAS, the Authority is required to establish a connection fee pursuant to the New Jersey statutes and Section 3.2A of the MUA’s Rules and Regulations;

WHEREAS, the Authority has considered all of the statutory criteria;

WHEREAS, the Authority will revisit the connection fee amount on a yearly basis;

NOW THEREFORE IT BE RESOLVED by the commissioner of the Vernon Township Municipal Utilities Authority that the connection fee in Section 3.2A of the Rules and Regulations of the VTMUA shall be $4,665.00 per EDU effective immediately and that the connection fee shall remain in effect until January 1, 2013 or until the MUA recalculates the connection fee.

NOW THEREFORE IT BE FURTHER RESOLVED by the VTMUA that the MUA Attorney and Board Secretary are authorized to amend the Rules and Regulations accordingly.

Resolution #11-09: Cash Management Plan

Moved: Thomas Buchney
Second: Barbara Chorzepa
All members voted in favor.
Resolution #11-09 was approved.

Resolution #11-09: Resolution to Adopt a Cash Management Plan

BE IT RESOLVED by the Vernon Township Municipal Utilities Authority, County of Sussex, that for the year 2011, the following shall serve as the cash management plan of the Township of Vernon.

1. Cash Management and Investment Objectives

The VTMUA has the following objectives.

  1. Preservation of capital.
  2. Adequate safekeeping of assets.
  3. Maintenance of liquidity to meet operating needs.
  4. Investment of assets in accordance with State and Federal Laws and regulations.
  5. Maximize Yield.

2. Designation of Official Depositories

The following Government Unit Protection Act approved banks are authorized depositories for deposit of funds:

  • Sussex Bank
  • Lakeland Bank

3. Cash Management

  1. All funds shall be deposited within 48 hours of receipt in accordance with N.J.S.A.40A:5-15
  2. The Chief Financial Officer shall minimize the possibility of idle cash accumulating in accounts by assuring that any excess amounts not needed to cover expenses or in excess of negotiated compensating balances are kept in interest bearing accounts or promptly swept into the investment portfolio.
  3. Investment decisions shall be guided by the cash flow projections prepared by the Chief Financial Officer.

4. Permissible Investments

  1. Certificates of Deposits
  2. Savings and Loan Associations and Saving Bank Accounts
  3. New Jersey Cash Management Plan
  4. MBIA Municipal Investors Service Corporation CLASS

5. Authority for Investment Management

The Chief Financial Officer is authorized and directed to make investments on behalf of the township. All investment decisions shall be consistent with this plan and all appropriate regulatory constraints.

6. Reporting

The Chief Financial Officer shall report to the VTMUA investments in accordance with N.J.S.A. 40A: 5-15.2.

7. Audit

The Cash Management Plan shall be subject to annual audit conducted pursuant to N.J.S.A. 40A: 5-14.

8. Disposition of Abandoned Property

Resolution #11-10: Signatures on MUA Checks

Moved: Vincent Zinno
Second: Gloria Frato-Gallo
All members voted in favor
Resolution #11-10 was approved.

Resolution #11-10: Authorizing signatures on MUA checks pursuant to N.J.S.A. 40A:5-16

BE IT RESOLVED by the Vernon Township Municipal Utilities Authority that the following township official is hereby authorized to sign checks, withdrawal slips or other bank related items with two out of the four below listed principal signatures being required:

Chief Financial Officer

BE IT FURTHER RESOLVED that signature cards with the signatures of the persons authorized to sign be on file at all banks that presently have township accounts.

This resolution shall take effect immediately upon adoption according to law.

Mr. Ruschke reported that the new pump station had experienced an electrical surge. Mr. Ruschke recommended having an electrician service the pump station as well as a generator service to service the generator. Mr. Rolando will request that the Department of Public Works (DPW) contact someone to perform these services.

Open to Public

There were no members of the public present.

Closed to Public

MUA Discussion

A proposal from the Hardyston MUA for shared services for operation and maintenance was reviewed and discussed. Mr. Rolando commented on the proposal being expensive for the services offered.

A proposal from Gerald C. Kastner, Jr. to provide professional Collection System Licensed Operator services for the VTMUA was reviewed and discussed. It was noted that this proposal was significantly more reasonably priced than that of the Hardyston proposal.

Mr. Ruschke commented on both proposals. Mr. Ruschke stated that the Hardyston proposal for emergency call outs was $34 per hour, as opposed to Mr. Kastner’s proposal of $19 per hour for the same service. Mr. Ruschke explained that he had worked with Mr. Kastner in Hamburg and that Mr. Kastner is very knowledgeable, capable, and has many necessary contacts.

Ms. Frato-Gallo questioned the possibility of these services being provided by Vernon DPW. Mr. Rolando will contact the DPW to inquire regarding the possibilities. Mr. Ursin suggested setting up a meeting with Mayor Marotta, Dave Pullis and the MUA.

Mr. Ursin commented on how far the MUA had come since the first meeting and congratulated the commissioners on the adoption of the Vernon Township MUA Rules & Regulations and the formation of the Authority.

Adjournment

There being no further items of business to be conducted on the agenda, a motion for adjournment was made by Vincent Zinno; motion seconded by Doug Dobrzynski with all members voting in favor.

The regular meeting of November 3, 2011, of the Municipal Utilities Authority of the Township of Vernon was adjourned at 9:00 p.m.

Respectfully submitted,
Aida Cahill
MUA Secretary

Minutes approved: November 21, 2011