Mohawk Valley Water Authority – April 20, 2009

Vice Chairman DeLia called the meeting to order at 5:02 PM and opened with the Pledge of Allegiance.

Roll Call: Present: Rocco Arcuri, Bruce Brodsky, Vincent Coyne, Elis DeLia, Nate Price, Donald Ryan, A. Eugene Snyder, Bette Szesny, Frank Trevisani, John Wallace and Michael Wicks. Absent: George Gaston. John Wallace arrived at 5:12 PM after approval of the minutes. Also Present: Mario Bequer, Edward Earl, Dick Goodney, James Korfonta, Greg Santry and Donald Weimer.

Vice Chairman DeLia presided and Suzanne Harmon took the minutes.

Approval of the March 23, 2009 Minutes:

Motion made by: Mr. Trevisani Seconded by: Mr. Coyne

Vote: (10) Ayes (0) Nays (0) Abstain (2) Absent (Mr. Gaston & Mr. Wallace)

Motion carried.

Presentation by Harbridge Consulting Group on the Actuarial Valuation of Postretirement Health Care Benefits as of 3/31/09

An actuary from Harbridge Consulting, Karen Oliver, provided members with a handout highlighting the recently completed actuarial report that calculated MVWA’s liability for postemployment health benefits. This is a new reporting requirement promulgated by the Government Standards Board. GASB 45 – Accounting and Financial Reporting for OPEB, requires organizations to calculate liabilities, if any, for other post employment benefits including health and life benefits other than the normal post employment pension benefits.

The new reporting requirement has a three year phase-in rule based on an organization’s total revenue. MVWA falls under the second phase and is required to report this liability for the year ended March 31, 2009.

Executive Session: John Corcoran of Hancock & Estabrook – Teamster Negotiation

Mr. Becher stated that the Board will be going into executive session to discuss labor negotiations at 5:25 PM. Motion made by Mr. Price. Seconded by: Mr. Brodsky.

Motion made by Mr. Trevisani to come out of executive session at 5:41 PM.

Seconded by: Ms. Szesny.

Resolution: Ratifying and Funding Collective Bargaining Agreement

The MVWA and the International Brotherhood of Teamsters, Local Union No. 182 commenced negotiations on 2/23/09 for a successor agreement to the collective bargaining agreement between the MVWA and Union which covered the period of 4/1/02 through 3/31/09. The negotiations were concluded on 3/19/09 for a successor agreement covering the period of 4/1/09 through 3/31/10. The Board was notified that the Union’s members have voted in favor of ratification of the successor agreement. The Board hereby ratifies the terms of the successor agreement and authorizes the Board’s Chairman and the Board’s Executive Director to execute the Agreement on behalf of the MVWA.

Moved by Mr. Brodsky. Seconded by Mr. Snyder.

Vote: (11) Ayes (0) Nays (1) Absent Motion carried.

Election of Officers: Vice Chairman DeLia tabled the election of officers until the next Board meeting because Chairman Gaston was absent.

Resolution: Award of Professional Services Survey Contract to Cornerstone Land Surveyors

The Board’s current plans call for two water main extension projects in Whitestown, Holiday Drive and Highland Drive for the purpose of improving water flows and pressures in the area. A site survey is required by the MVWA in order to prepare design plans for the mains which will be installed by MVWA forces. The staff has evaluated the proposals received from three respondents on the basis of price and determined Cornerstone Land Surveyors, Remsen, NY is the lowest responsive and responsible bidder and will complete the work by May 29, 2009. The sum of $3,810.00 is to be paid as a capital improvement out of the Board’s Capital Improvement Fund.

Moved by Mr. Coyne. Seconded by Mr. Trevisani.

Vote: (11) Ayes (0) Nays (1) Absent Motion carried.

Presentation on New Hinckley Dam Data

Mr. Becher stated that in 2007 the Power Authority requested that the Canal Corporation slow down the flows from Hinckley Reservoir, which the Canal Corporation refused to do. The reservoir got so low that the DEC and the Health Department stepped in and forced a reduction in the flows. Since then the MVWA asked Barton & Loguidice to put together an operating diagram for the Hinckley Reservoir. Based on the operating diagram, the DEC has told the Water Authority that the computer models are accurate and that there is no guarantee that the deviations are ever going to happen if the same group is making the same decisions as they did in 2007. If the Water Authority can formalize the deviation then everyone will get the water levels that they need. The MVWA had a good meeting in Schuyler, which Congressman Arcuri attended. Mr. Arcuri is in favor of what the MVWA is doing and is willing to help in any way he can. Mr. Wicks would like this presentation in hard copy for hand outs.

Approval of the Revised Procurement Policy

It is the intention of the MVWA to implement and strictly enforce purchasing guidelines to openly promote fair competition and to acquire goods and services that provide the best product from a responsible vendor at the most reasonable price. The MVWA’s purchasing policy establishes specific levels of purchases that govern how a purchase is completed. All levels will require a purchase requisition to initiate the process. The purchase requisition will be used to document competitive price quotes and indicate vendor selections.

Mr. Ryan would like to see more inventory control and have this policy tied to the work order system. He suggested taking out the first sentence under Goods and Services.

Mr. DeLia stated that this policy was reviewed and approved at the Finance Committee meeting.

Mr. Brodsky promised that the Finance Committee will review inventory control tied to the work order system and bring it back to the Board.

Moved by Mr. Snyder. Seconded by Ms. Szesny.

Vote: (9) Ayes (1) Nays (Mr. Ryan) (2) Absent (Mr. Gaston and Mr. Wicks) Motion carried.

Committee Reports:

Capital Projects: Mr. DeLia stated that the committee did not meet this month due to a lack of agenda items.

Budget and Finance: Mr. Brodsky stated that the number of new accounts is rapidly dropping this year. Overall, accumulated water sales for FY2009 were .6% above the 3.2% increase in water sales compared to the FY 2008 actual. We are in the positive right now.

A certificate of Achievement for Excellence in Financial Reporting was presented to the MVWA for its comprehensive annual financial report for the fiscal year ended March 31, 2009 from the Government Finance Officers Association.

Mr. Korfonta stated that the auditors would like to meet with the Finance Committee on May 14 at Noon, to present a report on Board compensation. All Board members are welcome.

Mr. Snyder stated that the MVWA needs a water inventory control program.

Personnel Committee: Mr. Ryan stated that the committee met and discussed contracts for Mr. Becher and Mr. Korfonta and recommends that they set goals for the coming year.

Operations: Mr. Price stated that the committee did not meet this month.

Executive Director’s Report:

• The MVWA has been having discussions with the Village of Bridgewater recently. They have approximately 250 homes all served by private wells. There have been problems with those wells and because they have no experience running a water system, the health department advised that they talk to the Water Authority. We may be able to provide some services for the Village such as meter reading, billing and handle the payments. The Water Authority gave them a proposal which will be brought to the Board once we have feedback from the Village.
• The County Health Department has had some cut backs recently, which will allow the Water Authority to do backflow design. The public can come to the Water Authority for an application and an initial review. Dick Goodney, PE will now be able to do the final sign off on the application. The Authority could charge a fee of approximately $100.00. This will require a rate hearing because it is a new fee. Mr. Becher suggested having the rate hearing right before the next board meeting and then vote on it that night. Mr. DeLia stated that this should go to the budget and finance committee for discussion first. The Board agreed.

The next Board meeting will be held on Monday, May 18, 2009.

Motion made to adjourn the meeting at 7:05 PM by Mr. Brodsky. Seconded by: Mr. Coyne.

Motion Carried.

Respectfully submitted,

__________________________

Suzanne M. Harmon, Secretary

Mohawk Valley Water Authority