Mohawk Valley Water Authority – August 18, 2008
Chairman Gaston called the meeting to order at 5:03 PM and opened with the
Pledge of Allegiance.
Roll Call:
Present: Rocco Arcuri, Bruce Brodsky,
Vincent Coyne,
Chairman Gaston presided and Suzanne Harmon took the minutes.
Approval of the July 21, 2008 Minutes:
Motion made by: Mr. Trevisani
Seconded by: Mr. Arcuri
Vote: (12) Ayes
(0) Nays
(0) Abstain (0) Absent
Motion carried.
Presentation: Annual Audit and Other Required Correspondence by Dermody Burke &
Brown, LLC
Jack Burke from Dermody Burke & Brown thanked Mr. Korfonta and his staff and
stated that the MVWA records are very well kept.
The Independent Auditor’s Report stated that “In our opinion, the financial
statements referred to above present fairly, in all material respects, the
financial position of the Water Authority as of March 31, 2008 and 2007 and the
results of its operations and cash flows for the year then ended, in conformity
with auditing standards generally accepted in the United States of America.”
The Management Letter/SAS114 is a letter stating audit findings, difficulties
encountered in performing the audit, corrected and uncorrected misstatements,
disagreements with management, management representations, management
consultation with other independent accountants and other findings or issues.
The Letter of Observations and Recommendations is one of the most valuable
services that an accounting firm can provide is to make recommendations to its
clients on how they might improve their profitability or the efficiency of their
overall operations. Accordingly, we
have developed the succeeding pages with our observations and recommendations.
The Investment Opinion Letter is new because of the new Public Authority’s Law.
It states “We have examined MVWA’s compliance with section 2925(3)(f) of
the NY State Public Authorities Law during the year ended March 31, 2008.
Management is responsible for the Authority’s compliance with those
requirements. Our responsibility is
to express an opinion on the Authority’s compliance based on our examination.”
The Quarterly Investment Statement will be on next months agenda for review and
approval.
Committee Reports:
Capital Projects:
Mr. DeLia stated that the committee did
not need to meet this month.
Budget and Finance:
Mr. Brodsky discussed the monthly
financial report ending 7/31/08. He
spoke to Mr. Edward Earl regarding the proposed conflict of interest form, which
will be presented to the Board regarding purchasing.
The form will be for staff to when reviewing bids and it states that they
have no personal interest or conflicts with the bid.
Personnel Committee:
Mr. Ryan stated that the committee did not meet this month but will be
meeting on Tuesday, August 26 at 9:00 AM in the MVWA conference room.
Operations:
Mr. Price stated that the committee met last week and discussed three
items:
1) Mr. Becher presented a letter from paving KTR requesting an increase in their
contract value due to increase cost of materials.
2) Repairs to customer service lines – four alternatives have been
reviewed and an in-depth proposal at the next meeting for the MVWA to assume
responsibility for service lines up to the meter.
3) IT update was presented by Mr. Mack.
Over 60 customers registered on the web site for account access, GPS
units will be installed in 11 remaining vehicles, security cameras has been
installed at the front counter, the tap application process has been automated
and laptops have been deployed into the field with trouble shooters for work
order access, SCADA access and mapping reference.
Mr. Coyne stated that the Board needs to establish new committee structures.
The Ad-Hoc Executive Committee should review the by-laws which includes
provisions on committees required under the Public Authorities Accountability
Act of 2005.
Executive Director’s Report:
1. The cameras that were installed
at the front desk are to improve security.
They also have a panic button in case a customer service representative
has a problem or situation that gets out of control.
2. Regarding Councilman Jim Zecca
and concerns he had about the MVWA’s billing processes.
Mr. Becher went to a Common Council Caucus meeting along with Mr.
Brodsky, Mr. Price and Mr. Trevisani.
He explained that it is a requirement by NY State Law that water bills go
on the real estate tax and we do not have the ability to make any changes to
that law.
3. Litigation update - the date to
argue the motion will be in late October.
The trial date is still February 9, 2009.
4. There is a webcast scheduled on
Wednesday at 1:00 PM in the MVWA conference room regarding gaseous chlorine and
is informational only.
5. Mr. Becher is still working on
a supplemental working group report on the Hinckley Reservoir situation.
It will be completed via a press conference before the next Board meeting
and the Board will be invited to participate.
6. The bonding schedule is still
intact.
7. There is a letter from a
customer in your binder. Mr. Becher
stated that it is a judgment call and does not want the Board assuming that we
are screening mail. Mr. Gassner is
handling the situation. Mr. Coyne
stated that things like this should go to the Chairman and he will decide if it
goes to the full Board for review.
The Board agreed.
New Business:
The MVWA’s paving contractor sent a letter to Mr. Becher asking for an increase
in his contract value due to the increase in cost of materials.
Mr. Earl’s opinion is that once the MVWA has a contract the Authority
does not have the ability to deviate from that contract.
The Contractor bid it as a fixed price.
Mr. Becher stated that in the last few days we heard from a customer that an
easement runs under their home and they want to sell it.
They would like to Authority to release the property from that easement
and Mr. Weimer would like to negotiate and make arrangements with them.
Old Business:
Mr. Trevisani stated that there was a $4 million dollar grant available for pipe
replacement and we should write a letter to pursue this for the Water Authority.
Mr. Becher stated we are going to make an application for that.
Executive Session:
Motion made by Mr. Brodsky to go into Executive Session at 6:35 PM to hear from
Edward Earl, Esq. regarding implications of the easement issue.
Seconded by: Ms. Szesny
Motion Carried.
Motion made to come out of Executive Session at 6:58 PM by Mr. Ryan.
Seconded by: Mr. Wallace.
Vote: (12) Ayes
(0) Nays (0)
Absent
Motion carried.
Action taken in Executive Session:
Motion made by Mr. DeLia to re-rout the easement.
Seconded by: Mr. Coyne
Vote: (10) Ayes
(1) Nays (Mr. Trevisani)
(1) Abstain (Mr. Brodsky) (0)
Absent
Motion carried.
Motion made by Mr. Wicks to inform the City of
Vote: (8) Ayes
(2) Nays (Mr. Coyne & Mr. DeLia)
(2) Abstain (Mr. Brodsky & Mr. Trevisani)
(0) Absent
Motion carried.
The next Board Meeting is scheduled for Monday, September 15, 2008 at 5:00 PM.
Mr. Arcuri moved to adjourn the meeting.
Seconded by: Mr. Price
The meeting was adjourned at 6:59 PM.
Respectfully submitted,
__________________________
Suzanne M. Harmon, Secretary
