Mohawk Valley Water Authority – February 21, 2006

Chairman Gaston called the meeting to order at 5:20 PM and opened with the Pledge of Allegiance.

Roll Call: Present: Bruce Brodsky, Rolf Buchner, Vincent Coyne, George Gaston, Joseph Hobika, Jr., Millicent Rader-Harris and Bette Szesny. Absent: Elis DeLia, Bernard Martin, Sr., Nathaniel Price and Frank Trevisani. Also present: Patrick Becher, Dick Goodney, James Korfonta, Lou Santacroce and Donald Weimer.

Approval of the January 23, 2006 and February 6, 2006 Minutes: Mr. Hobika, Jr. moved to approve both Minutes. Seconded by Ms. Szesny. Seven members approved. Four members were absent.

Resolution: Water Charges on County and City Owned Vacant Lots

Moved by: Mr. Coyne Seconded by: Mr. Hobika, Jr.

Vote: (7) Ayes (0) Nays (4) Absent

Motion Carried.

Resolution: Water Charges on County and City Owned One to Four Family Residential

Properties

Ms. Szesny would just like to verify that Herkimer County was included in this. Chairman Gaston stated that they were.

Moved by: Mr. Coyne Seconded by: Mr. Hobika, Jr.

Vote: (7) Ayes (0) Nays (4) Absent

Motion Carried.

Resolution: Water Charges on County and City Owned Commercial Properties

Moved by: Ms. Rader-Harris Seconded by: Mr. Hobika, Jr.

Vote: (7) Ayes (0) Nays (4)

Motion Carried.

Discussion: Mutual Aid Agreement

The Water/Wastewater Mutual Aid Program was established to provide a method whereby water/wastewater utilities sustaining physical damage from natural or man made disasters could obtain emergency assistance, in the form of personnel, equipment, and materials and other associated services necessary, from other water/wastewater utilities. Mr. Becher stated that he met with Mayor Brown and the DPW Commissioner from Rome. Mayor Brown would like to get this in front of the Rome Common Council later this month. Mr. Becher told Mayor Brown he would do the same with the MVWA Board.

Moved by: Mr. Hobika, Jr. Seconded by: Mr. Brodsky

Vote: (6) Ayes (0) Nays (1) Abstain (Ms. Rader-Harris) (4) Absent

Motion Denied.

Discussion: Budget 2006-07

Mr. Korfonta handed out two budget options based on decisions the Board will be considering. One was highlights of the proposed budget and the other was the proposed budget with projected actuals for the current year. Mr. Brodsky stated that over the past year there have been increases in health insurance, workmen’s compensation and retirement costs, which continue to go up at astronomical rates. Mr. Korfonta stated that for the second consecutive year there has been an increase in chemical costs. Even though we are making greater efficiencies at the Plant therefore using less quantities costs continue to go up. Mr. Brodsky will be bringing up a couple of motions at the next Board meeting. Proposal 1 is to establish the equivalent of HEAP with water. Contract with a local community service agency to manage a fund for addressing special

circumstances of the MVWA customers. The second proposal is a Budget Plan similar to what the energy companies do. Both proposals will be brought to the Board soon.

The Board Budget Workshop will be held on Monday, March 13, 2006 at 5:00 PM and the Public Rate Hearing will be on Thursday, March 16, 2006 at 5:00 PM. Mr. Becher is trying to get the Finance Authority together to hear Connie Schreppel’s presentation on the new regulations. When that date is set Suzanne will contact the remaining Board members who have not heard the presentation yet.

Committee Reports:

Chairman Gaston appointed new Board members to committees: Rolf Bucher, Personnel Committee. Millicent Rader-Harris, Operations Committee. Joe Hobika, Jr. asked to be on the Personnel Committee. Millicent Rader-Harris asked to be on the Capital Projects Committee. Chairman Gaston agreed to both requests.

Capital Projects: Chairman Gaston stated that the committee would be meeting in the near future.

Budget and Finance: Mr. Brodsky stated that the Government Finance Officers Association notified James Korfonta that the MVWA comprehensive annual financial report (CAFR) for the last fiscal year qualifies for a Certificate of Achievement For Excellence in Financial Reporting. The Certificate of Achievement is the highest form of recognition in government accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management. Mr. Brodsky stated that Mr. Korfonta and his staff should be highly commended for his work in this area. Mr. Coyne asked Lou Santacroce to do a write up on this for the Observer Dispatch. Mr. Brodsky met with an editor of the Observer Dispatch to discuss the final EPA rules, which will likely mean an additional 10% increase in water rates for the coming fiscal year. Nothing was published in the O.D.

Personnel Committee: Mr. Coyne left the meeting after the vote on the above Resolutions, no report given.

Operations: Mr. Malecki resigned from the Board, no report given.

Executive Director’s Report: Mr. Becher reported on the following:

• The Finance Authority will look for a new Bond Counsel Firm. Mr. Hobika asked if this is put out to bid. Mr. Becher stated that it is not. Mr. Brodsky wants to recommend to the Finance Authority that they do put this out to bid.
• Mr. Becher handed out an invitation to a Stakeholders Meeting on Wednesday, March 1 at the Hotel Utica. The meeting is on issues affecting the regional water system and the water systems of surrounding communities.
• Three of the MVWA’s pumping stations survived through the storm on Friday, 2/7. The generators kicked in and lost no pumping ability. Therefore, the customers were not without water even though they had no power.
• Litigation update: discovery demands have been submitted to the Attorney Generals office for Canal Corporation documents. Also, preparing to submit discovery demands to BrasCan Power and still waiting for FOIL requests from them. Mr. Hobika, Jr. would like written confirmation from Hancock & Estabrook on whether or not there is a schedule for the court case and what the plan is.

• Mr. Becher stated that he went to Albany and met with the Director of the Canal Corporation, Carmella Mantello, who was appointed by the Governor last June. Ms. Mantello seems interested in reaching some sort of a settlement as opposed to going to court. The Canal Corporation would like to split off from the Thruway Authority. The new Canal Corporation would form its own board rather than being a subsidiary corporation of the Thruway Authority and would be fully funded by tax dollars.

The next Board Meeting is scheduled for Monday, March 20, 2006 at 5:00 PM.

Mr. Hobika, Jr. moved to adjourn the meeting. Seconded by Mr. Buchner. The meeting was adjourned at 6:50 PM.

Respectfully submitted,

__________________________

Suzanne M. Harmon, Secretary

Mohawk Valley Water Authority