Mohawk Valley Water Authority – January , 28 2008
Chairman Gaston called the meeting to order at 5:01 PM and
opened with the Pledge of Allegiance.
Roll Call:
Present: Bruce Brodsky, Vincent
Coyne,
Chairman Gaston presided and Suzanne Harmon took the minutes.
Public Comment
Period:
Mr. Rick Holohan owner of Able2Collect stated that his
company has been the MVWA’s collection agency for the past 5 years. The agencies
highest year in collections was $676,000 received from past due and current
monies owed to the MVWA. Mr. Holohan
also feels that collections should be done before shut-off when you get the
highest possible results. Two items he
discussed were 1) He does not believe that eliminating the collection agency at
$70,000 per year should be on the MVWA’s budget and 2) That the issue of
collections could be resolved in a different manner.
If the MVWA dismisses Able2Collect there is likelihood that existing
personnel will be handling collections. MVWA
employees are not trained professional collectors, therefore revenue will be
reduced and the added expense would exceed the out-sourced cost.
Mr. Holohan thanked the Board for listening to his comments.
Chairman Gaston welcomed John Wallace to the Board.
Mr. Wallace has been appointed by the Town of
Approval of the December 17, 2007 Minutes:
Vote: (9) Ayes
(0) Nays (1) Abstain
(Ms. Szesny) (2)
Absent
Motion carried.
Ms. Rader-Harris asked to amend the
4th paragraph under Old Business to state her reason for abstaining.
She would like to read: “Abstained because this may be an avenue to
takeover small water systems.”
Motion was not seconded. Motion did
not carry.
Approval of the minutes as amended:
Moved by: Mr. Brodsky.
Seconded by: Mr. Price
Vote: (7) Ayes
(1) Nay (Ms. Rader-Harris)
(2) Abstain (Ms. Szesny and Mr.
Wallace)
(2) Absent
Motion carried.
Approval of the January 22, 2008 Public Rate Hearing
Minutes:
Several Board members stated that
these are not minutes and should be a Public Rate Hearing Report.
Mr. Earl stated there was not a quorum of the Board at the Public Rate
Hearing; therefore there is no need for approval of the Minutes.
Review of Budget
Proposal and Treasurer’s Initiatives: Proposed Amendments 2008-09 Budget
Mr. Korfonta discussed the summary of the proposed budget and
the operating and capital budget items for April 2008 to March 2009.
Mr. Becher stated that the MVWA’s rate consultant, Ed Marcus
of Amawalk Consulting reviewed the package and stated that he will certify it
and a rate certification letter will follow.
Mr. Brodsky read each amendment and they were voted on
separately as follows:
Amendment #1 (-1.00%) The Board of the
MVWA approves the allocation of an additional $154,000 from the estimated net
income of the current fiscal year ending March 31, 2008 toward the budget
revenue required in the next fiscal year beginning April 1, 2008.
Motion made by Mr. Brodsky.
Seconded by: Mr. DeLia.
Vote: (9) Ayes
(0) Nays (1) Abstain
(Mr. Wallace) (2) Absent
Motion carried.
Amendment #2 (-1.14%) The Board of the
MVWA approves for the purposes of a more limited pilot testing of an alternative
chemical solution to meet the new EPA standards, reducing the currently proposed
number of activated carbon filter beds from two (2) beds to one (1) for the
fiscal year beginning April 1, 2008.
Motion made by Mr. Brodsky.
Seconded by: Ms. Rader-Harris.
Vote: (9) Ayes
(0) Nays (1) Abstain
(Mr. Wallace) (2) Absent
Motion carried.
Amendment #3 (-0.97%) The Board of the
MVWA shall not include in the 2008-09 budget and rate structure replacement of
funds previously allocated from the Repair & Improvement Fund in 2007-08 which
were used for retro-fitting a third raw water intake at Hinckley Reservoir.
Motion made by Mr. Brodsky.
Seconded by: Mr. DeLia.
Motion did not carry.
Amendment #4 (-.23%) The Board of the
MVWA approves as of April 1, 2008, discontinuing the use of an outside
Collection Agency for the purposes of communication with ratepayers in default,
the establishment of aggressive actions by existing Board staff for
timely service shut-off of delinquent properties; and the development of
appropriate communication procedures for customers with late payments.
Motion made by Mr. Brodsky.
Seconded by: Mr. DeLia.
Motion did not carry.
Mr. Ryan stated that regarding collections he would like to
see accounts that are persistently delinquent put on a monthly billing cycle
instead of quarterly so they stay current.
Mr. Snyder stated that 1) The MVWA needs to develop a system
that cuts losses on non-paying customers and 2) Collect monies that are in the
rears. The MVWA needs a new stern
collection policy and if there is one Mr. Snyder would like to see it.
Mr. Brodsky stated that discussion regarding board policy
should be in the minutes and agrees with establishing a collection policy and
how to approach it.
Amendment #5 (+1.00%) The Board of the
MVWA approves a “pay-as-you-go” system for normal annual capital maintenance as
outlined in the annual Capital Plan and approved by the Board.
A fund named the Capital Maintenance Fund is established for this need by
reallocating the proposed reserve funding from the O&M and 3R reserve funds
($371,624) and funding an additional $154,000 to the new fund.
Motion made by Mr. Brodsky.
Seconded by: Mr. Coyne
Vote: (9) Ayes
(0) Nays (1) Abstain
(Mr. Wallace) (2) Absent
Motion carried.
These amendments reduced the projected increase in water
rates, fees and charges from 8.25% to 7.11% for the next fiscal year.
Approval of the
Amended Proposed Rate Structure:
Motion made by Mr. Brodsky: For approval of the proposed rate
structure as presented to the Board with amendments and changes to the budget as
approved by the Board at this meeting.
Seconded by Mr. DeLia.
Vote: (8) Ayes
(1) Nays – Ms. Rader-Harris
(1) Abstain - Mr. Wallace
(2) Absent
Motion carried.
Ms. Rader-Harris voted no because there is no mention
anywhere for a lead pipe replacement program, which she said this community
seriously needs.
Approval of the
2008-09
A proposed annual budget for the MVWA was discussed by Board
Members at a workshop meeting held on January 7, 2008.
The Executive Director and Comptroller explained MVWA’s proposed annual
budget to the public at the rate hearing held on January 22, 2008 in Common
Council Chambers in City Hall. At
the rate hearing public comments were received on the proposed budget and on the
proposed rate increase and such comments have been considered by the Board.
The Board by separate resolution is establishing a revised schedule of
fees, rates and charges. It is
resolved, that the Board hereby adopts the annual budget presented at this
regular monthly meeting of the Board as MVWA’s 2008-2009 Budget.
Motion made by Mr. Brodsky to approve the Budget as amended
by the Board.
Seconded by: Mr. DeLia.
Vote: (8) Ayes
(1) Nays - Ms. Rader-Harris
(1) Abstain - Mr. Wallace
(2) Absent
Motion carried.
Decision Regarding
Establishment of Water Rates, Fees and Charges Effective April 1, 2008
Move the attached resolution regarding establishment of water
rates, fees and charges effective April 1, 2008 except for the wording on page
2, 2nd paragraph #3 and #4 take out.
The amendments reduced the projected increase in water rates, fees and
charges from 8.25% to 7.11%. To the
average four person household, the 7.11% increase in rates, fees and charges
would mean an approximate increase of $2.06 per month, and $24.72 in the annual
bill for water service.
Seconded by Mr. DeLia.
Vote: (9) Ayes
(0) Nays (1)
Abstain - Mr. Wallace (2) Absent
Motion carried.
Mr. Brodsky thanked the MVWA staff for working very hard on
this budget along with the Executive Director and Controller.
The Board of Directors has done excellent work in regards to their fiscal
responsibility to this organization.
Mr. Snyder would like the minutes to reflect that after Mr.
Becher’s investigation into disclosure requirements for posting and public
notification of information related to rates and budget that the MVWA has met
all requirements for an authority of this size.
Committee Reports:
Capital Projects:
Mr. DeLia stated that the committee did not meet this month due to the budget.
Budget and Finance:
Mr. Brodsky had no further report.
The MVWA Audit Committee Charter and the MVWA Surplus Property
Disposition Policy will be on next month’s agenda.
Mr. Snyder stated that he sees no shut-offs, postings or fees paid and
the MVWA has to stop perpetual losses and feels that the collection policy needs
to be reviewed. Ms. Szesny asked how many
estimated readings the authority does quarterly.
Mr. Brodsky stated that customer service stated that 2% on residential
and 5% on businesses of quarterly reads are estimated.
Mr. Korfonta stated that the cash balance is strong as we head into the
last quarter of the fiscal year.
Personnel
Committee:
Mr. Coyne stated that the committee did not meet this month.
Operations: Mr. Price
stated that the committee did not meet this month.
Executive Director’s
Report:
- The
law suit has reached a milestone, discovery is closed.
There are approximately 30,000 documents with three depositions left
to be done in the next week. MVWA
will file a note of issue and certificate of readiness in the next 3-4
weeks. Hancock & Estabrook will argue
the case in May 2008 and the judge has 60 days to make his decision.
In late June or early July they expect to have a decision on the
court case.
- The
Governor’s Task Force interim report is posted on the internet.
The final report is starting to take shape.
The operations committee is just getting started and has to establish
an operating protocol. The process of
the final report has not been fully set yet.
The Governor wants the report by the end of March 2008.
The next meeting is scheduled for Thursday 1/31 at 10 AM at the NY
State Building with meetings to follow on February 26 and March 18, 2008.
Old Business:
Mr. Snyder asked what the final cost for the
Ms. Rader-Harris stated that this is her third term on the
MVWA Board. For the last two years the Board had agreed to put on the water bill
“Run water for 20 seconds before drinking” and this has not been done.
Also, Ms. Rader-Harris spoke to Mr. Brodsky regarding a project that the
City of
New Business:
Mr. Coyne would like to suggest that in the next two to three
months the MVWA staff organize a tour of the facilities to familiarize Board
members with the facilities and work areas.
The tour should include the lab,
Mr. Brodsky has a request for the Capital Projects Committee.
Ms. Rader-Harris showed Mr. Brodsky an article from
Motion made by Mr. Snyder.
Mr. Coyne be authorized to work with the MVWA staff to set-up a tour of
the facilities as soon as possible.
Seconded by Ms. Szesny.
Vote: (10) Ayes
(0) Nays (0)
Abstain (2) Absent
Motion carried.
Motion made by Mr. Snyder:
A plan to reduce delinquent collection accounts be started and updated
for the next board meeting until it is resolved.
Seconded by Mr. Brodsky.
Vote: (10) Ayes
(0) Nays (0)
Abstain (2) Absent
Motion carried.
Motion made by Mr. Snyder.
To remove 5024 item 5 under the administrative group of the tapings of
these meetings. Cancel taping of the
MVWA Board meetings. Seconded by Mr.
Price.
Mr. Snyder stated that the tapings are getting negative
results. Time Warner lacks
professionalism in running the public access channel.
The tapes are inaudible and not good quality visually.
If the tape helps the secretary, the Board can afford to tape the meeting
for less than $750.00 a month. The
MVWA staff needs to put pressure on
Time Warner to clear up the production problem or cease airing the tapes.
Individually board members have credibility but as an authority we have
work to do to improve our image.
Tony Falvo stated that he spoke to Time Warner and they
assured him that they would change their deck, Tony will do the same.
Mr. Snyder would like the minutes to reflect that the motion
was tabled and the Board will give Time Warner one month to get some results.
The next Board Meeting is scheduled for Tuesday, February 19,
2008 at 5:00 PM.
Mr. Brodsky moved to adjourn the meeting.
Seconded by Mr. DeLia.
The meeting was adjourned at 6:52 PM
Respectfully submitted,
Suzanne M. Harmon, Secretary
