Mohawk Valley Water Authority – January 23, 2006

Chairman Gaston called the meeting to order at 5:00 PM and opened with the Pledge of Allegiance.

Roll Call: Present: Bruce Brodsky, Rolf Buchner, Vincent Coyne, Elis DeLia, George Gaston, Joseph Hobika, Jr., Nathaniel Price, Bette Szesny and Frank Trevisani. Absent: Joseph Malecki and Bernard Martin, Sr. Also present: Patrick Becher, Edward Earl, James Korfonta, Lou Santacroce, Connie Schreppel and Donald Weimer.

Approval of the December 19, 2005 Minutes: Mr. Trevisani moved to approve the Minutes. Seconded by Mr. Price. Nine members approved. Three members were absent.

Resolution: Water Charges on County and City Owned Vacant Lots

Withheld until next meeting.

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

Withheld until next meeting.

Resolution: Water Charges on County and City Owned Commercial Properties

Withheld until next meeting.

Resolution: Retain Amawalk Consulting Group, LLC as Rate Consultants

Section 6.2 of the Financing Agreement between the Water Board and City of Utica, obligates the Water Board to retain on an annual basis a “Rate Consultant” for a term of one year. Ed Marcus, formerly of Black & Veatch, has recently organized a financial consulting service company called Amawalk Consulting Group, LLC, which has submitted a proposal to MVWA to perform consulting services. Amawalk Consulting Group, LLC is hereby retained as the Board’s rate and financial consultant during the Board’s fiscal year 2006-2007 at the firm’s standard rate for the hours required to perform financial management and rate consultant services in connection with the preparation of the Board’s FY 2006-07 budget at a fee not to exceed $4,500.

Moved by: Mr. DeLia Seconded by: Mr. Coyne

Vote: (9) Ayes (0) Nays (3) Absent (Mr. Malecki, Mr. Martin, Sr. and Ms. Walters)

Motion Carried.

Resolution: Award of Contracts for Sale of Standing Timber on Black Creek and Southern Reservoir Properties

Four bids were received for the timber on the Black Creek property of which the highest was from Gutchess Lumber Company of Cortland, NY in the amount of $86,258. Five bids were received for the timber on the Southern Reservoir property of which the high bidder was Johnson Brothers of Cazanovia, NY in the amount of $61,380. The consulting forester has worked effectively with both high bidders on other publicly owned lands and is recommending award to the two firms. An award for the sale of timber on the Black Creek property is made to Gutchess Lumber Company and an award for the sale of the timber on the Southern Reservoir property is made to Johnson Brothers. The appropriate bid security shall be paid by these timber purchasers, that liability insurance and performance bonds shall be obtained from each purchaser and that contracts for sale of the timber shall be reviewed by the Board attorney prior to their execution.

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

Vote: (9) Ayes (0) Nays (3) Absent (Mr. Malecki, Mr. Martin, Sr. and Ms. Walters)

Motion Carried.

Committee Reports:

Capital Projects: Mr. DeLia stated that the committee met prior to the Board Meeting and reviewed the Resolution regarding Award of Timber Harvest Sales Agreements. Nothing further to report.

Budget and Finance: Mr. Brodsky stated that the cash position is still guarded. Cash flow partially recovered from last month’s late water billing. We anticipate a full recovery of approximately $300,000 in cash collections from this late billing; however, only half was recognized. Should see the remaining in January ’06.

Personnel Committee: Mr. Coyne stated that his committee has dwindled down to one member. Mr. Coyne would like to have one or more Officers of the Board on the committee to help draw up new three year contracts for the Executive Director and Comptroller. Chairman Gaston will look into this.

Operations: Mr. Buchner spoke in Mr. Malecki’s absence and stated that no meeting was held this month.

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

• Mr. Becher gave an update on the litigation. The case has been assigned to a new judge and John Murad is going to set up a pre trial conference with him.
• Mr. Becher went and spoke to the Sauquoit Rotary and the Sunrise Rotary regarding the status of the litigation and answered questions.
• Mr. Becher met with Assemblyman Townsend at his office this past month. Mr. Townsend would like Mr. Becher to speak to the Herkimer County Legislature regarding concerns and misconceptions regarding the use of water from Hinckley Reservoir.
• Mr. Becher has a meeting set up next week with County Executive Griffo regarding cooperative purchasing arrangement. This agreement would be for shared commodities.
• Mr. Becher has a meeting next Monday with Mayor Brown regarding a proposed mutual aid agreement. Once we have a draft agreement drawn up it would come back to the MVWA Board for review. This mutual aid agreement would be for shared services.

New Business: Motion made by Mr. Brodsky. Seconded by Mr. Hobika, Jr.

To establish a restricted reserve account to hold revenues from timber harvest.

Vote: (9) Ayes (0) Nays (3) Absent (Mr. Malecki, Mr. Martin, Sr. and Ms. Walters)

Motion Carried.

The next Board Meeting is scheduled for Tuesday, February 21, 2006 at 5:00 PM.

Mr. Coyne moved to adjourn the meeting and go into Executive Session to discuss the `Teamster Resolution. Seconded by Mr. Brodsky. The meeting was adjourned at 6:16 PM.

Respectfully submitted,

__________________________

Suzanne M. Harmon, Secretary

Mohawk Valley Water Authority