UPPER MOHAWK VALLEY REGIONAL WATER BOARD PUBLIC RATE HEARING MINUTES March 16, 2006 – 5:00 P.M.

The public rate hearing was held at the Utica City Hall, Common Council Chambers, on Thursday, March 16, 2006. Treasurer, Bruce Brodsky opened the hearing at 5:08 P.M. and said the purpose for tonight’s meeting is to have a public hearing on the new rate schedule for the Upper Mohawk Valley Regional Water Board, which would go into effect on April 1, 2006.

The following Board Members were present: Bruce Brodsky, Joseph Hobika, Jr., Millicent Rader-Harris and Bette Szesny. Also present: Executive Director Patrick Becher and Comptroller James Korfonta. There will be a brief presentation by the Executive Director and Comptroller on the rate structure and pertinent information that drives the rates. Following the presentations the Board will receive public comment.

Mr. Becher explained that a significant amount of the rate increase is due to a combination of newly instituted unfunded federal regulations, and delays to system expansions. Final EPA rules released this past January will require construction of many new water tanks to replace the Marcy and Deerfield open reservoirs, plus significant upgrades to the existing filtration plant. Although the MVWA has spent nearly $700,000 since 1999 preparing for this change, the next steps will now require an additional $25 million.

Mr. Korfonta explained that the MVWA is required to have a rate hearing each year prior to the Board setting rates for the fiscal year. Our fiscal year starts on April 1, 2006 and runs through March 31, 2007. For the coming fiscal year the Board has proposed a rate increase within a range of 9.7 to 13.5%. For the average residential customer based on approximately 80,000 gallons of water a year, the increase amounts to about a $3.00 per month or $36.00 for the year.

Mr. Brodksy asked if anyone wished to comment or had any questions. Two people came forward with comments and questions:

1. Robert Walsh, 7 Devereux St., Apt. 214, Macartovin Apts., Utica, NY

Mr. Walsh is concerned that an increase will be passed along to him

in higher rent. While he knows the rate increase is necessary because of federal regulations, he feels that we should stop funding the Utica Auditorium and the County should do that with a portion of the sales tax.

2. Frank Montecalvo, 202 Comenale Crescent, New York Mills, NY

Mr. Montecalvo’s comments centered around 2 items:

1) MVWA spending - there are 4 items of concern. The new mandated federal regulations, staff increases of 25% since 1996, how cost effective is the Water Quality Laboratory and advertising costs.

2) Rate Structure – Why should it cost a single-family owner more than a family living in a trailer, apartment or retirement community? The Board needs to consider a rate structure that reflects the increased costs to providing services at greater distances.

Mr. Brodsky thanked Mr. Becher, Mr. Korfonta, Board Members and the public for their participation. The Public Rate Hearing ended at 6:25 P.M.

Respectfully submitted,

____________________________

Suzanne M. Harmon, Secretary

Upper Mohawk Valley Regional Water Board