Mohawk Valley Water Authority – March 20, 2006
Chairman Gaston called the meeting
to order at 5:05 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,
Millicent Rader-Harris, Bette Szesny and Frank Trevisani. Absent: Bernard Martin, Sr. Also present: Patrick Becher, Mario Bequer,
Lis Degironimo, Dick Goodney, Ted Earl, James Korfonta, Lou Santacroce, Phil
Tangorra, Connie Schreppel, Donald Weimer and Bill Barry .
Approval of the February
21, 2006 Minutes: Ms. Szesny
moved to approve the Minutes. Seconded
by Mr. Coyne. Ms. Rader-Harris made a
motion to amend the minutes by adding language she submitted in written form. Seconded by Mr. Hobika, Jr. Ms. Szesny stated that a resolution was
passed by the Board to record action taken only. Ted Earl stated that the
purpose of the minutes is to record what was done not what was said. There are two records of the Board proceedings
one is a verbatim transcript, which is being recorded now in tape form. The other record is the official minutes
before the board for adoption.
Vote to amend minutes: (4)
Ayes (4) Nays (2) Abstaining (1)
Absent, Mr. Martin, Sr.
Motion denied.
Mr. Hobika, Jr. would like the
minutes to reflect that under the Personnel Committee report that Mr. Coyne
left the meeting after the vote on the above Resolution, no report given.
Vote to approve minutes with above
language: (8) Ayes (1) Nay (Ms. Rader-Harris)
(1) Abstained (Mr. Trevisani) (1)
Absent ( Mr. Martin, Sr.)
Minutes were approved.
Mr. Hobika, Jr. made a motion to
discuss Agenda items 7, 8 & 9 before the Board discusses Items 5 & 6.
Motion made by: Mr. Hobika, Jr. Seconded
by: Ms. Szesny
(10) Ayes (1) Absent (Mr.
Martin, Sr.)
Motion carried.
Discussion: Mutual Aid Agreement
The Mutual Aid Agreement would be between the MVWA system and the Rome system. 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. The EPA has urged water systems to have mutual aid agreements as part of their emergency operations and response plans.
Moved by: Mr. DeLia Seconded by: Mr. Trevisani
Vote: (9) Ayes (0) Nays (1) Abstain (Ms. Rader-Harris)
(1) Absent (Mr. Martin, Sr.)
Motion Passed.
Committee Reports:
Capital Projects: Mr. DeLia stated that the committee did not
meet this month due to a lack of agenda items.
Budget and Finance: Mr. Brodsky stated that the Board Members
have received the current fiscal report.
The fiscal year will be ending as expected. Jim Korfonta stated that he had more detail on delinquent
accounts that Mr. Hobika, Jr. asked for at the last Board meeting. The City taxes will be levied on April 1,
2006. The City is acting positively and
very cooperative on this issue.
Personnel Committee: Mr. Coyne stated that no committee meeting
was held this month.
Operations: Mr. Malecki resigned from the Board, no
report given.
Executive Director’s Report: Mr. Becher
reported on the following:
- Last
week Mr. Becher attended the AMWA Conference with representatives from the
largest systems in the country.
The Bird Flu is going to become a human strain and hit the U.S. as
early as this Fall. When this
happens companies could see absentee rates as high as 30%. Companies should consider such things
as cross training. Chairman Gaston
stated that these contingencies should be in conjunction with the Health
Department.
- Mr.
Becher and Mr. Goodney met with Carmella Mantella from the Canal
Corporation. They will be
scheduling a working session within the next two weeks in Albany regarding
ownership and water availability.
Mr. Coyne asked what the status of the court case was. Mr. Becher spoke to the Attorney from
Hancock & Estabrook on discovery and will have a timetable soon along
with signed agreements with trigger dates. Conversation with the Canal Corporation is still on going
and will keep the Board informed.
The attorney from both sides sent letters stating that meetings
held between the MVWA and the Canal Corporation would not jeopardize the
court case. It allows both sides
to get together and try to work issues out without jeopardizing either
side’s position in court.
Mr. Becher answered questions that Mr. Montecalvo asked
during the 2006-07 Rate Hearing on March 16, 2006. Mr. Becher stated that he would develop a question and answer
page on the MVWA website.
Mr. Brodsky would like a report on the Laboratory costs over
the last few years.
Budget/Rate Motions for
MVWA:
1. The Board approves the basic 2006-07 operating budget as
recommended by MVWA staff in the amount of $12,123,882 and combined with
debt-related expenses (debt service and bond covenant) of $4,136,374 and
capital reserves of 188,312 for a total base-budget of $16,448,568.
Motion made by: Mr. Brodsky Seconded by: Mr. Hobika, Jr.
Vote: (8) Ayes (2) Nays (Ms. Rader-Harris and Mr. Trevisani) (1) Absent (Mr. Martin, Sr.)
Motion Passed.
2. The Board of the MVWA approves an additional $200,000 be included in the approved 2006-07 operating budget for the purpose of reducing the reliance on borrowed funds for equipment, vehicles, road repair and capital labor.
Motion made by: Mr. Brodsky Seconded by: Mr. Hobika, Jr.
Vote: (8) Ayes (2) Nays (Ms. Rader-Harris and Mr. Trevisani) (1) Absent (Mr. Martin, Sr.)
Motion Passed.
3. The Board of the MVWA approves
and authorizes a total of $400,000 in borrowed funds to provide for annual
expenditures for equipment, vehicles, road repair and capital labor beginning
with fiscal year 2006-07. Expenditures
will be based on the approved 2006-07 approved MVWA budget. The staff and Board Counsel are directed to
forward appropriate documentation to the Finance Authority.
Motion made by: Mr. Brodsky Seconded by: Ms. Szesny
Vote: (8) Ayes (2) Nays (Ms. Rader-Harris and Mr. Trevisani) (1) Absent (Mr. Martin, Sr.)
Motion Passed.
4. Only if # 2 and #3 above are not approved – No vote necessary.
5. The Board of the MVWA approves
and authorizes a total of $1.5 million in borrowed funds for use in continuing
the long-term capital plan beginning with fiscal year 2006-07. Actual expenditures will be based on 2006
Board approved capital plan. The staff
and Board Counsel are directed to forward appropriate documentation to the
Finance Authority.
Motion made by: Mr. Brodsky Seconded by: Mr. DeLia
Vote: (8) Ayes (2) Nays (Ms. Rader-Harris and Mr. Trevisani) (1) Absent (Mr. Martin, Sr.)
Motion Passed.
6.
The Board of the MVWA approves an additional $135,000 in the approved 2006-07
operating budget for the purpose of replacing funds deducted from the Repair,
Replacement & Renewal Reserve (3R) Fund, and used for extraordinary
emergency repairs in 2005-06.
Motion made by: Mr. Brodsky Seconded by: Mr. Hobika, Jr.
Vote: (8) Ayes (2) Nays (Ms. Rader-Harris and Mr. Trevisani) (1) Absent (Mr. Martin, Sr.)
Motion Passed.
7. The Board of the MVWA approves an additional
$126,000 in the approved 2006-07 operating budget and allocated 50% to the 3R
Reserve and 50% to the O&M Reserve.
Motion made by: Mr. Brodsky Seconded by: Mr. Hobika, Jr.
Vote: (7) Ayes (3) Nays (Mr. Coyne, Ms. Rader-Harris, Mr. Trevisani) (1) Absent (Mr. Martin, Sr)
Motion Passed.
8.
The Board of the MVWA adopts the staff recommended solution to meeting new
federal regulations for Disinfection By-Products (DBP) and the Long-Term
Surface Water Treatment Rule (LT2).
This solution includes the water quality and compliance consultant
recommendations. This project will
include the provision of five (5) water tanks that will take Deerfield and
Marcy open reservoirs offline, adding a second Clearwell at the filtration
plant and adding a chloramines’ feed system at the water treatment plant. The staff and Board Counsel are directed to
forward appropriate documentation to the Finance Authority.
Motion made by: Mr. Brodsky Seconded by: Ms. Szesny
Vote: (8) Ayes (2) Nays (Ms. Rader-Harris and Mr. Trevisani) (1) Absent (Mr. Martin, Sr.)
Motion Passed.
9.
The Board of the MVWA approves the first of two borrowing initiatives for the
purpose of implementing the Board approved and staff recommended solution to
meet new federal DBP and LT2. This
first bond issue will total approximately $14,000,000 and includes initial
principal and interest amounts of $490,000, plus required bond reserves and
bonding administrative expenses currently estimated at $1,800,000. It is recommended that the cost of borrowing
for this initiative be allocated as part of the Board approved rate schedule
over two fiscal years, 2006-07 and 2007-08.
It is also to be included as a separately identified expense and rate
amount on customer invoices over the length of the bond payments. The staff and Board Counsel are directed to
forward appropriate documentation to the Finance Authority.
Motion made by: Mr. Brodsky Seconded by: Mr. DeLia
Vote: (8) Ayes (2) Nays (Ms. Rader-Harris and Mr. Trevisani) (1) Absent (Mr. Martin, Sr.)
Motion Passed.
Resolution No. 2006-7: Approval of the 2006-2007 Mohawk Valley Water Authority Budget
Mr. Becher explained that a proposed annual budget was
discussed by the Board at a workshop held on March 13, 2006. At the regular Board meeting held on
February 20, 2006 the Comptroller and Treasurer made presentations of MVWA’s
budget needs for 2006-07. At the Public
Rate Hearing held on March 16, 2006 public comments were received on the
proposed budget and rate increase and such comments have been considered by the
Board.
Moved by: Mr. Brodsky Seconded by: Ms. Szesny
Vote: (8) Ayes (2) Nays (Ms. Rader-Harris, Mr. Trevisani) (1) Absent (Mr. Martin, Sr.)
Motion Carried.
Resolution No. 2006-8: Decision Regarding Establishment of Water Rates, Fees and Charges
Effective April 1, 2006
The State imposed curb on expansion of the system has caused MVWA to forfeit revenues from new customers and has been a major contributory factor in the rate increases. Other items driving up costs include contractual payroll and related health insurance and retirement expenses. A reduction in several positions has offset the majority of these increases. Other increasing costs include street restoration, heating and electrical costs, chemical costs and infrastructure maintenance and repair. Service rates and fees increases of 13.5% are expected to meet the increased operational and capital improvement costs contained in the proposed 2006-07 budget. Consequently, it is the decision of the Board of MVWA that the rates, fees and charges of MVWA in effect on the date of this decision should be increased to the amounts shown on the proposed water services rates and fees adopted at this meeting of the Board and now on file in its office. Said increases shall become effective April 1, 2006 for all billings rendered by MVWA on or after said date.
Moved by: Mr. Brodsky Seconded by: Mr. Hobika, Jr.
Vote: (8) Ayes (2) Nays (Ms. Rader-Harris, Mr. Trevisani) (1) Absent (Mr. Martin, Sr.)
Motion Carried.
New Business: Mr. Brodsky stated that he will bring two new motions to the Board:
- Establishment
of Non-Need Funding similar to HEAP and,
- Monthly
Billing and Proposal establishing a budget plan.
Ms. Rader-Harris would like the Capital Projects Committee
to take up the Lead Pipe Replacement Program.
Ms. Szesny commended the MVWA’s three officers for the
article in the Observer Dispatch.
The next Board Meeting is
scheduled for Monday, April 24, 2006 at 5:00 PM.
Mr. Brodsky moved to adjourn the meeting. Seconded by Ms. Rader-Harris. The meeting was adjourned at 6:35 PM.
Respectfully submitted,
__________________________
Suzanne M. Harmon, Secretary
Mohawk Valley Water Authority
