Mohawk Valley Water Authority – October 19, 2009

Vice Chairman Brodsky called the meeting to order at 5:01 PM and opened with the Pledge of Allegiance.

Roll Call: Present: Bruce Brodsky, George Gaston, Nate Price, Don Ryan, A. Eugene Snyder, Bette Szesny, Frank Trevisani, John Wallace. Michael Wicks arrived at 5:07PM during agenda item #4. Absent: Rocco Arcuri, Vincent Coyne and Elis DeLia. Also Present: Edward Earl, James Korfonta, Dick Goodney, Connie Schreppel, Donald Weimer and Steve Donovan.

Vice Chairman Brodsky presided and Suzanne Harmon took the minutes.

Approval of the September 21, 2009 Minutes:

Motion made by Mr. Trevisani to approve the minutes. Seconded by: Mr. Price

Vote: (8) Ayes (0) Nays (0) Abstain (4) Absent

Motion Carried.

Presentation: Supervisory Control and Data Acquisition System (SCADA) by Steve Donovan

Steve Donovan stated that the MVWA has a SCADA system which stands for Supervisory Control and Data Acquisition. The system consists of six components, which are: 1) PIC’s (programmable logic center) or RTU (remote telemetry unit) 2) Data conveyance: radio, land line and Internet 3) HMI (human machine interface) 4) Trending 5) Alarms and 6) Reporting.

In 1992 the MVWA had its first SCADA system at the Water Treatment Plant and by the end of this year the MVWA will have 24 remote sites. All the SCADA work is done in-house. The advantages are cost savings in the hundreds of thousands of dollars, flexibility to add or change and quicker responses to problems as they arise.

The benefits of a SCADA system are quicker response to problems, and overview to the whole system, a degree of artificial intelligence and security. In the future, the MVWA would like to add more sites with water quality devices, add advanced security for remote sites and more camera systems.

Presentation: Overview of Automated Reading Project

Mr. Becher stated that the cost benefit factors to the MVWA would be revenue enhancements which are improved meter accuracy, theft reduction, improved cash flow and fewer calls/disputes.

Cost reductions would be meter reading, meter operations and billing resulting in fewer bills.

Summary of Business Case: Total investment is $8 million dollars; the annual economic benefit would be $714,050. The benefits would be timely, accurate bills with no estimates, stable rates, lower risk and liability, improved customer service and overall more efficient use of personnel.

Motion was made by Mr. Snyder to have this assigned to the Operations Committee for review and respond back to the Board in 60 days. Seconded by: Mr. Wicks.

Vote: (9) Ayes (0) Nays (0) Abstain (3) Absent Motion Carried

Committee Reports:

Capital Projects: Mr. Goodney stated that the committee did not meet this month.

Budget and Finance: Mr. Korfonta stated that the committee did not meet this month but

stated that consumption is down and he will continue to monitor that. Revenue is still on track and the MVWA is cautiously optimistic. The budget calendar for fiscal 2010-11 needs to be approved by January 31, 2010. Mr. Korfonta stated that Mr. Arcuri would like to re-format the monthly financial statement.

Personnel Committee: Mr. Ryan 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:

• On September 24, 2009 Mr. Becher and Mr. Goodney went to Rome to meet with people from Region 6 DEC to talk about the MVWA water permit situation. These permits are still in a temporary holding pattern until the MVWA has an agreement with the State. Without an agreement there could be objections raised to those permits or possibly the permits could be denied. There is a meeting scheduled in Albany in 2 weeks, which will be chaired by someone from the Governor’s office. Attending the meeting will be the Canal Corporation, Department of Health, DEC, the MVWA attorney’s from Hancock & Estabrook along with Chairman DeLia.
• The MVWA has not heard back from the court yet on the re-argument of what the historic daily water use is. Currently the water use is 22 million gallons per day. The MVWA has evidence that it could be a higher number. Judge Hester has not come out with his ruling yet.
• The rate model is a tool used to develop analysis on how the MVWA’s revenue is derived. Due to changes it would be helpful to take a look at the rates and reserves and then have the rate model updated. The first three tasks that should be looked at are: 1) review of all formulas and links, 2) changes in the MVWA’s financial operations and changes in the rate structure and 3) look at the data base to see if it has been kept up by the staff and functioning the way it should be. The cost is $9,000. This is a professional service and a sole source.

Motion made by Mr. Gaston to have Municipal and Financial Services Group from Maryland take a look at the rate model for a tune-up and not a policy change in the amount of $9,000.00 this year. Seconded by Ms. Szesny.

Vote: (9) Ayes (0) Nays (0) Abstain (3) Absent Motion Carried

Mr. Snyder thanked Mr. Becher for the open house at the Deerfield Tank and stated that it was very informative.

Mr. Snyder would like a copy of the Management Letter from Mr. Korfonta.

Old Business:

On October 8, 2009 an agreement was made between the Village of Bridgewater and the Mohawk Valley Water Authority.

There had been conversations regarding what meters to buy and from who. There were three companies to purchase the meters from; Neptune, Census and Badger Meters. Badger Meter was the lowest price, which is a fixed network system. The Village of Bridgewater would be able to get customer readings everyday. This will be a great pilot program for the MVWA. The MVWA is asking the Board to amend the agreement to allow the MVWA to purchase the meters from Badger Meters and install them at a fee of $30.00 per installation, which will cover all costs to the Authority. The Village will reimburse the MVWA for the cost of the meters.

Motion was made by Mr. Trevisani. Seconded by Mr. Wicks

Vote: (9) Ayes (0) Nays (0) Abstain (3) Absent Motion Carried.

New Business:

Mr. Weimer received a letter from the Village of Barneveld’s attorney requesting an inter-municipal emergency water supply line agreement. The NYS DEC has required the Village to upgrade and improve its water supply for its residents and the Village has made significant improvements including installing a new tank and filtration system. The average daily use would be 23,000 gallons and would be billed at prevailing rates for municipalities. Barneveld has asked the MVWA to consider this letter as a request for an agreement or letter of understanding. Mr. Weimer will look into this and report back to the Board.

Mr. Wicks stated that he has had customers approach him regarding the fact that the MVWA no longer broadcasts its public comment period. Mr. Wicks asked if this could be brought back up again at the next Board meeting. Mr. Brodsky stated that he would talk to Chairman Delia.

Mr. Wicks wanted to know what the status was regarding Valley View Golf Course using water from Southern Reservoir to water their greens and fairways. They would run a pipe under Valley View Drive and wanted to get a bulk water rate because the water is untreated water. Mr. Weimer has had discussions with the City in the past and they never got back to him.

Mr. Becher stated that the MVWA is willing to sit down with the City to discuss this further. Mr. Wicks would like a cost on this.

Mr. Wicks knows a customer with a cut water line and wanted to know if there was anything the Authority could do to help him. Mr. Becher and Mr. Gassner will follow-up on this and get the customer a copy of the section in the rules and regulations relating to this issue.

Mr. Price moved to adjourn the meeting. Seconded by Mr. Ryan.

The meeting was adjourned at 6:30PM.

Respectfully submitted,

__________________________

Suzanne M. Harmon, Secretary

Mohawk Valley Water Authority