Chairman DeLia called the meeting to order at 5:30 PM and opened with the Pledge of Allegiance.
Roll Call
Present: Dennis Bova, Bruce Brodsky, Eric Kane, Dave Corr, Vincent Coyne, Elis DeLia, Richard Karam, and Bette Szesny. Absent: Rocco Arcuri, Mark Ford, Frank Mutolo and John Wallace. Also Present: Richard Goodney, Anne Milograno, Phil Tangorra, Jim Korfonta, Long Gu and Ken Bobrow, Esq.
Chairman DeLia presided and Suzanne Harmon took the minutes.
Approval of the August 20, 2018 Minutes
Motion made by Mr. Bova to approve the minutes. Seconded by: Mr. Brodsky
Vote: (8) Ayes (0) Nays (0) Abstain (4) Absent Motion Carried.
Resolution: Decision Regarding Establishment of Water Rates, Fees and Charges Effective January 1, 2019
A public hearing concerning rates, fees and charges of the MVWA was held on October 22, 2018 at 5 PM. The Executive Director presented the case for a 2.0% rate increase to fund a $24,900,000.00 budget for FY 2019.
The main reasons are:
- overall increase in operating costs of 3.3%;
- cash capital maintenance and repairs funded at $600,000;
- workers compensation insurance premiums are expected to increase 10-15%; and
- property and liability insurance are expected to increase 10-15%.
The proposed rate increase was partially offset by a modest decline in debt and PILOT payments of $43,000. The proposed budget is supported by $815,000 cash carried forward accumulated surpluses from previous years.
There was public comment made during the public hearing.
Said increases shall become effective January 1, 2019 for all billings rendered by MVWA on or after said date.
Motion made by Mr. Corr to approve. Seconded by: Mr. Coyne
Vote: (8) Ayes (0) Nays (0) Abstain (4) Absent Motion Carried.
Approval: The MVWA 2019 Calendar Year Proposed Budget
Motion made by Mr. Brodsky to approve. Seconded by: Mr. Bova
Vote: (8) Ayes (0) Nays (0) Abstain (4) Absent Motion Carried.
Resolution: Creation of New Industrial Water Rate Schedule for Water Users in Excess of 1.5 Million Gallons Per Day
The MVWA water rates currently have four water fee tiers based upon volume of use. The MVWA shall adopt a fifth water fee tier to be known as the industrial water rate schedule, which shall apply only to those customers using in excess of a 1.5 million gallons of water average per day.
Motion made by Ms. Szesny to approve. Seconded by: Mr. Karam
Vote: (8) Ayes (0) Nays (0) Abstain (4) Absent Motion Carried.
Resolution: Adoption of Revised Rules and Regulations and Fee Schedule for the MVWA
The MVWA adopted its Rules and Regulations and the fee rates and charges at the time of its creation in 1994. The MVWA determined it is necessary to revise it due to the passage of time, changes in equipment and methodology and increase in costs. The MVWA adopts the revised Rules and Regulations effective January 1, 2019.
Motion made by Mr. Corr to approve. Seconded by: Mr. Karam
Vote: (8) Ayes (0) Nays (0) Abstain (4) Absent Motion Carried.
Approval: Third Quarter Investment Statement Ending 9/30/18
Mr. Korfonta stated that this is an investment statement of the MVWA trust funds. The Board has been presented with these statements every quarter for approval.
Motion made by Mr. Coyne to approve. Seconded by: Mr. Karam
Vote: (8) Ayes (0) Nays (0) Abstain (4) Absent Motion Carried.
Committee Reports
Mr. Korfonta stated that we are above budget as far as consumption is concerned about 2%. Also, the MVWA is up in revenue year-to-date. In October the MVWA received a refund from SUEZ for $475,000 after a review of the 1st year. SUEZ will be at the November Board meeting with an update.
Executive Director’s Report
- Mr. Becher stated The Village of Ilion has reached out to the MVWA to look for a solution for reliable clean water. The MVWA has met with them and the conversation has gone very well and will be meeting with them again in the very near future. Money is the biggest obstacle. It could become an example for the State for regionalization. The pipeline route would open up some opportunities for some other towns and villages along the way.
- The MVWA Automated Meter Reading System now gets daily meter reads. There are a couple hundred locations that we still need to convert and are working diligently on those. That project is 99.8% complete and working pretty well. Over the last two months we have had two in-house meetings to talk about how we might go to monthly reads. We have to figure out how to do that without doubling our printing and postage budget. Hopefully in the next few months we can sit down and present a few options to the Board on how and when we would do that.
Mr. Coyne stated that he does not think it is necessary to have a Public Rate Hearing prior to approval of the rates. Mr. Becher stated that he will research that.
Mr. Becher stated that there is a letter in your Board packet from the MVWA Rate Consultant certifying the rates. It is required by law that an outside rate consultant review our proposed rates.
Meeting was adjourned at 5:50 PM.
Respectfully submitted,
__________________________
Suzanne M. Harmon, Secretary
Mohawk Valley Water Authority