Minutes: December 15, 2022

REGULAR MEETING MINUTES

VERNON TOWNSHIP

MUNICIPAL UTILITY AUTHORITY

These minutes are a synopsis of the meeting that took place on 12/15/2022.  Copies of the recording are available at the office of the Vernon Township Municipal Utilities Authority (the “MUA”).  

1. Call to Order

This regular meeting of the VTMUA commenced at 7:09 pm.

2. Statement of Compliance

Pursuant to the Open Public Meetings Act, adequate notice of this regular meeting was provided to the public and the press on December 27, 2021 by delivering to the press such notice and posting same at the municipal building and filed with the office of the MUA as well as posted on the website.

3. Salute to the Flag
4. Roll Call of Members and Professionals

The following members were present:

Paul Kearney

Andrew Pitsker

Dave McDermott

Kristin Wheaton

Mark Bower

Ed DeYoung arrived at 7:26

The following member was absent:

Ed Snook

The following professionals were present: Donelle Bright, Administrator/CFO; Rich Wenner, Attorney; Rob McNinch, Auditor; Jaclyn McCabe, Recording Secretary

5. Open Meeting to the Public (for Agenda Items Only)

Mr. Bower made the motion to open the meeting to the public for agenda items only, which was seconded by Mr. McDermott and carried by unanimous votes. Ms. McCabe informed no one from the public wished to speak.

Mr. Pitsker motioned to close the meeting to the public for agenda items only, which was seconded by Mr. McDermott and carried by unanimous votes.

6. Approval of the Bills: Resolution #22-43

Mr. Pitsker inquired about the billing for Dewberry, and if it is related to PS2, should it be charged to the township. Ms. Bright answered that anything prior to the township ordinance in March, all PS2 billing will be charged to the MUA and from March 2022 on, will be charged to the township. Mr. Pitsker asked if the roofing materials is for PS3, and was answered that is correct.

Mr. Pitsker motioned to approve resolution #22-43, Approving Payment of the Bills, which was seconded by Mr. McDermott, and carried by the affirmative votes of Mr. Kearney, Mr. Pitsker, Mr. McDermott, Ms. Wheaton, and Mr. Bower.

7. Approval of Minutes
   1. Meeting Minutes: 9/15/22

Mr. Bower made the motion to approve the meeting minutes from 9/15/22, which was seconded by Mr. Pitsker, and carried by the affirmative votes of Mr. Kearney, Mr. Pitsker, Mr. McDermott, Ms. Wheaton, and Mr. Bower.

1. Meeting Minutes: 10/20/22

The minutes form 10/20/22 were requested to be tabled.

1. Meeting Minutes: Special Meeting 11/14/22

Mr. Bower made the motion to approve the special meeting minutes from 11/14/22, which was seconded by Mr. Pitsker and carried by the affirmative votes of Mr. Pitsker, Mr. McDermott, and Mr. DeYoung. Mr. Kearney and Ms. Wheaton abstained from voting.

8. Resolutions:
   1. #22-44 Resolution for Appointing RMC and RMC Agreement

Ms. Bright explained this is an annual resolution to enter into an agreement for risk management consultant and the agreement with PIA.

Ms. Wheaton motioned to approve resolution #22-44, appointing RMC and RMC Agreement, which was seconded by Mr. Bower and carried by the affirmative votes of Mr. Kearney, Mr. Pitsker, Mr. McDermott, Ms. Wheaton and Mr. Bower.

1. #22-45 Resolution to Appoint Fund Commissioner

Ms. Bright explained this goes along with resolution #22-44 and it appoints the commissioner to be able to communicate and make decisions with the fund.

Ms. Wheaton motioned to approve resolution #22-45, to Appoint Fund Commissioner, which was seconded by Mr. Pitsker and carried by the affirmative votes of Mr. Kearney, Mr. Pitsker, Mr. McDermott, and Ms. Wheaton. Mr. Bower abstained from voting.

1. #22-46 Resolution Budget Transfer

Mr. Pitsker inquired why the transfers were needed. Ms. Bright responded that due to additional mailings that were sent out this year, specifically the EDU calculations and other state mandated mailings, we needed more funds for postage. Additionally, since there was an employee out on workers compensation, the DPW was used as coverage and we need to cover the wages which were  paid out.

Mr. Pitsker motioned to approve resolution # 22-46, which was seconded by Ms. Wheaton, and carried by the affirmative votes of Mr. Kearney, Mr. Pitsker, Mr. McDermott, Ms. Wheaton, and Mr. Bower.

1. #22-47 Resolution Refund for Overpayment

Ms. Bright explained this is the same situation as last meeting, where a resident sold their property and failed to stop autopayments to the account and the payments need to be refunded. Mr. Bower questioned why there needs to be a resolution for something that should be an automatic bookkeeping task. Ms. Bright answered that refunds of MUA payments are handled the same way as the township handles tax refunds and need to be approved by the board. Additionally, a credit can not be issued since the refund is not going to the current owner. Mr. Wenner added that this resolution is an to provide authorization for the expenditure of funds. Mr. Bower stated that this rule seems cumbersome and petty and questioned if under a certain dollar amount can be refunded without resolution. Mr. Wenner answered it is something the body can discuss.

Mr. Pitsker motioned to approve resolution #22-47, refund for overpayment, which was seconded by Mr. McDermott, and carried by the affirmative votes of Mr. Kearney, Mr. Pitsker, Mr. McDermott, Ms. Wheaton, and Mr. DeYoung.

1. #22-48 Resolution Review of EDU Allocation for Property Located at 14 Church St.

Ms. Bright explained this is for a building on Church Street, which is currently apartments and offices, and is being converted to all apartments. Mr. Benosky calculated the EDU count for five 2-bedroom apartments.

Mr. DeYoung motioned to approve resolution 22-48, EDU Allocation for Property Located at 14 Church St, which was seconded by Ms. Wheaton and carried by the affirmative votes of Mr. Kearney, Mr. Pitsker, Ms. Wheaton, Mr. McDermott, and Mr. DeYoung.

1. #22-49 Resolution Designating Meeting Dates for 2023

Mr. Pitsker motioned to approve resolution #22-49, Designating Meeting Dates for 2023, which was seconded by Mr. McDermott and carried by the affirmative votes of Mr. Kearney, Mr. McDermott, Mr. Pitsker, Ms. Wheaton, and Mr. DeYoung.

1. #22-50 Resolution Authorizing the Vernon Township Municipal Utilities Authority to Execute a Shared Service Agreement Between the Township of Vernon and the Vernon Township Municipal Utilities Authority for the Provision of Financial/Administrative Support Services

Ms. Bright explained that this has been the standard for CFO agreement. Ms. Bright continued that this also covers financial and administrative duties including billing, taking in payments, ordering supplies, recording minutes, agendas, etc.

Mr. Pitsker motioned to approve resolution #22-50, Authorizing the Vernon Township Municipal Utilities Authority to Execute a Shared Service Agreement Between the Township of Vernon and the Vernon Township Municipal Utilities Authority for the Provision of Financial/Administrative Support Services, which was seconded by Mr. DeYoung and carried by the affirmative votes of Mr. Kearney, Mr. Pitsker, Mr. McDermott, Ms. Wheaton, and Mr. DeYoung.

1. #22-51 Resolution Authorizing the Vernon Township Municipal Utilities Authority to Execute a Shared Service Agreement Between the Township of Vernon and the Vernon township Municipal Utilities Authority for the Provision of DPW Shared Services

Ms. Bright stated this agreement is in line with what the current shared service which the DPW will cover sick time, vacation, large jobs at a straight 1:1 ratio.

Ms. Wheaton motioned to approve resolution #22- 51, Authorizing the Vernon Township Municipal Utilities Authority to Execute a Shared Service Agreement Between the Township of Vernon and the Vernon township Municipal Utilities Authority for the Provision of DPW Shared Services, which was seconded by Mr. McDermott and carried by the affirmative votes of Mr. Kearney, Mr. Pitsker, Mr. McDermott, Ms. Wheaton, and Mr. DeYoung.

1. #22-52 Introduction of the 2023 VTMUA Budget

Ms. Bright discussed there was a much higher than anticipated increase to SCMUA’s operating costs and which significantly affected the budget. Discussion was held on rates, stating that this budget does not raise rates, and will use a portion of fund balance and rate stabilization to do that. Ms. Bright added that every dollar spent is a smart dollar and we are able to increase the fund balance over the last few years. Mr. McNinch added we have known for years that 2023 would bring a large increase and have been planning accordingly. Mr. Bright noted there was one minor amount that did not pull correctly to the total appropriations line and will be fixed. Mr. McNinch added there will not be a need for the rate hearing since there is no change to the rate and after the budget is approved will be sent to the DCA.

Mr. Pitsker motioned to approve #22-52, Introduction of the 2023 VTMUA Budget, with the condition the appropriations line is amended, which was seconded by Mr. McDermott and carried by the affirmative votes of Mr. Kearney, Mr. Pitsker, Mr. McDermott, Ms. Wheaton, and Mr. DeYoung.

1. #22-52A Resolution Approving Late Introduction of the Budget

Ms. Bright noted this is a standard resolution approving the late budget as is it required to be introduced by November 1^st, however we do not start our budget year until January 1^st as the authority’s estimated revenues and appropriations are not known at the time the budget was to be legally introduced. Ms. Bright read the resolution into the record.

Mr. Pitsker motioned to approve resolution #22-52A, Resolution Approving Late Introduction to the Budget, which was seconded by Mr. Kearney and carried by the affirmative votes of Mr. Kearney, Mr. Pitsker, Mr. McDermott, Ms. Wheaton, and Mr. DeYoung.

9. Administrator Report

Ms. Bright updated that PS2 bid was awarded by council in November for under $1.6 million dollars. Ms. Bright added there was a great turnout and now things can be finalized with IBank. Ms. Bright added there has been a hiccup with the easement with Mt. Creek and there is a scheduled meeting to the easement in January.

Ms. Bright updated there was a meeting scheduled with herself, the mayor, a member of council and the department for municipal relations for the DEP, during the league of municipalities. However; the meeting was not able to be held due to time constraints so a zoom meeting was requested for mid to end of January. Ms. Bright added she has reached out to the perspective developers for Legends twice and has not heard back. Ms. Bright stated they are the final piece of the sewer service area, as the DEP said that area on Rt 94 can be included.

Ms. Bright stated that SCMUA will not be able to meet regarding the transfer station until the first quarter of 2023.

Ms. Bright updated on outstanding capital items stating Elizabethtown Gas will be coming out on 12/27 to install the meters for the generators. The force main insulation was ordered and hopefully will be delivered soon.

Ms. Bright stated that a good amount of the properties up for tax sale were sold during the auction.

Ms. Bright updated that the LEIWAP program, was a program instituted by the state in order to allow people with were delinquent on utilities to apply to receive benefits to pay. We did not have anyone apply when we sent the state required mailers.

Mr. Kearney inquired if Legends is redeveloped what the EDU count would be. Ms. Bright answered that the actual number is unsure at this time, but reviewing some of the proposals, it could be around 600 EDU’s. Mr. Kearney added the property has been idle so long would the owner go through the upgrades or just pay to connect to our system. Mr. Kearney added the DEP may not let them upgrade the system they currently have. Ms. Bright added that the force main is right there for them to connect; however, the DEP can’t look at another force main from another sewer service area and they take it out of the equation when making the decision.  Ms. Bright stated as Legends currently stands, they currently discharge to surface water and they are in a wetland buffer; based on experience, it will not be easy for them to upgrade. Ms. Bright stated if we include them in our sewer service area, they will no longer have one of their own. Mr. DeYoung thought the property should be added to our sewer service area but not if it will impact development. However, Mr. DeYoung added, doing it themselves may also hold it up. Mr. Kearney agreed but would like to have all the information to make the best choice. Ms. Bright added that if we add them it will go to the county and then will have an opportunity for public comment before it is approved. Mr. Pitsker stated it would be better for the environment and would be protecting Vernon more to be connected to our system and can not see them objecting. Mr. Pitsker added he thinks we should include them and let them contest the decision.  Mr. DeYoung commented it may not be what they would like to hear but a new plant with the DEP will take years, further holding up development, which no one wants to see. Mr. Pitsker asked the board if Ms. Bright should be directed to include the Legends property in our sewer service area.  Mr. Pitsker made the motion to direct Ms. Bright to include the Legends property in the sewer service area, seconded by Mr. Kearney and carried by the affirmative votes of Mr. Kearney, Mr. Pitsker, Mr. McDermott, Ms. Wheaton, and Mr. DeYoung.

10. Licensed Operator Report

Ms. Bright reported all housekeeping is going well. There was a call out on Steamboat, but it was determined not to be on our side. Ms. Bright informed wires needed to be replaced at pump station 2 as they burned out. Finally, the Mt. Creek property that was not on the sewer line, was connected.

Mr. Pitsker inquired about the lift station replacements. Mr. Bright stated we may need to go out to bid for that and will speak to the engineers.

11. Engineer Report
12. Work Session:
    1. Sub- Committee Reports
       1. Transfer Station/PS2 Upgrade Committee

Ms. Bright stated she has to wait to meet with SCMUA to see what applications will be needed for a treatment facility for the transfer station. Mr. Pitsker asked how involved Wind River is. Ms. Bright stated they have been on every call and are very active and responsive.

1. SSA Committee

This committee was updated during the Administrator report.

• Septage Collection Committee

Ms. Wheaton requested the solid waste portion of the committee be struck as it is not a currently being pursued.

Ms. Wheaton stated there is potential for town-wide hauling of solid waste and the list of questions that was complied was going to be circulated. Ms. Wheaton said she is on hold until something happens on the council or committee level. Ms. Bright stated there has not been a committee meeting yet because of updates with Mt. Creek and SCMUA to see what we are doing with the transfer station. Ms. Wheaton asked if the Council has been informed of the septage hauling. Ms. Bright answered this is at committee level now and as far as reaching out to council, it will be up to the town to decide if they would like to pursue this. Ms. Wheaton said this is a separate issue then the transfer station. Ms. Bright stated she is misunderstanding the financial aspect. Ms. Wheaton stated she will draft an e-mail outlining the concept.

1. By-Law/Personnel Committee

Mr. Pitsker stated this is an ongoing process with the job descriptions and advertisements are constantly reviewed. Mr. Pitsker added there have been changes to the website and there are some minor changes that still need to be made. Mr. McDermott discussed that there is investigation into disabled veteran and senior citizen discounts.

1. Finance Committee

The finance committed was updated in the introduction to the budget.

1. Metering/ EDU Committee

At this time there are no updates.

13. Open to the Public for Items Not on the Agenda

Mr. Pitsker motioned to open to the public for items not on the agenda, which was seconded by Mr. McDermott, and carried by unanimous votes.

Ms. McCabe stated no one from the public wished to comment.

Mr. McDermott motioned to close to the public for items not on the agenda, which was seconded by Mr. DeYoung and carried by unanimous votes.

14. Commissioners’ Comments

Mr. Bower commented he has taken interest in the appeal against SCMUA and expects an outcome late December or early January. Mr. Bower stated his concern of remaining in our current situation if the court does not side with us. Mr. Bower added that there does not seem to be any long-term planning for this financial predicament. Mr. Bower added from what he can see we are confronting our insolvency and it is something that should be spoken about. Ms. Bright stated if someone was to review the financials of the MUA, it would show that we have done very well over the last four years. Ms. Bright continued that the fund balance has increased, connection fees were cut in half, and always working with engineers to obtain the most connections. Ms. Bright added this Board has done a good job considering the impending doom of 2023 and are doing our best to address areas others haven’t in the past. Mr. Bower stated what he is hearing is that the SCMUA rate increase is a problem, and may or may not be in legal process, but doesn’t it make sense to plan a worse case scenario. Mr. Bright responded that everything the MUA does is not contingent on SCMUA, and we are always going after other revenue sources. Mr. Kearney stated that even if the MUA is dissolved or not, everything would still fall under the town and they will still have to continue to deal with this. Mr. Kearney added we are doing everything in the best interest of the MUA for the present and future. Mr. Kearney clarified that the lawsuit is based on the rate per gallon not the number of gallons allocated.

Mr. DeYoung had no comments.

Ms. Wheaton had no comments.

Mr. McDermott had no comments.

Mr. Pitsker thanked Mr. Kearney for presenting to the council, along with Ms. Bright. Mr. Kearney stated they were not asking for anything specific but to give the new members clarification. Mr. Pitsker added it is the end of the year and we did a lot this year; including the sewer service area, PS2, and Ms. Bright building relationships with the DEP. Mr. Pitsker thanked the sewer operators, Mr. Reyes and Mr. Vangelakos, as well as Mr. Lazier for maintaining the system safely. To Mr. McNinch, thank you for all the work on the financials. Mr. Pitsker spoke to Mr. Wenner thanking him for providing legal advice. To Dewberry, thank you for keeping us going with all the timelines to get projects done. To Ms. McCabe, thank you for your customer service and all you have done with the bills, etc. To Ms. Bright, you have been great in getting everything done. Mr. Pitsker wished everyone a happy holiday and to be safe.

15. Chairman’s Comments

Mr. Kearney stated he replicated Mr. Pitsker’ s comments. Mr. Kearney added everyone has done such a great job this year and the last two years as we thought 2023 was going to be Armageddon and it is not due to all the hard work. Mr. Kearney thanked everyone.

16. Adjournment

Mr. Pitsker motioned to adjourn the meeting at 8:35 p.m., which was seconded by Mr. McDermott and carried by unanimous votes.  

 

 

 

Respectfully submitted,

Jaclyn McCabe, Recording Secretary

Minutes approved: 1/19/23