The Meeting Was Called to Order at 3:00 P.M

NOVEMBER 23, 2016

MINUTES OF THE REGULAR AUTHORITY MEETING OF THE SUSSEX COUNTY MUNICIPAL UTILITIES AUTHORITY HELD ON NOVEMBER 23, 2016 AT THE AUTHORITY’S ADMINISTRATION BUILDING, LAFAYETTE, NEW JERSEY

CALL TO ORDER; ROLL CALL; PLEDGE OF ALLEGIANCE

The Meeting was called to order at 3:00 p.m.

The following were present: Commissioners Perez, Madsen, Petillo, Dietz (arrived at 3:05) Cocula, Meyer and Drake, Administrator Hatzelis, Chief Engineer Varro, Solid Waste Superintendent Sparnon, Wastewater Superintendent John Nugent, Assistant Wastewater Superintendent Angelo Baron, General Counsel Giacobbe, Special Counsel Prol and Recording Secretary Kronski.

Also in attendance: Timothy Bradley of Kleinfelder, SCMUA’s Paulinskill Wastewater Consulting Engineer

PUBLIC STATEMENT REGARDING SUNSHINE LAW

Chairman Petillo stated that the meeting has been duly advertised, and notice given thereof, as required by P.L. 1975, Chapter 231.

OPEN TO PUBLIC COMMENT

Chairman Petillo opened the meeting to public comment. No public comment. Chairman Petillo closed the meeting to public comment.

AGENDA APPROVAL

Chairman Petillo asked for a motion to approve the Agenda. Commissioner Drake moved the approval of the Agenda, seconded by Commissioner Madsen. No Changes. On voice vote: Ayes (6); Nays (0). The motion carried.

APPROVAL OF CONSENT AGENDA

The Chairman requested a motion for approval of the Consent Agenda. Commissioner Cocula moved the approval of the Consent Agenda, seconded by Commissioner Meyer. No discussions necessary. On voice vote: Ayes (6); Nays (0). The motion carried.

MINUTES

Chairman Petillo requested a motion to approve/acknowledge the distribution of the November 2, 2016 Pending Action Summary Sheet (PASS) which was emailed to the Freeholder Board on November 3, 2016.

PASS Report for 11-2-16 transmittal to the Freeholder Board
Commissioner / 1st / 2nd / Yea / Nay / Abstain / Absent
DAN PEREZ / x
TOM MADSEN / x
RON PETILLO / x
WAYNE DIETZ / x
ANDREA COCULA / x / x
KARL MEYER / x
JOHN DRAKE / x / x

The motion passed.

Chairman Petillo asked for a motion to approve the October 19, 2016 Open and Closed Minutes

Approval of Open and Closed Minutes for 10-19-16
Commissioner / 1st / 2nd / Yea / Nay / Abstain / Absent
DAN PEREZ / x
TOM MADSEN / x
RON PETILLO / x
WAYNE DIETZ / x
ANDREA COCULA / x / x
KARL MEYER / x
JOHN DRAKE / x / x

The motion passed.

Chairman Petillo indicated that the Open and Closed Minutes for the November 2, 2016 Authority Meeting have been emailed to the Commissioners for their review.

BUSINESS

a. Executive Session

At 3:02 p.m. Commissioner Cocula moved the adoption of the following resolution authorizing a Closed Executive Session. Motion seconded by Commissioner Drake. On voice vote: (6) Ayes, (0) Nays, the motion carried. Chairman Petillo noted Closed Session should last for approximately 30 minutes.

#16-141RESOLUTION RE: AUTHORIZING CLOSED EXECUTIVE SESSION

Commissioner Dietz entered the meeting at 3:05 during Closed Session.

At 4:30 p.m. Commissioner Cocula moved to adjourn the Closed Session, seconded by Commissioner Drake. On voice vote, Ayes (7); Nays (0), the motion passed.

Chairman Petillo indicated items discussed as specifically set forth in the resolution authorizing Closed Executive Session included: Lafayette Township Licensed Agreement; Paulinskill Contract PRC-101 Change Order and Payment Request; Cornerstone RE&I Agreement for Landfill Exp. Project; Hampton Commons Condo Assoc. Deductible and Personnel Matter. When the need for confidentiality of these matters no longer exists they will be opened to the public.

Chairman Petillo called for a short meeting break at 4:30 p.m.

Meeting resumed at 4:40 p.m.

b.Wastewater Program

Superintendent’s Report

Mr. Nugent noted that with his pending retirement, he is recommending a letter be sent to the Sussex County 208 PAC requesting that Acting Superintendent Angelo Baron serve as a Member at Large representing the SCMUA, with Chief Engineer Varro as an alternate. Commissioners agreed to send letter to County.

Chief Engineer’s Report

Mr. Varro presented a resolution authorizing the Execution of Amendment #2 for Kleinfelder Engineering, as previously discussed and detailed by Mr. Timothy Bradley in Executive Session. [Commissioner Meyer was out of the meeting during vote.]

#16-142: Kleinfelder Eng. Contract Amendment #2
Commissioner / 1st / 2nd / Yea / Nay / Abstain / Absent
DAN PEREZ / x
TOM MADSEN / x
RON PETILLO / x
WAYNE DIETZ / x / x
ANDREA COCULA / x / x
KARL MEYER / x- out of room
JOHN DRAKE / x

#16-142RESOLUTION RE: AMENDMENT NO. 2 TO AGREEMENT BETWEEN THE SUSSEX COUNTY MUNICIPAL UTILITIES AUTHORITY AND KLEINFELDER, INC. FOR CONSTRUCTION PHASE ENGINEERING SERVICES RELATED TO THE PAULINSKILL PROJECT – CONTRACT NOS. PRC-101, 102, 103

Administrator’s Report

Mr. Hatzelis reviewed the status of the interim funding options for the Paulinskill Project. The best option is to borrow one million from the solid waste general fund and repay over a one year period at 1.25% interest. This saves the Authority thousands in Note issuance costs. USDA reimbursement pending for certain tasks. Sewer User billings for Branchville and Frankford shall be issued in February 2017. Discussions continued regarding Solid Waste Fund balances and the savings that shall be realigned, now that debt service for Solid Waste has been paid in full.

Motion to: Transfer $1,000,000 from SCMUA Solid Waste General Acct to Paulinskill Project for final project completion
Commissioner / 1st / 2nd / Yea / Nay / Abstain / Absent
DAN PEREZ / x
TOM MADSEN / x
RON PETILLO / x
WAYNE DIETZ / x / x
ANDREA COCULA / x / x
KARL MEYER / x
JOHN DRAKE / x

The motion passed.

c.Solid Waste Program

Special Counsel’s Report

Mr. Prol stated that the County Board of Chosen Freeholders approved a Memorandum of Agreement between the County of Sussex and the Authority for the Legal Services related to flow control enforcement. Special Counsel Prol noted the MOA was reviewed by John Hatzelis and includes a recommendation of the appointment of Special Counsel Prol as Special County Counsel for Solid Waste Enforcement Matters.

Resol # 16-143: Execute MOA for Special Counsel Services
Commissioner / 1st / 2nd / Yea / Nay / Abstain / Absent
DAN PEREZ / x
TOM MADSEN / x / x
RON PETILLO / x
WAYNE DIETZ / x
ANDREA COCULA / x / x
KARL MEYER / x
JOHN DRAKE / x

#16-143RESOLUTION RE: AUTHORIZING THE SUSSEX COUNTY

MUNICIPAL UTILITIES AUTHORITY TO ENTER INTO A MEMORANDUM OF AGREEMENT WITH THE COUNTY OF SUSSEX FOR SPECIAL COUNSEL RELATED TO SOLID WASTE ENFORCEMENT MATTERS PURSUANT TO SHARED SERVICES AGREEMENT

Superintendent’s Report

Mr. Sparnon reported on the Shared Services Agreement between the SCMUA and Hardyston Township for profit sharing for Class A Fiber recycling. The Agreement is up for a one year renewal.

#16-144: One year extension of Shared Services Agreement with Hardyston for fiber recycling profit sharing
Commissioner / 1st / 2nd / Yea / Nay / Abstain / Absent
DAN PEREZ / x
TOM MADSEN / x
RON PETILLO / x
WAYNE DIETZ / x
ANDREA COCULA / x
KARL MEYER / x / x
JOHN DRAKE / x / x

#16-144RESOLUTION RE: SUSSEX COUNTY MUNICIPAL UTILITIES AUTHORITY AUTHORIZING THE EXECUTION OF AN EXTENSION OF A SHARED SERVICES AGREEMENT WITH THE TOWNSHIP OF HARDYSTON FOR THE PROVISION OF DESIGNATED CLASS A FIBER RECYCLING MATERIAL HANDLING AND MARKETING WITH PROFIT SHARING

Chief Engineer’s Report

Mr. Varro reviewed landfill expansion resolution to enter into an Professional Services Agreement with Cornerstone Environmental Group for RE&I Services for the Landfill Expansion Project.

#16-145: Authorize execution of agreement with Cornerstone for RE&I services for landfill expansion project
Commissioner / 1st / 2nd / Yea / Nay / Abstain / Absent
DAN PEREZ / x
TOM MADSEN / x
RON PETILLO / x
WAYNE DIETZ / x / x
ANDREA COCULA / x
KARL MEYER / x / x
JOHN DRAKE / x

#16-145RESOLUTION RE: AUTHORIZING EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT WITH CORNERSTONE ENVIRONMENTAL GROUP FOR GENERAL SOLID WASTE CONSULTING ENGINEERING SERVICES

Mr. Hatzelis noted that the Landfill Closure/Post Closure Care Fund Audit Report was prepared by the Authority’s Auditor and provided to the Commissioners. There is approximately $10 million in C/PCC Account and there were no findings or recommendations from the Auditor.

Motion to accept Audit Report
Commissioner / 1st / 2nd / Yea / Nay / Abstain / Absent
DAN PEREZ / x
TOM MADSEN / x
RON PETILLO / x
WAYNE DIETZ / x
ANDREA COCULA / x / x
KARL MEYER / x / x
JOHN DRAKE / x

Mr. Hatzelis reported on resolution to delete remainder of bad debt from the Solid Waste Revenue Account from Northern Sanitation, final bankruptcy settlement received in 2016.

Res#16-146: Deletion of Northern Sanitation’s bad debt from SW Revenue Acct
Commissioner / 1st / 2nd / Yea / Nay / Abstain / Absent
DAN PEREZ / x
TOM MADSEN / x
RON PETILLO / x
WAYNE DIETZ / x
ANDREA COCULA / x / x
KARL MEYER / x / x
JOHN DRAKE / x

#16-146RESOLUTION RE: AUTHORIZATION FOR THE ACCOUNTANT

TO REMOVE BAD DEBT FROM THE SOLID WASTE REVENUE ACCOUNT

Mr. Hatzelis reported that the Solid Waste Authority has $64.40 in uncollected checks for FY2016 and all efforts have been exhausted for collection of these debts. A resolution has been prepared for authorization to remove from the Solid Waste Revenue Account.

#16-147: Removal of bad debt for returned checks
Commissioner / 1st / 2nd / Yea / Nay / Abstain / Absent
DAN PEREZ / x
TOM MADSEN / x / x
RON PETILLO / x
WAYNE DIETZ / x
ANDREA COCULA / x
KARL MEYER / x
JOHN DRAKE / x / x

#16-147RESOLUTION RE: AUTHORIZATION FOR THE TREASURER TO DELETE CERTAIN BAD DEBTS FROM THE SOLID WASTE REVENUE ACCOUNT

d.General Authority Business

Administrator’s Report

Mr. Hatzelis prepared a resolution to adopt the SCMUA’s Schedule of Rates, Fees and Charges as presented and reviewed at the Rate Hearing on November 2, 2016. Mr. Hatzelis noted the only addition to the Rate Scheduled is the connection fee schedule for the Paulinskill System.

Res#16-148: Adoption of the Authority’s FY17 Rates, Fees and Charges
Commissioner / 1st / 2nd / Yea / Nay / Abstain / Absent
DAN PEREZ / x
TOM MADSEN / x
RON PETILLO / x
WAYNE DIETZ / x
ANDREA COCULA / x / x
KARL MEYER / x
JOHN DRAKE / x / x

#16-148RESOLUTION RE: ADOPTION OF SUSSEX COUNTY MUNICIPAL UTILITIES AUTHORITY’S SCHEDULE OF RATES, FEES AND CHARGES FOR FY2017

Mr. Hatzelis presented a resolution to formally adopt the SCMUA’s FY2017 Operating and Capital Budgets that have been approved by the Department of Community Affairs.

Res#16-149: Approval/adoption of FY2017 SCMUA Annual and Capital Budgets
Commissioner / 1st / 2nd / Yea / Nay / Abstain / Absent
DAN PEREZ / x
TOM MADSEN / x / x
RON PETILLO / x
WAYNE DIETZ / x
ANDREA COCULA / x
KARL MEYER / x
JOHN DRAKE / x / x

#16-149FY2017 ADOPTED BUDGET RESOLUTION FOR SCMUA

e.Personnel Matters

Administrator’s Report

Administrator Hatzelis noted that Marguerite Nemeth has been hired to fill a position that requires her to be appointed as the Authority’s Certifying Officer to execute documents regarding DMV, pension and PERS.

Res #16-150: Appointment of M. Nemeth as Certifying Officer
Commissioner / 1st / 2nd / Yea / Nay / Abstain / Absent
DAN PEREZ / x
TOM MADSEN / x
RON PETILLO / x
WAYNE DIETZ / x
ANDREA COCULA / x / x
KARL MEYER / x
JOHN DRAKE / x / x

#16-150RESOLUTION RE: APPOINTMENT OF MARGUERITE NEMETH AS SCMUA CERTIFYING OFFICER

Mr. Hatzelis reviewed a Proclamation for a Declaration of Appreciation for Patricia Frey who is retiring as of November 30, 2016 after 28½ years of service with the Authority.

Res#16-151: Proclamation of Appreciation for Patricia Frey’s Service to the Authority
Commissioner / 1st / 2nd / Yea / Nay / Abstain / Absent
DAN PEREZ / x
TOM MADSEN / x
RON PETILLO / x
WAYNE DIETZ / x
ANDREA COCULA / x / x
KARL MEYER / x / x
JOHN DRAKE / x

#16-151DECLARATION OF APPRECIATION FOR PATRICA FREY

Also, a Proclamation of Appreciation for Superintendent of Wastewater Facilities John Nugent after 31 years with the Authority.

Res#16-151: Proclamation of Appreciation for John Nugent’s service to the Authority
Commissioner / 1st / 2nd / Yea / Nay / Abstain / Absent
DAN PEREZ / x
TOM MADSEN / x
RON PETILLO / x
WAYNE DIETZ / x
ANDREA COCULA / x / x
KARL MEYER / x
JOHN DRAKE / x / x

#16-152DECLARATION OF APPRECIATION FOR JOHN NUGENT

Commissioners congratulate both employees and praise their service and dedication to the Authority over the length of their tenure here at the Authority, and wish them Best of Luck in their retirement.

8. Payment of Bills

FINANCIAL CONSENT AGENDA – Chairman Petillo asked for a motion to approve the Financial Consent Agenda (FCA).

Res: #16-153: FCA
Commissioner / 1st / 2nd / Yea / Nay / Abstain / Absent
DAN PEREZ / x
TOM MADSEN / x
RON PETILLO / x
WAYNE DIETZ / x
ANDREA COCULA / x
KARL MEYER / x / x
JOHN DRAKE / x / x

#16-153RESOLUTION RE: CONSENT AGENDA – BILL PAYING LIST

9.PUBLIC COMMENT

Chairman Petillo opened the meeting to Public Comment, no comments, Chairman Petillo closed the meeting to Public Comment.

10.COMMISSIONERS’ COMMENTS/REQUEST

Commissioners wished Mr. Nugent all the best in his retirement and wished all a Happy Thanksgiving. Commissioner Dietz commended Chief Engineer Varro on his efforts moving NJDEP approvals along for the Landfill Life Extension Project.

Commissioner Dietz noted that a motion should be made to execute the License Agreement with Lafayette Township, per discussions in Executive Session. Lafayette Township is requesting permission to access a small parcel of the SCMUA’s land to install a Welcome sign.

Motion: Execute License Agreement with Lafayette Township re: property access
Commissioner / 1st / 2nd / Yea / Nay / Abstain / Absent
DAN PEREZ / x
TOM MADSEN / x
RON PETILLO / x
WAYNE DIETZ / x
ANDREA COCULA / x / x
KARL MEYER / x / x
JOHN DRAKE / x

The Motion passed.

11. ADJOURN

Commissioner Cocula moved to adjourn the meeting, seconded by Commissioner Meyer. On voice vote: Ayes (7), the motion passed. The meeting was adjourned at 5:01 p.m.

Respectfully submitted,

Andrea Cocula, Secretary