READINGTON-LEBANON SEWERAGE AUTHORITY. May 25, 2011

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1 542 READINGTON-LEBANON SEWERAGE AUTHORITY May 25, 2011 OPENING: Chairman Schaible opened this regular meeting and announced that the Sunshine laws have been satisfied for the convening of this meeting. PRESENT: Messrs. Cichone, Monaco, Ms. Rohrbach, Dr. Westfield and Dr. Schaible members, and Mr. McCray, Administrator. Mr. Colantano, Auditor also attended. Mr. Burton did not attend. APPROVAL OF MINUTES: Motion to approve the minutes from the regular meeting of March 23, 2011 as written, was carried with roll call of ayes all, nays none. APPROVAL OF INVOICES: Motion to approve the invoices for the month of April for the amount of $98, along with the authorization for the Trustee to transfer this amount into the Operating Checking account and approval and authorization for (1) invoice totaling $20, to be paid from the General Fund account due to canceled meeting was made by Dr. Westfield, seconded by Mr. Monaco, and carried with a roll call of ayes all, nays none. Approval of invoices for May in the amount of $113, to be paid and authorization for the trustee to transfer this amount into the Operating Checking account on June 1, 2011 was made by Dr. Westfield, seconded by Mr. Monaco, and carried with a roll call of ayes all, nays none. NEW BUSINESS: 2010 Audit Report Mr. Colantano noted that there are no recommendations developed during his examination. Procedurally the Authority is operating without flaw. Mr. Colantano praised the Board for their diligence. Mr. Cichone thanked Mrs. Weierich for her efforts and continued performance. Mr. Colantano highlighted the balance sheet. Restricted fund balances for future capital needs will decrease the need for going to the bond market for future projects. The

2 543 outstanding bond will be finished in Mr. Colantano recommends keeping appropriation for capital funds and not to give an artificial decrease in budget appropriations. Profit and Loss statement indicate a loss but was largely due to depreciation. Analysis of past budgets indicated a decrease in expenditure. Exceptions are State mandated pension contributions, electric and sludge hauling. The primary source of miscellaneous revenue generated comes from interest on funds, but due to market conditions has substantially decreased. Overall the financial status of the Authority is excellent. Mr. Monaco asked if we should consider long term investments. Mr. Colantano noted that the Authority is restricted to investment terms no longer than one year. Motion to adopt the resolution to approve the Audit Report for 2010 and forward to the State Local Government Services was made by Mr. Monaco, seconded by Mr. Cichone and carried with roll call of ayes all, nays none. Emergency Purchase of Muffin Monster Dr. Schaible advised members that the muffin monster has been installed and is now in service. A savings was realized through its installation by Authority employees. Sludge Container Dr. Schaible noted that the old container was leaking and could lead to a violation. A new container has been purchased and the old container will be kept to move metal or scrap. NJSEM Dr. Schaible advised the board that participation in NJSEM will realize a savings of 10% or approximately $16, in electric costs over the next year. Mr. Cichone noted that Mr. Ponte has contacted him about installation of solar panels. Ms. Rohrbach would like to ear mark that savings toward the purchase of solar panels in the future. Mr. Cichone noted that there would be no need to create a new fund but Ms. Weierich can keep an account of savings which would be accumulated in the General Fund that can be used for a possible future solar panel project. Mr. McCray noted that there are only 1.5 acres available for solar panels and the expected costs of phosphorous and nitrate removal will take precedence over a solar panel project. Dr. Westfield suggested a feasibility study in the future. Mr. Cichone noted that Mr. Ponte has

3 544 approached him on the subject. Dr. Westfield questioned the cost for Mr. Ponte to perform such a study. Mr. Cichone added that a presentation to the Board would not cost anything but if an in depth study was performed there would be an associated cost. Lab Proficiency Certification Dr. Schaible commended the continued abilities of the Authority s lab personnel for the lab s recertification. WEF Burke Award Mr. McCray noted that the award was only presented to facilities with a longstanding safety record and credited Authority personnel for their dedication. Alarm System Upgrade - Dr. Schaible informed the Board that the Flemington Answering Service will discontinue their service effective June 1, Dr. Schaible noted that the answering service alerted employees when and to a limited extent, what type of alarm was occurring at the plant during non business hours. Dr. Schaible advised that a system upgrade is long overdue and the loss of the service is the impetus into action for the Authority. The estimated cost for a new system will be $30, There will no longer be a need for an answering service which will save a recurring $ /year. The current system has been operational for 30 years. Unfortunately it has not been upgraded over the years and would now be more cost effective to install a new system than to upgrade the current system. The current equipment is an obsolete analog based and the conversion will be digital. The new system will be fully automated and not subject to human error. It will also be able to pinpoint the problem for the operator on call. There will be more alarm points available than are currently available with the Flemington Answering Service. The system is essential to operations and required as the Authority does not maintain 24 hour shifts. Mr. Cichone and Dr. Westfield questioned obtaining another answering service. Mr. McCray advised them that he had attempted to switch to another service but none would install our alarm unit into their offices. Our alarm unit is analog and cannot be integrated into newer digital systems. Dr. Westfield questioned the number of alarms. Mr. McCray noted that the number of alarms were not the issue as an employee would have to be aware of any plant malfunction. Mr. Monaco reiterated that it would only be a onetime fee of $30,000. Dr. Schaible noted that the new system will

4 545 be completely computerized and automated. He and Mr. McCray highly recommend the upgrade. Mr. Monaco questioned whether we have competitive bids. Mr. McCray noted that multiple vendors will be used and the costs will come in below our bid threshold. The vendor Mr. McCray has contacted for programming the software is the vendor who installed the Authority s original alarm system. Mr. McCray explained that in the interim a dialer will be installed that will automatically dial out alarms until the new software can be installed. The plant will continue to be fully covered until the new software and alarm upgrade is completed. Mr. Monaco would like to know the various options in software available. Dr. Westfield asked if false alarms would be decreased. Mr. McCray believed that would be a possibility. Mr. McCray suggested that Mr. Lewan, the programmer for the new system give a presentation at the next meeting to answer any additional questions that the board might have. Sludge Cake Agreement The current agreement with Stony Brook Regional Sewerage Authority will expire this November. Dr. Schaible noted the renewed cost per cubic yard of sludge cake accepted by Stony Brook Regional Sewerage Authority will remained the same. The proposed contract will be $60/cubic yard for another 5 years. As SBRSA is a government agency the contract was not competitively bid. Motion to approve the SBRSA 5 year sludge cake agreement was made by Mr. Cichone seconded by Dr. Westfield and carried with roll call of ayes all, nays none. OLD BUSINESS: ADJOURNMENT: As there was no further business to come before the Board, meeting was adjourned by motion made by Mr. Cichone seconded by Dr. Westfield and carried with roll call of ayes all, nays none. Respectfully submitted:

5 546 Vincent Schaible Chairman Virginia Weierich Recording Secretary