DRAFT COPY

MINUTES OF A REGULAR MEETING OF THE

BINGHAMTON – JOHNSON CITY

JOINT SEWAGE BOARD

Tuesday, June 12, 2007

Johnson City

Municipal Office Building

 

Members Present:         Eugene Hulbert, Chairman

                                    Kenneth Kinsman, Vice Chairman

                                    Thomas Augostini

                                    Thomas Dellapenna, Jr.

                                    Edward Crumb

                                    Kevin Transue

 

Also Present:                Kenneth Helisek, Esq., Co-Counsel

                                    John Perticone, Esq., Co-Counsel (absent)

                                    Catherine Aingworth, Interim Superintendent

                                    John Cox, Fiscal Officer (absent)

                                    Beverly J. Palmer, Fiscal Officer

                                    Michele Cuevas, Confidential Secretary

                                    Dawn Sante, Transcriptionist

 

Guests:             Arthur Van Gelder, C&S Engineers

                                    Bob Palladine, C&S Engineers

                                    Bob Bennett, Engineer, Village of Johnson City

Mayor Lewis, Village of Johnson City

 

Chairman Hulbert called the meeting to order at 1:32 p.m.

 

PRIVILEGE OF THE FLOOR

 

C&S Engineers – Arthur Van Gelder & Robert Palladine

 

Mr. Van Gelder reported the following:

 

  • IDI is continuing the work of getting the software squared away on programming the BAF system. 

 

Contracts 1 and 3

  • All major equipment has been started up.  Preliminary testing has been done on secondary influent pumps and they are ready to go.  Once full flow is established, performance testing will be done.  
  • Pottable water usage is complete and meter and back flow has been turned over to the Town of Vestal.  Approximately 4MM gallons above the desired amount have been used, “which is a bit more than anticipated”.  There were a few issues with faulty valves, and programming problems drained a few cells that have not yet been refilled.
  • These contracts are currently in shutdown mode.  IDI is still working on site working on programming, but they will not start introduction of flow into the BAF’s until they get paid.  Matco and Falter are off site for the same reason, but both have affirmed that if an emergency were to arise, they would come and address those issues.  Payment issue also affects Contract 4, but Pinnacle and Nelcorp have chosen to continue to work.  All contractors will be looking for interest on past money due.  The last time payment was received was December 2006.  For the record, these invoices have been approved for payment, but payment has not been received.

 

Contract 4

  • Continues to move forward, however, a recent issue that arose was that the Contract calls for the Plant to de-water and empty Digester # 3.  The Plant has tried but cannot get all the water out.  C&S took a look inside the tank and based on visual inspection, there is an estimated 1,000-1,500 wet tons of gravel, silt, mud, flood and scum that still need to be removed from the tank. 
  • Mrs. Aingworth contacted Blue Heron for a dewatering estimate.  Pinnacle contacted Hydro Press to give an estimate.  Estimates fall between $210,000-$300,000 (for sludge removal) and a minimum of one month’s work, which slows Contract 4 by one month.  Blue Heron can start work in two weeks.  Hydro Press gave a higher bid but can start within a few day’s of notice to proceed.  Mr. Van Gelder reminded the Board that “technically, this job is Plant work so it is up to the Plant to address the program”.
  • Pinnacle’s contract calls for Pinnacle to remove 60 wet tons from all 3 Digesters.  Reports show they have already removed 1/2 - 2/3 of that from Digesters 1 and 2.  If the Plant chooses to go with Hydro Press, they would be a subcontractor to Pinnacle, since Pinnacle is currently under contract.

 

  •  If Pinnacle’s contract ends up not being completed to 60 tons, Mr. Van Gelder will ask for a credit of unused dollars.  Digesters 1 & 2 were not on line and were cleaned prior to both floods.  Engineers need to get into the tank to inspect the cover to see what needs to be done before any work is done. 
  • Theoretically, roof repair was to be done under Contract 4 after testing was done.  Testing needs to be done as soon as possible.  It takes at least three weeks to get results back and no roof work can be started until results are reviewed.  Funds will most likely come out of capital budget.
  • To have a Blue Dome installed will cost approximately $1.4MM.  That would be an additional change to Contract 4.   To repair the cover, Mr. Van Gelder estimates additional funding ranging from $650,000-$1.4MM, which would max out funds in this contract.  It was commented that burps will occur. 
  • John Virginia said there is a lot of mud and silt verses grit.  Mr. Palladine called Dave Anderson from SEMO.  Mr. Anderson advised that if it is indeed mud and silt, and found to be flood related and newly discovered, than there may be some funding.  This would fall under Category 3 – Removal.  Mr. Palladine is going to put together proper documentation and forward it over to Dr. Stallard who is currently processing revisions.
  • Mr. Hulbert concluded that the Plant needs to first go ahead with the removal of sand and silt, and then it is the owner’s responsibility to take care of the cover and finishing up the tank.  The Plant must first remove all sludge and do an inspection.  Then it becomes a bonding issue to be handled with the EAC.  Board members agreed that there was time to bid this project.  Mrs. Aingworth reminded the Board that even though testing will be done, there is not a guarantee that the full amount of solids will be able to be taken up to the landfill. 
  • Mr. Van Gelder and Mr. Palladine will meet with Mrs. Aingworth to get complete and accurate cost estimates, a full scope of the project and a timeline.  The project will then be bid.  Mr. Perticone will review spec work before it goes out to bid.  Mr. Palladine will add this task to the existing C&S Periodic Services Agreement under Letter of Authorization # 7: To prepare planning specifications within two weeks.

 

Terminal Pump Station (TPS)

  • Only pump system #1 needs to be completed.  A bad upper bearing was found due too prolonged storage.  The manufacturer repaired the bearing and it will be back on site and started up on June 13.
  • The knife-gate valve was repaired during shutdown, but the Plant says it is still too tight and difficult to operate.  When the pump is installed, C&S will to try and adjust the packing to see if it can be loosened.  If not, a 20” gate valve replacement is available.  Mr. Van Gelder noted that if a valve replacement is needed, another shut down will have to be scheduled from about 12am-6am.  C&S is trying to avoid this.

 

Tanks 5 & 8 - Headhouse Pump Replacement

  • Pump #3 will be started up on June 13.  Flight is onsite but is going to hold off on the installation of Pump #4 until they receive payment of the first invoice.  Mr. Augostini advised that payment should be issued June 29. 
  • The introduction of flow on the BAF’s was originally scheduled to begin last week. 
  • Mr. Hulbert quested if this was a Board cost or a change-order.  Mr. Bennett replied that the Plant was supposed to clean the Digesters and tried to clean pump #3.  If the EAC considers this an eligible cost, it will be covered, but the Plant still needs to pay all Contractors first.  Mr. Bennett will contact SEMO to determine coverage.

 

Clarifier Improvement Project

  • C&S is waiting on a signed Agreement.  The insurance company is ready and waiting on the bonds.  Fab will be handling pipe installation and C&S has requested that it be delivered as quickly as possible. 
  • Since the wall hubs are manufactured, Mr. Palladine is comparing costs of Envirex, Amwell and a third supplier.  Envirex has a long lead time, leaving Amwell or the other supplier as the likely candidates.
  • Mr. Palladine advised Mrs. Aingworth that the sequence of construction is set to begin heading down stream with the way the sump flow goes (10, 9, 8, 7, 6, 4, 3, 2, 1, 5).  Mrs. Aingworth confirmed that she did not have a particular preference where work began. 
  • Bonds and insurance documents will be reviewed by Mr. Helisek.

 

            Mr. Augostini made a motion to authorize C&S Contractors to continue under the existing contract, on the same terms and conditions.   The contract will be reviewed by Co-Counsel.  Second by Mr. Crumb. 

 

            Motion carried:          6 ayes, 0 nay

           

APPROVAL OF MINUTES

 

Change to pg. 3 by Mr. Helisek.  Clarification on page 3 by Mrs. Palmer regarding scheduled date of Falters payment.  Change to pg. 4 by Mr. Kinsman.  Change to pg. 6 by Mrs. Palmer. 

 

Mr. Palladine presented Mr. Hulbert with a letter authorizing Falters to be paid for work performed on Tanks 5 and 8.  Mrs. Palmer assumes this is all Mr. Cox needed and that Falters will be paid June 15. 

 

Mr. Hulbert requested Mr. Cox detail the $225,000 NYSERDA credit.  Mrs. Palmer will note in the Treasurer’s Report that the Board would like to be advised of the fund balance.

 

Mr. Hulbert has requested a meeting with Mr. Cox and Mrs. Cuevas regarding payment procedures.  Mr. Crumb requested it be noted that the Board feels Mr. Cox is not serving the Board well. 

 

            Mr. Kinsman made a motion to approve the May 8 minutes as corrected.              Second by Mr. Delapenna.  

 

            Motion carried:          6 ayes, 0 nay

 

FISCAL OFFICER’S REPORT

 

Mrs. Palmer presented the Fiscal Officer’s Report with a balance of $2,913,902.15.

 

The Water Department will be issuing a credit to all customers, except for those in the City of Binghamton, for distribution of 2006 year-end funds.  Mr. Crumb suggested a Press Release go out highlighting the latest pro’s involving the Plant, including this water credit.  Mrs. Cuevas will coordinate.

 

At Mr. Hulbert’s questioning, Mrs. Palmer confirmed that there is $960,400  (or $964??) to be used for capital.

 

Historically, encumbered funds have not been listed.  Mr. Crumb feels they should always be listed and again stated that this is another example of how the Board is not getting the service they are paying for. 

 

            Mr. Augostini made a motion to approve the Fiscal Officer’s report as submitted and amended.  Second by Mr. Transue.

 

            Motion carried:          5 ayes. 1 nay*                                               
                                                * Mr. Crumb because encumbered funds were not listed.

 

APPROVAL OF CLAIMS

 

The May 2007 Claims spreadsheet was distributed totaling $433,950.22, including the addendum. 

 

Mr. Hulbert requested Mrs. Aingworth ask Mr. Bills to do a presentation to the Board in September.

 

            Mr. Dellapenna made a motion to approve the May 2007 Claims spreadsheet.              Second by Mr. Kinsman.

            Motion carried:          6 ayes, 0 nay

 

 

CORRESPONDENCE

 

Mrs. Aingworth noted the following correspondence:

 

  1. Memo from Mr. Cox to the Board regarding the Procurement Policy.  Mrs. Aingworth advised the Board that the Kemira Water Solutions contract is for the ferric chloride storage tank, pumps and paraphernalia.  The contract was scheduled to continue until the BAF’s were running, which was planned to be last fall.  Kemira was going to raise prices after the contract expired.  If the Plant did not continue using Kemira for ferric chloride, all Kemira storage tanks and products would have had to have been ripped out and replaced, costing the Plant more than the cost of continuing the contract.  Kemira agreed to hold the prices for the Plant as long as the Plant stayed in contract.

 

Regarding polymer, the Plant is working on a bid specification.  In the meantime, polymer needs to be kept in stock.  The quality of Digester sludge has changed since the Plant went from using Digester #3 to #1 and #2, and the Digester is running better.  It is going to change again once the BAF’s are up and running in a few months.  Polydyne, Inc. has historically provided the polymer prices for the Plant.  The Plant did bid for polymer a few years ago and Polydyne, Inc. won the bid.  Lime has not been bid yet because the Plant was not sure how much would be needed.  Mrs. Cuevas commented that the Plant goes through lime usage varies from month to month.  Mr. Transue advised the Plant should take an average based on one full year.  Mrs. Aingworth replied that the numbers will change once BAF’s are running.  Mrs. Aingworth added that polymer is more difficult to bid than lime because characteristics of sludge need to be detailed, and the Plant has a few different types of sludge. 

 

The ferric chloride bidding issue needs to be discussed with Mr. Cox.  Mr. Cox was historically advised by the Plant that all numbers will change once BAF’s are up and running.  Mr. Perticone will send a letter to Mr. Cox stating that there needs to be an exception to the Procurement Policy with regards to ferric chloride, because it will cost more to rip out and replace the equipment, than to continue using what is there now for just a few more months until the BAF’s are up and running.  Mrs. Aingworth will provide Mr. Perticone with talking points.  Mrs. Cuevas will provide Mr. Perticone copies of historical Board minutes showing where this topic was previously discussed.

 

Mrs. Aingworth will coordinate a lime bid.  The polymer bid will take longer, but at Mr. Hulbert’s request, Mrs. Aingworth will complete it “sooner” than 3 months.  Mrs. Cuevas will follow up with Mr. Cox to see if there is now approval to issue payment to Polydyne, Inc. and Kemira for the outstanding invoices.

 

  1. Letter from Mr. Hinkley (a local resident) to the Plant.  Mr. Bennett explained that Mr. Hinkley has been complaining to the Plant of “sewer disposal” washing up on his property for the last 9 year.  Each time a call or letter from Mr. Hinkley, a representative would be sent to his property to address the issue.  It was determined that the problem was occurring because after heavy rains the catch basin in the street would get clogged.  The only way to, the stop this from happening would be to plug the catch basin.  Mr. Hinkley agreed, having been advised of the pros and cons. Every time there is a heavy rain, there does tend to be garbage that runs down the street onto this property.  However, the garbage has no relation to the catch basin.  Storm water is different than sanitary water.  This is always explained to Mr. Hinkley, to his apparent satisfaction.  However, it seems that Mr. Hinkley sent this most recent letter after the recent June 2007 storm.  Mr. Bennett is going to gather all facts (such as when exactly the catch basin was plugged and how many visits were made to Mr. Hinkley’s property) and then send a reply via certified mail to Mr. Hinkley.  Mr. Crumb suggested that the Board also send a letter to Mr. Hinkley acknowledging his letter.  Mr. Helisek will coordinate.

 

  1. Letter from Rita Petkash (BC Dept. of Planning) to the Board requesting the Plant provide them with information about the Plant’s wastewater capacity and design flow.  The letter does not state dry or wet flow.   Mrs. Aingworth spoke to Howard Lafever of Stearns & Wheler for clarification on this request.  Mr. Hulbert reminded Mrs. Aingworth that a total design flow was recently determined in a meeting with her.  He then advised her to send the Department whatever design flow “page” the Plant currently has, along with a list of the last five years of numbers of what the flow has been, and let the Planning Department do the rest of the work.  Mr. Bennett commented that another Digester is going to be needed regardless of what capacity numbers are. 

 

  1. A letter from Nancy LaBare (Town of Union Council Person) to both Mayors.

 

  1. A Draft of the NYS Tributary Strategy for Chesapeake Bay Restoration from the NYSDEC.

 

  1. Letter from Stearns & Wheler stating their interpretation of the NYS Tributary Strategy for Chesapeake Bay Restoration.

 

  1. A letter inviting Mrs. Aingworth to the Chesapeake Bay Restoration meeting on June 14 and Mrs. Aingworth will attend the meetingg.

 

  1. A quote from Blue Heron for Digester #3.

 

  1. Notice of Intent to Award Blue Heron with the Clarifier Improvement Project.

 

  1. Letter to Mr. Hulbert from Mr. Palladine requesting payment to Falters to work done to Primary Clarifier Tanks 5 and 8.

 

  1. Two letters from the NYS Environmental Facilities Corporation (EFC) regarding execution of the Project Finance Agreement (PFA) and flood related damage, along with Opinion of Local Counsel.  One letter went to the City (11,717,006).  The other letter went to the Village ($13,522,976).

 

Mr. Perticone is having Jeff Loew at Levene Gouldin & Thompson, LLP review the Opinion of Local Counsel with regards to the reference of “potential claims”.  Mr. Loew is working on clarifying this terminology with George Cholakis at the EFC.  Once clarification is received and agreed upon, Mr. Perticone will sign his letter.

 

Once all agreements are signed and returned to Mrs. Cuevas, she will send the originals back to Mr. Cholakis by June 18, as requested.  The Board noted that the Agreements were post-dated June 21.  Attorneys agreed to date their agreements June 21.  Mrs. Cuevas will send copies to Mr. Perticone, Beth Westfall and Kenneth Frank. 

 

Mr. Augostini advised the Board via of the correct procedures to make a Resolution to adopt the PFA.

 

Mr. Augostini made a motion for Mr. Hulbert to sign the Project Finance Agreement.  Mr. Crumb second.

 

                                    Motion carried:            6 ayes, 0 nay

 

Mr. Augostini made a motion for respective Counsels to do an opinion of local counsel regarding a note pending threatened litigation relating to the issuance of the sale, execution or delivery of the Project Finance Agreement under note or any other related proceedings.  Mr. Dellapenna second.   

 

            Motion carried:            6 ayes, 0 nay

 

  1. Newspaper copy of the advertisement for the Plant tour held on May 15.

 

  1. Copy of Board Resolution from Broome County Legislature.  Mr. Crumb noted that the Board did not approve the language written in the FURTHER RESOLVED paragraph that states “…amount not to be less than Fifty-Five Dollars…”.  The Board approved “not to exceed fifty-five dollars”.  Mr. Perticone confirmed that the Board will not pay more than $55.00, regardless of what the contract states. 

 

  1. Appeal of FEMA Decision of Ineligibility from Mr. Augostini to Mr. Kempf of FEMA.

 

  1. Letter from Mrs. Aingworth regarding Gavin Vitale’s promotion.

 

SUPERINTENDENT’S REPORT – Cathy Aingworth

 

The Superintendent’s Report was circulated.  Everyone followed along with Mrs. Aingworth. 

 

Personnel

The shift issue is still pending because Mr. Perticone has not received a final determination from Mr. Cox.  Mr. Perticone and Mr. Cox have discrepancies regarding the language.  Mr. Crumb suggested the Board set a deadline for a response from Mr. Cox.  Mr. Perticone will send a letter to the Comptroller for an opinion to move this challenge along.

 

Board Actions

Mrs. Aingworth requested permission to purchase three chemical storage tanks.  The Board concluded that the cost of all three tanks needed to be combined into one total of $15,000 and, therefore, needs to be bid.

 

Mr. Augostini made a motion to for Mrs. Aingworth to advertise to then go out to bid.  Mr. Kinsman second.

 

            Motion carried:          6 ayes, 0 nay

                                   

Mr. Kinsman made a motion to give Mrs. Aingworth permission to complete the Secondary Influent Pump Station SCADA connection at a cost not to exceed $10,000.  This will come out of budget line item 4447A.  Mr. Dellapenna second.

 

            Motion carried:          6 ayes, 0 nay

 

Mrs. Aingworth requested permission to begin a retrofit of plant SCADA for a cost not to exceed $75,000.  Board needed clarification on where dollars were currently being allocated. 

Mr. Augostini listed the following expenses:

 

                        $          952,000            2005

                                    600,000            unappropriated funds

                                    300,000            2007 capital budget

                                 1,852,000

                                    (73,500)            Falters Tanks 5&8

                                    (300,000)            Clean Digesters

                                    (75,000)            SCADA Pump

                                    (100,000)            Roof Repair

                                    (150,000)            Secondary Power Source

                                    (227,000)            Blue Heron

                                    (75,000)            Office Renovations

                                (1,000,500)

 

                        BALANCE:  $851,500

 

Mr. Crumb made a motion to standardize the equipment to Allen Bradley so that no formal bid needs to happen.  Mr. Kinsman second.

 

                        Motion carried:          6 ayes, 0 nay

                                   

At Mr. Crumb’s suggestion and the Boards’ agreement, Mrs. Aingworth will have Mr. Hemingway do a presentation to the Board reporting on the SCADA system and advising his recommendation.

 

Mr. Crumb made a motion get a certification and signed design from Mr. Hemingway, as a computer engineer, that the SCADA system is going to meet the Plant’s needs and is adaptable for future needs, such as phosphorous, under the on-call contract of Professional Services.  No dollars were determined or confirmed for this motion.  Mr. Kinsman second.

 

                        Motion carried:          6 ayes, 0 nay

 

Mr. Augostini made a motion to authorize the Superintendent to send up to four     employees to the NYWEA summer meeting in July and reimburse all usual and             customary expenses.  Mr. Crumb second.

 

                        Motion carried:          6 ayes, 0 nay

 

 

COMMITTEE REPORTS

 

Staff salary recommendations will be discussed in Executive Session.

 

 

OLD BUSINESS

 

Mr. Helisek presented minutes dated August 16, 2005 minutes confirming that the Procurement Policy was indeed changed.

 

Mrs. Aingworth has not heard anything back on from the County regarding the county-wide mapping project.  Mrs. Cuevas will check with Sandy Lizlovs to see if she has sent any letters out previously requested of her.

           

NEW BUSINESS

Consent Order

No formal draft order has been received by Department of Environmental Conservation (DEC) yet.  Mr. Perticone is working with Mr. Palladine and Mrs. Aingworth to send a letter to the DEC suggesting that when the DEC not assess any fines to the Plant for delay in the completion of the construction project.  Mr. Perticone will provide the DEC with a timeline showing that the delays in the project were a result of matters not under the Plant’s control or as a result of New York State’s actions. 

 

 

MISC

 

Mrs. Aingworth responded that she will advertise for an Assistant Superintendent in the near future.

 

With regards to budgeting for additional Plant staff, Mr. Hulbert recommended purchasing the C&S trailer as additional office space until the Plant can complete its renovations.  Mrs. Aingworth responded that the trailer has a very strong odor of cigarette smoke, so she prefers not to consider that as an option at this time.

 

 

2008 BUDGET

 

 

The budget was reviewed with Mrs. Aingworth who presented an initial budget for 2008 of $________.  Multiple changes were made by Board members present.  Mr. Transue and Mr. Dellapenna were absent during a majority of the budget review and came in near the end of the discussion.  Mr. Transue acknowledged that he did not feel comfortable with the final proposed increase of the budget.  As a representative of the City, Mr. Transue was not comfortable putting additional costs on the City customers.  The Board concluded that Mrs. Aingworth will make cuts to contingency, chemicals, sludge and two personnel positions to allow the final proposed 2008 budget to be $____________, plus benefits.

 

Regarding Electric (4429), the Plant will look at review spending over the last few years.  Mr. Kinsman will find out if there is a meter on Gate’s Road.

 

Mrs. Aingworth will provide a revised spreadsheet to the Board before meeting with the Comptroller.

 

EXECUTIVE SESSION

           

            Mr. _________ made a motion to enter into Executive Session to discuss salary recommendations at _______ p.m.  Mr. ________ second.

           

            Motion carried:          6 ayes

                                    0 nay

                                   

            Mr. _______________ made a motion to adjourn the meeting at ____ p.m.  Mr.             _____________ second.

 

            Motion carried:          6 ayes

                                    0 nay

                       

TIME AND PLACE OF NEXT BOARD MEETING:

Tuesday, July 11 at 1:30 p.m.

City of Binghamton

City Clerk’s Conference Room

 

                                                                                    Respectfully submitted,

                                                                                    Dawn Sante

                                                                                    Transcriptionist

 

Cc:       Board Members

            Mayor Ryan, City of Binghamton

            Mayor Lewis, Village of Johnson City

            Kenneth Helisek, Esq.

            John Perticone, Esq.

            John Cox, Fiscal Officer

            Catherine Aingworth, Interim Superintendent

            City Clerk, City of Binghamton

            Haylor Freyer & Coon

            File