DRAFT COPY DRAFT COPY DRAFT COPY

MINUTES OF A REGULAR MEETING OF THE

BINGHAMTON-JOHNSON CITY JOINT SEWAGE BOARD

Tuesday, November 14, 2006

City of Binghamton, City Clerk's Conference Room

Members Present: Thomas R. Augostini, Chairman

Eugene Hulbert, Vice Chairman--ABSENT

Thomas Dellapenna, Jr.

Kenneth Kinsman

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

John Perticone, Esq., Co-Counsel

Catherine P. Aingworth, Interim Superintendent

Beverly J. Palmer, Fiscal Officer

Michele Cuevas, Confidential Secretary

Kathleen C. Carney, Transcriptionist

Guests: Tarik Abdelazim, Deputy Mayor, City of Binghamton

Luke Day, Commissioner of Public Works

Tom Devine, Stearns & Wheler

John LaGorga, Stearns & Wheler

Mayor Ryan, City of Binghamton

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Chairman Tom Augostini opened the meeting at 1:42 p.m. He noted that as there was not a quorum, no official business would be conducted at this meeting. Co‑counsel Helisek also noted for the record that as there was not a quorum, no formal legal action may be taken at this meeting and no formal resolutions may be made.

PRIVILEGE OF THE FLOOR

Mayor Ryan

Mayor Ryan addressed the Board expressing his support for the proposed formula (which he terms 1, 1 and 1) for choosing Board members, which would consist of the following:

· One person must be a resident.

· One person need not be a resident of the municipality.

· One person that may or may not be a resident. If they are not a resident, they must be employed by the municipality to serve on the Board. If their employment with the municipality ends, their position with the Board would also end.

He informed the Board that this resolution will be brought before Binghamton City Council at the next meeting and they are expected to pass the resolution.

He asked Chairman Augostini to support this position with the Trustees of the Village of Johnson City and to not block this reform. He stressed that the original Inter Municipal Agreement was adopted in 1965 and much of the technology has changed. Today's plant is a much more technologically driven plant. He urged Chairman Augostini to reconsider his position (as to voting against the new proposal).

Chairman Augostini noted that the next meeting of the Trustees of the Village Board of Johnson City will be held on Tuesday, November 21. A work session will be held at 5:30 with a regular meeting at 7:30. He asked Mr. Dellapenna and Mr. Kinsman to attend that work session in order to discuss the proposal with the trustees.

Mayor Ryan noted that he was at the Legislative Priorities Meeting in Albany on November 13. He noted that sewage treatment is an important issue to the cities and villages of the State.

Chairman Augostini noted that when the Plant was constructed in 1959, there was a large amount of federal money allotted for the construction to meet new federal mandates. The period of usefulness of those plants is now ending for most of those plants and many of them need to be rebuilt. The federal money available in the late 1950s and early 1960s is no longer available and construction costs come through the ratepayers.

Luke Day

Mr. Day expressed his support for the new resolution for naming Board members from the two constituencies.

Co-counsel John Perticone

Co-counsel John Perticone advised that when reviewing the issue of revising the Inter Municipal Agreement, he contacted the DEC and asked for any form agreements that might be used as guidelines. The DEC did not have any such agreements (in the Albany office) and Mr. Perticone contacted the regional office, which also did not have any. He contacted the Department of State (local government shared services office) and although they did not have any guidelines that were exactly on point, they would provide him with other form agreements in related areas where municipalities had shared services.

He has been trying to contact the City of Ithaca, which operates a sewage treatment plant as a part owner with other municipalities that are also owners. An agreement for the Ithaca plant has been developed within the past five years. He will contact them for any guidelines/documents that may assist in establishing a starting point.

Mr. Kinsman made the point that the DEC does not want to deal with our Inter Municipal Agreement between the owners, nor do they have the experience to do so. They want the owners to revise and standardize the agreement with the outside users. They also want the owners listed on the consent order, which they are not at this time.

Mr. Kinsman also reiterated the Endicott, Ithaca and Binghamton all have multiple owners. He also noted that Roanoke was similar; they own the plant and service two other cities as outside users. They incorporated, formed a sewer district and included those two cities in the district.

He noted that it will be up to the owners to decide to modernize.

Stearns & Wheler-John LaGorga

Lime Stabilization Project

The foundational base for the lime silo storage was installed in mid-October. That work is complete. The equipment is scheduled to be delivered next week (November 20, 2006) and construction, mechanical and electrical, will begin the week of November 20. As that week is a holiday week, Mr. LaGorga estimates that construction will take three weeks, with the system being up and operating by the end of November.

Pre-Treatment Program

Stearns & Wheler has been having conversations with Interim Superintendent Aingworth regarding the Pre-Treatment Program. Throughout the course of this year they have had an opportunity to look at ways to improve the program. They would like to present a proposal for additions and improvements to the program. They will provide a proposal of the advantages and disadvantages of bringing on new programs at the next Board meeting.

Centrifuges

Interim Superintendent Aingworth noted that there are some centrifuge problems; one has a bad motor and the other a bad VFD.

Mr. LaGorga reiterated that there were some issues with the centrifuge start up. They have pushed back the delivery several weeks on more than one occasion. The lime stabilization equipment will have to be delivered and stored at this point (they cannot push back delivery any longer).

Energy Audit

Mr. LaGorga introduced Tom Devine, Stearns & Wheler's Energy Audit Engineer. He attended the meeting as it was understood that NYSEG would be attending to discuss a study of using methane gas from the digesters and also using the effluent for electrical generation. NYSEG has applied to NYSERDA for these studies. (The application deadline for NYSERDA was November 14, 2006). Once the application is submitted, NYSEG will submit a copy to Interim Superintendent Aingworth.

Chairman Augostini indicated that if Stearns & Wheler has a proposal for the Plant, the Board would entertain that proposal as well.

Mr. LaGorga thanked the Board for this opportunity. Mr. Devine reported that Stearns & Wheler is involved in a NYSERDA program called Flex Tech, and are pre-approved to provide certain studies and services at a 50% cost share. He is interested in seeing the application (NYSEG's) and the scope of work that NYSEG has proposed.

FISCAL OFFICER'S REPORT

Ms. Palmer presented a Fiscal Officer's report, dated November 14, 2006, with a balance of $2,748,627.39. The fourth quarter billings have all been mailed and all have been paid except for the Town of Dickinson and Binghamton University.

BOARD LISTING

The Board listing was approved at the special meeting held November 8, 2006.

SUPERINTENDENT'S REPORT

Violations, Complaints & Significant Problems

· The plant and Johnson City Pump Station has severe damage of pump shafts and in‑line channel grinders.

· Urgent repairs to the Johnson City Pump Station and Binghamton Main Pumps are pending.

· There continues to be a controlled burn in the compost bioreactor. Plant personnel monitor temperatures daily and apply nitrogen to control the temperature of the fire. The compost will not be removed until the lime upgrade is completed.

Compliance

· The effluent suspended solids, BOD and iron limits were met in October.

· Influent suspended solids were 139, and effluent suspended solids were 32, which is an average 77% removal. Current effluent limits for suspended solids are 53. Influent BOD was 161 and effluent BOD was 86, which is an average 47% removal. The effluent BOD limit is 132.

· We had an unannounced inspection by the DEC on Monday, October 30, 2006. The report from the DEC is in your packets.

Personnel

· Pending: Informational request from Civil Service regarding title changes.

· Pending: The Binghamton Civil Service Commission had reviewed and approved qualifications for shift lead operators (4). We will begin advertising for these positions.

· Continuing: Management personnel continue meeting with consultant Jack Bills

· Continuing: Labor Management meetings continue to discuss new management initiatives, including scheduling and training. The next meeting is November 29.

Compost Facility

· Continuing: The compost bioreactor continues a controlled burn.

Operational Issues

· Terminal Pump Station #3 shaft came apart.

· In-line channel grinders at TPS both malfunctioned the weekend of October 29. This leaves the pump station in an extremely precarious state. Employees are required to manually rake screens at least several times per shift. Safety equipment, including gas monitors, harnesses and masks has been provided to employees for their safety. We received emergency authorization from the Board for the repair of the two damaged pieces of equipment.

· Ten out of ten settling tanks are on line.

Digesters

· The #3 Digester is currently working to stabilize solids.

Centrifuges

· The Westphalia centrifuge is on-line. This may change with the problems to one or both of the centrifuges. The earliest one may be on-line will be 7-10 days due to electrical problems. This is a vendor problem.

· We are working with Westphalia to start up the two new additional centrifuges. These should be on line within the next week.

· Work for the lime upgrade equipment has begun.

Influent Pumps

· Pending: Corrective action is being planned through C & S Engineers and lead agency, the Village of Johnson City. The Johnson City Terminal Pump Station suffered significant damage. The corrective action being coordinated by Johnson City may assist in the repair of some problems.

Primary Tanks

· We are in chemical precipitation and primary settling only mode with tanks 1-10 on line.

Industrial Pretreatment Program

· Continuing: Stearns & Wheler is assisting our staff with the Industrial Pretreatment Program.

· Wilson Electroplaters appears to be in significant noncompliance. This may be the cause of the plant exceeding the September effluent limit for silver. (There is information in Board members' packets relating to this issue.) Stearns & Wheler is constructing a letter to Wilson Electroplaters and Interim Superintendent Aingworth urged the Board to consider the issue of fines for Wilson Electroplaters. Mr. LaGorga indicated that Wilson Electroplaters' equipment is antiquated. Stearns & Wheler would like to give them until the end of the year (2006) to optimize their existing equipment without levying a fine and then if they cannot get their existing equipment operating properly by the end of the year, fines will be levied until they install new equipment. Co‑counsel Helisek advised that where their violations are egregious, the Board should consider and inform them that the Board may pull their permits and shut them down (seek an Order to Show Cause to Terminate). Mr. LaGorga will forward the draft letter to co-counsel Helisek for his review. Chairman Augostini asked Mr. LaGorga to work with Mr. Perticone on changing the permit levels (local limits for metals) for the sewer use ordinance.

Wilson-Electroplaters-cont.

· He would like Mr. LaGorga to review with Mr. Perticone what steps the Board needs to take to make those adjustments; this will get the Board one step closer to where the limits should be. Mr. LaGorga indicated he would be willing to do this.

· Investigation is needed for organics (fuel oils) showing up in influent, occasional discharges high in solids and oil and grease in food handling and serving facilities.

Plant Business

· The Plant Interim Superintendent has been invited to give a presentation at the New York Water Environment meeting in February 2007 regarding our experiences with the June 2006 flood. She will be presenting with Sandy Lizlovs of the DEC.

· The Plant has been contacted by Stearns & Wheler regarding the county study of wastewater treatment plants and capacity. A meeting has been scheduled with Stearns & Wheler (there is a letter in Board members' packets).

· Plant personnel are soliciting information and quotes pertaining to safety programs and equipment.

Recommended Board Actions

· Request permission for Catherine Aingworth to attend the February NYWEA meeting in New York City.

Contract 3 – BAF's

· Work is in progress.

· Plant personnel have had meetings with IDI and C&S regarding start up plans.

Contract 4 – Solids Handling

· Work is in progress.

CORRESPONDENCE

Mr. Perticone reviewed the letter he wrote to Travelers (dated October 27, 2006) regarding the claim for insurance coverage related to the flood at the BAF construction site. Mr. Perticone reviewed the policy and according to the terms of the policy, it appears that Travelers was correct in saying there would not be coverage in that that portion of the Plant is located in a flood zone. However, the problem he sees with their disclaimer is that it basically is unfair because the Board had been told that they were being provided flood coverage by Travelers at this particular location, which the Plant was being covered and they paid a premium for that coverage. Also, the Plant submitted a claim on the 2005 flood for the same area and Travelers paid the claim. Finally, if the Plant/Board had known that there was no possibility of coverage from Travelers for that part of the construction site, there was available to the Plant/Board the option of obtaining coverage through FEMA. It is the Board's/Plant's position that because of the actions of Travelers in selling the Plant coverage and their actions in providing coverage in the very same location the year before, that they cannot now argue that there is no coverage. In these circumstances, there is a lot to be said for the fact that they did act properly in denying coverage. The Plant currently has a claim for reimbursement with FEMA. FEMA could conceivably pay for all of the Plant's losses and they would not necessarily need to go to Traveler's for coverage. The Plant has two years from the date of the loss to process a claim against Traveler's for coverage. The Plant will hear from FEMA before that date. Mr. Perticone recommended continuing the dispute with Traveler's (inform them of the Plant/Board's disagreement with their interpretation) but do not commence any formal proceedings until it is ascertained whether in fact the Plant is out of pocket any money. Mr. Perticone will track this for the contractual provision.

Interim Superintendent Aingworth noted routine pre-treatment letters and employee certifications that were received from Plant employees.

Interim Superintendent Aingworth noted a pre-treatment letter to Alternative Fuels at 11 Hall Street, Binghamton as they continue to discharge without a permit. Stearns & Wheler has been trying to contact the operator of the business (different than the owner of the property). Michele Cuevas will contact the City of Binghamton and obtain the usage data for 11 Hall Street, Binghamton.

BOARD COMMITTEE REPORTS

There were no Board Committee Reports.

The meeting was declared closed by Chairman Augostini at 2:38 p.m.

The next regularly scheduled meeting is scheduled for Tuesday, December 12, 2006 at 1:30 p.m. in the Second Floor Conference Room in Johnson City.

TIME & PLACE OF NEXT BOARD MEETINGS

Tuesday, December 12, 2006 @ 1:30 PM

2nd Floor Conference Room, Johnson City

Respectfully submitted,

Kathleen C. Carney

Transcriptionist

cc: All Board Members

Mayor Ryan, City of Binghamton

Mayor Lewis, Village of Johnson City

Kenneth P. Helisek, Esq.

Robert C. Murphy, Esq.

John L. Perticone, Esq.

Beverly J. Palmer, Fiscal Officer

John Cox, Deputy Comptroller

Catherine Aingworth, Interim Superintendent

City of Binghamton, City Clerk

Haylor, Freyer & Coon

File

Note: I Michele Cuevas have reviewed and corrected spelling.