[Music] calling this meeting to order is 6:37 p.m. Dr Dr Roach would please do the roll call sure umiss perugi yes uh commissioner Schmidt here commissioner Kovac I am present okay and chairwoman for here would you all stand for the Pledge of Allegiance pledge allegiance to the flag to the flag of the United States of America United stat of America and the Republic for which it stands one nation under God indivisible with liberty and justice for all and justice for all in accordance with the provisions of chapter 231 New Jersey public laws of 1975 the open public meetings act adequate notice of this meeting has been provided by giving of notice to the coron news posting the agenda in the public Lobby of this building 48 hours prior to this meeting delivery of this notice to the Franklin Township Clerk at least 48 hours prior to this meeting and mailing notice to those persons properly requesting to be mailed notification of meetings at least 48 hours prior to this meeting is there a motion to open the meeting for public comment motion to open the meeting is there a second I'll second it all in favor I I I I any oppose okay the meeting is open seeing no one from the public is there a motion to close a meeting for public comments I'll move to close the public meeting is there a second I second okay all in favor I any oppose the motion is carried now have you all had a chance to review the minutes seeing that no one is saying that they haven't had a chance to review the minutes are there any questions regarding the minutes okay is there a motion to accept the M minutes as is motion to accept is there a second I'll second all in favor I I we poll okay motion is carry um executive director Danielson professional reports uh thank you chairwoman um uh typical month uh for our legal services that would include um review bid awards for Somerset Street Pump Station applications the bur Glenn uh developers agreement and their project overall the Western Canal rebuild project the Brookline project award rules rates and regulations and then regular meetings in support the Marcy Street Watershed rehab project is completed that uh project will be removed uh we spent 3.8 million out of the 5.2 million budgeted so we uh well under budget the solar electric vehicle project uh we're we continue to review options and uh different models and uh we are going to continue to investigate and review all all those options uh we are uh upgrading our finance platform to um Edmonds that seems to be going uh as expected and that is in a green status the high Bay garage we met with the the manufacturer on site um I had nothing but compliments to them I look forward to working with them again uh we're going to continue uh to work on the flood study relative to the corridor area um I did request a meeting with the drcc and our engineer we have not got a response yet I spoke to our engineer as recently as this afternoon to further understand the complication s um surrounding this it's it's very technical but it's basically we're not going to get the sign off from the drcc until either we can prove that the stream Corridor does not include our property or we give them our property to regulate so um we're going to continue on I did um uh I'm I'm hoping that we we could get the former uh option but we'll see we're going to continue to work on it Somerset Street Pump Station Rehabilitation project which is a cousin project to the Brookline project um the preconstruction meeting will be scheduled on either June 12th or June 20th um drawings were provided to Sovereign Consulting to begin the permitting process with the township uh under procurement uh the shop testing was completed and fpsa staff did witness that testing successfully and the Pumpers pumping Services Incorporated uh will be delivering the pump in the near future the Brookline Avenue uh sewer Rehabilitation project is also in the green uh we just received I think in the last 48 hours the authorization to award we got that authorization from the D and um we are currently taking bonds steps um along with our bond Council for the lending um of these projects the Western Canal Pump Station Move project that's fa the phase four project uh no meeting was held this month uh and the next meeting is not yet scheduled uh but nothing's pressing because there's some um some items that have to be accomplished uh that would make the next meetings um purposeful uh though the site boring samples uh will begin on June 17th that'll be a 5 to 7 Day process and the next significant step to accomplish would be the um to acquire the D property um from the state by pscg and somewhere thereafter we would probably start taking steps to acquire the easement uh with PSC andj Commerce Street Drive Pump Station Rehabilitation um the followup comments were received on April 15th from the njde uh we received the D authorization to advertise that project and we anticipate receiving the authority to advertise um uh I'm sorry and then advertise and go through it next month we uh we are waiting the let's we may have actually got received it already the procedure to pay the credit purchase um well are you on the line right now yes you know I think I typed my notes incorrectly uh we did receive the procedure to pay for the uh repairing and Zone mitigation right that's correct they uh provided us with an agreement um which was sent over for uh the authorities review and legal review and uh from there they'll uh once that agreement's executed they'll issue a purchase order and then payment can uh proceed that way okay so the last bullet point in my report under this project is incorrect um I thought I updated we did so just know we did receive it so we don't have to worry about the repairing and Zone mitigation uh and we'll be making a payment to that uh n project uh is uh moving forward at completely as expected if Shirley Avenue Pump Station re itation we also have good news um I spoke to the land owner uh that owns the land on all sides of the pump station and he's actually very willing and Cooperative to sell us an easement um for a fair value so I offered to obtain the land appraisal and he agreed verbally so I I reached out to the land appraiser that we've used in the past for psng property I received a quote um and tonight that's one of the action items I need a vote uh to authorize me to engage that land appraiser and that's it for the um professional executive professional summary report I'll just I'll just move into the executive director's report now uh for the month of May ending May 31st we received a in checks 2,265 n7951 which is a very good number and that's the type of number we were expecting last year at this time year-to date we collected 17,1 171,148 and we have an open balance due of non-metered Services of 7, 71,000 $497 and10 for the month of May our penalties uh generated were $1,285 58 which is significantly on the high side and when I say high or low or average uh uh I average these numbers over a three-year period okay uh expense report there's some actually really good news here at the end uh expenditures for the month was 2,725 66660 and we spent year to date 13,466 97428 we are uh we've spent 96% of our budget and we're 92% through the calendar fiscal year calendar and that's the good news uh I went back over the last 10 years of month to budget and we were never within 5% of those two equaling and I'm happy to say over the last three years we've been always within 5% of our budget and that 112th segmentation of our our budget so um I basically got rid of that that process of you know you're halfway through the year but you spent 90% of your budget or you're at 9 % of the calendar year and you only spend 25% of the budget that Mak that makes planning uh very difficult and that also is not an accurate view of your financial incumbrances uh or your money management so we stay very close here uh our cash position under the unrestricted category we have 1 million um 800 $ 58,216 129 under restricted we have1 15 m507 19270 under designated we have 4,681 55556 so we have a total net cash position of 21, 590,000 55855 sense uh the budget it I was hoping not to introduce it tonight uh it's just not ready it will be introduced next month user rate increase proposal I have no proposal to change that user rate for the uh coming fiscal year uh under bonding uh we are going to go into bonding uh for the active projects um that I've just reported on that's a um the somet Street Pub station Brook line Shirley and commerce but mostly um the most current bonding will be Somerset Street Pump Station and the brook line uh area rehab the projects the ml Road trunk rehab was completed and that will be removed from our project board and our reports and Marcy Street was completed and that will be removed uh completely from our reports next month land Acquisitions so um I'm I'm going to continue to list land Acquisitions uh we have just for your edification the PSG property for the can Wesson Canal Pump Station and we have Shirley Avenue uh which is uh facing Church Hill rules rates and regulations we are still updating the developers agreement and the cost and rates connection connection fee there will be a connection fee up uh increase this year and you'll be voting on that tonight um that that fee is determined by our our auditor through uh a complex equation and and formula that he uses according to the statute and um that becomes part of our budget and our audit under internal engineering we had 28 new connections for the month of May we are currently at 12.8 connections for the year and we anticipated only 80.3 so we're uh well above it we had uh three um technical Review Committee applications and zero tww for the month under Staffing um we are um in the beginning stages of the perfor annual performance review for the managers and the foremen and I'm assuming that the executive director's annual performance review has begun as well uh under southbound Brook uh that's something we might want to go into executive discussion uh to discuss uh I just will tell you this uh southbound Brooke issued a new ordinance um well they created through a new ordinance a sewer charge and um uh they enacted that ordinance they sent me a copy of that ordinance and they are suggesting that we are subject to that relative to the number of homes that a flow into their town uh though I don't object at all to the amount that they're charging uh I did object and I disagree that we are subject to the ordinance we have a an an agreement with them though it expired in 2019 they have refused to um negotiate or sign a new agreement despite the fact that I was offering them more money and more options and better terms and conditions they just can't agree among themselves so uh basically I sent their attorney an email to call me I called him twice he hasn't called me back or replied back so I went ahead and called one of the council members and I listed very carefully all the points that I think the agreement should have and she basically uh said uh she'll share that with the rest of the council but she she has to go slow all right so actually that's all I H I have for sath Bound Brook we so we don't need to go in executive session I think um under New Brunswick uh water and sewer bill we are approaching this um agreement uh with uh a possible amendment that that involves uh monitoring flow monitoring at one of the um manholes near Landing Bridge we have some um concerns with this staff will meet with new bronswick also uh it's my desire to monitor the flow specifically uh out of Harrison Towers so we can compare the flow of Harrison towers and then compare that with their water usage and figure out what percentage of the uh the the complete flow in the manhole that goes to the bronw what percentage of that flow is generated by Harrison's hours uh so more to come as things develop on that sumerset County grants and mun and Franklin Township municipal grants there's nothing to report but the those grants are standing and as soon as we start sending them uh invoices for our projects they're going to start pay if you recall um we have 5 I think I believe it's 5.5 million that we're getting from them uh so tonight I'm looking for votes for the following authorization to authorize uh me to uh engage Atlant appraiser and that that that quote was for 42 $4,250 uh I'm looking for uh a vote to authorize CME uh to engage um the monitoring service for Harrison towers and I I want to talk uh real quick about uh the Burch Glenn residential development uh as we discussed last uh last meeting um I won't repeat it I think we were in executive session uh bir Glenn is behind Restless gas station on the corner of Cedar Grove and Amwell and the developers agreement for them expires at the end of this month and however it was in my opinion it was a very poor agreement where the taxpayers and rate payers of Franklin Township were getting nothing and they were getting everything um all their expenses waved for no particular reason so um we met with them it was a very productive meeting we've continued conversations with them we've met several times the our team um we're giving them a fair discounted uh cost to write a new agreement and then in the 11th Hour uh we prop proposed uh what should have been done in the beginning in my opinion anyway and that is they can avoid um much of these expenses if they simply um maintain their sewer system as private where Franklin Township sewer sewage Authority doesn't take ownership of any of it which is good because then we don't uh you know we're not subject to all the expenses so for example if we took ownership of it even if they paid us maintenance fee and connection fee and impact fee we still have to run it we still have to pay for the electricity for it everything regardless of how much it costs it's it's all on us so the best thing for the authority is that we just don't take ownership of it they build it it's for their development it's for their development only and they should own it and they should run it so um what I what I'm looking for tonight is authorization for the chairwoman and I um to be uh authorized to execute a developers agreement if the chairwoman and I uh find it uh acceptable the reason I I'm asking for that authorization for the chairwoman and I is because they want to be in an agreement before the end of the month and um the they're really uncomfortable waiting until our next meeting so I don't see a problem we we've done this before and um uh I think it's uh it's reasonable okay under um standard resolution before you go to the next topic yes going to discuss with us um what you are proposing in that agreement I'm proposing that that agreement be like any other agreement we've had where um the the proposal is I hope we get them where we don't take ownership of anything and they pay us all our current fees that's uh and that's what we discussed go ahead go ahead right so that's one model the other model would be if we did take ownership of it they got to pay us all our maintenance fees you know they so we we we we basically calculated what it would cost us to maintain the pump station the force Main and the easement for the next 40 years if we went to based upon us going there with a Twan crew once a week and they would have to pay that it's a it's um it's just under half a million dollars like uh will how much is it 350 for that's correct the maintenance maintenance portion is about uh yeah 350 or so right and then they would also have to passay us our connection fee and our North track impact fee correct this is what we discussed last week in part and what are we talking about in in the first the first part of the agreement or the first uh possibility um we have no responsibility whatsoever the second part we have responsibility but they pay for a certain amount does that include increases because of increases in salaries you know to our people that are are working there um that there's a lot going on not to mention what you just said about electric uh electrical costs and everything yeah every year we in we increase our connection fee right but what about M maintenance costs as far as um Personnel Staffing you know uh those costs go up you know salaries and everything is there going to be an increase an annual increase for things like that I'm guessing will do not do a a scaling rate through time but he did it at today's rate sounds like a loss for us it might be but remember we lost a 100% based upon the agreement from the last two directors now we're getting 90% that why why are we talking about the last directors why don't we move forward in a positive way and tell them you guys take you either you guys do everything and we don't want anything to do with it or we will do it but you have to pay us but you have to pay us annually on including our is not to mention electricity no because well you also got to take into account that that money is going to be sitting in our bank uh a creu interest compounded every year and and that's going to that's no doubt will keep up with inflation and actually I was gonna can can you can you clarify a point for me that that I think is is the the previous agreement is in effect right the one with the previous two directors so we're we're looking to to to supersede the agreement right to to to make a new one it it is but there's um you know there an argue can be made that they will be in default on July 2nd but there's also an argument that um I'm not going to say publicly but there could be a counterarguments so uh we're on Fir Tara Firma in my opinion but you know attorneys are trained to argue in either direction MH just put it that way right so I um either either model what we're gonna we're way ahead of the game we're you know million dollars ahead or more um in a 40 years span and um we're doing right I mean we're going from getting nothing to getting almost everything and uh we're they're in a position now that with the assumption that their project keeps on moving forward they're pretty Cooperative because you know they've staged all their equipment all their subcontractors everything I mean they they don't want to delay because that that'll be another cost so we got a the iron H whatever we end up doing here is that going to set any kind of precedent for the next development that comes in like this I hope so I mean it's not a blanket precedent but it it is in my opinion it's a practice that I like to continue uh for example um there are pump stations that in the past that we've taken ownership of that we did not get any maintenance or impact fee from and then there are pump stations that we refuse to take ownership of so you got a mixture of everything so I would like to see while I'm here is that this be the top standard that that we begin with it's got of there has to be some sort of financial compelling reason for us to wave any fee that is that that is born upon our rate payers otherwise they have to pay and if you don't want to pay don't so option one is a best case scenario for us where we have no responsibility whatsoever option two um is option two um and it's it's it's uh better it's not absolutely the best but it's better correct and so my I guess my question is are you aiming for option one I am I am uh we we benefit all the way around because it it won't cost us anything if we don't if we're not responsible for its maintenance and operation and what if they say no to both options no they won't trust they won't uh um option one is actually going to be cheaper for the developer the the developer will not have to come up with the half a million dollars to give us before he puts his a shove on the ground that that's coming out of his pocket like he's got to come up with literally he's got to get a bank check for a half a million dollars and give it to us um in option one he does not have to what he has to do is just build it and as soon as he starts selling those units they'll form a homeowners association and you know once once the the development is fully occupied the homeowners association will be fully responsible for it so that's option two where the homeowners association is responsible for um well option one the homeowners association is responsible option two where we're taking over but they're we're being paid by them is it a homeowner in either case it sounds like there has to be a homeowner's association where they're going to pay either in option one or pay us in option two no uh you're you're right for the wrong reasons and op so they there's going to be a homeowners association anyway just because of their uh retention Basin so that's going to exist anyway and option two two um it's not relevant to homeown Association because they're going to pay us up front pay us Upfront for what for 40 years worth of Maintenance they have to they're GNA pay an amount where we could put it in the bank and that money should last us 40 years so two questions one that sounds like a huge am of money and two uh most of us probably won't be around in 40 years to worry about this um but uh it still comes back to the sewage Authority in 40 years that all of a sudden it's our responsibility and they're going to be saying in 40 years why is this all why was it only 40 years and not in perpetuity so again how much how much would they have to put up front for the first part of that how much do they have to put up front to pay us for 40 years uh almost just under half a million dollars and that's going to pay for our services for 40 years well uh you're looking at about today's rates uh conservative 40 to5 55,000 in interest every year for someone to show up there once a month for an hour I don't know I mean I'm just I'm just throwing it out there it just seems uh you know maybe it's way too much maybe it's maybe it's way too little it just sounds like over 40 years that's not a lot of money well the good news is you have a really good team that work for you me uh operations uh multiple engineers and attorney and we we've analyzed reanalyzed and triple analyzed these numbers and um we we've tweaked and modified the the model and the formula and um and we we think this is a fair Innovative I not fair not Innovative it's a fair and uh defendable equation okay I guess I just have to uh trust you guys to know how to Crunch the numbers yeah and again it's a half a million dollars more than we were getting before Joe can I ask you one more question since we're almost at the end of your list here but on your very last I mean on very first uh bullet point of your report uh you said that that $2.2 million um uh was a was a high number was that uh possibly because of the increased rate yes that's definitely contributor we we um if remember last year when I Justified and defended the rate increase uh we not only need the cash because we're doing more we're doing four times more projects we were three years ago remember that uh we need we need cash for two uh three things one to for to run our day-to-day operation we also need cash to put out for projects because we our financing works as we make a payment and then the the loan reimburses us reimburses us for that payment so we need cash to do make that first step the third reason why we need um the C uh the revenue is to maintain our Moody's Bond rating which dictates that at a minimum we have 110% Revenue versus appropriation uh for uh equation if you will and that's about every three years uh you're subject to a Moody's rating call so um we we have to raise the rates and this is where that is so I and I may I'm just um putting the those adjectives in there high low average just to give you guys um a flag to look at comparatively over the last three years because I I put that in a spreadsheet and you know I average them out okay good thank you and and that high that comparative high is to the last four May 31st uh Revenue points it's it's not high uh on an average of all the months it's I'm comparing Ma's because um each quarter is different from the other quarter of the Year each month is different from all the other months but there's one consistent comparison is you can compare this may to every other May in the past that complete your report executive director yeah uh yes ma'am okay we're going to move on now to the committee reports um negotiations and Personnel uh nothing to report here thank you I'm going to skip over Municipal Lea on because commissioner excuse me commissioner is out they um with regard to the construction commissioner farooqi yeah I don't have this uh month any report about construction uh only one thing I want to add up in the the comments from Mr Jo that if I would be in the loop for the kickoff meeting for the new project that I will be appreciated short thing okay thank you uh Teresa if I can go back to the um Personnel uh report uh the Personnel negotiations report um I think um I think last month Scott reported on an injury and so I was just wondering if we had an update on that guy that uh or the person that was injured how's he doing I guess what I could tell you is that U the uh the person's doing well he's in rehab right now um I believe he's about to see the doctor either either in the coming week or the coming weeks um for a followup okay thank you Safety Committee from the what's already been reported yeah I there's no accidents or injuries for the current month thank you very much now we're going to move on to the resolutions the approval of the resolutions will be done by consent agenda all the items listed below are considered to be of a routine nature thereby requiring one motion and one second for all items if any member wishes to remove an item for the consent agenda please advise me at this time which resolutions need to be handled separately and then will be addressed and voted on separately resolution number one the payroll account $266,900 two resolution number two the operating expense account $177,600 $ 32,9 3650 and the escro fund account $2,948 63 is there a motion to accept these resolutions I'll make a motion to accept is there a second I can second I second all in favor I I I any oppos motion is carried strike that the resolution is um pass with regard to any of the additional resolutions there is a motion for each one resolution number six resolution authorizing the execution of an agreement with Revelation coaching services for Behavioral life coaching Services is there a motion to accept this resolution I'll move to accept the resolution second okay all in favor I I I any oppose resolution is passed resolution number seven resolution authorizing the release of the performance guarantee posted by Brett industrial Canyon nj1 LLC for project number 202-02 dcii is there a motion to accept this resolution I'll make a motion to accept I can second is there a second I'll second it all in favor Hi I hi any oppose motion is the resolution is passed resolution number eight resolution authorizing the authority to purchase Express Courier overnight and ground delivery logistics for small package delivery services from FedEx Corporate Services Incorporated through State contract number 24- gv2- 5884 7 motion pardon me I I I said motion to accept okay is there a second I second okay all in favor I I any oppose resolution is passed resolution number nine resolution authorizing the execution of offense easement agreement with the owner of real property located at 15 Burnham Street Franklin Township New Jersey is there a motion to accept this resolution I'll move to accept second second second all in favor any oppose resolution pass resolution number 10 resolution authorizing the execution of offense easement agreement with the owner of real property located at 17 Burnham Street Franklin Township New Jersey is there a motion to accept this resolution I move to accept the resolution is there a second I'll accept I mean I'll make a motion to accept all in favor I I I any oppose resolution passes resolution number 11 supplemental resolution authorizing the issuance of not to exceed 10 thou $10 million project notes of the township of Frank Franklin sewage Authority is there a motion to accept that resolution motion to accept is a second I'll second it all in favor I I I any oppose resolution passes resolution number 12 resolution authorizing the removal of various accounts from billing due to the properties being capped is there motion to accept this resolution motion to accept is there a second I second all in favor I I I any oppos the resolution passes resolution number 13 resolution authorizing the hiring of Ivon Gonzalez to the position of full-time bookkeeper is there a motion to accept this resolution I'll move to accept this resolution is there a second I second all in favor I any oppose the resolution passes chairwoman can I just ask you to confirm uh for the consent uh agenda for Resolutions one through five who was the Mover and who was the second I actually don't have that information uh can the person who uh motioned uh to accept the payroll operating general fund renewal and replacement and escro fund just uh repeat that you made a motion to accept all those five together I may have but I really don't remember all right I'll just watch the recording I had to step away for seconds and I missed the the uh the vote I think it was you Arie all right I'll just I'll just put to uh confirm is there a motion to open an executive session I thought Joe said we didn't have to go into executive session or do we for something else I thought it was for something else but perhaps if he could explain I don't have anything Joe I know if you do no I think uh southbound Brook no and bur Glenn no I just uh no I just would like for us uh for the board to uh do the votes for the land of appraiser uh number one number two authorizing the chairwoman I uh to execute developers agreement with Birch Clan and then number three authorizing CME to engage uh monitoring for Harrison Towers the uh CME uh request for authorization uh is a 9,381 uh quote and the land appraiser is 4250 just need a second land appraiser is how much 4250 are we talking $4,250 42,000 $4,250 okay just check I believe we have to do each one of them separately yeah yes please separately and I just have the wording for the author for the land appraisal I think you want to say authorizing the executive director to engage a land appraiser in the amount of $4,250 okay is there a motion to authorize the executive director motion to accept is there a second I'll second it I'll second okay all in favor I I I any oppos okay the motion's carried uh the next one would be authorizing the executive director and the chairperson to execute an agreement relative an amended developers agreement with ber Glenn uh which action can be ratified at the next meeting okay is there a motion to authorize EX director and the chairwoman to authorize the developers agreement excuse me to enter the developers agreement with bur Glenn I can move to accept that okay is there second I second okay all in favor uh discussion on that please um so uh what Mr hake just said was that at the next meeting uh we'll be able to ratify so does that mean that uh we're appr we right now are voting to approve that you guys can come to an agreement um and then when you do that in our next meeting you will bring that agreement to us for us to approve is that what what ratify means when you say that yeah uh you know the what Joe uh what the executive director is looking to do is is be able to have the flexibility to execute an agreement in between meetings and then that action can be ratified uh at the next meeting just to um ensure that the board has consented to the execution of that agreement by way of by way of resolution by resolution not to be execute an agreement is executing the agreement I think it's it's important that we're able to do this because that puts them that puts their temperature gaug to settle really high yeah but we we're not I mean by the time it gets to us next month it's basically a done deal so I'm not sure what this ratification really is I I think it's more to memorialize it correct it's like like a land use board memorializing a resolution you're giving him the authority to move forward now and then you will um ratify that at the next meeting are there any more questions no that's is there a second I second all in favor I I any oppose okay motion is carry um and is there a there's a third executive director is there a third that we to vot on yes to uh to approve the request for authorization uh for me to engage a Monitoring Service uh for the Harrison Towers flow in the amount of 9,381 how long they will take uh to monitor this time period for this I believe two weeks or two months what is it yeah the study is for two months two months two months okay and there will be any report and there will be any report after that yeah the the vendor will uh will document the uh the data um for the authorities records yes okay so is there a a motion to authorize CME to monitor the flow of the the sewage in Harrison Towers I'll make a motion for that is there a second I'll second second all in favor I I I any oppos motion's carried is there any other business that needs to be conducted with that is there motion to close the meeting motion to close the meeting I second all in favor I I don't don't forget to vote everyone already did already did already did excellent all right then you could all take the rest of the day off thank you thank you good night everybody night everybody have a good night [Music]