THE SOUTHEAST MORRIS COUNTY MUNICIPAL ... Minutes and Resolutions.pdf2020/08/06 · THE SOUTHEAST...

THE SOUTHEAST MORRIS COUNTY MUNICIPAL UTILITIES AUTHORITY

MEETING MINUTES

AUGUST 6, 2020

Due to the current COVID-19 State of Emergency and in compliance with N.J.S.A. 10:4-8, et seq., the Authority conducted its regularly scheduled Board Meeting on August 6, 2020, by way of teleconference.

The Chairman called the meeting to order at 7:00PM and read the attached statement of Public Notice (Sunshine Law) and caused same to be entered into the minutes of the meeting.

ROLL CALL

PRESENT:

ABSENT:

Chairman Iannaccone; Members Baldassari, Churner, Huber, Kissil, Rotando, Schimpf and Webster

None

All Members in the meeting acknowledged that they could hear the Chairman and other participants.

Also present at the meeting were the following Authority staff: Laura Cummings, Executive Director; Charles Maggio, Chief Financial Officer; Kenneth Crawford, Operations Superintendent; Drew Saskowitz, Water Quality Superintendent; and Alexis Bozza, Executive Administrative Assistant. Also present was General Counsel to the Authority, Sidney D. Weiss, Esq.

MOTION APPROVING MINUTES OF JULY 23, 2020

Copies of the minutes of the meeting held on July 23, 2020, were distributed to the Members prior to the meeting for review and comment. Member Rotando moved that the minutes be adopted as presented. Member Huber seconded the motion. The motion was duly adopted by the remaining Members.

RESOLUTION -APPROVAL OF AUGUST 2020 LIST OF BILLS

Copies of the bill list for August were distributed to the members prior to the meeting for comment and approval. Member Kissi! moved to approve the list of bills and offered the following resolution:

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RESOLUTION NO. 66-20

RESOLUTION AUTHORIZING PAYMENT OF LIST OF BILLS FOR AUGUST 2020

"COPY ANNEXED"

Member Rotando seconded the motion which was duly adopted by the following vote:

YEAS:

NOES:

OTHER BUSINESS

Chairman Iannaccone; Members Baldassari, Churner, Huber, Kissi!, Rotando, Schimpf and Webster

None

A. Report of the Finance Committee

Member Baldassari reported that the Finance Committee met prior to the Board Meeting to review the Final Audit Report for year ended December 31, 2019 prepared by Nisivoccia, LLP. Most of the audit report in terms of statements shown are required. The most important part of the report is page 84 where there are comments and recs of auditors. Pointed out that Auditors had no formal findings in the report. They reviewed the financial statements as of the end of the year and found them to be compliant with requirements of GASS. There was a recommendation which deals with the authority's computerized financial management system which management continues to deal with. There were a couple of suggestions: with regard to capital assets and tagging items; which have been a reoccurring. Management has begun to create a sound record of its equipment which will be improved upon as time permits. It is an extremely clean report. The committee met privately with the auditors. The auditors had nothing of significance to report. They did have a substantial amount of praise for the cooperation and assistance that our staff gave them during this difficult time in doing the audit. The committee was very pleased with the way the meeting went and the outcome of the audit.

A. Resolution Accepting 2019 Audit

Following the report of the Finance Committee, Member Baldassari offered the following resolution:


RESOLUTION ACCEPTING 2019 AUDIT

"COPY ANNEXED"

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YEAS: Chairman Iannaccone; Members Baldassari, Churner, Huber, Kissil, Rotando, Schimpf and Webster

NOES: None

B. Resolution Approving Corrective Action Plan

Mr. Maggio recalled, as mentioned by Member Baldassari, that the 2019 Annual Audit for the Authority contained one recommendation. The auditors reported that the Authority's general ledger did not agree with the subsidiary ledgers for several different balance sheet items. It was recommended that the Chief Financial Officer review the ending general ledger balances periodically and make any necessary journal entries to adjust balances to supporting ledgers, schedules, and amounts. The Chief Financial Officer, in accordance with the requirements promulgated by the New Jersey Division of Local Government Services, has developed a plan of action to address the recommendation listed by the auditor. Mr. Maggio stated that as corrective action to be implemented starting the end of August 2020, he will review the ending general ledger balances on a monthly basis and make any necessary journal entries to adjust balances to supporting ledgers, schedules, and amounts. Member Baldassari offered the following resolution:


RESOLUTION APPROVING CORRECTIVE ACTION PLAN FOR 2019 ANNUAL AUDIT

"COPY ANNEXED"



NOES: None

C. Report of the Engineering Committee

Member Rotando reported on a meeting of the Engineering Committee held on July 30, 2020. Mr. Weiss reviewed minor changes to the Tariff definitions of Connecting Pipe and Service Pipe. In situations where the Authority requires or permits a meter pit to be installed between the curb stop and the customer's premises, the Connecting Pipe shall run from the meter pit to the customer's Premises and the portion of pipe running from the curb stop to the meter pit shall be installed, owned and controlled by the Authority as part of the Service Pipe. Service Pipe is a supply pipe, installed by the Authority at the customer's expense and owned, maintained and

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controlled by the Authority, leading from the corporation stop at the main to the curb stop; provided that where a meter pit is installed between the curb stop and the customer's Premises, the Service Pipe shall also include the portion of the pipe leading from the curb stop to the meter pit.

Mr. Elam and Mr. Weiss reviewed the status of the main replacement between Overlook Road and Springbrook Road. The Agreement with the owners of Lots 5/6, Block 5904 and the Springbrook Golf Course have been finalized. The SMCMUA will install approximately 850' of new main, which will eliminate the conflict between the new development on Lots 5 and 6 as the owners will provide a new, clear easement for the Authority's main. The water main installation is part of the Authority's 2019 Water System Improvements Project. Mr. Weiss added there will be two agreements: (1) a new easement that will eliminate the current encroachment and provide a new clear easement to the Authority through the three properties; and (2) a settlement agreement releasing SMCMUA from all liability from the property owner of Lot 5 for the encroachment. Both agreements have been agreed to in concept by the granters' attorneys. He added that finalization will depend on the bids for the relocation work which are due on August 18th. Mr. Weiss stated he hopes to have both agreements before the Board at the next meeting of the Authority scheduled for August 27th.

Mr. Elam provided an update on the 2017 Ground Water Facilities project. One Bid has been received from Ray Palmer Associates (RPA) in the amount of $1,567,800.00, which is within the engineer's estimate. As such it was recommended that this bid be accepted and that a contract be awarded to RPA.

Lastly, the Senior Engineer had provided an update on the projected developments occurring within the Authority's service area over the next three years.

It was noted that the Authority's Capacity Analysis will be updated to accommodate this new information at the end of the year and the findings provided to the Board when completed.

D. Resolution Authorizing Revisions to the Authority's Rules and Regulations (NonRate)

The Board reviewed minor revisions recommended by the Executive Director, Chief Engineer and General Counsel to the Authority's Rules and Regulations ("Tariff"). Mr. Weiss stated that the Chief Engineer has indicated that there are situations where instead of installing a meter pit at the curb, it is necessary to install between the curb and the structure. The Tariff would not presently permit that. He drafted an amendment to the Tariff which amends the definitions of connection pipe and service pipe to address this situation. In situations where the Authority requires or permits a meter pit to be installed between the curb stop and the customer's premises, the Connecting Pipe shall run from the meter pit to the customer's Premises and the portion of pipe running from the curb stop to the meter pit shall be installed, owned and controlled by the Authority as part of the Service Pipe which is owned and maintain by the Authority. After discussions, Member Rotando offered the following resolution:

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RESOLUTION AUTHORIZING REVISIONS TO THE AUTHORITY'S RULES AND REGULATIONS (NONRATE)

"COPY ANNEXED"

Member Webster seconded the motion which was duly adopted by the following vote:


NOES: None

E. Resolution Awarding Contract for 2017 Ground Water Facilities Chemical Feed Upgrades Project

The Authority advertised for public bids pursuant to the Local Public Contracts Law for the 2017 Ground Water Facilities Chemical Feed Upgrades Project. The project scope is to furnish all labor, materials, equipment and incidentals required and install miscellaneous improvements at 11 well stations throughout the Authority's Service Area . One bid was received on July 16, 2020. The bid has been reviewed by the Chief Engineer as set forth in a memorandum dated July 17, 2020. Ray Palmer and Associates has been determined to be the lowest qualified bidder in the total

amount not to exceed $1,567,800.00. The Treasurer certified that there are sufficient funds available in the 2020 Capital Budget. Member Rotando offered the following resolution:


RESOLUTION AWARDING CONTRACT FOR 2017 GROUND WATER FACILITIES CHEMICAL FEED UPGRADES PROJECT

"COPY ANNEXED"

Member Huber seconded the motion which was duly adopted by the following vote:

YEAS:

NOES:

Chairman Iannaccone; Members Baldassari, Churner, Huber, Kissil, Rotando, Schimpf and Webster

None

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PUBLIC DISCUSSION

Chairman Iannaccone stated the next portion of the meeting was set aside for public discussion. No one was present. The Chairman then closed the public portion of the meeting.

ADJOURNMENT

There being no further business, Member Rotando moved that the meeting be adjourned and Member Huber seconded the motion. The meeting adjourned at 7:30 PM.

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THE SOUTHEAST MORRIS COUNTY

MUNICIPAL UTILITIES AUTHORITY

~ Assistant Secretary

Statement of Public Notice (Sunshine Law Statement)

Adequate notice of this meeting has been provided in accordance with the provisions of the

"Open Public Meetings Act", in the following manner:

1. By posting a copy of the Annual Notice of the Authority's regular meetings (upon which

this meeting is listed) on the Bulletin Board at the Authority's offices at 19 Saddle Road, Cedar

Knolls, New Jersey, and by delivering copies of such notice for posting at similar public places in

the municipal buildings of the Town of Morristown, the Townships of Hanover and Morris and

the Borough of Morris Plains on February 7, 2020.

2. By delivering to, for filing, copies of the Annual Notice with the clerks of the Townships

of Chatham, Harding, Mendham, Randolph and Parsippany-Troy Hills, the Boroughs of Florham

Park and Madison, and the County of Morris on February 7, 2020.

3. By delivering to, for filing, copies of the Annual Notice with the Daily Record, the

Newark Star Ledger, and the Morris News Bee on February 10, 2020.

And by further notice with regard to this meeting posted and delivered to the places and

parties referred to in items 1, 2 and 3 above on July 31, 2020.

Southeast Morris County Municipal Utilities Authority 19 SADDLE ROAD• CEDAR KNOLLS, NEW JERSEY 07927 •TEL 973-326-6880 •FAX 973-326-9521

Resolution No. 66-20

RESOLUTION AUTHORIZING PAYMENT OF AUGUST 2020 LIST OF BILLS

BE IT RESOLVED that authorization is hereby granted to make payment of the following list

of bills:

OPERATING FUND

Total Salary and Wages

Total Operating Fund Checks and Wire Transfers

CAPITAL FUND

Total Capital Fund Expenditures

TOTAL OF AUGUST 2020 LIST OF BILLS

ATIEST:

Dated: August 6, 2020

Board Members

Morristown: Max Huber Donald Kissil

Morris Township: Dennis Baldassari Michael Churner. Ph.D.

Executive Director: Laura Cummings, P.E.

$

$

$

$

191,494.20

147,828.32

0.00

339,322.52


Morris Plains: Ralph R. Rotando Patricia Webster

ITIES AUTHORITY

Hanover Township: Saverio C. Iannaccone Adolf Schimpf, Ph.D.

Superintendent: Kenneth A. Crawford, C.P.W.M.

TREASURER'S CERTIFICATION

I hereby certify that there are sufficient funds available ($339,322.52) for payment of the

resolution entitled Resolution Authorizing Payment of August 2020 Lis of Bills in the Authority's

2020 Budget.


CERTIFICATION

I hereby certify the foregoing to be a true copy of the resolution adopted by The

Southeast Morris County Municipal Utilities Authority on August 6, 2020, at a meeting duly

convened of said Authority.


Southeast Morris County Municipal Utilities Authority 19 SADDLE ROAD• CEDAR KNOLLS, NEW JERSEY 07927 •TEL 973-326-6880 •FAX 973-326-9521


RESOLUTION ACCEPTING 2019 AUDIT

WHEREAS, N.J.S.A. 40A:SA-15 requires the governing body of every local Authority to have made an annual audit of its books, accounts and financial transactions; and

WHEREAS, the Annual Report of Audit for the year 2019 has been filed by a Certified Public Accountant with the Authority as per the requirements of N.J.S.A. 40A:SA-15, and a copy has been received by each member of the Authority; and

WHEREAS, the Local Finance Board has promulgated a regulation requiring that the governing body of each Authority shall, by resolution, certify to the Local Finance Board of the State of New Jersey that all members of the governing body have reviewed, as a minimum, the sections of the annual audit entitled:

; and

GENERAL COMMENTS RECOMMENDATIONS

SCHEDULE OF FINDINGS

WHEREAS, the Members of the Authority have personally reviewed, as a minimum, the Annual Report of the Audit, and specifically the sections of the Annual Audit entitled:

GENERAL COMMENTS RE COMMENDATIONS

SCHEDULE OF FINDINGS

as evidenced by the group affidavit form of the Authority; and

WHEREAS, such resolution of certificat ion shall be adopted by the Authority no later than forty-five days after the receipt of the annual audit, as per the regulations of the Local Finance Board; and

Board Members


Morris Township: Dennis Baldassari Michael Churner, Ph.D.



Hanover Township: Saverio C. Ia nnaccone Adolf Schimpf, Ph.D.


WHEREAS, all members of the Authority have received and have familiarized themselves with, at least, the minimum requirements of the Local Finance Board of the State of New Jersey, as stated aforesaid and have subscribed to the affidavit, as provided by the Local Finance Board; and

WHEREAS, failure to comply with the promulgations of the Local Finance Board of the State of New Jersey may subject the members of the governing body to the penalty provisions of R.S.52:27BB-52 - to wit :

R.S. 52 :27BB-52 - "A local officer or member of a local governing body who, after a date fixed for compliance, fails or refuses to obey an order of the director (Director of Local Government Services), under the provisions of this Article, shall be guilty of a misdemeanor and, upon conviction, may be fined not more than one thousand dollars ($1,000.00) or imprisoned for not more than one year, or both, in addition shall forfeit his office."

NOW THEREFORE BE IT RESOLVED that the Members of The Southeast Morris County

Municipal Utilities Authority, hereby state that they have complied with the promulgation of the Local Finance Board of the State of New Jersey dated July 30, 1968 and do hereby submit a certified copy of this resolution and the required affidavit to said Board to show evidence of said compliance.

ATIEST: THE SOUTHEAST MORRIS COUNTY

MU CIP TILITIES AUTHORITY

SAVERIO C. IANNACCONE, Chairman


CERTIFICATION





Southeast Morris County Municipal Utilities Authority 19 SADDLE ROAD• CEDAR KNOLLS, NEW JERSEY 07927 •TEL 973-3 26-6880 •FAX 973-326-9521


RESOLUTION APPROVING CORRECTIVE ACTION PLAN FOR 2019 ANNUAL AUDIT

WHEREAS, the 2019 Annual Audit for The Southeast Morris County Municipal Utilities

Authority contained recommendations requiring action; and

WHEREAS, the recommendations have been reviewed by the Authority's Chief Financial

Officer; and

WHEREAS, the Chief Financial Officer, in accordance with the requirements promulgated by the New Jersey Division of Local Government Services, has developed a plan of action to address

the recommendations listed by the auditor;

NOW THEREFORE, BE IT RESOLVED by the Board of The Southeast Morris County Municipal Utilities Authority that the Corrective Action Plan for the 2019 Annual Audit, hereto attached, is

hereby approved and accepted; and

BE IT FURTHER RESOLVED, that the Chief Financial Officer is hereby directed to transmit a certified copy of this resolution and it attachments to the New Jersey Division of Local Government Services.

ATIEST:


Board Members





_j~UTHORITY _, ~



Hanover Township: Saverio C. Iannaccone Adolf Schimpf, Ph.D.


SOUTHEAST MORRIS COUNTY MUNICIPAL UTILITIES AUTHORITY

2019 AUDIT

CORRECTIVE ACTION PLAN

1. Finding: Our audit procedures revealed that the Authority's general ledger did not agree with the subsidiary ledgers (detailed reports) for several different balance sheet items, such as other accounts receivable, accounts payable, payroll deductions payable, accrued wages payable, and current year expenditures. The Chief Financial Officer communicated with the Authority's financial software company and was able to generate subsidiary ledger reports that agreed with the general ledger. Upon audit, numerous journal entries were requ ired to adjust the general ledger balances to the actual ending balances. We

reviewed all adjusting journal entries with the Chief Financial Officer to which he concurred.

Recommendation : It is recommended that the Chief Financial Officer review the ending general ledger balances periodically and make any necessary journal entries to adjust balances to supporting ledgers, schedules, and amounts.

Corrective Action: The Chief Financial Officer will review the ending general ledger balances on a monthly basis and make any necessary journal entries to adjust balances to supporting ledgers, schedules, and amounts.

Implementation Date: August 2020

CERTIFICATION




Dated : August 6, 2020

Southeast Morris County Municipal Utilities Authority 19 SADDLE ROAD• CEDAR KNOLLS , NEW JERSEY 07927 •TEL 973 -326-6880 •FAX 973 -326-952 1


RESOLUTION APPROVING AMENDMENTS TO RULES AND REGULATIONS FOR WATER SERVICE (NON-RATE)

WHEREAS, the Authority wishes to revise its Rules and Regulations for Water Service

(Tariff); and

WHEREAS, the proposed revisions are as set forth in Schedule "A" annexed hereto and

made part hereof; and

WHEREAS, the proposed revisions do not involve any change or increase in the Authority's

rates or service charges and therefore to not require further notice to the public or a public

hearing other than notice of its regular scheduled meetings upon which this meeting is listed; and

WHEREAS, the proposed revisions set forth in Schedule "A" are determined to be in the best interest of the Authority and the Water System:

NOW THEEFORE, BE IT RESOLVED that:

1. The proposed amendments to the Authority's Rules and Regulations for Water service set forth in Schedule "A" attached hereto be and the same are hereby approved effective as of the date hereof;

2. The appropriate officers and staff of the Authority are hereby authorized and directed to incorporate the amendments hereby approved in the official Rules

and Regulations for Water Service of the Authority.

ATIEST:


Board Members

Morristown: Max Huber Donald Kissi!






Hanover Township: Saverio C . Iannaccone Adolf Schimpf. Ph.D.


SCHEDULE "A"

1. Amend Section 2.5 to read as follows:

CONNECTING PIPE is the supply pipe installed, owned and controlled by the customer,

connected to the service pipe at the curb stop and leading therefrom to the meter on the

customer's Premises. In situations where the Authority requires or permits a meter pit to be

installed between the curb stop and the customer's Premises, the Connecting Pipe shall run

from the meter pit to the customer's Premises and the portion of pipe running from the

curb stop to the meter pit shall be installed, owned and controlled by the Authority as part

of the Service Pipe.

2. Amend Section 2.23 to read as follows:

SERVICE PIPE is a supply pipe, installed by the Authority at the customer's expense and

owned, maintained and controlled by the Authority, leading from the corporation stop at

the main to the curb stop; provided that where a meter pit is installed between the curb

stop and the customer's Premises, the Service Pipe shall also include the portion of the pipe

leading from the curb stop to the meter pit.

CERTIFICATION





TREASURER'S CERTIFICATION

I hereby certify funds are available in the amount of $1,567,800.00 for payment of a contract

with Ray Palmer Associates for the 2017 Ground Water Facilities Chemical Feed Upgrades Project

as follows :

Description Amount Account 2020

2017 Chemical Feed $1,567,800.00 02-00-500-481 T&P - Wells, Pumps, Motors, etc.

Upgrades Project


CERTIFICATION





THE SOUTHEAST MORRIS COUNTY MUNICIPAL ... Minutes and Resolutions.pdf2020/08/06 · THE SOUTHEAST...

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