The Brick Twp. Municipal Utilities Authority Minutes of a...

The Brick Twp. Municipal Utilities AuthorityMinutes of a PUBLIC MEETING Held on February 28, 2019

1. SALUTE TO THE FLAG OF THE UNITED STATES OF AMERICA

2. OPENING STATEMENT

Following the Salute to the Flag, Ms. DiMatteo read the opening statement as follows: This

meeting is being conductedpursuant to the Open Public Meetings Act, being Chapter 231 ofthe Lawsof1975. In accordance with the requirements of this law, a Meeting Notice was published on February3, 2019 in the Asbury Park Press. Similar Notice was given to the Clerk of the Township ofBrick andplaced on the bulletin board maintained for this purpose by the Authority."

3. ROLL CALL

Members Present Also Present

Susan Lydecker Chris A. Theodos, Executive Director

William Neafsey Stephen T. Specht, Dir. Engineering/ OperationsThomas C. Curtis John Clifford, CFO

Gregory Flynn, Chairman Gary Vaccaro, Dir. Compliance & TechnologyJason Kiernan Joseph Maggio, Dir. Water Quality

Sue Brasefield, MUA Engineer

Absent Keri DiMatteo, Executive Administrative AssistantMaria Foster Nick Montenegro, Esq., MUA General CounselSandra P. Hawthorne-Tormey Chuck Fallon, MUA Auditor

4. Adoption of Directors' Reports

Comm. Lydecker made a motion to adopt the Directors' Reports. Seconded by Comm. Curtis

AYES: Comm. Kiernan, Lydecker, Neafsey, Curtis, FlynnNAYS: None

ABSTAIN: None

5. APPROVAL OF MINUTES

Comm. Curtis made a motion to adopt the Regular Meeting Minutes of the January 24, 2019Public Meeting and the Reorganization Meeting Minutes for February 1, 2019. Seconded by Comm.Lydecker

January 24, 2019 Public MeetingAYES: Comm. Kiernan, Lydecker, Curtis, FlynnNAYS: None

ABSTAIN: Neafsey

Public MeeangMmutes- February 28, 2019 Page 1

February 1, 2019 Reorganization Meeting MinutesAYES: Comm. Neafsey, Curtis, FlynnNAYS: None

ABSTAIN: Lydecker, Kiernan

6. CORRESPONDENCE— NONE

7. BILL RESOLUTION

Comm. Neafsey read the Bill Resolution dated February 28, 2019 in the total amount of4, 036, 784. 55 as follows:

Total Operating Vouchers: 2, 538, 169. 55Total Capital Vouchers: 369, 078. 82Total Payroll: 1, 123, 439. 65

Escrow: 6, 096. 53

Total Bill Resolution: 4, 036, 784. 55

Comm. Curtis made a motion to approve the Bill Resolution. Seconded by Comm. Lydecker


ABSTAIN: None

8. TREASURER' S REPORT

Comm. Lydecker read the Treasurer' s Report balances for the month ending January 31, 2019 asfollows:

Unrestricted Funds:

Total Revenue Funds: 10, 968, 863. 77

Total General Funds: 15, 224, 559. 15

Total Unrestricted Funds: 26, 193, 422. 92

Restricted Funds:

Rate Projection Maintenance Fund: 2, 854, 576. 08

Working Capital Fund: 736, 253. 46

Processing Fund: 1, 509, 119. 66Construction Fund: 5, 414, 676. 65Total Bond Funds: 4, 784, 279. 12

Total Other Restricted Funds: 1, 424, 302. 56

Total Restricted Funds 16, 733, 207. 53Total of All Fund Accounts: 42,926,630.45

Comm. Curtis made a motion to approve the Treasurer' s Report. Seconded by Comm. Kiernan


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ABSTAIN: None

9. DEVELOPER APPLICATIONS

9_1 Preliminary Applications - No Further Action Required

2231 Mr. James W. Edwards, Jr., CPA, Business Administrator& Board Secretary— BrickTownship' s Board of Education— Minor Subdivision— Plan for Block 867, Lot 6— 1811Route 88 & 32 Princeton Avenue— Preliminary, No Further Action, 0 Commercial

Director Specht reviewed application 2231 with the Board. He advised that this is a subdivision

of the Laurelton School ( 1811 Route 88) from the central receiving facility( 32 Princeton Avenue).There are no proposed changes to their water or sewer utilities on site.

Comm. Neafsey made a motion to approve this action. Seconded by Comm. Curtis


ABSTAIN: None

9_2 Other Applications

2230 Mr. Joe Scalzadone, Hooper Avenue Development— Hooper Avenue Estates— MajorSubdivision— Hooper Avenue& Township Unnamed Right- of-Way— Preliminary, 7Residential

Director Specht reviewed application 2230 with the Board. He advised that the applicant is

looking to extend the sewer main approximately 320 feet for an existing 15" PVC sanitary sewer line,adding two ( 2) sanitary manholes. There will be a 600 linear foot extension of the water main with two2) new fire hydrants to be installed.

Director Specht recommended preliminary approval and advised the applicant will come backfor final approval.

Chairman Flynn asked if Director Specht was satisfied with the questions that Jim had.

Director Specht replied yes.

Commissioner Curtis asked if that was Old Hooper or Hooper.

Director Specht advised that it is actually Old Hooper Avenue.

Comm. Curtis made a motion to approve this action. Seconded by Comm. Lydecker


ABSTAIN: None

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9. 3 Release of Bonds— NONE

10. UNANTICIPATED/ EMERGENCY CAPITAL EXPENDITURES - NONE

11. CONTRACT CLOSE- OUTS

a Pillari Brothers Construction Corporation for the Replacement of Manholes

on Princeton Avenue; Capital Project No. 817002 (Final Payment IncludingRetainage Reduction to 0%)

Director Specht reviewed this action with the Board. Director Specht advised that the contractor

has submitted all of the appropriate close out documentation, including the two year maintenance bond.

Director Specht recommended that we release final payment, which includes his final quantities,as well as a reduction and rtainage from 2% to 0%.

Chairman Flynn asked if this will include the modifications that are coming up.

Director Specht advised that this will include Final Quantity Change Order# 3.

Comm. Curtis made a motion to approve this action. Seconded by Comm. Neafsey


ABSTAIN: None

12. AUTHORIZATION TO EXPEND APPROVED FUNDS

a. Purchase of the Annual Service Contract for the LIMS Software System fromVendor ATL for$ 10, 070. 64 Account Number 203- 8202

Director Maggio reviewed this action with the Board. He advised that this is an annual contractfor software that compiles and manages all of the laboratory data, including analytical data, theinstrument data and compliance data.

Chairman Flynn asked if we have an account that has all of the service contracts in one place asa budget item.

Director Maggio explained that this one in particular is charged to the lab.

Chairman Flynn asked if this was a separate category.

Director Clifford replied yes. He advised it is specifically software maintenance/supportagreements.

Chairman Flynn confirmed that each department has their own.

Director Clifford replied yes, but that I.T. ( Information Technology) has their own for broad


Authority wide programs.

Director Vaccaro explained that I.T. has a number ofprograms and manages support contractsfor them. The laboratory has their own but I.T. is in charge of the others ( GIS, VueWorks, Laserfiche).

Commissioner Curtis asked what the price was last year.

Director Maggio advised that this is the first year we had to enter into this contract because wepurchased the software five years ago and at the time we included five years of service into the bid.

Chairman Flynn confirmed this is the first contract year and asked if this is for one year.

Director Maggio confirmed this is one year.

Commissioner Curtis asked if we get a better deal with a multi- year contract.

Director Maggio believes he looked into that and the savings, if it was even offered, would havebeen nominal because it was brought up before. He will confirm and get the numbers. He stated that ifthere were savings they were small.

Chairman Flynn asked how long this piece of equipment is good for.

Director Maggio replied that this is software and as long as the software keeps current withcurrent operating systems, it could last as long as we need it to.

Chairman Flynn asked Director Maggio to look and see if there are any multi- year contractswith a better price.

Director Maggio advised that ifhe does find significant savings, we can amend this action nextmonth.



ABSTAIN: None

13. AUTHORIZATION TO SEND OUT BIDS. RFO' S & RFP' S

a. Authorization to Proceed with the Bidding of the Hydrant Markers

Director Specht reviewed this action with the Board. He advised this is for 2500 fire hydrants inBrick. He met with the Township Board of Fire Commissioners in early 2018, since we own andoperate the hydrants for the Township, they requested that we put on fiberglass spring mounted hydrantmarkers. This is included in our annual 2019/ 2020 budget. He would like to get a jump on this so thatwhen we hit the new fiscal year we can go ahead and proceed with the purchase.

Chairman Flynn asked what the budget was for this.

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Director Specht advised it was $70,000.00 and we will install the markers ourselves.

Comm. Curtis made a motion to approve this action. Seconded by Comm. Kiernan


ABSTAIN: None

14. ADOPTION OF PERSONNEL ACTIONS



ABSTAIN: None

15. COMMITTEE DISCUSSION— NONE

16. OLD BUSINESS - NONE

17. NEW BUSINESS

a. Brick Township Board of Education— Waiver Request for the Applicationand Review Fees for the Minor Subdivision of the Laurelton SchoolProperty— Brick Utilities' Developer Application No. 2231

Director Specht reviewed this action with the Board. He advised that this refers to application

2231 that was just approved. He received a letter from James Edwards, the Secretary and Administratorfor the Board of Education, requesting a waiver of the application and review fees for this application.We have waived these fees in the past for other public agencies, as well as the Board of Education, perResolution No. 53- 03.

Director Specht recommended approval for this action.



ABSTAIN: None

17. 1 Reservoir Special Use Requests

Director Specht advised that both requests are not during our blackout period( Memorial Day toLabor Day).

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a Description: Friends of the Poor WalkOrganization: Society ofSt. Vincent de Paul St. Martha Church, Point PleasantDate: Saturday, September 28, 2019from 8: 00 a.m. to NoonSpecial Needs: None

No. ofParticipants: 40Contact: Lisa DesRochets

Status: 6rh time with no previous incidents

Director Specht reviewed this request with the Board and recommended approval.



ABSTAIN: None

b. Description: Purple Angel Foundation 2"d Annual Wing RunOrganization: Purple Angel Foundation, Inc.

Date: Saturday, September 7, 2019from 8:30 a.m. to NoonSpecial Needs: None

No. ofParticipants: 100Contact: Theresa DeCarlo

Status: 2"d time with no previous incidents

Director Specht reviewed this request with the Board and recommended approval.

Comm. Neafsey made a motion to approve this action. Seconded by Comm. Curtis


ABSTAIN: None

18. RESOLUTIONS

22- 19 A Resolution Authorizine the Final Ouantities Change Order No 3 in theContract between the Brick Township Municipal Utilities Authority andPillari Bros. Construction Corp. for a Decrease in the Contract Amount of

36,267.11 for the Replacement of Manholes on Princeton Avenue; ContractNo. 817002

Director Specht reviewed this resolution with the Board and recommended approval.

Comm. Curtis made a motion to adopt Resolution No. 22- 19. Seconded by Comm. Lydecker


ABSTAIN: None


23- 19 A Resolution Authorizing the Award of a Public Contract to TomarConstruction Services. Inc. in the amount of $14, 815, 000. 00 for the GACImprovements at the William Miller, Jr. Water Treatment Plant; BrickUtilities Contract No. 717003; New Jersey Water Bank ( NJWB) Proiect No1506001- 011

Director Specht reviewed this resolution with the Board. He advised that 18 contractors pickedup bids and we received eight bids on February 7, 2019. The second lowest bidder was EagleConstruction at$ 14, 914,514.00. The Engineers estimate was approximately$ 16, 000, 000. 00. Based onH2M' s review, our Attorney' s review and our in-house staff review, it is recommended that we awardthis contract to Tomar Construction. We have also received approval from the NJDEP to award thecontract.

Chairman Flynn asked if a pre-construction meeting has been set up.

Director Specht advised that nothing is set up for yet. H2M will issue the agreements early nextweek to Tomar for signature. We are looking to schedule a preconstruction meeting, tentatively, forMarch 28h.

Chairman Flynn confirmed that once we award the contract, Tomar can start with the permitprocess.

Director Specht stated that Chairman Flynn was correct, once we get a signed contract we willstart that process.

Chairman Flynn asked if we resolved the issues of building the building and installing the tanks.

Director Specht advised that it is spelled out in the scope of work and this will be discussed.

Chairman Flynn asked how much work can be done before the tanks arrive.

Director Specht advised the contractor will have to do all of his foundation work andunderground piping at the building. There is quite a bit of work that can be done and he can probablyput up three sides of the building before he sets the tanks.

Chairman Flynn asked how long delivery is on the tanks.

Director Specht advised we should have shop drawing approval within two months and anothersixteen weeks to get the tanks. He advised about 6- 8 months.

Chairman Flynn asked that the construction time frame was in the contract.

Director Specht believes it is 460-480 calendar days.

Chairman Flynn asked if the building would be closed before winter.

Director Specht replied that he would think so.

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Director Maggio advised that one limitation to getting the design started is that we have a verylimited window where they can actually do the work that connects the plant to the new system and thatcannot happen until the Fall for operating reasons.

Comm. Curtis made a motion to adopt Resolution No. 23- 19. Seconded by Comm. Lydecker


ABSTAIN: None

24- 19 A Resolution Amending the Existing Cash Management and InvestmentPlan

Director Clifford reviewed this resolution with the Board. He advised that we are looking toadd another institution where we can deposit our monies.

Chairman Flynn asked if this institution has good rates.

Director Clifford replied yes.

Comm. Neafsey made a motion to adopt Resolution No. 24- 19. Seconded by Comm. Curtis


ABSTAIN: None

25- 19 A Resolution Authorizing Xylem Water Solutions USA, Inc. to Proceed withthe Repair of the Two ( 2) Submersible Dewatering Pumas at the County ofOcean Sea Avenue Storm Water Pump Station, Point Pleasant BeachBorough for a Not- To- Exceed Amount of$ 30, 000. 00

Director Specht reviewed this resolution with the Board. He advised that in January 2019 the twodewatering pumps that we maintain at the Sea Avenue Pump Station failed. We need send them back to themanufacturer to determine if they are still under warranty depending on the severity of the damage to thepumps. This resolution will authorize us to spend up to$ 30, 000. 00 to repair the pump if needed. We willnot perform this work until we have final approval from the County of Ocean. We do not anticipatereceiving approval until after their budget meeting on March 20''. As soon as they approve this we willsend the pumps out. This is reimbursable to us by the County.

Commissioner Lydecker questioned the cost estimate even though we do not know how they failed.

Director Specht explained there are two ways the pumps could fail. A dry failure which is amanufacturer problem. A wet failure would mean something leaked into the pump. The only way todetermine exactly what caused them to fail is to take them apart. We asked for a price to perform a repair tothe pumps ( approximately$ 14, 000. 00/ pump), if they have to reconstruct them due to a wet failure.

Chairman Flynn asked if that was the worst case scenario.

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Director Specht confirmed that would be the worst case scenario and that is why the the price is30,000.00 for any miscellaneous parts that need to be purchased. He also looked at the cost to replace the

pumps which were approximately$ 25, 000. 00/ each. He thought it would be best to proceed with a repair ifwarranted.

Commissioner Lydecker asked how long the warranty is and how long do the pumps usually last.

Director Specht advised it is a ten year warranty on the dry failure. The pumps generally last 15- 20years.

Commissioner Lydecker confirmed if it is a wet failure it is not covered under warranty.

Director Specht replied that she was correct. These pumps work in sandy environments which tendsto chew up the impellers on the pumps.

Chairman Flynn confirmed that no matter the case the County is reimbursing us.

Director Specht replied that he was correct. Ifwe need to replace the pumps he will need to go backto the County for approval.

Commissioner Lydecker stated if the pumps are halfway through their life span and we are spendingmore than half of what it would cost to replace both of them, would it make more sense to purchase twonew pumps. She advised that we can look into that if we need to.

Director Specht advised that we will get a recommendation from the manufacturer. These pumps aresolid and the casings on the pumps generally do not fail. It is the motor and the inner parts of the pump thatfail.

Chairman Flynn asked if there was a warranty on the rebuild.

Director Specht advised there is probably a one year warranty on the rebuild. If the manufacturer isresponsible for the repair the warranty will run until the ten years are up.

Comm. Neafsey made a motion to adopt Resolution No. 25- 19. Seconded by Comm. Kiernan


ABSTAIN: None

26- 19 A Resolution Authorizing the Transfer of Certain Funds to Junior Lien NJEITBonds Debt Service Fund

Director Clifford reviewed this resolution with the Board. He advised that we are required everyyear to fund the full amount of our debt service in the NJEIT. This accelerates that process instead of takinga little every week or month from the revenue fund until it is filled. We are taking our general funds andmaking sure that obligation is met in advance.


Chairman Flynn confirmed for the entire year.

Director Clifford confirmed for the entire year. We are setting aside money we are obligated to pay.

Chairman Flynn asked how much money.

Director Clifford stated the full obligation is just about one million dollars. We have a very littleamount because we just made our February payment. The next payment is in August. It is every sixmonths and we are trying to get ahead of it.

Comm. Curtis made a motion to adopt Resolution No. 26- 19. Seconded by Comm. Neafsey


ABSTAIN: Foster

31- 19 A Resolution Awardine Bid for Water Treatment Chemicals

Director Maggio reviewed the resolution with the Board. He advised this is our annual treatmentchemical bid. The chemicals were as follows:

Sodium Hydroxide - PVS Minibulk- $ 130, 000. 00

Liquid Chlorine/ Gas— Kuehne Chemical - $ 70, 000. 00

Calcium Hydrated Lime - Carmeuse Lime and Stone - $ 145, 882. 50

Lime Slurry Inhibiter—Coyne Chemical - $ 10,959.40Bioxide Liquid— Calcium Nitrate— Evoqua Water Technologies - $ 14, 300. 00Zinc Orthophosphate— Shannon Chemical Corporation- $ 147,400.00Aqua Ammonia— Coyne Chemical - $ 14, 164. 40

Carbon Dioxide— Praxair- $ 82, 250. 00

Liquid Alum— Chemtrade Chemicals US - $ 247, 100. 00

Chairman Flynn asked the price difference from last year.

Director Maggio explained that most of the prices did increase, there were several that did increasea higher than expected amount. Two of the chemicals are proprietary chemicals and we buy them in lowerquantities. There was a 42% price increase from Coyne Chemical for lime slurry inhibiter. Ammoniaincreased to 39%. Both of these chemicals are purchased in smaller quantities. He advised that alum wentup 27% and the last time we purchased alum was two years ago. Historically alum does have a great dealof price volatility, we will see significant increases one year and significate decreases another year. Wereceived a second bid for alum which was 12% higher than the winning bid.

Commissioner Lydecker asked if the alum was for two years.

Director Maggio explained the alum is for one year, the last time we received a two yearprice. Had we asked for a two year price that had a 27% increase, we would have gone for one year pricingto see if it went down. He advised that Sodium Hydroxide did go down 1. 22%.

Director Maggio advised that we did get multiple bids on most of the chemicals except for carbon

Public MechngMmutes- February 28, 2019 page 11

dioxide, ammonia and lime slurry inhibiter.

Chairman Flynn asked if the increase was anticipated in the 19/ 20 budget.

Director Maggio explained that we did increase the budget to$ 825, 000.00. None ofthese contracts

are fixed price and they are all based on what we estimated with a little bit of a factor of safety. We expectthat we will be at or under budget at the end of the year for what we actually purchased.



ABSTAIN: None

32- 19 A Resolution for Approvina and Authorizine Award of Contract to AlliedConstruction Group, Inc. in the Amount of$ 1, 647,000.00 for the DisinfectionSystem Uperades Proiect; Brick Utilities' Contract No. 711003A

Director Maggio reviewed the resolution with the Board. He advised that this is the upgrade ofourdisinfection system to current recommended design standards. We are replacing a great deal of equipmentand adding some safety systems onto the system.

Chairman Flynn asked for a brief synopsis of the type of equipment.

Director Maggio explained that one of the recommended standards is that we have a wall separatingthe control equipment from the chemical storage.

Chairman Flynn asked if it would be in that room.

Director Maggio advised it will be in that room but we will be separating it into two smaller rooms.

Director Maggio explained that we will be replacing all of the chemical feed equipment.

Chairman Flynn asked if all of this was in the price.

Director Maggio advised it was all in the bid. He explained the most important thing is that we willbe installing a scrubber.

Chairman Flynn stated that is a major safety factor.

Director Maggio advised that added to the end of the contract was the replacement of the hoist,trolley and structural system, which lifts these one ton containers. We asked the engineer to look andinspect the current condition and they decided that it was best to replace that all together.

Chairman Flynn asked ifthis project takes into consideration the spill factor protection program thatwe are going to be doing.


Director Vaccaro advised that this only takes into account the chlorine that we have to containmentfor deliveries. It is not going to be in that area so it is not part of it.

Chairman Flynn asked if it complies with what we are doing.

Director Vaccaro replied yes and there are no issues.

Commissioner Curtis asked if we are going to be ok with this going on at the same time as the GACproject.

Director Maggio advised that we were hoping to have the GAC well underway before starting thisbut for the most part the installation of the scrubber is outside of the current chlorine room. We will needto coordinate with the GAC construction. The work entailed will be replacing a pad and dropping thescrubber on it and making some piping connections.

Commissioner Curtis confirmed we are not adding a new pad.

Director Maggio advised there is a current pad that houses a flag pole that we will break up andreconfigure for this. He advised that we did receive approval for this project from the Planning Board.Most of the other work will take place inside the chlorine room. There will be coordination with all of thecontractors that are in the same vicinity.

Commissioner Curtis expressed concern of overrun because of this going on at the same time.

Director Specht advised that he included in the addendums for each contract the following: for theDisinfection project, there will be a GAC project going on at the same time and contractors will have tocoordinate. For the GAC project, there will be a disinfection project going on at the same time andcontractors will have to coordinate.

Director Maggio advised that both clauses were stressed in the addendums to the bidders.

Comm. Neafsey made a motion to adopt Resolution No. 32- 19. Seconded by Comm. Lydecker


ABSTAIN: None

33- 19 A Resolution for Approvine and Authorizing Award of Contract to T& TCommonwealth Construction Co., Inc. in the Amount of$4,931, 336 00 for theWastewater Pump Station Rehabilitation Proiect— Phase II; Brick Utilities'Contract No. 816002; New Jersey Water Bank(" NJWB"); Proiect NoS340448- 11, Contract 1 of 1

Director Specht reviewed this resolution with the Board. He advised that we received five bids onFebruary 14''. T& T Construction was substantially lower than the second lowest bidder. T& TConstruction is confident that they can perform this contract for the price. CME is forwarding theinformation to the NJDEP. This award is contingent on receiving authorization from the NJDEP.

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Director Specht recommended approval.

Chairman Flynn asked ifwe should wait to award.

Director Specht recommended awarding this subject to authorization from NJDEP. He does notanticipate any problems with NJDEP.

Chairman Flynn asked what the order of pump stations is based on.

Director Specht advised that some stations have longer lead time on items so the ones that have lesswork to be done will go first.

Chairman Flynn stated the worst one is Laurel Brook.

Director Specht advised that the Laurel Brook Pump Station is specifically the last one on the listbecause we are still trying to obtain FEMA money for that specific project. We can award a contract butcannot physically do any work until they make a determination if funds are going to be available for thatproject. It is stated in the contract they may have to wait for ten months to start that pump station.

Chairman Flynn asked if only one pump station was going to be raised.

Director Specht stated that the Chairman was correct. Laurel Brook Pump Station is the only onebeing raised. We raised all of the other ones that were impacted by Super Storm Sandy under Phase I.Laurel Brook was not impacted by Sandy, it was flooded out by Irene, that is why we are raising it.

Commissioner Curtis asked if the contractor will be doing one at a time.

Director Specht explained that generally and the way we did it with the last project, he will do onestation at a time from start to almost finish. The contractor has to provide one by-pass pumping system thathe will use at one station, complete the work and move the by-pass system to the next station. Thesestations will have similar fences to the ones done for Super Storm Sandy which is included in the contract.

Commissioner Lydecker asked what the engineers estimate was for this job.

Director Specht advised it was $ 5. 6 million.

Commissioner Lydecker asked Director Specht why he thought the contractor can come in over amillion dollars less than the engineers estimate. She wanted to make sure we are checking the types ofmaterial the contractor will be using.

Director Specht advised that the contractor has to submit everything, per our specifications.

Chairman Flynn advised that we have been speaking to the contractor to make sure he understoodthis. The Authority, CME and our Attorney are all satisfied that the contractor met all ofthe requirements.He also advised that if we see something during one of the phases of this nine phase project, DirectorSpecht will address it.

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Mr. Montenegro advised that in addition we will have a performance bond as well.



ABSTAIN: None

Consent Items to be voted on simultaneously unless it is requested otherwise

27- 19 A Resolution of the Brick Township Municipal Utilities Authority Declaring ItsOfficial Intent to Reimburse Expenditures for Proiect Costs From the Proceedsof Debt Obligations of the Authority, Including in Connection With itsParticipation in the New Jersey Infrastructure Bank Financing Program

Director Clifford reviewed the resolution with the Board. He advised that this gives us the abilityto spend internal funds and then reimburse ourselves later using the borrowed funds. Our bond counselrecommended that since we have three big projects coming up, that we do this at the same time instead ofone by one.

28- 19 A Junior Lien Supplemental Resolution No. 6 Relating to the Junior LienBond Resolution of The Brick Township Municipal Utilities Authority,Authorizing the Issuance and Sale of Up to $3, 000, 000 Bonds and/ or Notes inRespect of the Breton Woods Section 1 Water Main Replacement ProiectUnder the New Jersey Infrastructure Bank Financing Program

29- 19 A Junior Lien Supplemental Resolution No. 7 Relating to the Junior LienBond Resolution of The Brick Township Municipal Utilities Authority,Authorizing the Issuance and Sale of Up to $20,000,000 Bonds and/or Notesin Respect of the Granular Activated Carbon ( GAC) Treatment AdditionProiect Under the New Jersey Infrastructure Bank Financing Program

30- 19 A Junior Lien Supplemental Resolution No. 8 Relating to the Junior LienBond Resolution of The Brick Township Municipal Utilities AuthorityAuthorizing the Issuance and Sale of Up to$ 8, 000, 000 Bonds and/ or Notes inRespect of the Watewater Pump Station Rehabilitation Project Under theNew Jersev Infrastructure Bank Financing Program

Director Clifford reviewed these resolutions with the Board. He advised that these are addendumsto our existing bond resolution from 1985. Every time we borrow money we have to do a supplementalresolution which is just an addendum to that resolution. It basically says that we are undertaking a projectwe are spending and issuing bonds, similar to what municipalities do when they do a bond ordinance. Itlays out the specifics; the nature of the project, the materials we are using, the price, who we are borrowingfrom, how we intend to repay. The resolutions have sample form of the notes that we will sign when weactually do go into a bonding situation with EIT.

Chairman Flynn asked when we start paying the debt service on these projects.

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Director Clifford replied that we do not start repaying for a while. First we close on a constructionloan, temporary financing and interest free for up to three years.

Chairman Flynn asked if that was subject to when they actually start.

Director Clifford explained that we can close on the loan and it becomes similar to a line of credit,

interest free. Once the project is complete, it gets rolled into the next time EIT bonds which is twice a year.They go out to the market, bond and then we are rolled into that. Once that happens, our first debt service

payment can be anywhere from 6- 12 months after. We probably will not pay any of this back for 2- 3 years.The smaller projects will get finished quicker and rolled into the bond cycle.

Chairman Flynn questioned the $ 8, 000, 000. 00 for the Wastewater Pump Station project.

Director Clifford explained the$ 8, 000, 000. 00 is the recommended number for the project plus allassociated costs.

Director Specht advised there is a 10% contingency for engineering, inspections, legal fees, etc. Heexplained that is a$ 5, 000,000. 00 project and we added another$ 3, 000,000. 00 for contingencies.

Chairman Flynn asked if that number can be adjusted if the project comes in under the8, 000, 000. 00.

Director Clifford replied absolutely.

Director Specht explained that we want to make sure you have enough money and ifwe only spend7,000, 000.00 then we only take that.

Chairman Flynn confirmed there is no debt service on the$ 8, 000, 000. 00, only on what we actuallyuse.

Director Clifford advised that we are giving EIT a heads up to take the $ 8, 000, 000. 00 out of therotation for us and once we bond then the money goes back because we didn' t use it all.

Executive Director Theodos explained it is similar to a line of credit up to that amount.

Commissioner Lydecker confirmed that the money cannot be used for anything other than thespecific projects.

Director Clifford replied yes and explained that we put the money out and we are then reimbursed,except for the GAC since there will be some big payments for that project.

Director Specht advised that if he receives a payment request from the contractor for 1 or 2 milliondollars, he will take the payment request and send it directly to NJDEP and request reimbursement for that.

Director Clifford advised that the contractor would be paid approximately 45- 60 days after NJDEPreceived the payment request.

Director Specht advised we will pay him and then get the money back right away.

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Comm. Neafsey made a motion to adopt these Resolutions. Seconded by Comm. Curtis


ABSTAIN: None

19. EXEMPT SESSION

Personnel, Contracts & Potential Litigation Only)

Counselor Montenegro read the following into the record: Counselor Montenegro stated:" This is aResolution to enter into executive session; Whereas, Section 8 of the Open Public Meetings Act, NJSA:10: 4- 12 permits the exclusion of the public from a meeting in certain circumstances and; Whereas thisMUA is of the opinion that such circumstances now exist. Now therefore be it resolved by The BrickTownship Municipal Utilities Authority as follows: that the public shall be excluded from discussion ofandaction upon the hereinafter specified subject matter the general nature of those matters are litigation oranticipated litigation. It is anticipated at this time that the subject matters will be made public if and whenthe need for confidentiality no longer exists. Action may be taken this evening. This resolution shall becomeeffective immediately."

Comm. Curtis made a motion to go into exempt session. Seconded by Comm. Lydecker


ABSTAIN: None

At this time, 7:47 p.m. the group entered exempt session.

On motion duly made and seconded in exempt session the group returned to open session at8: 15 pm.

20. PUBLIC DISCUSSION.—NONE

21. COMMENTS FROM COMMISSIONERS, PROFESSIONALS & STAFF

Director Vaccaro advised that we did receive reimbursement from the insurance company forthe cyber claim in the amount of$ 29, 000. 00.

Director Vaccaro advised there is going to be a JIF Subcommittee in the JIF ExecutiveCommittee for cyber that he will be a member on.

Director Vaccaro advised that we have a conference call tomorrow on the UST. He reiteratedthe Chairman' s feelings and they are well aware of it. The Township is coming tomorrow to inspecteverything done so far.

Chairman Flynn asked if there should be more protection around the galvanized stand pipes thatare coming up.

Public Meeting Minutes- February28, 2019 PW 17

Director Vaccaro advised that he would need to look at it.

Chairman Flynn asked is the galvanized pipe that is on the curb is full of fuel.

Director Vaccaro advised there are no underground lines for the fuel tank.

Director Maggio stated that his entire department and the Authority appreciate the support theBoard has given to the two big projects that were approved tonight, the disinfection system and theGAC project. He really appreciates their support.

Chairman Flynn asked how he was doing with the meters.

Director Maggio replied that we are back up to 400- 500 per month and that we may be up to 600this month. We are back up to speed and we are looking to move to rebid for the contractor to replenishour supply.

Chairman Flynn asked the status of the water supply master plan.

Director Maggio advised that we received it on January 25 h, he and Rob Karl have beeninvolved with other projects, so they have not been able to put the focus on it yet, but they are juststarting to. He advised the review may be done in time for us to make a report to the Board at theMarch meeting.

Director Specht stated that he had a preconstruction meeting yesterday with UndergroundUtilities Corp. for the Breton Woods Watermain Replacement project. Notices will be going out to allof the neighbors in that area. Approximately 250 homes are impacted. You will receive a copy of thenotice letting the residence know the contractor will be starting in April sometime.

Chairman Flynn asked who the project engineer is.

Director Specht advised the project engineer is PS& S and DW Smith and Andy Virga, BTMUA,will be the inspector on the job.

Mr. Montenegro stated it was another good meeting.

Executive Director Theodos thanked the Board for their continuous support to himself and our

outstanding Directors. Thank you very much.

Chairman Flynn stated as usual thank you all for doing what you do.

22. CLOSING STATEMENT

Ms. DiMatteo read the following closing statement: The next Meeting of the Authority will be aPublic Meeting on Thursday, March 28, 2019 at 7: 00 p.m. All meetings take place in the Main ConferenceRoom ofthe Authority's Administration Building located at 1551 Highway 88 West, Brick

Public MeetrwgMmutes- February 28, 2019 Page 18

23. ADJOURNMENT

On motion duly made and seconded, followed by a unanimous vote the meeting was adjournedat 8: 25p. m.

Respectfully submitted,

William Neafs y, A thority Secretary

WN/ kld


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