MINUTES OF BOARD OF COMMISSIONERS
WORK SESSION AND REGULAR MEETING
MARCH 10, 2010
The Work Session of the Board of Commissioners of the Borough of West Cape May was called to order by Mayor Kaithern at 7:05 PM. The Open Public Meetings Statement was read by Mayor Kaithern who then led those present in the flag salute. Mayor Pamela Kaithern, Deputy Mayor Peter Burke, and Commissioner Ramsey Geyer answered roll call. Also in attendance: Borough Clerk Elaine Wallace, Deputy Clerk Kate Kilian, Borough Solicitor Frank Corrado, and Acting Borough Engineer George Curvan.
PUBLIC QUESTIONS ON THE CONSENT AGENDA ONLY: None
WORK SESSION
ENGINEER’S REPORT: George Curvan reviewed the report for the month of March.
OLD BUSINESS
Solar Energy: The energy audit application has been submitted to the state and the Borough is waiting for a response.
Sunset Boulevard Parking Lot: Ed Belski is preparing a GP6 application to be submitted to the NJDEP.
NEW BUSINESS: None
CONSENT AGENDA: On motion of Commissioner Geyer, seconded by Deputy Mayor Burke, the following Consent Agenda was unanimously approved on roll call vote.
Minutes: February 24, 2010
Ordinances for Introduction and Publication: None
Resolutions:
50-10 Authorize Special Event Permit to Karen Manetta Bosna for Fundraiser for New Jersey SPCA
51-10 Designating the Month of March as “Women’s History Month”
52-10 Authorize Special Event Permit to Cape May Film Festival for Screening of Films
53-10 Authorize Special Event Permit to P.A.L. of Cape May for Fundraiser
54-10 Authorize Special Event Permit to Mid-Atlantic Center for the Arts
56-10 Amending Resolution 41-10 to Change Dates for Cape May NJ Film Festival, Inc
57-10 Bill Payment
NON-CONSENT AGENDA:
ORDINANCES FOR SECOND READING AND PUBLIC HEARING: None
RESOLUTIONS:
55-10 Recognizing Volunteers of 2010 Snow Storm Emergencies
Mayor Kaithern read the resolution aloud and asked everyone whose name was read to stand and be recognized.
On motion of Deputy Mayor Burke, seconded by Geyer, the above referenced resolution was approved on unanimous roll call vote
58-10 Appointment to West Cape May Volunteer Fire Company
On motion of Deputy Mayor Burke, seconded by Mayor Kaithern, the above reference resolution was approved on roll call vote with Commissioner Geyer abstaining.
COMMISSIONERS REPORTS:
Commissioner Geyer was happy to see so many people in attendance and encouraged everyone to attend more of the Board’s meetings. He also announced there is information in the lobby about upcoming health fairs.
Deputy Mayor Burke reported on the success of the March 3rd blood drive. He also announced the Shade Tree Commission is hosting a free seminar about young tree pruning Saturday, March 13th and encouraged the public to attend.
Mayor Kaithern reminded everyone to complete and return their census questionnaire when it arrives. She explained the data collected is used to determine state and federal funding, so it is important that everyone be counted to ensure the Borough will have access to it’s share of funding.
PUBLIC PORTION:
John Rowley, Emerald Avenue, asked if there would be time for public comment after the water/sewer rate presentation.
Rich Hemenway, 719 Grand Avenue, asked if the Borough could use millings from work done on West Perry Street to fill the potholes along his street. Commissioner Burke explained the work on Perry Street will be done by the County, but Public Works is planning to start working on the potholes in the next week or so.
Richard Nelson, 602 Myrtle, appreciated the automated emergency messages left on his phone during the storms.
Dan Rutherford, 113 Stevens Street, asked people to please provide alternate phone numbers for the reverse 911 system, stating it really works and kept a lot of people from harm during the storms. He also thanked the Commissioners for all their hard work during the storm.
When no one else wished to speak the meeting was adjourned at 7:35 PM on motion of Deputy Mayor Burke, seconded by Commissioner Geyer.
WATER/SEWER RATE PRESENTATION:
Mayor Kaithern introduced the presenters for the evening: Public Works Manager Rob Flynn, Water/Sewer Supervisor David Carrick, Cape May County MUA Executive Director Charles Norkis, and Borough Auditor Leon Costello
Executive Director Charlie Norkis gave an explanation of how the sewer rates were created in the County and how they cover both fixed costs and variable costs. He explained how the MUA bills the Borough, which then passes the cost to its users using a flat rate. Mr. Norkis provided a copy of his information to the Municipal Clerk.
Public Works Manager Rob Flynn showed a PowerPoint presentation comprised of data for 2004 through 2009 to answer questions previously provided by Kathy Gallagher. Mr. Flynn explained that the percent of lost water varies from quarter to quarter and appears to spike in the 3rd quarter. Cape May City provides the water to West Cape May that is measured by one master meter, 2 outgoing meters and 1 two-way meter. There are water lines at Broadway, South Broadway and West Perry Street that are owned by the City of Cape May and upon which the Borough pays a 7.5% maintenance fee based on water metered along those lines. The gallons used along those lines appears on the bill from Cape May twice, but is only counted once. The water utility budget is separate from the general budget and only users of the system pay for the costs of the utility. Mr. Flynn showed infrastructure improvements made since 2002, which cover most of the system, during which any leaks were found and addressed. Also in mid-2009 every meter was replaced with new remote read meters which eliminates all human error from recording and billing. Now that leaks and individual meters have been eliminated as the sources of the lost water, the next step the Borough is taking is to interview and hire a firm to review the meters and valves that control flow into and out of the Borough.
Borough Auditor Leon Costello explained how the $210,000 shortfall in 2009 occurred and why the rate increase was necessary. He provided a handout showing the revenues and expenses of the water/sewer utility budget and explained that the revenues have been decreasing yearly, but the difference had been offset by using the fund balance. In 2009, there was a negative fund balance so that was no longer an option and the Borough was required to have a rate increase. There are fixed costs that the Borough has in order to provide water, and those costs have to be paid no matter what quantity of water a person uses. He also explained that this was not an isolated phenomenon, the same problem occurred all over the County and State last year. Mr. Costello explained the Borough had several meetings last year to determine how to adjust the billing structure and ultimately decided to reduce the base amount from 10,000 gallons to 6,000 gallons and to raise the rate per gallon. Mayor Kaithern explained that decision was made to help the smaller users.
At the conclusion of the presentation, there was a question and answer period.
When asked what progress has been made over the years in determining the cause of the loss, it was explained that although the Borough hasn’t found the cause, it has systematically eliminated possibilities. It was asked whether the cost of finding the problem may outweigh the cost of the lost water, but that could not be determined. It was noted, however, that if water was really being lost, it should be solved from an ecological and environmental standpoint. There was some concern that the figures presented by the Borough did not match figures calculated by the Taxpayers Association. Several people expressed concern that 12 million gallons of water could be lost and a solution not be found for so many years. Questions were asked about what the professional firm would do to try to identify the problem. They will be asked to review the metering into and out of the Borough and determine if that is creating the problem. It was explained that the water/sewer budget is completely separate from the general budget and the water rate increase was not a result of lost water. Some people disagreed with the methodology used and the change made in the water rate structure. One person suggested a committee be formed of residents and members of the Board to look into the problem and find a quick resolution, but Mayor Kaithern was reluctant to do so, stating experts were needed to solve the problem at this point.
After thanking everyone the audience, staff and professionals for attending, the meeting was adjourned at 9:41 PM.
Respectfully submitted,
Elaine L. Wallace, RMC
Borough Clerk
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