THE SOUTHEAST MORRIS COUNTY MUNICIPAL UTILITIES AUTHORITY MEETING MINUTES OCTOBER 19, 2017

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1 THE SOUTHEAST MORRIS COUNTY MUNICIPAL UTILITIES AUTHORITY MEETING MINUTES OCTOBER 19, 2017 The Regular Meeting of The Southeast Morris County Municipal Utilities Authority (the "Authority") was held on Thursday, October 19, 2017, at 7:00 PM prevailing time in the Board Room at the offices of the Authority at 19 Saddle Road, Cedar Knolls, New Jersey. The Chairman called the meeting to order at 7:00 PM and Mr. Weiss 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 Kissil; Members Baldassari, Iannaccone, Johnson, Rotando and Schimpf Members Conradi and Dougherty Also present at the meeting were the following Authority staff: Laura Cummings, Executive Director/Chief Engineer; Paul Kozakiewicz, Superintendent; Charles Maggio, Manager of Finance; Nicholas Buono, Information Technology Manager; Alexis Bozza, Administrative Assistant; and General Counsel to the Authority, Sidney D. Weiss, Esq. MOTION APPROVING MINUTES OF SEPTEMBER 28, 2017 Copies of the minutes of the meeting held on September 28, 2017, were distributed to the members prior to the meeting for review and comment. Member Johnson moved that the minutes be adopted. Member Baldassari seconded the motion which was duly adopted by the following vote: YEAS: NOES: Chairman Kissi!; Members Baldassari, Iannaccone, Johnson, Rotando and Schimpf None RESOLUTION -APPROVAL OF OCTTEMBER 2017 LIST OF BILLS Copies of the bill list for October 2017 were distributed to the members prior to the meeting for comment and approval. Member Rotando moved to approve the list of bills and offered the following resolution: RESOLUTION NO RESOLUTION AUTHORIZING PAYMENT OF LIST OF BILLS FOR OCTOBER 2017 "COPY ANNEXED" Page 1of10

2 Member Johnson seconded the motion which was duly adopted by the following vote: YEAS: NOES: Chairman Kissi!; Members Baldassari, Iannaccone, Johnson, Rotando and Schimpf None OTHER BUSINESS A. Report of the Engineering Committee Member Iannaccone reported that the Engineering Committee met on September 20, The 2018 Draft Budget was discussed at the Engineering Committee meeting in order to prepare for introduction at the October 19th, 2017 Board Meeting. The proposed 2018 Operating Budget is equal to $14,930,600 as compared to the 2017 Operating Budget of $14,300,100. The difference between the 2018 and 2017 Operating Budgets is equal to $630,500, or 4.4%. The budget report included projections in operating and capital expenses through 2023, where it is anticipated that future rate increases similar to those proposed for 2018 will be required through Capital expenditures over the 2018 to 2023 horizon are anticipated to be on the order of $3 to $4.6 million per year and, based on the business planning strategy, will be cash funded. The Capital Budget includes funds for a Water Supply Master Plan, Groundwater Facility Water Quality Evaluation and Process Improvement Feasibility Analysis and asset management plans for water storage tanks and groundwater facilities. These key projects will provide for more accurate life-cycle cost analyses for future capital investments, including regulatory drivers such as those imposed by the recently enacted New Jersey Water Quality Accountability Act. In addition, these projects will also provide needed information to compare the full life-cycle costs and of one water supply source to another; i.e. Clyde Potts Facility to the groundwater facilities and purchased water sources. The Capital Budget for 2018 includes costs to complete the meter installation and automatic meter reading project for residential services and a portion of the commercial service connections. Process improvements for the groundwater facilities are under design where the construction of these projects is budgeted for These improvements include chemical feed system upgrades and improvements for chlorine contact time at three (3) groundwater facilities. Other assumptions are made for the 2018 to 2023 Capital Budget such as those items required for anticipated recurring costs such as hydrant and valve replacements, tank rehabilitation, main rehabilitation, etc. B. Report of the Finance Committee Member Johnson reported that the Finance Committee met on September 20, 2017 to review the draft budget for Page 2of10

3 The 2018 Draft Budget was discussed at the Finance Committee meeting in order to prepare for introduction at the October 19th, 2017 Board Meeting. A follow up report was distributed to the Finance Committee to provide additional detail on the 2017 year-end expense and revenue projections as well corrections were made to the operating expense calculations that resulted in reduced annual expenditures. The 2017 year-end revenue is projected to be equal to $14,935,330 which is $512,344 above that budgeted. The 2017 year-end expenses are projected to utilize 94% of the Budget, or $811,615 less than that budgeted. If the Authority was fully staffed as budgeted for 2017, the year-end expenses would utilize approximately 98% of the expense budget. The proposed 2018 Operating Budget is equal to $14,930,600 as compared to the 2017 Operating Budget of $14,300,100. The difference between the 2018 and 2017 Operating Budgets is equal to $630,500, or a 4.4% increase. The increase in expenditures has been identified to account for anticipated increases in fuel, energy and purchased water expenses; increase in medical benefit costs primarily due to retiree benefits; additional costs associated with required water quality monitoring and treatment; outsourcing of grounds keeping and fleet maintenance; and various consulting services. Outsourcing of certain functions, as an example, is partially as a result of regulatory required utility mark outs and preventative maintenance tasks. The proposed 2018 revenues are equal to $14,836,173, assuming the rate increases outlined below and an unrestricted net asset transfer of $94,427. The revised expense calculations resulted in a lower residential rate increase then originally proposed. The variability for the volumetric rate increases is due to the findings of the 2016 Cost of Service Study and the need to realign the rates. In addition, the 2015 Demand Forecast projected only a slight increase of about 0.06% per year in metered sales which has minimal impact on revenue. The resultant impact on a typical residential customer utilizing 7,500 gallons of water per month would increase from $ per year to $ per year, or by $6.97. The median cost of water using the rates of other public water utilities in the State of New Jersey is $ per year and using the combined rates of both public and private water utilities would be $ per year as provided by Howard J. Woods, Jr. and Associates, LLC. The budget report included projections in operating and capital expenses through 2023, where it is anticipated that future rate increases similar to those proposed for 2018 will be required through Capital expenditures over the 2018 to 2023 horizon are anticipated to be on the order of $3 to $4.6 million per year. The six {6) year budget is based on achieving a balance of $5 million in the general fund at the end of the budget cycle, provide $2 million dollars per year as cash working capital to fund operating expenses and to cash fund all capital expenditures. The Authority carries no debt as of 2017 other than the annual payment of $30,000 for the acquisition of the original assets from the Town of Morristown. Page 3of10

4 C. Report of the Personnel Committee Member Rotando reported on the meeting of the Personnel Committee held on September 20, The 2018 Draft Budget was discussed at the Personnel Committee meeting in order to prepare for introduction at the October 19th, 2017 Board Meeting. The proposed 2018 Operating Budget is equal to $14,930,600 as compared to the 2017 Operating Budget of $14,300,100. The difference between the 2018 and 2017 Operating Budgets is equal to $630,500, or 4.4%. The total salary and wage budget decreased slightly from $3,672,000 for 2017 to $3,571,900 for The organizational structure was revised to include full-time equivalents (FTEs) as compared to the 46.6 FTEs for A combination of full-time, part time, and seasonal staff are included in the organizational structure. New positions were added to include a Water Quality Assistant Supervisor and an additional Operations Division Supervisor. The Authority has eliminated medical retiree benefit costs for new hires, effective June The medical retiree benefit applies to 34 of 44 budgeted FTE staff members. A 17.25% employee contribution for dental benefits was also implemented in June of 2017 as compared to a flat rate contribution, allowing the contribution to adjust to increases in future plan premiums. Succession planning initiatives are incorporated into the structure in order to plan for future staff vacancies. D. Resolution Introducing 2018 Budget The Board reviewed the proposed 2018 Budget. The Executive Director/Chief Engineer and Manager of Finance gave a brief PowerPoint presentation regarding the proposed 2018 Budget. Member Johnson offered the following resolution: RESOLUTION NO RESOLUTION INTRODUCING 2018 BUDGET "COPY ANNEXED" Member Baldassari seconded the motion which was duly adopted by the following vote: YEAS: NOES: Chairman Kissil; Members Baldassari, Iannaccone, Johnson, Rotando and Schimpf None Page 4of10

5 E. Resolution Authorizing the Transfer of Funds between 2017 Budget Appropriations The Board reviewed a memorandum from the Manager of Finance dated October 16, 2017, where he advised that there exists certain funds in the 2017 budget line items which will be remaining at year end and that there are certain budget line items in the 2017 budget that require additional funding prior to the year end. Per suggestion by the Authority's Auditors that it authorize and obtain Board approval for budget transfers among its internal appropriation line items to cover actual expenditures, the Manager of Finance requested that such balances, totaling $44,301.38, be transferred from the various budget line items with balances to those requiring additional funds to balance. Member Rotando offered the following resolution: RESOLUTION NO RESOLUTION AUTHORIZING THE TRANSFER OF FUNDS BETWEEN 2017 BUDGET APPROPRIATIONS "COPY ANNEXED" Member Johnson seconded the motion which was duly adopted by the following vote: YEAS: NOES: Chairman Kissil; Members Baldassari, Iannaccone, Johnson, Rotando and Schimpf None F. Resolution Authorizing Award of Contract to Corona Environmental Consulting LLC for Information Management Concept Study The Information Technology {"IT") Manager has recommended that a contract be awarded to Corona Environmental Consulting LLC ("Corona") for Information Management concept study as set forth in a memorandum dated September 21, 2017, which the Board reviewed. Corona is listed on the United States General Services Administration ("GSA") IT Schedule 70 as a vendor preauthorized to provide Federal, State and local agencies with information technology software and services using pre-negotiated terms and prices. The following Corona offerings are on the GSA IT Schedule 70 under Contract No. GS-35F-199DA: IT Systems Development Services; IT Systems Analysis Services; Automated Information Systems Design and Integration Services; Programming Services; IT Data Conversion Services; and Other Information Technology Services, Not Elsewhere Classified. The estimated not to exceed cost of these items is $100,000 based upon a six-month timeline as set forth in the aforementioned memorandum of the IT Manager dated September 21, The IT Manager has confirmed that this contract can be awarded to Corona pursuant to said GSA IT Schedule 70; under Contract No. GS-35F-199DA without further public bidding. The Treasurer certified that funds are available to be charged to Account No {IT Master Plan/Date Integration). Member Baldassari offered the following resolution: Page 5of10

6 RESOLUTION NO RESOLUTION AUTHORIZING AWARD OF CONTRACT TO CORONA ENVIRONMENTAL CONSULTING LLC FOR INFORMATION MANAGEMENT CONCEPT STUDY "COPY ANNEXED" Member Rotando seconded the motion which was duly adopted by the following vote: YEAS: NOES: Chairman Kissil; Members Baldassari, Iannaccone, Johnson, Rotando and Schimpf None G. Resolution Amending Contract with Murphy McKeon, PC, for Professional Legal Services related to the Review and Revision of Project Agreements and Other Matters The Authority has requested and received a proposal from David Ruitenberg, Esq., of Murphy McKeon, P.C. ("MM") to increase its existing contract for professional services by an amount not to exceed $17,500 to cover review and revision of contract documents and other matters, including litigation support, in connection with the pending Pro-Spec bankruptcy and contracts dispute. The award is in compliance with N.J.S.A. 19:44A-20.5 (Pay-to-Play Law) and MM completed and submitted Business Entity Disclosure Certifications which certify that they have not made any reportable contributions to any political or candidate committee in the Township of Hanover, Borough of Morris Plains, Town of Morristown and the Township of Morris in the previous one year, and that the contract will prohibit them from making any reportable contributions through the term of the contract. The Treasurer certified that there are sufficient funds available in the 2017 Budget. Member Baldassari offered the following resolution: RESOLUTION NO RESOLUTION AMENDING CONTRACT WITH MURPHY MCKEON, PC, FOR PROFESSIONAL LEGAL SERVICES RELATED TO THE REVIEW AND REVISION OF PROJECT AGREEMENTS AND OTHER MATTERS "COPY ANNEXED" Member Johnson seconded the motion which was duly adopted by the following vote: YEAS: NOES: Chairman Kissil; Members Baldassari, Iannaccone, Johnson, Rotando and Schimpf None Page 6of10

7 H. Resolution Authorizing Award of a Professional Service Contract for Professional Engineering Services in connection with Construction Administration for Picatinny Booster Pump Station Standby Power Installation Mott MacDonald submitted a proposal to provide professional engineering services in connection with construction administration for the Picatinny Booster Pump Station standby power installation. The proposal was reviewed by the Senior Engineer as set forth in a memorandum dated October 17, 2017, a copy of which was reviewed by the Board. The proposal submitted by Mott MacDonald had been determined to be responsive to the requested scope of services at a total cost of $36, The Contract would be awarded without public bidding as a Professional Service Contract pursuant to the provisions of the Local Public Contracts Law (N.J.S.A. 40A:ll-1 et seq.) and in compliance with N.J.S.A. 19:44A-20.5 (Pay-to-Play Law). Mott MacDonald completed and submitted Business Entity Disclosure Certifications which certify that they have not made any reportable contributions to any political or candidate committee in the Township of Hanover, Borough of Morris Plains, Town of Morristown and the Township of Morris in the previous one year, and that the contract will prohibit them from making any reportable contributions through the term of the contract. The Treasurer certified that there are sufficient funds available in the 2017 Budget. Member Rotando offered the following resolution: RESOLUTION NO RESOLUTION AUTHORIZING AWARD OF A PROFESSIONAL SERVICE CONTRACT FOR PROFESSIONAL ENGINEERING SERVICES IN CONNECTION WITH CONSTRUCTION ADMINISTRATION FOR PICATINNY BOOSTER PUMP STATION STANDBY POWER INSTALLATION "COPY ANNEXED" Member Baldassari seconded the motion which was duly adopted by the following vote: YEAS: NOES: Chairman Kissil; Members Baldassari, Iannaccone, Johnson, Rotando and Schimpf None I. Resolution Awarding Contract for Maintenance, Servicing and Repair of HVAC System The Authority advertised and received bids for the contract entitled Maintenance, Servicing and Repair of HVAC System on October 11, Bid packages were issued to fifteen (15) companies, where four (4) submitted bids. Envirocon, LLC, of Hackettstown, New Jersey, has been determined to be the lowest responsive and responsible bidder in the total amount of $56,370. The Treasurer certified that there are sufficient funds available in the 2017 Budget for the portion to be expended in 2017; portions to be expended in 2018 are subject to funds being available in the 2018 Budget. Member Rotando offered the following resolution: Page 7of10

8 RESOLUTION NO RESOLUTION AWARDING CONTRACT FOR MAINTENANCE, SERVICING AND REPAIR OF HVAC SYSTEM "COPY ANNEXED" Member Johnson seconded the motion which was duly adopted by the following vote: YEAS: NOES: Chairman Kissil; Members Baldassari, Iannaccone, Johnson, Rotando and Schimpf None J. Resolution Rescinding Award of Contract to Main Pool and Chemical Company for the Contract entitled Water Treatment Chemicals (Liquid Citric Acid) and Awarding to George S. Coyne Chemical Company, Inc. The Authority advertised and received bids, pursuant to a fair and open process, for the contract entitled Water Treatment Chemicals on September 7, By resolution dated September 28, 2017, the Authority awarded a contract to Main Pool and Chemical Company for Liquid Citric Acid, which was then determined to be the lowest qualified bidder in the total amount of $1, On October 16, 2017, subsequent to the award but prior to execution of the contract, Main Pool and Chemical Company provided a Certificate of Analysis for an alternative chemical where the Authority's Superintendent deemed unresponsi.ve to the requirements of the contract. George S. Coyne Chemical Co. Inc. submitted the next lowest bid in the total amount of $2, Based upon the inability of Main Pool and Chemical Company to comply with the certification requirements of the Contract, George S. Coyne Chemical Co. Inc. is determined to be the lowest qualified bidder in accordance with its bid of September 7, 2017 in the total maximum amount of $2, The Treasurer certified that there are sufficient funds available in the 2017 Budget for the portion to be expended in 2017; portions to be expended in 2018 are subject to funds being available in the 2018 Budget. Member Johnson offered the following resolution: RESOLUTION NO RESCINDING AWARD OF CONTRACT TO MAIN POOL AND CHEMICAL COMPANY FOR THE CONTRACT ENTITLED WATER TREATMENT CHEMICALS {LIQUID CITRIC ACID) AND AWARDING TO GEORGES. COYNE CHEMICAL COMPANY, INC. "COPY ANNEXED" Member Schimpf seconded the motion which was duly adopted by the following vote: Page 8of10

9 YEAS: NOES: Chairman Kissil; Members Baldassari, Iannaccone, Johnson, Rotando and Schimpf None K. Resolution Approving Continued Voluntary Participation in Financial Incentive Program Offered by the State Health Benefit Plan The Board reviewed a memorandum from the Manager of Finance to the Members dated October 19, 2017, recommending that the Authority continue its voluntarily participation in the Financial Incentive Program being offered by the State Health Benefit Plan (SHBP) for the year The Members found that such participation is in the best interest of the Authority and its employees. Member Rotando offered the following resolution: RESOLUTION NO RESOLUTION APPROVING CONTINUED VOLUNTARY PARTICIPATION IN FINANCIAL INCENTIVE PROGRAM OFFERED BY THE STATE HEALTH BENEFIT PLAN "COPY ANNEXED" Member Johnson seconded the motion which was duly adopted by the following vote: YEAS: NOES: Chairman Kissi!; Members Baldassari, Iannaccone, Johnson, Rotando and Schimpf None SUCH OTHER MATTERS TO LEGALLY COME BEFORE THE BOARD 1. Ms. Cummings reported that the meeting scheduled for November 2, 2017 would be held. REPORTS Copies of the following reports were distributed to the Members for review and comment and a discussion ensued as to each item: A. Executive Director/Chief Engineer- September 2017 B. Superintendent - September 2017 C. Health, Safety and Security- September 2017 D. Information Technology- September 2017 E. Finance -September 2017 Page 9of10

10 PUBLIC DISCUSSION Chairman Kissil stated the next portion of the meeting was set aside for public discussion. No one from the public was present. The Chairman then closed the public portion of the meeting. ADJOURNMENT There being no further business, Member Baldassari moved that the meeting be adjourned. Member Johnson seconded the motion. The meeting adjourned at 8:19 PM. THE SOUTHEAST MORRIS COUNTY MUNICIPAL UTILITIES AUTHORITY c ;:2 -::= _. SIDNEY D. WEISS Assistant Secretary Page 10of10

11 l1ma 111 Ua 19 SADDLE ROAD. CEDAR KNOLLS, NEW JERSEY T EL FAX S IDIBlllUI Southeast Morris County Municipal Utilities Authority SlllC A SlllClllU SlllBlllUA Resolution No RESOLUTION AUTHORIZING PAYMENT OF OCTOBER 2017 LIST OF BILLS of bills: BE IT RESOLVED that authorization is hereby granted to make payment of the following list OPERATING FUND Total Salary and Wages Total Operating Fund Checks and Wire Transfers GENERAL FUND/SPECIAL ACCOUNT TOTAL OF OCTOBER 2017 LIST OF BILLS $ $ $ $ 277, , , , ATIEST: - SID~ ISS/ASSiStantSecretary Dated: October 19, 2017 Board Members Morristown: Mary Dougherty Donald Kissil Morris Township: Dennis Baldassari Alan Johnson Morris Plains: William Conradi Ralph Rotando Hanover Township: Saverio C. Iannaccone Adolf Schimpf Executive Director/Chief Engineer: Laura Cummings, P.E. Superintendent: Paul A. Kozakiewicz

12 TREASURER'S CERTIFICATION I hereby certify that there are sufficient funds available ($700,397.15} for payment of the resolution entitled Resolution Authorizing Payment of October 2017 List of Bills in the Authority's 2017 Operating Budget. AGGIO, Treasurer Dated: October 19, 2017

13 CERTIFICATION I hereby certify the foregoing to be a true copy of the resolution adopted by The Southeast Morris County Municipal Utilities Authority on Thursday, October 19, 2017, at a meeting duly convened of said Authority. Dated: October 19, 2017

14 2018 APPROVAL CERTIFICATION THE SOUTHEAST MORRIS COUNTY MUNICIPAL UTILITIES AUTHORITY AUTHORITY BUDGET FISCAL YEAR: FROM: January 1, 2018 TO: December 31, 2018 It is hereby certified that the Authority Budget, including all schedules appended hereto, are a true copy of the Annual Budget and Capital Budget/Program approved by resolution by the governing body of the Southeast Monis County Municipal Utilities Authority, at an open public meeting held pursuant to N.J.A.C. 5:31-2.3, on the 19th day of October, It is fmiher certified that the recorded vote appearing in the resolution represents not less than a majority of the full membership of the governing body thereof. Officer's Signature: ~- P//?~~ Name: Title: Address: ~ "'~... - Sidney D. Weiss, Esq. Assistant Secretary 19 Saddle Rd Cedar Knolls, NJ Phone Number: I Fax Number: address sdweiss@smcmua.org Page C-3

15 2018 AUTHORITY BUDGET RESOLUTION THE SOUTHEAST MORRIS COUNTY MUNICIPAL UTILITIES AUTHORITY FISCAL YEAR: FROM: January l, 2018 TO: December3l,20l8 WHEREAS, the Annual Budget and Capital Budget for The Southeast Morris County Municipal Utilities Authority for the fiscal year beginning, January l, 2018 and ending, December 31, 2018 has been presented before the governing body of The Southeast Morris County Municipal Utilities Authority at its open public meeting of October 19, 2017; and WHEREAS, the Annual Budget as introduced reflects Total Revenues of$ 14,836,173, Total Appropriations, including any Accumulated Deficit if any, of$ 14,930,600 and Total Unrestricted Net Position utilized of$94,427; and WHEREAS, the Capital Budget as introduced reflects Total Capital Appropriations of$4,642,l47 and Total Unrestricted Net Position planned to be utilized as funding thereof, of$4,642,147; and WHEREAS, the schedule of rates, fees and other charges in effect will produce sufficient revenues, together with all other anticipated revenues to satisfy all obligations to the holders of bonds of the Authority, to meet operating expenses, capital outlays, debt service requirements, and to provide for such reserves, all as may be required by law, regulation or terms of contracts and agreements; and WHEREAS, the Capital Budget/Program, pursuant to N.J.A.C. 5:31-2, does not confer any authorization to raise or expend funds; rather it is a document to be used as part of the said Authority's planning and management objectives. Specific authorization to expend funds for the purposes described in this section of the budget, must be granted elsewhere; by bond resolution, by a project financing agreement, by resolution appropriating funds from the Renewal and Replacement Reserve or other means provided by law. NOW, THEREFORE BE IT RESOLVED, by the governing body of The Southeast Morris County Municipal Utilities Authority, at an open public meeting held on October 19, 2017 that the Annual Budget, including all related schedules, and the Capital Budget/Program of The Southeast Morris County Municipal Authority for the fiscal year beginning, Januaty I, 2018 and ending, December 31, 2018 is hereby approved; and BE IT FURTHER RESOLVED, that the anticipated revenues as reflected in the Annual Budget are of sufficient amount to meet all proposed expenditures/expenses and all covenants, terms and provisions as stipulated in the said Authority's outstanding debt obligations, capital lease arrangements, service contracts, and other pledged agreements; and BE IT FURTHER RESOLVED, that the governing body of The Southeast Morris County Municipal Utilities Authority will consider the Annual Budget and Capital Budget/Program for adoption on December 21, 2017 Governing Body Member: Baldassari, Dennis Conradi, William Doughetty, Mary Iannaccone, Saverio Johnson, Alan Kissi!, Donald Rotando, Ralph Schimpf, Adolf (Assistant Secretary's Signature) Aye October 19, 2017 (Date) Recorded Vote Nay Abstain Absent Page C-5

16 S a:111ua Southeast Morris County Municipal Utilities Authority =lld 11111: 19 SlllC A s111a111u Sl'llClllU SADDLE ROAD CEDAR KNOLLS, N EW JERSEY TEL FAX Resolution No RESOLUTION AUTHORIZING THE TRANSFER OF FUNDS BETWEEN 2017 BUDGET APPROPRIATIONS WHEREAS, the Authority's Manager of Finance/Treasurer has advised that a new budget account was needed to cover expenses incurred by temporary staff; and WHEREAS, the Manager of Finance/Treasurer has requested that such balances be transferred from a previously established budget line item with a balance to fund the new budget line item; and WHEREAS, it appears that such transfer is in the best interest of the Authority and the Water System; NOW THEREFORE, BE IT RESOLVED by The Southeast Morris County Municipal Utilities Authority that the following transfer within the 2017 Operating Budget totaling $44, is hereby approved: Budget Transfers for 2017 Budget Budget Line Item Title Amount Transfer To: Transfer From: Meters (Capital) HEALTH, SAFETY & SECURITY- HSS SERVICES ADMIN: Newsletter/Advertising 2014 Auto Meter Reading Equipment (Capital) HEALTH, SAFETY & SECURITY- PPE HEALTH, SAFETY & SECURITY- DUES/SEMINARS ADMIN: General Expenses Total Total 36, , , $44, , , , , $44, Board Members Morristown: Mary Dougherty Donald Kissil Morris Township: Dennis Baldassari Alan Johnson Morris Plains: William Conradi Ralph R. Rotando Hanover Township: Saverio C. Iannaccone Adolf Schimpf Executive Director/ Chief Engineer: Laura Cummings, P.E. Superintendent: Paul A. Kozakiewicz

17 AND BE IT FURTHER RESOLVED that the Manager of Finance/Treasurer be and is hereby authorized and directed to take whatever actions are necessary or convenient to effectuate the provisions of this Resolution and the transfers hereby approved. ATTEST: OUNTY HORITY DATED: October 19, 2017

18 CERTIFICATION I hereby certify the foregoing to be a true copy of the resolution adopted by The Southeast Morris County Municipal Utilities Authority on Thursday, October 19, 2017, at a meeting duly convened of said Authority. c~rits:;;retary Dated: October 19, 2017

19 Resolution No RESOLUTION AUTHORIZING AWARD OF CONTRACT TO CORONA ENVIRONMENTAL CONSULTING LLC FOR INFORMATION MANAGEMENT CONCEPT STUDY WHEREAS, the Information Technology ("IT") Manager has recommended that a contract be awarded to Corona Environmental Consulting LLC ("Corona") for Information Management concept study as set forth in a memorandum dated September 21, 2017 annexed hereto; and WHEREAS, Corona is listed on the United States General Services Administration ("GSA") IT Schedule 70 as a vendor pre-authorized to provide Federal, State and local agencies with information technology software and services using pre-negotiated terms and prices; and WHEREAS, the following Corona offerings are on the GSA IT Schedule 70 under Contract No. GS-35F-199DA: IT Systems Development Services; IT Systems Analysis Services; Automated Information Systems Design and Integration Services; Programming Services; IT Data Conversion Services; and Other Information Technology Services, Not Elsewhere Classified; and WHEREAS, the estimated not to exceed cost of these items is $100,000 based upon a six-month timeline as set forth in the aforementioned memorandum of the IT Manager dated September 21, 2017;and WHEREAS, the IT Manager has confirmed that this contract can be awarded to Corona pursuant to sa id GSA IT Schedule 70; under Contract No. GS-35F-199DA without further public bidding; and WHEREAS, the Treasurer has certified that funds are available to be charged to Account No (IT Master Plan/Date Integration). NOW THEREFORE, BE IT RESOLVED, by The Southeast Morris County Municipal Utilities Authority that a contract be awarded to Corona Environmental Consulting LLC for Information Management concept study pursuant to the authorization co t ined in GSA IT Schedule 70 under Contract No. GS-35F-199DA. ATIEST: NTY ~-=-=- SiDYD:'ES:AssistantSecretary DATED: October 19, 2017 Board Members Morristown: Mary Dougherty Donald Kissil Morris Township: Dennis Baldassari Alan Johnson Morris Plains: William Conradi Ralph R. Rotando Hanover Township: Saverio C. Iannaccone Adolf Schimpf Executive Director/Chief Engineer: Laura Cummings, P.E. Superintendent: Paul A. Kozakiewicz

20 S = -== A SlllClllU Sl'llC U lllua Southeast Morris County Municipal Utilities Authority SADDLE ROAD CEDAR KNOLLS, NEW JERSEY TEL FAX MEMORANDUM TO: FROM: RE: Laura Cummings, Executive Director/Chief Engineer Nicholas Buono, IT Manager IT Strategic Planning Concept Study DATE: September 21 5 \ 2017 CC: Charles Maggio, Supervisor of Finance In accord to the "IT Strategic Planning" presentation made to the Finance committee and the Board in September of 2016, the Authority is in the process of completing scope of services for the planned mini-concept studies for Information Management and Cyber-Security. The Authority is recommending Corona Environmental Consulting (Corona) for the Information Management concept study. Corona has supported many drinking water utilities and government agencies in the areas of software development, data management, information systems, GIS and data management. They have developed decision support tools and provided technical assistance for drinking water regulation, environmental decision making and environmental litigation. They have solved complex problems in the water community that protect public health and the environment. Corona combines cutting-edge science and engineering with the latest technology. Their team not only includes talented water scientists, microbiologists and environmental engineers; it also includes expert computer programmers, software developers and geographic information systems professionals. Corona is listed on the U.S. General Services Administration (GSA) IT Schedule 70, a list of vendors pre-authorized to provide federal agencies with information technology equipment, software, and services. The GSA, a federal procurement and property management agency, was created to improve government efficiency and help federal agencies better serve the public. The purpose of the GSA Schedule 70 is to streamline the procurement process for government agencies, allowing them to obtain the IT products and services they need more quickly and easily. Under the GSA schedule contract, federal, state, and local government agencies will now be able to purchase Corona's IT software and services-using pre-negotiated terms and prices. Page 1of2

21 The following Corona offerings are on the GSA IT Schedule 70 under contract #GS-35F-199DA: IT Systems Development Services IT Systems Analysis Services Automated Information Systems Design and Integration Services Programming Services IT Data Conversion Services Other Information Technology Services, Not Elsewhere Classified The item was planned and budgeted for 2017, and an estimated cost of one-hundred-thousand dollars ($100,000.00), based on a six month timeline, will be charged to account (IT Master Plan/Data Integration). Page 2 of 2

22 TREASURER'S CERTIFICATION I hereby certify the availability of funds for payment of a contract with Corona Environmental Consulting LLC for Information Management concept study pursuant to the authorization contained in GSA IT Schedule 70 under Contract No. GS-35F-199DA estimated not to exceed the cost of $100,000. This item will be charged to Account No (IT Master Plan/Date Integration) GGIO, Treasurer DATED: October 19, 2017

23 CERTIFICATION I hereby certify the foregoing to be a true copy of the resolution adopted by The Southeast Morris County Municipal Utilities Authority on Thursday, October 19, 2017, at a meeting duly convened of said Authority. Dated: October 19, 2017

24 = : 19 SADDLE ROAD CEDAR KNOLLS, NEW JERSEY TEL FAX s111a111ua Southeast Morris County Municipal Utilities Authority SlllC A SlllClllU SlllC&llU Resolution No RESOLUTION AMENDING CONTRACT WITH MURPHY MCKEON, PC, FOR PROFESSIONAL LEGAL SERVICES RELATED TO THE REVIEW AND REVISION OF PROJECT AGREEMENTS AND OTHER MATIERS WHEREAS, the Authority has a need for professional legal services related to the review and revision of project agreements and other matters; and WHEREAS, Murphy McKeon, PC, ("MM") submitted a proposal dated January 1, 2017 for the providing of such services at a maximum amount of $10,000; and WHEREAS, the contract was approved without public bidding as a Professional Service Contract pursuant to the provisions of the Local Public Contracts Law (N.J.S.A. 40A:ll-1 et seq.); and WHEREAS, the Authority entered into a contract with MM dated January 1, 2017 (the "Contract"); and WHEREAS, the Authority would like to increase the total maximum not-to-exceed amount of the Contract to $27,500; and WHEREAS, this Contract is in compliance with N.J.S.A. 19:44A-20.5 (Pay-to-Play Law); and WHEREAS, MM has completed and submitted Business Entity Disclosure Certifications which certify that they have not made any reportable contributions to any political or candidate committee in the Township of Hanover, Borough of Morris Plains, Town of Morristown and the Township of Morris in the previous one year, and that the contract will prohibit them from making any reportable contributions through the term of the contract; and WHEREAS, the Treasurer has determined and certified in writing that the value of the Contract will exceed $17,500; and and WHEREAS, funds are available and have been certified by the Treasurer of the Authority; Board Members Morristown: Mary Dougher1y Donald Kissil Morris Township: Dennis Baldassari Alan Johnson Morris Plains: William Conradi Ralph R. Rotando Hanover Township: Saverio C. Iannaccone Adolf Schimpf Executive Director/ Chief Engineer: Laura Cummings, P.E. Superintendent: Paul A. Kozakiewic z

25 NOW THEREFORE, BE IT RESOLVED, by The Southeast Morris County Municipal Utilities Authority as follows: 1. The Contract with Murphy McKean, PC, professional legal services related to the review and revision of project agreements and other matters dated January 1, 2017 be amended to reflect a total maximum not-to-exceed amount of $27, The Executive Director /Chief Engineer be and is hereby authorized and directed to execute a Professional Service Contract on behalf of the Authority. 3. This contract is awarded without competitive bidding as a "Professional Service Contract" in accordance with the Local Public Contracts Law because the services to be rendered are professional services as therein defined; and 4. Copies of this Resolution shall be filed in the office of the Secretary of the Authority and in the respective offices of the Clerks of the Township of Hanover, the Township of Morris, the Town of Morristown and the Borough of Morris Plains, and notice of the award shall b printed once in the Daily Record in accordance with the Local Public Contr ts Law. ATIEST: SIDN~EISS, Assistant Secretary DON LD KISSIL, Chairman DATED: October 19, 2017

26 CERTIFICATION OF VALUE IN EXCESS OF $17,500 (PAY-TO-PLAY LAW) The undersigned hereby certifies that the estimated amount of the contract to be awarded to Murphy McKean, PC, for professional legal services related to the review and revision of project agreements and other matters exceeds $17,500. Dated: October 19, 2017

27 TREASURER'S CERTIFICATION I hereby certify funds are available for payment of a contract with Murphy McKean, PC for professional legal services related to the review and revision of project agreements and other matters not exceed $27,500. This item will be charged to Account No (ADMIN: Prof Services - Legal). DATED: October 19, 2017

28 CERTIFICATION I hereby certify the foregoing to be a true copy of the resolution adopted by The Southeast Morris County Municipal Utilities Authority on Thursday, October 19, 2017, at a meeting duly convened of said Authority. 2L SIDNEY D. WEISS, Assistant Secretary C::: Dated: October 19, 2017

29 Resolution No RESOLUTION AUTHORIZING AWARD OF A PROFESSIONAL SERVICE CONTRACT FOR PROFESSIONAL ENGINEERING SERVICES IN CONNECTION WITH CONSTRUCTION ADMINISTRATION FOR PICATINNY BOOSTER PUMP STATION STANDBY POWER INSTALLATION WHEREAS, Mott MacDonald submitted a proposal to provide professional engineering services in connection with construction administration for the Picatinny Booster Pump Station standby power installation; and WHEREAS, the proposal was reviewed by the Senior Engineer as set forth in a memorandum dated October 17, 2017, a copy of which are annexed hereto; and WHEREAS, the proposal submitted by Mott MacDonald has been determined to be responsive to the requested scope of services at a total cost of $36,489.12; and WHEREAS, this Contract is being awarded without public bidding as a Professional Service Contract pursuant to the provisions of the Local Public Contracts Law (N.J.S.A. 40A:11-1 et seq.) and in compliance with N.J.S.A. 19:44A-20.5 (Pay-to-Play Law); and WHEREAS, Mott MacDonald has completed and submitted Business Entity Disclosure Certifications which certify that they have not made any reportable contributions to any political or candidate committee in the Township of Hanover, Borough of Morris Plains, Town of Morristown and the Township of Morris in the previous one year, and that the contract will prohibit them from making any reportable contributions through the term of the contract; and WHEREAS, the Treasurer has determined and certified in writing that the value of the Contract will exceed $17,500; and WHEREAS, the Treasurer has certified that there are sufficient funds available in the 2017 Budget; and WHEREAS, the Local Public Contracts Law (N.J.S.A. 40A:11-1 et seq.) requires that notice of the awarding of professional service contracts be printed once in a newspaper authorized by law to publish the Authority's legal advertisement; Board Members Morristown: Mary Dougherty Dona ld Kissil Morris Township: Dennis Baldassari Edward A. Taratko. Jr. Morris Plains: William Conradi Ralph R. Rotando Hanover Township: Saverio C. Iannaccone Adolf Schimpf Executive Director/ Chief Engineer: Laura Cummings, P.E. Superintendent: Paul A. Kozakiewicz

30 NOW THEREFORE BE IT RESOLVED by The Southeast Morris County Municipal Utilities Authority as follows: ATTEST: 1. That the proposal of Mott MacDonald to provide professional engineering services in connection with construction administration for the Picatinny Booster Pump Station standby power installation be and the same is hereby accepted and approved. 2. The Executive Director/Chief Engineer be and is hereby authorized and directed to execute a Professional Service Contract on behalf of the Authority. 3. This contract is awarded without competitive bidding as a "Professional Service Contract" in accordance with the Local Public Contracts Law because the services to be rendered are professional services as therein defined; and 4. Copies of this Resolution shall be filed in the office of the Secretary of the Authority and in the respective offices of the Clerks of the Township of Hanover, the Township of Morris, the Town of orristown and the Borough of Morris Plains, and notice of the award shal e printed once in the Daily Record in accordance with the Local Public Con r cts Law. c:::=~~~ SIDNEY D. WEISS, Assistant Secretary DATED: October 19, 2017

31 S 111ClllUA Southeast Morris County Municipal Utilities Authority ~=JllU= 19 SADDLE ROAD CEDAR KNOLLS, NEW JERSEY TEL FAX smc 11 s u SlllClllll MEMORANDUM TO: FROM: RE: DATE: CC: SMCMUA Board Laura Norkute, Senior Engineer Recommendation of Award to Mott MacDonald for "Professional Services for Construction Administration for Picatinny Booster Pumping Station Standby Power Installation" October 17, 2017 Laura Cummings, P.E., Executive Director/Chief Engineer Paul A. Kozakiewicz, Superintendent The proposal for "Professional Services for Construction Administration for Picatinny Booster Pumping Station Standby Power Installation" was received on October 17, The Authority had a professional services contract with Mott MacDonald for the design, permitting, bid phase, and construction phase engineering services for installation of new generator and other upgrades at the Picatinny Booster Station and manual transfer switches that expired in April The Picatinny Station Standby Power and Related Work project was originally bid for construction in April The number and range of bids received exceeded the budgeted amount; therefore, the Authority revised the scope of work and rebid the construction of the project. The contract for Standby Power Installation has been awarded and executed and the Authority is now in need of construction administration services to begin the project. There was a total of $51, left under Task 7: Construction Administration under the expired contract. The Authority revised the scope of work for the construction of this project, thus the amount of labor hours for the engineering services during construction has also gone down. Mott MacDonald's project team member experience and involvement of the design and permitting for this project provides for subject area experts for this task. Based on the review of the proposal submitted by the Consultant, I recommend award of Professional Services for Construction Administration to Mott MacDonald for a total time-and-materials not-to-exceed cost of $36, The Treasurer has certified that funds are available for this work in Capital Account No Generators and Emergency Power.

32 NOTICE OF AWARD OF PROFESSIONAL SERVICE CONTRACT Public Notice is hereby given that on October 19, 2017, The Southeast Morris County Municipal Utilities Authority adopted a Resolution authorizing execution of Professional Service Contract with Mott MacDonald to provide professional engineering services in connection with construction administration for the Picatinny Booster Pump Station standby power installation. The contract is for professional engineering services to be performed at a cost to the Authority estimated not to exceed $36,489.12, as more particularly set forth in the aforesaid Resolution, copies of which are on file and available for public inspection in the office of the Authority, 19 Saddle Road, Cedar Knolls, New Jersey, and in the respective offices of the Clerks of the Township of Morris, the Township of Hanover, the Town of Morristown and the Borough of Morris Plains. THE SOUTHEAST MORRIS COUNTY MUNICIPAL UTILITIES AUTHORITY DONALD KISSIL, Chairman DATED: October 19, 2017

33 CERTIFICATION OF VALUE IN EXCESS OF $17,500 (PAY-TO-PLAY LAW} The undersigned hereby certifies that the estimated amount of the contract to be awarded to Mott MacDonald to provide professional engineering services in connection with construction administration for the Picatinny Booster Pump Station standby power installation exceeds $17,500. u GGIO, Treasurer Dated: October 19, 2017

34 TREASURER'S CERTIFICATION I hereby certify funds are available in the total maximum amount of $36, for payment of a contract with Mott MacDonald to provide professional engineering services in connection with construction administration for the Picatinny Booster Pump Station standby power installation. This item will be charged to Capital Account No , Generators and Emergency Power. DATED: October 19, 2017

35 CERTIFICATION I hereby certify the foregoing to be a true copy of the resolution adopted by The Southeast Morris County Municipal Utilities Authority on Thursday, October 19, 2017, at a meeting duly convened of said Authority. C-~-~~-- SIDNEY D. WEISS, Assistant Secretary Dated: October 19, 2017

36 Resolution No RESOLUTION AWARDING CONTRACT FOR MAINTENANCE, SERVICING AND REPAIR OF HVAC SYSTEM WHEREAS, the Authority has advertised and received bids for the contract entitled Maintenance, Servicing and Repair of HVAC System on October 11, 2017; and WHEREAS, Envirocon, LLC, of Hackettstown, New Jersey, has been determined to be the lowest qualified bidder in the total amount of $56,370; covering a one year period with options for renewal after the first year as permitted by the Local Public Contracts Law; and WHEREAS, the Treasurer has certified that there are sufficient funds available in the 2017 Budget for the portion to be expended in 2017; portions to be expended in 2018 are subject to funds being available in the 2018 Budget; and NOW THEREFORE BE IT RESOLVED, by The Southeast Morris County Municipal Utilities Authority as follows: ATIEST: That a contract entitled Maintenance, Servicing and Repair of HVAC System be awarded to Core Mechanical, Inc., in accordance with its bid submitted on October 11, 2017, in the amount not to exceed $56,370. That the appropriate officers of the Authority be and they are hereby authorized and directed to execute a contract with regard to said contract on behalf of the Authority in the manner provided by law. That the contract be limited to the maximum amount of bid and the term of one year and shall become effective on the date of signing the con ract.. TY TY DATED: October 19, 2017 Board Members Morristown: Mary Dougherty Donald Kissil Morris Township: Dennis Baldassari Edward A. Taratko, Jr. Morris Plains: William Conradi Ralph R. Rotando Hanover Township: Saverio C. Iannaccone Adolf Schimpf Executive Director/ Chief Engineer: Laura Cummings, P.E. Superintendent: Paul A. Kozakiewicz

37 TREASURER'S CERTIFICATION I hereby certify funds for payment of a contract with Envirocon, LLC, for Maintenance, Servicing and Repair of HVAC System as follows: 1. In 2017, funds are available in the amount of $16,450.00; and 2. In 2018, funds will be available in the amount of $39, subject to the approval of the 2018 Budget. The total maximum amount of this contract will not exceed $56,370. This item will be charged to Account No (Treat - HVAC Maintenance and Repair). GGIO, Treasurer DATED: October 19, 2017

38 CERTIFICATION I hereby certify the foregoing to be a true copy of the resolution adopted by The Southeast Morris County Municipal Utilities Authority on Thursday, October 19, 2017, at a meeting duly convened of said Authority. Dated: October 19, 2017 SIDN~ssistant Secretary

39 = Ci'll== 19 SADDLE ROAD CEDAR KNOLLS, NEW JERSEY TEL FAX S 111 C111UA Southeast Morris County Municipal Utilities Authority S111C A S111ClllU SlllCilBU Resolution No RESOLUTION RESCINDING AWARD OF CONTRACT TO MAIN POOL AND CHEMICAL COMPANY FOR THE CONTRACT ENTITLED WATER TREATMENT CHEMICALS (LIQUID CITRIC ACID) AND AWARDING TO GEORGES. COYNE CHEMICAL COMPANY, INC. WHEREAS, the Authority advertised and received bids, pursuant to a fair and open process, for the contract entitled Water Treatment Chemicals on September 7, 2017; and WHEREAS, by resolution dated September 28, 2017, the Authority awarded a contract to Main Pool and Chemical Company for Liquid Citric Acid, which was then determined to be the lowest qualified bidder in the total amount of $1, covering a one year period with options for renewal after the first year as permitted by the Local Public Contracts Law; and WHEREAS, on October 16, 2017, subsequent to the award but prior to execution of the contract, Main Pool and Chemical Company provided a Certificate of Analysis for a n alternative chemical where the Authority's Superintendent deemed unresponsive to the requirements of the contract; and WHEREAS, George S. Coyne Chemical Co. Inc., which submitted the next lowest bid in the total amount of $2,164.20; and WHEREAS, based upon the inability of Main Pool and Chemical Company to comply with the certification requirements of the Contract, George S. Coyne Chemical Co. Inc. is determined to be the lowest qualified bidder in accordance with its bid of September 7, 2017 in the total maximum amount of $2,164.20; and WHEREAS, the Treasurer has certified that there are sufficient funds available in the 2017 Budget for the portion to be expended in 2017; portions to be expended in 2018 are subject to funds being available in the 2018 Budget; and NOW THEREFORE BE IT RESOLVED by The Southeast Morris County Municipal Utilities Authority as follows: Board Members 1. That the award, on September 28, 2017, of the contract entitled "Water Treatment Chemicals" to Main Pool and Chemical Company for Liquid Citric Acid in accordance with its bid submitted on September 7, 2017, be and the same is hereby rescinded; Morristown: Mary Dougherly Donald Kissil Morris Township: Dennis Baldassari Alan Johnson Morris Plains: William Conradi Ralph R. Rotando Hanover Township: Saverio C. Iannaccone Ad olf Schimpf Executive Director/ Chief Engineer: Laura Cummings, P.E. Superintendent: Paul A. Kozakiewicz

40 2. That the award of the contract entitled Water Treatment Chemicals" to George S. Coyne Chemical Co. Inc. for Liquid Citric Acid in accordance with its bid submitted on September 7, 2017 in the amount of $2, be and the same is hereby approved; 3. That the appropriate officers of the Authority be and they are hereby authorized and directed to execute a contract with regard to said project on behalf of the Authority in the manner provided by law. 3. That the contract be limited to the maximum amount of bid and the term of one year after signing the contract subject to options for r newal after the first year as permitted by the Local Public C ntracts La ATTEST: fii5ney~tsecr~ RITY DONALD KISSIL, Chairman DATED: October 19, 2017

41 Southeast Morris County Municipal Utilities Authority 19 SADDLE ROAD CEDAR KNOLLS, NEW JERSEY TEL 973/ FAX 973/ MEMORANDUM To: Cc: Laura Cummings, P.E. Executive Director I Chief Engineer Charles Maggio, CMFO, Treasurer, Manager of Finance Sidney Weiss, General Counsel From: Paul A. Kozakiewicz, Superintendent Re: Contracts for Providing Citric Acid, Liquid Date: October 16, 2017 Sealed bids were received on September 7, 2017 at 10:00 AM for the procurement of Water Treatment Chemicals. The Specifications and Bid Proposals were organized in a manner that provided for the submission of bids in five (5) individual categories. Main Pool and Chemical Co. was awarded the Bid to supply Citric Acid, Liquid because the low Bidder, Shannon Chemical Corp. could not provide a Bid Bond and Consent of Surety. Subsequently George S. Coyne Chemical Co., Inc. questioned the quality of the product to be supplied by Main Pool. Specifically, Coyne's representative stated that he believes that Main Pool is not NSF ce1tified for this product. Kenneth Crawford, Operations Superintendent contacted Main Pool and requested documentation regarding NSF ce1tification. Main Pool responded by submitting a "Certificate of Analysis" for a Citric Acid Powder. This is obviously not the chemical called for in the Bid Documents. Therefore I must conclude that Main Pool is non-responsive to the request for additional infmmation on the Bid item. Therefore it is recommended that Main Pool's Contract for Item 4 Liquid Citric Acid be rescinded and the Contract be awarded George S. Coyne Chemical Co., Inc. as the next lowest and most responsive bidder. I recommend that the Authority accept Bid No. 4 - Liquid Citric Acid submitted by George S. Coyne Chemical Co. Inc., 3015 State Rd., Croyden, PA for a total amount of Two Thousand One Hundred Sixty Four Dollars and Twenty Cents ($2,164.20). Mr. Maggio will ce1tify that sufficient funds are available in the 2017 Budget for the portion of the contract to be expended in 2017; po1tions to be expended in 2018 will be subject to funds being allocated in the 2018 Budget pak.memo.doc

42 TREASURER'S CERTIFICATION I hereby certify funds for payment of a contract with George S. Coyne Chemical Co. Inc. for Water Treatment Chemical, liquid Citric Acid, as follows: 1. In 2017, funds are available in the amount of $360.70; and 2. In 2018, funds will be available in the amount of $1, subject to the approval of the 2018 Budget. The total maximum amount of this contract will not exceed $2, This item will be charged to Account No (TREAT: Treatment Chemicals. Dated: October 19, 2017

43 CERTIFICATION I hereby certify the foregoing to be a true copy of the resolution adopted by The Southeast Morris County Municipal Utilities Authority on Thursday, October 19, 2017, at a meeting duly convened of said Authority. SIDNEY D. WEISS, Assistant Secretary Dated: October 19, 2017

44 Resolution No RESOLUTION APPROVING CONTINUED VOLUNTARY PARTICIPATION IN FINANCIAL INCENTIVE PROGRAM OFFERED BY THE STATE HEALTH BENEFIT PLAN WHEREAS, the Manager of Finance has recommended that the Authority continue its voluntarily participation in the Financial Incentive Program being offered by the State Health Benefit Plan (SHBP} for the year 2018, as set forth in a memorandum of the Manager of Finance to the Members dated October 19, 2017 ; and WHEREAS, the Members find that such participation is in the best interest of the Authority and its employees; and WHEREAS, the SHBP has provided a form of resolution authorizing such participation, a copy of which resolution is annexed hereto and made part hereof; NOW THEREFORE, BE IT RESOLVED by The Southeast Morris County Municipal Authority as follows: 1. The voluntary participation of the Authority in the Financial Incentive Program being offered by the State Health Benefit Plan recommended by the Manager of Finance be and is hereby approved. 2. The proposed resolution attached hereto authorizing such participation be and the same is hereby approved and adopted. 3. The appropriate officers and staff of the Authority be and are hereby authorized and directed to sign and deliver the annexed resolution and do all other things necessary or convenient to effectuate the implemen ation of this Resolution. ATTEST: Dated: October 19, 2017 Board Members Morristown: Mary Dougherty Donald Kissil Morris Township: Dennis Baldassari Alan Johnson Morris Plains: William Conradi Ralph R. Rotando Hanover Township: Saverio C. Iannaccone Adolf Schimpf Executive Director/Chief Engineer: Laura Cummings, P.E. Superintendent: Paul A. Kozakiewicz

45 STATE OF NEW JERSEY DEPARTMENT OFTHETREASURY DIVISION OF PENSIONS & BENEFITS STATE HEALTH BENEFITS PROGRAM P.O. BOX 299 TRENTON, NEW JERSEY RESOLUTION HA A RESOLUTION for Local Employers to offer an incentive under the State Health Benefits Program. BE IT RESOLVED: The s_o_ut_h_ea_s_t _M_o_rr_is_C_o_un_t_y _M_U_A CORPORATE NAME OF EMPLOYER SHBP EMPLOYER LOCATION NUMBER We agree to voluntarily participate in the Financial Incentive Program granting financial incentives to subscribers who select enrollment into tiered-network medical plans otherwise known as Horizon Blue Cross Blue Shield of New Jersey's OMNIA Plan or Aetna's Liberty plan. We agree that the management and administration of this incentive program shall be solely our responsibility. The terms of the Incentive Program described above shall include: The Incentive Program shall be available to subscribers who are first time enrollees in a tiered-network medical plan beginning Plan Year 2018 and continuing for two plan years through December 31, 2019; The Incentive Program does not extend to participants enrolled under P.L. 2005, c. 375 (certain over-age adult children) and COBRA; Participation is voluntary at the option of the employer; The financial incentive for eligible employees shall be: - $1,000 for Single member coverage when changing to a tiered-network plan. - $1,250 for Member/Spouse coverage when changing to a tiered-network plan. - $1,250 for Parent/Child coverage when changing to a tiered-network plan. - $2,000 for Family coverage when changing to a tiered-network plan. The incentive amount shall be paid within the first quarter of Plan Year 2018 and is reportable income; and The incentive shall be forfeited and returned to the employer if the subscriber fails to remain enrolled for at least two plan years, except that if a subscriber is made ineligible for healthcare through layoff, involuntary separation, reduction to part-time status, or classification into an ineligible position. If a subscriber voluntarily retires or changes health plans due to a catastrophic or emergency health need as determined by the employer after a full year, then the incentive shall be forfeited on a pro-rata basis. I hereby certify that the foregoing is a true and correct copy of a resolution duly adopted by the: s_o_u_t h_e_as_t_m_o_rr_is_c_o_u_nt_y_m_u_a on the 1_9t_h day of o_ct_o_be_r, 20 1_7 CORPORATE NAME OF EMPLOYER Assistant Secretary OFFICIAL TITLE 19 Saddle Road Cedar Knolls NJ STREET ADDRESS CITY STATE ZIP CODE AREA CODE (973) TELEPHONE NUMBER EMPLOYER'S STATE SOCIAL SECURITY IDENTIFICATION NUMBER NUMBER OF EMPLOYEES