Commission Meeting

of

STATE HOUSE COMMISSION

LOCATION:

Committee Room 14
State House Annex
Trenton, New Jersey

DATE:

September 25, 2003
9:00 a.m.

 

MEMBERS OF COMMITTEE PRESENT:

Noreen Giblin
(Representing Michael R. DeCotiis)

Senator Walter J. Kavanaugh, Chair

Senator Bernard F. Kenny Jr.

Assemblyman Anthony Impreveduto

Assemblyman Michael J. Doherty

Charlene Holzbaur

Robert L. Smartt
(Representing John E. McCormac)

 

 

ALSO PRESENT:    
     

Edward R. McGlynn, Secretary

   
Robert J. Shaughnessy Jr., Counsel    
     


                                                     

Meeting Recorded and Transcribed by
T
he Office of Legislative Services, Public Information Office,
Hearing Unit, State House Annex, PO 068, Trenton, New Jersey

SENATOR WALTER J. KAVANAUGH (Chairman): Good

morning, ladies and gentlemen. If you would all take a seat, we can get started.

Itís the witching hour of 9:00. We have a quorum.

Good morning, Kathy.

So that Anthony and Robert-- Tony, you could sit with us if you

want.

Weíve met the Open Public Meetingsí Act. It has been published.

At this time, I would ask the Secretary to call the roll.

MR. McGLYNN (Secretary): Director Holzbaur.

MS. HOLZBAUR: Here.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Here.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Here.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

If you would note, for the audience, those that are being either held

or here for discussion only.

MR. McGLYNN: Thank you.

We are going to hold Items No. -- if you have agendas in front of

you, rather than my indicating each item specifically, Iím just going to do it by

numbers -- 4, 5, 6, 7, 8, 9, 10, 11, 15, 17, and 19. And if I may, from a

housekeeping standpoint, I want to point out that the Commission received a

nine-page letter from Barbara Sachau yesterday afternoon, which was faxed to

all members of the Commission and has been read by all members of the

Commission objecting to a number of items. That letter will be made a part of

the record and will be included in the verbatim transcript that we provide to

anyone that desires it and will also be on the Internet Web site.

SENATOR KAVANAUGH: Barbara was not able to attend, but

wanted to voice her opinion--

MR. McGLYNN: Correct.

SENATOR KAVANAUGH: --primarily about the rental -- where

we are renting properties. She felt that itís not adequate -- the amount of dollars

that weíre receiving.

2

MR. McGLYNN: And some of the items that she mentioned, in

fact, have already been held.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: So we will include those when they are back on

the agenda, and her objections.

SENATOR KAVANAUGH: Okay, ladies and gentlemen, we start.

MR. McGLYNN: The first item of business is the approval of the

June 23 State House Commission meeting minutes.

SENATOR KAVANAUGH: Do we have a motion, please?

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

SENATOR KAVANAUGH: Moved and seconded.

Roll call.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: Item No. 2 is the Lighthouse Center for Natural

Resource Education, Block 241.12, Lots 16.03, 17.02, and 18, in Waretown,

Ocean County. The New Jersey Department of Environmental Protection,

Division of Fish and Wildlife, requests approval to extend the lease term to 20

years with the Natural Resource Education Foundation of New Jersey for the

development and administration of the Lighthouse Center for Natural Resource

Education. A five-year lease was approved by the State House Commission on

December 13, of 2001. Compensation will be $1 per year, plus substantial inkind

services to be provided by the Foundation, and shall include the

preservation, maintenance, and restoration of the structures, equipment and

machinery, as well as the establishment and administration of educational

programs designed to interpret the historical, cultural, and environmental

significance of the Barnegat Bay.

3

SENATOR KAVANAUGH: I hope that they invest the $20 wisely.

(laughter) Is there a motion?

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

SENATOR KAVANAUGH: Moved and seconded.

Roll call.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: Item No. 3 is Anderson Creek Marsh, Block 18,

Part of Lot 2, Town of Secaucus, Hudson County. The New Jersey Department

of Environmental Protection, on behalf of the New Jersey Meadowlands

Commission, requests approval to increase the amount of parkland to be

conveyed to New Jersey Transit for the construction of the Main/Bergen

Connector to 2.75 acres. The conveyance of 2.328 acres of Green Acresencumbered

parkland for this project was approved by the State House

Commission on June 23, 2003.

SENATOR KAVANAUGH: Is there a motion, please?

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

SENATOR KAVANAUGH: Roll call.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Chairman Kavanaugh.

4

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: Item 4, 5, 6, 7, 8, 9, 10 are being held.

Mr. Chairman, Items 12, 13, and 14, I believe, can be considered

together, because they are Human Services leases.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: No. 12 is RPR 03-26, Block 6801, Lot 1, in

Winslow Township, Camden County. The New Jersey Department of the

Treasury, on behalf of the Department of Human Services, requests approval

to lease five houses located on the grounds of Ancora Psychiatric Hospital to the

Catholic Community Services, a service provider for the Division of Mental

Health Services for the use as discharged-patient residences. The lease will be

for a two-year term with one, two-year renewal option. Since the lease directly

benefits the State, the annual rent will be $1.

Item No. 13 is RPR 03-27, Block 6801, Lot 1, in Winslow

Township, in Camden County. The Department of the Treasury, on behalf of

the Department of Human Services, requests approval to lease three houses to

Family Service of Burlington County. The lease will be for a two-year term,

with one, two-year renewal option. Since the lease directly benefits the State,

the annual rent will be $1.

Item No. 14 is RPR 03-28, Block 7, Lot 1, Parsippany Troy Hills

Township, Morris County. The New Jersey Department of the Treasury, on

behalf of the Department of Human Services, requests approval to lease 10

cottages located on the grounds of the Greystone Psychiatric Hospital to a

private service provider under contract with the Division of Mental Health

Services. The lease will be for a two-year term, with one, two-year renewal

option. Since the lease directly benefits the State, the annual rent will be $1.

SENATOR KAVANAUGH: Anyone here to object or be heard?

(no response)

Motion.

DEPUTY TREASURER SMARTT: So moved.

ASSEMBLYMAN IMPREVEDUTO: Second.

SENATOR KAVANAUGH: Moved and seconded.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

5

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: Item 15 is being held.

Item No. 16 -- I should have included it with the previous one, my

apologies -- is another Human Services lease. Itís RPR 03-31 -- I see No. 18,

we can include also, move them together -- Block 474, Lot 1; Block 252, Lot 4,

Vineland City, Cumberland County. The Department of Treasury, on behalf

of the Department of Human Services, requests approval to lease space located

on the grounds of the Vineland Developmental Center to the Downtown

Company of Performing Arts. The lease will be for one year, with three, oneyear

renewal options. Since the Downtown Company of Performing Arts will

provide services to the Vineland Developmental Center, the annual rent will be

$1.

We note that Senator Kenny is here.

SENATOR KENNY: Good morning.

MR. McGLYNN: Good morning, Senator.

Item No. 18, RPR 04-02, Block 10, Part of Lot 1, Parsippany Troy

Hills Township, in Morris County. The Department of Treasury, on behalf of

the Department of Human Services, requests approval to lease property located

on the grounds of Greystone Psychiatric Hospital to PSE&G for a liquid natural

gas site. A temporary easement is also requested for the maintenance of a

temporary gas line. The lease will be for three years at an annual rental of

$9,360, and a temporary easement will be for three years at an annual rental of

$1,770.

SENATOR KAVANAUGH: Anyone here to comment? (no

response)

Motion, please?

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

SENATOR KAVANAUGH: Roll call.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

6

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: No. 19 is being held.

Item No. 20 is the Department of Human Services request for a

revised, calendar year 2003 rate for Camden County Health Services Center.

As you know, the State House Commission sets those rates. This amendment

is to the Camden County Health Services Centerís psychiatric services, for an

inpatient rate of $445.07 per day, and there are stipulations attached in the

agenda items, which will be included in the minutes.

SENATOR KAVANAUGH: Comment? (no response)

Motion.

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

SENATOR KAVANAUGH: Moved and seconded.

Roll call.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: We now turn to the Department of

Transportation requests. If you want, we can do all of these together, Mr.

Chairman.

SENATOR KAVANAUGH: Yes, wonderful.

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MR. McGLYNN: Good.

Item No. 21 is Route 34, Section 6, Parcels VX1C, VX4, VX50,

and VX1DZ, Brick Township, Ocean County. The Department of

Transportation, Bureau of Right of Way, Property Management Unit, requests

approval to sell an irregular-shaped parcel of vacant land containing 0.125 plusor-

minus acres, or 5,529 square feet, to be sold to the adjacent property owner

for the fair market value of $9,000.

Item No. 22 is Route 24 Freeway, Section 10, Parcel VXR14E2, in

Morris Township, Morris County. The Department of Transportation, Bureau

of Right of Way, Property Management Unit, requests approval to sell an

irregular-shaped parcel of vacant land containing 0.089 plus-or-minus acres, or

3,877 square feet. The property will be sold to the adjacent property owner for

fair market value of $5,000.

Item No. 23, Route 24 Freeway, Section 10, Parcels VXR14E4 and

VX20B, in Morris Township, Morris County. The Department of

Transportation, Bureau of Right of Way, Property Management Unit, requests

approval to sell an irregular-shaped parcel of vacant land containing 0.145 plusor-

minus acres, or 6,316 square feet. The property will be sold to the adjacent

property owner for a fair market value of $7,500.

Item No. 24 is the Route 24 Freeway, Section 10, Parcel VXR14E3,

in Morris Township, Morris County. The New Jersey Department of

Transportation, Bureau of Right of Way, Property Management Unit, requests

approval to sell an irregular-shaped parcel of vacant land containing 0.191 plusor-

minus acres, or 8,320 square feet. The recommended method of disposal is

by direct sale with a recommended sale price of $9,500, which is the fair market

value.

SENATOR KAVANAUGH: Any comments? (no response)

Motion, please?

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

SENATOR KAVANAUGH: Moved and seconded.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

8

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: The following are Department of Environmental

Protection requests:

No. 25 is the Six Mile Run Recreation Area, Block 57, Lot 48, in

Franklin Township, Somerset County. The Department of Environmental

Protection, Division of Parks and Forestry, requests approval to enter into a

five-year lease with Dragon Agro Products for approximately four acres of

cropland. Annual compensation will be $78.32, and will be increased every five

years according to the State Farmland Evaluation Advisory Committee.

SENATOR KAVANAUGH: Any comment? (no response)

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: Item No. 26 is the Six Mile Run Recreation Area,

Block 36, Lot 4.4, in Franklin Township, Somerset County. The Department

of Environmental Protection, Division of Parks and Forestry, requests approval

to enter into a five-year lease with Ada Golaszewski for approximately five acres

of pastureland for cattle grazing purposes. Annual compensation will be

$48.95, and will be increased every five years according to the State Farmland

Evaluation Advisory Committee.

SENATOR KAVANAUGH: Any comments? (no response)

9

Motion.

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: Item No. 27 is Ringwood State Park and

Shephard Lake Recreation Area, Block 1000, Lot 2, in Ringwood, Passaic

County. The DEP, Division of Parks and Forestry, requests approval to enter

into a 20-year lease with Mansion Caterers, Incorporated, for use of the

Skylands Manor House and Chapel. Mansion Caterers, Incorporated, will

operate the Skylands Manor House as a bed-and-breakfast. The annual

compensation is a minimum, fixed amount of $100,000, including 15 percent

of the total gross revenue over $2,300,001. Mansion Caterers has made

significant capital improvements of approximately $880,000 to date, with an

additional $1.3 million investment to be made within the year to complete

renovations, to upgrade this State and National Historic Registered structure.

SENATOR KAVANAUGH: Anyone care to comment? (no

response)

Motion, please?

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

10

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: Item No. 28 is the Charles Street Park, Block 72,

Part of Lot 9, City of Linden, Union County. The New Jersey Department of

Environmental Protection, on behalf of the City of Linden, requests approval

to allow the transfer of 0.17 acre of Charles Street Park to an adjacent church.

The area proposed for disposal was inadvertently leased to the church 18 years

ago and is used by the church as a parking lot. As compensation, the City of

Linden proposes to dedicate for conservation and recreation purposes a 2.69-

acre, municipally owned parcel. The new park would be known as Munsell

Avenue Park.

SENATOR KAVANAUGH: Any comments? (no response)

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

Iíd like to note the presence of Senator Smith.

Good morning, Senator.

MR. McGLYNN: Item No. 29, Elizabeth River Parkway, Pruden

Section, Block 6, Lots 1328A and 1310; Block 9, Lot 1169B, in the City of

Elizabeth, in Union County. The DEP, on behalf of the County of Union,

requests approval to convey 0.172 acre in fee and 0.313 acre in easements from

the Elizabeth River Parkway to the New Jersey Department of Transportation

11

in connection with the replacement of Routes 1 and 9 viaduct over the Elizabeth

River. As compensation, the DOT will acquire and convey to Union County as

replacement land the 1.26-acre City of Elizabeth maintenance yard. The

addition of this parcel to the Elizabeth River Parkway will provide new open

space in an urban area and adjacent to existing parkland. The value of the parcel

to be conveyed to DOT was established at $900. The proposed replacement

land is valued at $634,100.

SENATOR KAVANAUGH: Any comments? (no response)

Motion.

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: Item No. 30, Delaware and Raritan Canal State

Park, Block 1, Lot 5, Borough of South Bound Brook, in Somerset County.

The New Jersey Department of Environmental Protection, Division of Parks

and Forestry, requests approval to grant a 0.373-acre subsurface easement to

Elizabethtown Water Company for the construction of a 72-inch transmission

main under the Delaware and Raritan Canal State Park. The estimated value

of these improvements, including the estimated $20,000 savings to the State in

connection with the installation of the water meter, is $61,000.

SENATOR KAVANAUGH: Comments? (no response)

Motion, second.

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

12

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: Item No. 31, Delaware and Raritan Canal State

Park, City of New Brunswick, Middlesex County. The New Jersey Department

of Environmental Protection requests approval to convey a 30-foot wide

permanent raw water pipeline easement across the Delaware and Raritan Canal

State Park to the Middlesex Water Company. As compensation, Middlesex

Water Company proposes to construct improvements to the Canal Park. The

value of the improvements will not be less than the fair market value of the

easements, based on an appraisal or other valuation method to be reviewed and

approved by the Green Acres Program.

SENATOR KAVANAUGH: Any comment? (no response)

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

SENATOR KAVANAUGH: Moved and seconded.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: Item No. 32 is Long Pond Ironworks State Park

and Norvin Green State Forest, Block 3801, Parts Lot 1 and 10; Block 6002,

13

Parts of Lot 33 and 38, in West Milford Township, Passaic County. The DEP,

on behalf of the Division of Parks and Forestry, requests approval to convey a

total of 3.15 acres in fee and 9.06 acres in slope, drainage, wall, sign, and

construction easements to the County of Passaic, in connection with the

improvement of a one-mile segment of the Greenwood Lake Turnpike, County

Route 511, from Marshall Hill Road to Awosting Road. As compensation, the

County will transfer to the State the portions of Greenwood Lake Turnpike to

be abandoned and vacated under this project, approximately 2 acres, and Block

3801, Lot 11, an improved lot surrounded by State property, approximately

0.67 acre. The certified fair market value of the parcels as of October 1, 2002,

is $184,900.

SENATOR KAVANAUGH: Any comment? (no response)

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: Item No. 33 is Port Republic Wildlife

Management Area, Block 1204.01, Part of Lot 23, in Galloway Township,

Atlantic County. DEP, on behalf of the Division of Fish and Wildlife, request

approval to extend the lease for the historic Phillips House, together with 2.0

acres of land, to the New Jersey Audubon Society for a period of 20 years, to be

used as an interpretive center with seasonal programs. Compensation will be $1

per year, plus substantial in-kind services. The Audubon Society estimates

capital improvement costs in the range of $80,000 to $100,000. Annual

programming costs for staff and other associated costs are $45,000 to $60,000.

SENATOR KAVANAUGH: Comment? (no response)

ASSEMBLYMAN IMPREVEDUTO: Moved.

14

DEPUTY TREASURER SMARTT: Second.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: Item No. 34 is Johnson Park, Block 188, Parts

of Lot 6, 7, and 8, Borough of Highland Park, Middlesex County. The DEP,

on behalf of Middlesex County, requests approval to convey to Middlesex

Water Company two 30-foot wide permanent raw water pipeline easements

across Johnson Park. As compensation, the Middlesex Water Company will pay

the County of Middlesex the fair market value of the easements based on an

appraisal to be reviewed and approved by the Green Acres Program, and to be

used for future acquisition and/or development of County parkland.

SENATOR KAVANAUGH: Any comment? (no response)

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

SENATOR KAVANAUGH: Moved and Second.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

15

MR. McGLYNN: Item No. 36, Joe Palaia Park, former Deal Test

Site, Block 33, Part of Lot 1, in Ocean Township, Monmouth County. The

DEP, on behalf of the Township of Ocean, requests approval to allow a cellular

communication tower to be constructed at the location where an earlier radio

and wireless communication tower once stood on the former Deal Test Site,

now Joe Palaia park. The Township would lease the new tower to a private

entity through a competitive bidding process. The proceeds of the lease would

be used for preservation of the former Deal Test Site. All revenue received from

the lease shall be used by Ocean Township to restore and preserve the four

remaining historic communication towers and support buildings on the site.

SENATOR KAVANAUGH: Any comment? (no response)

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: A note -- that Counsel Noreen Giblin has

appeared, on behalf of the Counselís Office.

MS. GIBLIN: I apologize for my tardiness.

SENATOR KAVANAUGH: Youíll learn. (laughter)

MR. McGLYNN: Iíve been told that I skipped 35. Thank you for

someone telling me that. I didnít do it intentionally.

Item No. 35 -- thank you -- is the William A. Ralph Municipal

Pier, Block 21.01, Lot 49, in the Borough of Keyport, Monmouth County. The

DEP, on behalf of the Borough of Keyport, requests approval to authorize a

two-year lease for the non-exclusive use of the Municipal Pier by a commuter

ferry operator. The money paid to the Borough for the two-year lease will be

16

put into a dedicated account to be used for recreation and conservation

purposes.

SENATOR KAVANAUGH: Any comment? (no response)

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Counsel Giblin.

MS. Giblin: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: Weíre going on to 37 now.

SENATOR KAVANAUGH: Thirty-seven.

MR. McGLYNN: Thank you.

Presidential Boulevard Park and Triangle Park, Block A0066, Lot

1; Block 1486A, Lot 1, in the City of Paterson, Passaic County. The DEP, on

behalf of the City of Paterson, requests approval to divert 0.073 acre of

parkland to construct combined sewer outflow (sic) control facilities within

Presidential Boulevard Park and Triangle Park. As compensation, the City of

Paterson will deposit, into a dedicated account, $2,000 -- the market value of

the parkland to be diverted -- to be used for park improvements at Presidential

Boulevard Park. A new gazebo will be constructed on the Presidential

Boulevard Park as replacement for an existing picnic shelter that will be removed

during construction of the CSO control facility.

SENATOR KAVANAUGH: Any comment? (no response)

Motion.

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

MR. McGLYNN: Director Holzbaur.

17

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Counsel Giblin.

MS. GIBLIN: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: No. 38 is the Northwest Reservation, Block

1.01, Lot 4, Borough of Princeton, Mercer County. The New Jersey DEP, on

behalf of the Borough of Princeton, requests approval to formalize the long-term

lease of the 2.95-acre Northwest Reservation to Princeton Community Housing

as the location of the 88-unit Elm Court low- and moderate-income senior

citizen housing development. As compensation, Princeton Borough will

dedicate, for recreation and conservation purposes, 20.5 acres of predominately

wooded, Borough-owned land located in Princeton Township. The value of the

2.95-acre lease area has been established as $1,450,000, the value of the

replacement land has been established as $1,768,000.

SENATOR KAVANAUGH: Any comment? (no response)

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

SENATOR KAVANAUGH: Motion is moved and seconded.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

18

MR. McGLYNN: Counsel Giblin.

MS. GIBLIN: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: Item No. 39 is Seaside Park Marina, Block 52,

Part of Lot 1, in the Borough of Seaside Park, Ocean County. The DEP, on

behalf of the Borough of Seaside Park -- (cell phone rings) Iím sorry I thought

I turned it off -- requests approval to dispose of 0.016 acre, 700 square feet,

from the Borough marina property in order to square off the property boundary

and to settle boundary dispute litigation. As compensation, the owners of Lot

18 will pay the Borough of Seaside Park $3,500. The purchase price is a

settlement figure derived from the assessed value of the surrounding property,

and was reviewed and approved by the Green Acres Program.

SENATOR KAVANAUGH: Any comment? (no response)

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Counsel Giblin.

MS. GIBLIN: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: (cell phone rings) Itís now off, excuse me. Iím

sorry.

SENATOR KAVANAUGH: It was probably your wife calling.

MR. McGLYNN: It probably is. (laughter)

Item No. 40 is Liberty State Park, Block 2048, Part of Lot S-2,

Jersey City, Hudson County. The DEP, Division of Parks and Forestry,

requests approval to lease approximately 620 square feet to the Liberty Science

19

Center, in order to accommodate construction of a maintenance road as part of

the expansion of the Science Center complex. The lease will benefit Liberty

State Park by facilitating the preferred roadway alignment and eliminating 1,620

square feet of paved area. No additional compensation is required.

SENATOR KAVANAUGH: Any comment? (no response)

ASSEMBLYMAN IMPREVEDUTO: Thatís a great facility, and

I move the request.

DEPUTY TREASURER SMARTT: Second.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Counsel Giblin.

MS. GIBLIN: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

We now move to the Division of Pensions.

MR. McGLYNN: We now sit as the trustees of the Judicial

Retirement System. I need approval of--

SENATOR KAVANAUGH: We are -- just before you leave --

going to have some comment regarding Transco.

MR. McGLYNN: Which is Item No. 4 on the agenda.

SENATOR KAVANAUGH: If that doesnít bother you -- depart.

MR. McGLYNN: We need a motion to approve the minutes of the

meeting held on June 23.

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

SENATOR KAVANAUGH: Moved and seconded.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

20

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Counsel Giblin.

MS. GIBLIN: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: We need a motion to approve and confirm the

death claims, retirements, survivor benefits, and terminations.

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

SENATOR KAVANAUGH: Itís moved and seconded.

Roll call.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Counsel Giblin.

MS. GIBLIN: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

MR. McGLYNN: We need a motion to accept the financial

statements as of May 31, 2003.

SENATOR KAVANAUGH: Itís been moved and seconded.

MR. McGLYNN: Director Holzbaur.

MS. HOLZBAUR: Yes.

MR. McGLYNN: Deputy Treasurer Smartt.

21

DEPUTY TREASURER SMARTT: Yes.

MR. McGLYNN: Assemblyman Doherty.

ASSEMBLYMAN DOHERTY: Yes.

MR. McGLYNN: Assemblyman Impreveduto.

ASSEMBLYMAN IMPREVEDUTO: Yes.

MR. McGLYNN: Senator Kenny.

SENATOR KENNY: Yes.

MR. McGLYNN: Counsel Giblin.

MS. GIBLIN: Yes.

MR. McGLYNN: Chairman Kavanaugh.

SENATOR KAVANAUGH: Yes.

SENATOR KAVANAUGH: Bring up, as far as--

MR. McGLYNN: The next item in question -- are we doing that

in closed session?

MR. SHAUGHNESSY (Counsel): Yes, unless itís just an

informational item.

MR. McGLYNN: Okay. And we all received -- you all should have

in your packet a distribution of the-- You should have the actuarial report of

the Judicial Retirement System, which I donít think we have to adopt. At least

itís on the record with all this. Is that correct?

MR. SHAUGHNESSY: Correct.

SENATOR KAVANAUGH: Moved and seconded?

MR. McGLYNN: No, we donít have to do that, just that we asked

that.

SENATOR KAVANAUGH: Thatís good, okay.

All right, now, regarding Judge Thompson. We met in closed

session at the last meeting.

MR. SHAUGHNESSY: Correct, Senator.

SENATOR KAVANAUGH: This now is a report of status. Does

that go back into closed session or can that just be--

MR. SHAUGHNESSY: It could be an informational item. If one

wants to go into closed session with regards to the matter, for either legal advice

or do--

SENATOR KAVANAUGH: You, as our counsel, what do you say?

MR. SHAUGHNESSY: Itís up to the Commission. If the

Commission wants to move into Executive Session, the motion remains. I donít

know if that--

22

ASSEMBLYMAN IMPREVEDUTO: I move to go into Executive

Session.

MR. McGLYNN: Iím sorry.

ASSEMBLYMAN IMPREVEDUTO: Moved into Executive

Session.

SENATOR KAVANAUGH: Thereís been a motion to go to

Executive Session.

MR. McGLYNN: All in favor, please indicate by saying aye. (ayes

from Commission members)

All opposed? (no response)

SENATOR KAVANAUGH: All right, now, what weíll do is-- Now

remember, Transco is coming up after.

Do you want this recorded?

MR. McGLYNN: Thatís fine.

EXECUTIVE SESSION

AFTER EXECUTIVE SESSION:

MR. McGLYNN: For the purpose of the record, both Senator

Kenny and Noreen Giblin want to be voted in the affirmative for those items

that they were not here for.

SENATOR KAVANAUGH: Regarding No. 4 on our agenda, the

Department of Environmental Protection are going to release Green Acres

restrictions -- better known as the Transco proposal. If weíre going to -- just for

discussion, for those of you who come here and wanted to comment. Weíre not

going to take any action today. Weíre going along, but--

How many people are here that want to discuss Transco?

UNIDENTIFIED SPEAKER FROM AUDIENCE: Senator, we

have two individuals here representing Transco. Theyíd be willing to answer any

questions you may have or to give you an update from what happened from the

last meeting to current. Whatever you would like.

SENATOR KAVANAUGH: Update.

If you would identify yourselves. We understand youíre with

Transco, but your names please?

M I C H A E L K. R U T T E R, ESQ.: Okay. My name is Mike Rutter --

R-U-T-T-E-R. Iím an attorney with the New Brunswick firm of--

23

You probably can hear me anyway, now Iím on speaker (referring

to PA microphone).

Iím an attorney with the New Brunswick firm of Watson, Stevens,

Fiorilla & Rutter. Iím attorney for Transco in this project, and in the matter

thatís pending in the Federal District Court.

D O U G L A S E. A N D E R S O N: My name is Doug Anderson. Iím in

the Land Department for Transco Pipeline.

MR. RUTTER: Senator Kavanaugh, members of the Commission,

I thought it most appropriate, since we were here, I believe it was June 23, just

to tell you whatís happened since Mayor Gilmore of Hamilton Township

appeared on that date and asked you to, essentially, table this item. We had

previously, through Mr. Anderson and through others, negotiated what we

thought was a settlement with the township. At the end of May -- and this

appears in the agenda, thereís a description, so Iím not going to go over whatís

already before you -- at the end of May the township council decided to,

essentially, repudiate that settlement. The matter was already in the Federal

District Court, in condemnation.

When we appeared before you, we were going to be going, that very

afternoon, down the street to the Federal Courthouse before Judge Garrett

Brown on that matter. At that time, the township had asked the Federal Energy

Regulatory Commission to reopen the application which had resulted in a

certificate being issued last December 24 -- thatís 2002. They had asked them

to set aside that certificate. Subsequent to our being with you on June 23, that

afternoon the Judge heard argument, and three days later entered an order for

judgment granting the six easements that Transco required; five of them are

Green Acres, one is not.

The township then appealed that to the Third Circuit in

Philadelphia. The township had the matter pending before FERC. At the end

of July, FERC, in a fairly lengthy opinion, denied the belief that the township

was requesting and upheld the certificate. The township subsequently withdrew

its appeal at the Third Circuit. Transco recorded the order for judgment that

was entered by Judge Brown, and paid the amount of money specified by the

Judge into court. The matter is pending, but we, having recorded that, have

acquired the easements. My understanding from our continuing-- We are

continuing to deal with the Green Acres staff and with the Deputy Attorney

General who is on this particular case. She is present in this room. Rachael

Horowitz is right behind me.

24

We are continuing to work with the State, with the DEP Green

Acres staff, and with the township to get this thing to the point where everybody

is satisfied with the outcome. Apparently, the matter has been removed from

the agenda today and carried again to a future date. But we believe that we

made substantial progress.

Doug, you might tell the Commission how we managed to

accommodate the township on the September Fest.

MR. ANDERSON: Yes. We began construction in mid-August.

Weíre a little over 50 percent complete with the construction of the pipeline.

The concern of the township was their September Fest in Veterans Park in

Hamilton Township. It was a one-day event, but itís well-attended. I think itís

around the 13th or 14th. We were able to skip that section of the construction

until after the festivities. So thatís one accommodation we made for the

township.

MR. RUTTER: Weíve taken some of your time, now. I donít

know that we need to take more, but we certainly could answer any questions

that anyone has.

SENATOR KAVANAUGH: Iíd just ask, if you donít have a

comment, all right, but does the DAG have any comment to this? (witness

starts speaking from audience)

Just a moment. Could you come forward?

R A C H A E L H O R O W I T Z, ESQ.: Iím sorry. I said I donít have

comment. Our understanding of what has transpired, since the 23rd, is

essentially the same as what was just stated by Mr. Rutter. The Commission

had tabled this in light of the pending FERC situation, and that is no longer

pending. But thatís my only comment, unless there are questions.

ASSEMBLYMAN IMPREVEDUTO: It would seem as if, from

what we heard from Mr. Rutter, that the township has put up the good fight.

The mayor and his members of his council have -- did what they needed to do

for the people of their town and what they considered to be a dangerous

situation that could possibly exist for the people who live within the Township

of Hamilton. I suspect, after losing all the court battles, one would seem to

think that the fight was over. But I would suspect that itís not yet done, but

will be. I think if I were the mayor of Hamilton, and if I were on a council

there, I would be certainly seriously concerned, too, about having a gas pipeline

run through my town, particularly through a park. I understand their worry.

But on a safe level, and looking at an overall case, itís an important issue -- an

25

issue that we need to resolve. We certainly donít want to have continued

blackouts like we had this summer, and particularly at the shore. It is my

understanding, from the last time we met, that without this pipeline that

certainly could happen. Is that right?

MR. RUTTER: My understanding is that the two recipients of the

gas -- and my clients, Transco Gas Pipeline Corporation, does not sell natural

gas. Itís an underground pipeline. It delivers natural gas. The one is a newly

built, and in fact, just-going-into-service co-generation station called the Fairless

Project, just on the other side of the Delaware River from Bordentown

Township. The line that runs from Transcoís existing line across to the river was

completed by August 1, on schedule. But the gas thatís going to be going to that

line, through the existing Transco line and the new loop line, is still to come. So

there is -- there is an importance there. Thereís also additional residential

capacity that is going to a Pennsylvania utility that has contracted for it. This

line is the closest line to get that to them. Itís several miles from the river. So

there is that importance.

And in FERCís viewpoint, this was the appropriate construction

project to serve the needs, and there are firm contracts for that gas to be

delivered. And it has to be delivered by November 1. So the construction is

well underway.

I could also state -- Iím sorry, that-- Iím sorry. You had a

question?

SENATOR KAVANAUGH: Go ahead, Mr. Rutter, continue now.

Do you have a comment? Do you want to continue? Go ahead.

MR. RUTTER: I was just -- in terms of the township,

Assemblyman Impreveduto noted that the township fought the good fight. And

they very much did fight the good fight, on every level, once it was determined

that there were a significant number of the residents of the township that had

questions and doubts about whether this should be done. And that had to be

resolved at the level of FERC and at the level of the courts in order to

accomplish this project.

SENATOR KAVANAUGH: Yes.

MS. GIBLIN: I just would like to-- First of all, thank you for

expressing your concerns. I know myself and the rest of the Commissioners

appreciate that. It was my understanding that there are still some open issues

between yourself and the township regarding the evaluation of the easements

and the size of the Green Acres property -- that remain open. And in light of the

26

importance of the project, and the fact that, on a project like this, weíre going

to want all the affected stakeholders to be on the same page -- excuse the

metaphor -- Iím optimistic that these issues can be resolved in short order. I

thank you for your patience, and I look forward to all of you working together

to resolve them.

MR. RUTTER: Thank you.

We met with the township representatives at the Municipal

Building as recently as last Thursday, late in the day, to all get in our cars and

get home before tropical storm Isabel got here. But we are continuing to meet.

Weíre continuing to deal with them on construction issues that come up during

the course of the construction. And we hope that by the time itís done, as we

have experienced in the past, that people -- once itís in the rearview mirror -- will

realize that Transco actually does what it says itís going to do, and that theyíre

not going to create real problems for the town. But right now you have to build

up that trust, and you donít get the benefit of the trust coming in.

SENATOR KAVANAUGH: Any other comments? (no response)

Thank you.

Is there a motion to adjourn?

ASSEMBLYMAN IMPREVEDUTO: Moved.

DEPUTY TREASURER SMARTT: Second.

MR. McGLYNN: Thank you all for coming here on a

nonlegislative day. Itís appreciated.

(MEETING CONCLUDED)