WEST HANOVER TOWNSHIP WATER & SEWER AUTHORITY
7901 JONESTOWN ROAD, HARRISBURG, PA 17112
TUESDAY, APRIL 18, 2006, 7 P.M.
REGULAR MEETING
Chairman Millard called the workshop to order at 7 p.m., followed by the Pledge of Allegiance.
Stephen L. Millard, Chairman
Donald L. Steinmeier, Vice Chairman
Kenneth L. Tyndale, Secretary/Treasurer
William LaDieu
Robert R. Jones
PUBLIC
COMMENT
No public comment was offered at this time.
Louis Verdelli from Public Financial Management, Inc. (PFM) joined the meeting to discuss some financing options available for the Vermitech project. He distributed a handout showing interest rate trends and setting forth possible amortization schedules dependent upon whether the Authority would decide to borrow $1.5, $2 or $2.5 million.
Mr. Verdelli reviewed the possible options available, which included a bond issue or a bank note. Mr. Verdelli also indicated that the interest rate available to the Authority would be dependent upon whether or not the Township agreed to guarantee the financing. The Township currently guarantees the Pennvest loan.
In response to a question regarding upfront fees, he indicated that the approximate costs for obtaining a bank note would be $35,000 whereas the costs involved with a bond issue could run to $100,000.
The Authority members thanked Mr. Verdelli for the presentation and advised they would discuss the matter and be in touch.
Regular Meeting, March 21, 2006. There were two corrections to the Minutes. On page 2, under the Update on Influent Screen at the Treatment Plant, the first sentence should read: “Mr. Millard reported that he has been following up on some of the references provided by IPEC.” On page 3, the paragraph on Update on Wet Well Pumps should be deleted as it was duplicated from page 2.
Mr. Jones moved, seconded by Mr. Tyndale, to approve the Minutes of the March 21, 2006 meeting as amended. The motion was unanimously approved.
Operating Expenses. Mrs. Martin reported that prepaid invoices totaled $35,059.56. She also reported that the invoices pending payment totaled $79,606.56.
Mr. Tyndale moved, seconded by Mr. Steinmeier, to approve the prepaid invoices in the amount of $11,240.27. The motion was unanimously approved.
Mr. Jones moved, seconded by Mr. Steinmeier, to approve the pending invoices in the amount of $79,606.56. The motion was unanimously approved, with Mr. Tyndale abstaining on the payment to K.L. Tyndale, Inc.
Update on Swatara Capacity. Mr. Yost reported there was nothing new in this matter.
Update on Land Development Plan. Mr. Salisbury called the members’ attention to his memorandum of April 14, 2006 outlining the results of the RFP for the land development/subdivision plan for the Authority property. The Authority received three responses to the RFP: (1) H. Edward Black & Associates, $42,700; (2) Brinjac Engineering, $14,500; and (3) Herbert Rowland and Grubic (HRG), $9,800. A brief discussion followed.
Mr. LaDieu moved, seconded by Mr. Jones, to award the project to HRG at a cost of $9,800. The motion was unanimously approved.
Update on Vermitech. Mr. Shope reported that he was continuing to work on the design of the Vermitech building, including gathering information on thermal heating systems. A brief discussion followed regarding an HVAC system in order to maintain a constant temperature year round.
Update on Influent Screen at the Treatment Plant. Mr. Millard reported that he and Mr. Salisbury have been contacting some of the references provided by IPEC and that those references have all been favorable. By consensus, the members agreed this item should remain tabled for the present time.
Certificate of Deposit – Matures 4/27/06. Mrs. Martin reported that the interest yield on a $1 million CD for a period of six months would be between 3-4%. A brief discussion followed. It was suggested that staff should contact Citizens Bank as well as PA State Bank to obtain interest rates for CDs. It was also suggested that perhaps a portion of the money should be placed into a six-month CD and the remaining portion should be placed into a one-year CD. Mr. Shope stated that he should have the cash flow projections on the Vermitech project available for the next meeting.
Mr. LaDieu moved, seconded by Mr. Jones, that the $1.2 million in the CD should be moved to the Fulton Fund at maturity and that the Authority should discuss the options available at the May meeting. The motion was unanimously approved.
Discussion re Areas Not Served by Public Sewer (Act 537 Plan). Mr. Shope reported that he has begun evaluation of future service areas to identify quadrants where 2-foot contour interval mapping would be needed for planning/optimizing wastewater collection and conveyance.
Mr. Millard indicated that the Authority had received several inquiries as to when sewer would be available to several properties on Route 39, specifically Blackie’s Nursery and Harber Gardens. Blackie’s Nursery is currently on the market, and Harber Gardens was recently sold. Mr. Millard also indicated that he believed the Authority should take a hard stand on extending sewer service to areas outside the 537 Plan. He has held discussion with Township Manager Mike Rimer and David Gates of DEP regarding this issue.
Mr. Jones moved, seconded by Mr. LaDieu, to write a letter to the Board of Supervisors asking that a Component Level 3 review be required in order for development to occur outside of the 537 Plan sewer area. The motion was unanimously approved.
Lab Accreditation. Mr. Salisbury called the members’ attention to the letter from Gannett Fleming of March 14, 2006, which explains the new rules from DEP regarding lab testing at treatment plants. Chapter 252 in Title 25 of the Pennsylvania Code outlines the Laboratory Accreditation Program. Basically, it states that all environmental laboratories that wish to continue to perform analyses that are submitted to the State, including Wastewater Treatment Plant laboratories, would have to apply for accreditation within six months of the regulations (by July 28, 2006). The initial application fee for a wastewater water treatment plant laboratory is $1,300. The estimated cost for engineering services to review Standard Operating Procedures and a Quality Manual prepared by staff would be $3,500 to $5,000.
A brief discussion followed, during which Mr. Salisbury reported that he estimated that it would cost the Authority approximately $600 a month if it were to outsource the routine laboratory work. Currently a staff member performs the routine testing in-house.
Mr. LaDieu moved, seconded by Mr. Steinmeier, to authorize staff, with assistance from Gannett Fleming, to move forward with the laboratory accreditation and pay the appropriate fees. The motion was unanimously approved.
Authorization to Buy Computer for Lab. Mr. Salisbury requested permission to replace the laboratory computer. He called the members’ attention to a handout from Dell that was distributed just prior to the meeting.
Mr. Tyndale moved, seconded by Mr. Steinmeier, to authorize the replacement of the computer for the lab not to exceed $1,000. The motion was unanimously approved.
No public comment was offered at this time.
Bob Jones. Mr. Jones stated that he believed it was important for the Authority to move forward with exploration of possible financing for the Vermitech project. He suggested that Mr. Verdelli should be contacted to obtain some proposals. Mr. Yost stated he would be willing to contact Mr. Verdelli.
Mr. Jones moved, seconded by Mr. Steinmeier, to authorize Lou Verdelli of Public Financial Management to obtain several proposals for a bank note in the amount of $2 million for review at the next meeting. The motion was unanimously approved.
Bill LaDieu. Mr. LaDieu had no comment.
Ken Tyndale. Mr. Tyndale had no comment.
Don Steinmeier. Mr. Steinmeier briefly touched on the arrears list. Mr. Yost stated that he would review the list and send letters prior to the next meeting.
Steve Millard. Mr. Millard had no comment.
Mr. Salisbury briefly highlighted the correspondence included with the packet.
Authority Manager. Mr. Salisbury submitted a written report.
Engineer. Mr. Shope submitted a written report.
Solicitor. Mr. Yost had no further report.
Mr. Jones moved, seconded by Mr. Steinmeier to adjourn the meeting. The motion was unanimously approved. The meeting was adjourned at 8:52 p.m.
Respectfully submitted,
Gail A. Martin,
Recording Secretary