TUESDAY,
MAY 16, 2006, 6:30 P.M.
REGULAR
MEETING
Chairman
Millard called the workshop to order at 6:30 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 Management, Inc. (PFM) was present to review the proposals
he received from several financial institutions interested in providing
financing for the Vermitech project.
Mr.
Verdelli stated that an RFP was sent to nine (9) banks, of which six (6)
responses were received. Mr. Verdelli
distributed the results of the RFP for review.
He then went on to review the responses, pointing out that the most
competitive proposals came from Fulton Bank and Sovereign Bank.
Fulton
Bank proposed a $2 million line of credit with four scenarios, which included a
variable rate of 55% of Prime, a fixed rate of 4.5% for five (5) years then a
variable rate of 55% of Prime, a fixed rate of 4.60% for seven (7) years then a
variable rate of 55% of Prime, and a fixed rate of 4.70% for ten (10) years
then a variable rate of 55% of Prime.
All scenarios would require a guarantee by the Township.
Sovereign
Bank proposed a $2 million line of credit with two scenarios, which included a
fixed rate of 4.35% for ten (10) years then a variable rate of 60% of Prime and
a fixed rate of 4.55% for ten (10) years then a variable rate of 60% of
Prime. The 4.35% rate would require a
guarantee by the Township; however, the 4.55% rate would not.
Following
a lengthy discussion, Mr. Verdelli was directed to contact Fulton Bank to
determine they would be willing to loan the funds at a fixed rate of 4.5% for
ten (10) years then a variable rate of 55% of Prime without a guarantee from
the Township. Mr. Verdelli agreed
to contact Fulton Bank and will report back to the Authority.
In
addition, the members discussed the need to make a presentation to the Township
Board of Supervisors outlining the Authority’s plans for the Vermitech project
and ask whether the Township would be willing to guarantee the loan. It was suggested that the presentation be
made when the Board next meets on Monday, June 5, 2006.
Mr. Jones moved, seconded
by Mr. LaDieu, that a presentation be made to the Township Board of Supervisors
at the Board’s earliest convenience, with Mr. LaDieu,
Mr. Salisbury, and Mr. Shope (if he’s available) making the
presentation. The motion was approved
4-1, with Mr. Millard voting nay.
Regular Meeting, April 18, 2006. Mr. Jones moved, seconded by Mr. Steinmeier, to approve the Minutes of the April 18, 2006 meeting as distributed. The motion was unanimously approved.
Operating
Expenses. Mrs. Martin reported that
prepaid invoices totaled $19,222.74. She
also reported that the invoices pending payment totaled $97,650.21.
A
question was raised regarding the invoice from Diana M. Reed and Associates in
the amount of $4,000. Following a brief
discussion, Mrs. Martin was directed to provide the members with the proposal
for 2006 from Diana M. Reed and Associates, as well as a history of payments
made to the firm since 2002. Mrs. Martin
agreed to provide the information for the June meeting.
In
addition, Mrs. Martin called the members’ attention to the 2005 Audit report
and the financial report for the first quarter of 2006, which was distributed
just prior to the meeting.
Mr. Steinmeier moved,
seconded by Mr. Jones, to approve the prepaid invoices in the amount of
$19,222.74. The motion was unanimously
approved.
Mr. Jones moved, seconded
by Mr. LaDieu, to approve the pending invoices in the amount of
$97,650.21. The motion was unanimously
approved, with Mr. Tyndale abstaining on the payment to K.L. Tyndale, Inc.
[Mr. Jones left the meeting at
7:30 p.m.]
Update
on Swatara Capacity. Mr. Yost called
the members’ attention to the letter dated April 25, 2006 from Donald Lewis of
Keefer Wood Allen and Rahal, LLP, which was included with the packet.
Mr.
Yost went on to explain that Mr. Lewis’ letter was addressed to the three
arbitrators appointed in the case requesting that they exercise their
discretion and direct that discovery move forward in this matter. As of May 16, 2006, no decision has been made
relative to discovery.
Update
on Land Development Plan. Mr.
Salisbury reported that Don Koser from HRG met with himself and Dale Shope
regarding the Authority’s land development plan. A survey has also been completed of the
Authority’s property.
Per
the proposal from HRG, the land development plan should be ready for
presentation to the Township Planning Commission at the meeting scheduled for
June 22, 2006. Mr. LaDieu agreed to
represent the Authority at that meeting.
Update
on Vermitech. Mr. Shope reported
that design has just begun on the Vermicomposting building. The bid package should be ready for
advertisement in July or August, with bids being opened in September. In response to a question, Mr. Shope stated
that the Part II Permit application would be submitted to DEP in July.
He
added that he recently had a discussion with Mr. Ankers from Vermitech
regarding the area required for drying the sludge, as it appears the area will
need to be larger than originally anticipated, which could add some costs to
the project.
Mr.
Shope also called the members’ attention to the projected payout schedule,
which was attached to his written report.
He reviewed the payout schedule, after which a brief discussion ensued.
Update
on Influent Screen at the Treatment Plant.
This item has been tabled.
Certificate
of Deposit – Matured 4/27/06. Mrs.
Martin reported that she contacted four financial institutions to ascertain
current rates for Certificates of Deposit.
She called the members’ attention to the chart distributed just prior to
the meeting. A brief discussion ensued
during which the members expressed an interest in the Fulton Bank offering of a
nine (9) month CD at 4.25% and a twelve (12) month CD at 4.50%.
Mr. Tyndale moved, seconded
by Mr. Steinmeier, to reinvest $500,000 in a nine (9) month CD and $500,000 in
a twelve (12) month CD. The motion was
unanimously approved.
Discussion
re Areas Not Served by Public Sewer (Act 537 Plan). Mr. Millard reported that, as directed by the
Authority members at the April 18, 2006 meeting, a letter was forwarded to Bob
Ziltz asking that the Board of Supervisors consider requiring a Component Level
3 review be required in order for development to occur outside of the 537 Plan
sewer area. A copy of the letter was
included with the Authority packets.
Mr. Millard also reported that a discussion of the 537 Plan was held at the Board of Supervisors’ meeting on Monday, May 15, 2006, during which it was agreed that a notation should be made that no further exceptions would be made for development outside of the proposed plan.
Plan
Approval – Townes of Hershey. Mr.
Salisbury called the members’ attention to the memorandum and plan included
with the packets stating that the revised plans were reviewed and approved by
the Authority’s engineer.
Mr.
Tyndale moved, seconded by Mr. LaDieu, to approve the final sanitary sewer plan
for the Townes at Hershey, Phase II, contingent upon the completion of the
following outstanding items:
· A Sewer
Extension Agreement must be executed.
· Approval
of the cost estimate for construction of the sanitary sewer line.
· Following
approval of the cost estimate, security must be posted within ten (10) days of
the date of the approval letter.
· Shop
drawings detailing the materials to be used in the construction of the gravity
sewer and sanitary manholes must be submitted to the Authority for review by
the Authority’s engineer.
The
motion was unanimously approved.
Plan Approval – Arondale. Mr. Salisbury called the members’ attention to the memorandum and plan included with the packets stating that the revised plans were reviewed and approved by the Authority’s engineer.
Mr.
Tyndale moved, seconded by Mr. LaDieu, to approve the final sanitary sewer plan
for Arondale, contingent upon the completion of the following outstanding
items:
· A Sewer
Extension Agreement must be executed.
· Approval
of the cost estimate for construction of the sanitary sewer line, force main,
and pump station.
· Following
approval of the cost estimate, security must be posted within ten (10) days of
the date of the approval letter.
· Shop
drawings detailing the materials to be used in the construction of the gravity
sewer, sanitary manholes, force main, and pump station must be submitted to the
Authority for review by the Authority’s engineer.
· Execution
of an agreement between Yingst Homes and the Authority that Mr. Yingst
agrees to upgrade the pump station in Bradford Estates to 320 gallons per
minute when Arondale reached 50 percent build out, as outlined in a letter
written by Gannett Fleming dated March 2, 2004.
The motion was unanimously
approved.
Plan Approval – Sagewicke Annex. Mr. Salisbury called the members’ attention to the memorandum and plan included with the packets stating that the revised plans were reviewed and approved by the Authority’s engineer.
Mr. Steinmeier moved, seconded by
Mr. Tyndale, to approve the final sanitary sewer plan for Sagewicke Annex
contingent upon the completion of the following outstanding items:
· A Sewer
Extension Agreement must be executed.
· Approval
of the cost estimate for construction of the sanitary sewer line.
· Following
approval of the cost estimate, security must be posted within ten (10) days of
the date of the approval letter.
· Shop
drawings detailing the materials to be used in the construction of the gravity
sewer and sanitary manholes must be submitted to the Authority for review by
the Authority’s engineer.
The
motion was unanimously approved.
No
public comment was offered at this time.
Bill
LaDieu. Mr. LaDieu had no comment.
Ken
Tyndale. Mr. Tyndale had no comment.
Don
Steinmeier. Mr. Steinmeier had no
comment.
Steve
Millard. Mr. Millard had no comment.
Mr.
Salisbury briefly highlighted the correspondence included with the packet,
including an e-mail from Cheryl DeSanti at PA American Water (PAWC) regarding a
request from several municipalities for which PAWC does billing. The request was for PAWC to separate the
water/sewer previous balance. Currently
it is shown as one total past due balance.
Prior to making that change, Ms. DeSanti requested input from all of the
municipalities for which PAWC does the billing to determine whether or not they
would be interested in sharing in the cost of upgrading the billing
software. The proposed cost would be
approximately $942 per municipality. Mr.
Salisbury stated that he and Mrs. Martin discussed the request and that they
did not see a change in the software as serving any purpose for
Mr. Tyndale moved, seconded
by Mr. Steinmeier, to notify PA American Water that the
Authority
Manager. Mr. Salisbury submitted a
written report.
Engineer. Mr. Shope submitted a written report. He called the members’ attention to the
memorandum attached to his report relative to the use of USGS topographic
mapping to evaluate sewer service to remaining undeveloped areas within the
current designed public sewer service area.
From the USGS map, he was able to identify general drainage patterns in
sufficient detail to be able to recommend placement of sanitary sewer
interceptors and pumping stations.
Therefore, unless the Authority intended to actually design the extension,
there would be no need to develop topographic mapping at 2-foot contour
intervals. It was agreed that no further
action was required.
Solicitor. Mr. Yost stated that he had written letters
to those residents on the arrears listing not currently in bankruptcy and in
arrears more than $200.
Mr.
Jones moved, seconded by Mr. Steinmeier to adjourn the meeting. The motion was unanimously approved. The meeting was adjourned at 8:53 p.m.
Respectfully
submitted,
Gail
A. Martin,
Recording
Secretary