WEST HANOVER TOWNSHIP WATER & SEWER AUTHORITY

7901 JONESTOWN ROAD, HARRISBURG, PA 17112

TUESDAY, JULY 18, 2006, 7 P.M.

REGULAR MEETING

CALL TO ORDER

Chairman Millard called the regular meeting to order at 7:05 p.m., followed by the Pledge of Allegiance.

ATTENDANCE

Stephen L. Millard, Chairman

Donald L. Steinmeier, Vice Chairman

Kenneth L. Tyndale, Secretary/Treasurer

Robert R. Jones

William LaDieu

PUBLIC COMMENT

Daniel Schiavoni, Rabbit Lane. Mr. Schiavoni owns Lot #9 (318 Short Street) and is in the process of developing the lot. In order to develop the lot, Mr. Schiavoni extended the public sewer on Short Street. As a result of that extension, five homes not previously served by public sewer were connected using grinder pumps. The grinder pumps for those homes were furnished to the homeowners at the Authority’s expense.

Mr. Schiavoni stated he was present at the meeting to request that the Authority also furnish a grinder pump, at no charge, for the home he was having constructed at 318 Short Street. He went on to say that the public sewer on Short Street was extended at his expense totaling $17,000 and that he did not request any reimbursement from the Authority for placing the laterals for the other five homes.

Mr. Salisbury called the Authority’s attention to the November 15, 2005 Minutes. Mr. Schiavoni appeared before the Authority on that date for final approval of the Short Street sewer extension. At that time, it was understood that he would provide a grinder pump, at his expense, for the property located at 318 Short Street. Mr. Schiavoni stated that perhaps it was an oversight on his part that he did not negotiate for either a grinder pump or some amount of reimbursement for placing the five sewer laterals to properties other than his own. He asked the Authority members to consider his request for a grinder pump. A brief discussion followed.

Mr. LaDieu moved, seconded by Mr. Steinmeier, to provide a grinder pump for the home located at 318 Short Street at the Authority’s expense. The motion was approved with a 4-1 vote, with Mr. Jones voting nay.

APPROVAL OF MINUTES

Regular Meeting, June 20, 2006. On page 2, under “Proposal for Painting Interior/Exterior at Plant,” the second sentence of the second paragraph should read: “Members provided the names of Maugans Painting and Schreffler Painting.”

Mr. Steinmeier moved, seconded by Mr. Tyndale, to approve the Minutes of June 20, 2006 as amended. The motion was approved 4-0, with Mr. Jones abstaining as he was not present at that meeting.

FINANCIAL REPORTS

Operating Expenses. Mrs. Martin reported that prepaid invoices totaled $41,678.94. Mr. Tyndale raised a question regarding $212.20 paid for telephone services for the pump stations. He suggested that staff might want to look into a GPS or some other type of satellite device that could replace the need for telephone services to the pump stations. He stated that it would involve an initial cost and a monitoring fee but believed that in the long run it would most likely be more cost effective. Mr. Salisbury will look into the matter and report back to the Authority.

In addition, Mr. Millard pointed out that the $21,188.35 paid to PFM and Rhoads & Sinon was paid from the Line of Credit proceeds at the time of closing.

Mrs. Martin also reported that the invoices pending payment totaled $84,218.36. Mr. Tyndale requested a copy of the medical insurance invoice. Mrs. Martin will provide that to him.

Mr. Tyndale moved, seconded by Mr. LaDieu, to approve the prepaid invoices in the amount of $41,678.94. The motion was unanimously approved.

Mr. Jones moved, seconded by Mr. Steinmeier, to approve the pending invoices in the amount of $84,218.36. The motion was unanimously approved, with Mr. Tyndale abstaining on the payment to K.L. Tyndale.

OLD BUSINESS

Update on Swatara Capacity. Mr. Yost called the members’ attention to the letters from Donald Lewis of Keefer Wood Allen & Rahal, LLP dated June 27, 2006 and June 28, 2006. Mr. Yost reported that the arbitrators were requesting that $10,000 be deposited into an escrow account with Malatesta Hawke & McKeon as an advance against payment of the arbitrators’ fees. Mr. Yost stated that he believed the $10,000 should be shared, with West Hanover, South Hanover, and Swatara each paying one-third of the requested amount. Mr. Yost went on to say that it was his opinion that Lower Paxton and Hummelstown should not be required to participate because they are not actively participating in the arbitration. Mr. Millard stated that it was his understanding that Lower Paxton joined in the Motion to Dismiss. Mr. Yost stated that he would look into the matter and, if that were the case, then he would agree that Lower Paxton should be required to post some of the escrow funds. He will report back to the Authority.

Update on Land Development Plan. Mr. Salisbury called the members’ attention to the land development plan from HRG, which had been delivered to the Authority Office just prior to the meeting. Mr. Salisbury stated that a pre-application meeting would be held at the Township Office on Thursday, July 27, 2006, at 9 a.m.

Mr. Salisbury reported that during a meeting held at the Authority Office on June 29, 2006, HRG requested Gannett Fleming to relocate the building approximately 30 feet to the north to provide additional area for the stormwater management facilities. Mr. Salisbury also reported that Mr. Koser has now expressed some concern regarding the size and location of the proposed detention pond. Following a brief discussion, the Authority agreed by consensus that the building should be moved back to its original location and that the appropriate size detention pond should be moved so as not to interfere with possible future expansion of the vermicomposting facility. Mr. Salisbury agreed to share the Authority’s concerns with Mr. Koser and Mr. Shope.

Update on Vermitech. Mr. Salisbury called the members’ attention to a memorandum from Mr. Shope providing an update on the vermicomposting design process.

Mr. Salisbury also reported that he received a call from Scott McManamon of Fulton Bank to determine whether or not the Authority would be interested in placing the $2 million Line of Credit into a CRIM account, which currently earns approximately 5 percent interest. In response to a question regarding arbitrage, Mr. Yost stated that the Authority would not violate any arbitrage rules by investing the $2 million. By consensus, it was agreed that Mr. McManamon should be asked to provide a proposal for the Authority’s consideration at its August meeting. Staff will contact Mr. McManamon.

Update on Influent Screen at the Treatment Plant. Mr. Salisbury called the members’ attention to the e-mail included with the packets regarding the sale of a used Rotamat screen. Mr. Salisbury added that the asking price was $19,000 and it would need a new screening basket and comb. The cost of the repairs is unknown at the present time.

Following a brief discussion, Mr. Salisbury was asked to contact John Heath at Heisey Mechanical to ascertain what the purchase price would be with the screening basket replaced, the comb replaced, the control panel refurbished, and if any warranty/guarantee would be included. It was also suggested that staff contact Warrington Township, previous owner of the screen, to obtain a reference. Mr. Salisbury will follow up.

Update on Accounting Services. Mrs. Martin reported that, as requested at the June 20 meeting, she contacted Diana Reed of Diana M. Reed & Associates regarding the accounting services. Mrs. Martin stated that Mrs. Reed agreed that her firm could move into the role of auditor and resource person if the Authority decided to bring the quarterly compilation of the financial reports in-house. As a step in that direction, Mrs. Martin indicated that staff from Mrs. Reed’s office would work with her to compile the third and fourth quarter financial reports and that hopefully by January 2007 the financial reports could be done in-house on a monthly basis. Mrs. Martin will report back to the Authority as the training progresses. Mr. Millard asked Mrs. Martin to provide a listing of the new duties that would be included with that process. She agreed to do so.

NEW BUSINESS

Proposal for Painting Interior/Exterior at Plant. Mr. Salisbury called the members’ attention to the four proposals included with the packets. David A. Hertz of Hanover submitted the lowest proposal at $4,300. A brief discussion ensued.

Mr. LaDieu moved, seconded by Mr. Tyndale, to accept the proposal from David A. Hertz at a cost of $4,300, with 25 percent down when work began and the remaining 75 percent paid at the time of completion. The motion was unanimously approved.

Arondale Agreement. Mr. Salisbury called the members’ attention to the proposed agreement from Yingst Homes regarding upgrading the pump station at Bradford Estates. Mr. Yost stated that he reviewed the agreement and that it is in order.

Mr. Jones moved, seconded by Mr. Tyndale, to authorize the Chairman to sign the Arondale agreement. The motion was unanimously approved.

Engineering Services. Mr. Millard called the members’ attention to his memorandum regarding engineering services. A lengthy discussion followed. It was agreed that this issue would be discussed at future meetings.

PUBLIC COMMENT

No public comment was offered at this time.

AUTHORITY MEMBER COMMENTS

Bill LaDieu. Mr. LaDieu stated that the Chesapeake Bay has developed a strategy regarding nutrient issues. Mr. LaDieu added that the Authority should discuss this issue with Mr. Shope at the August meeting and ask him to assist the Authority in writing a letter to DEP encouraging adoption of the proposed strategy. This matter will be placed on the agenda for the August 15 meeting.

Ken Tyndale. Mr. Tyndale had no comment.

Don Steinmeier. Mr. Steinmeier called the members’ attention to the article in CHAR regarding Bill 1861, which sets forth requirements for obtaining bids for municipal projects.

Steve Millard. Mr. Millard had no comment.

CORRESPONDENCE

There was no discussion regarding correspondence included with the packets.

ANY OTHER BUSINESS THAT MAY COME BEFORE THE AUTHORITY

No other business came before the Authority.

REPORTS

Authority Manager. Mr. Salisbury submitted a written report. In addition, Mr. Salisbury asked whether or not any Authority members were interested in attending the PMAA Convention in Hershey from September 10-13, 2006, as registration was due no later than August 1. Mr. Millard and Mr. Tyndale indicated they would be interested in attending. Mrs. Martin will handle registration and ensuring payment is sent prior to the August 1 deadline.

Engineer. Mr. Shope was not present at the meeting; however, he submitted a written report.

Solicitor. Mr. Yost had no additional report.

ADJOURNMENT

Mr. Steinmeier moved, seconded by Mr. Tyndale, to adjourn the meeting. The motion was unanimously approved. The meeting was adjourned at 8:43 p.m.

Respectfully submitted,

Gail A. Martin,

Recording Secretary