WEST HANOVER TOWNSHIP WATER AND SEWER AUTHORITY
7901 JONESTOWN ROAD, HARRISBURG, PA
17112
THURSDAY, MAY 23, 2002, 7 P.M.
REGULAR MEETING
Chairman Millard called the May 23, 2002 regular meeting to order at 7:02 p.m., followed by the Pledge of Allegiance.
Stephen L. Millard, Chairman
Robert Ziltz, Vice Chairman
Robert R. Jones, Secretary/Treasurer
Gloria J. Zimmerman
Beth Carricato, 699 Knight Road. Mrs. Carricato noted that Mr. Young was not present at the meeting and that to the best of her knowledge he had been present at only one meeting since the beginning of 2002.
Mrs. Carricato inquired as to whether or not the retainer had been returned from Rhoads and Sinon. Mr. Yost responded that it had not yet been returned. Mrs. Carricato added that it was her opinion that the agreement pertaining to the $50,000 retainer that was paid for the possible “takeover” was separate, and should be treated as such, from the approximately $12,000 that Rhoads and Sinon alleges is owed by the Authority for routine legal work. She also said that she found it difficult to fathom how Rhoads and Sinon could have accrued almost $12,000 in legal fees associated with the “takeover.” Mrs. Carricato believes that Rhoads and Sinon should return $38,000 of the $50,000 and encouraged the Authority to take legal action if it is not forthcoming in the near future.
Mrs. Carricato also noted that she had obtained information showing that a retainer of first $1,500 per month and then $1,250 per month had been paid to Rhoads and Sinon since 1998. She added that according to the Authority’s Minutes, Mr. Long had missed three meetings in 2001.
Mrs. Carricato said that in looking at the past Ethics Forms completed by Mr. Young, he showed income from three employers for 1997, specifically the Fireman’s Fund, The Patriot News, and Rhoads and Sinon.
Mrs. Carricato urged Mr. Yost to take the matter with Rhoads and Sinon seriously.
Mrs. Carricato also inquired as to the status of the Fox Mill Road project. Mr. Salisbury responded saying that the project was underway.
Bob Jones. Mr. Jones asked Mr. Yost what recourse the Authority had to retrieve the balance of the $50,000 retainer from Rhoads and Sinon. He also asked whether the Authority could file a grievance with the Pennsylvania Bar Association. Mr. Yost said that a grievance could be filed with the Pennsylvania Bar Association but added that he hoped it did not come to that. He said he was hoping that he could work the matter out with Mr. Long.
Steve Millard. Mr. Millard reported that he had been working on obtaining the easements for installation of the sewer lines along Sandy Hollow Road. He said one of the easements that was needed was on the property of Mr. Ulrich. Mr. Millard also said that Mr. Ulrich was requesting a free connection to the sewer in exchange for the easement. Mr. Jones asked how much of an easement was required, to which Mr. Millard responded that the easement would be approximately 30-50 feet on the property. Mr. Yost suggested that the Authority hold a brief Executive Committee session following the meeting to discuss the issue.
Mr. Millard stated that he was interested in pursuing the possibility of adding reed beds at the treatment plant in order to treat sludge. He added that he, Mr. Rodemoyer, and Mr. Salisbury would be traveling to North Middleton Township in the near future to view their operation. Mr. Wendle pointed out that reed beds had been part of the original plan for the treatment plant. In response to a question, Mr. Wendle noted that the cost to add reed beds would be approximately $700,000. Mr. Salisbury also raised the possibility that the Authority might be interested in the process used by Middletown Borough to process Class B sludge into Class A sludge. By consensus, it was agreed to have Mr. Salisbury contact Middletown Borough to learn about the cost.
Mr. Millard stated that Mr. Young required Gary Houck to give the Authority $15,000 and that he was now requesting that the money be returned. Mr. Ziltz and Mr. Jones asked why Mr. Houck had given the Authority $15,000. Mr. Salisbury explained that Mr. Houck’s plans called for an island to be built in the Sagewicke development and that the sewer lines ran under the island. Mr. Houck planted trees in the island even after he was advised by the Authority not to do so. Mr. Salisbury added that the plans did not call for trees to be put in the island and that only plants would be placed there. Mr. Salisbury also stated that Mr. Young had asked Mr. Houck to remove the trees, which Mr. Houck refused to do; therefore, Mr. Young asked Mr. Houck to give the Authority $15,000 in the event that there would be a problem at some point in the future with the sewer lines and the trees would have to be removed. A brief discussion followed. By consensus, it was agreed to keep the $15,000 in the Operating Account but note on the Authority’s financial reports that it was being held in escrow.
Mrs. Zimmerman moved, seconded by Mr. Jones, to keep the $15,000. The motion was unanimously approved.
Bob Ziltz. Mr. Ziltz stated that he disagreed with a motion that the Authority approved in December 2000, which granted the Chairman permission to make all types of decisions between meetings. Mr. Ziltz read the motion from the December 4, 2000, minutes page 2.
Mr. Deaven moved, seconded by Mr. Wingeard, to Resolve herewith that the Board of the West Hanover Township Water and Sewer Authority ratify all actions of the chairman taken between meetings of the Board of the Authority on all litigation filed by or against the Authority and/or any officer thereof, and hereby further authorizes the chairman to retain and direct legal counsel to represent the Authority and the officers thereof in all legal action taken with respect to their activities involving the Authority and its utility system. The motion was approved 4-0.
Mr. Ziltz moved, seconded by Mr. Jones, to abdicate the motion approved in December 2000. The motion was unanimously approved.
Gloria Zimmerman. Mrs. Zimmerman noted that when she arrived at the Township building significant clean-up had to be done in order to hold the meeting at 7 p.m. She suggested that the Authority send a memorandum to Mr. Rimer asking that the meeting room be prepared prior to the Authority’s arrival. Mr. Millard directed Mrs. Martin to draft a memorandum for his review.
March 19, 2002. Mr. Ziltz moved, seconded by Mrs. Zimmerman, to approve the March 19, 2002 workshop meeting Minutes as distributed. The motion was unanimously approved.
April 9, 2002. Mrs. Martin advised the Authority members that due to a computer problem, she had not been able to furnish the Minutes for the May 23 meeting. They will be available for the June meeting.
Operating Expenses. Mrs. Martin stated that the operating expenses for May 2002 were $119,818.81.
Mrs. Zimmerman moved, seconded by Mr. Jones, to approve the operating expenses. The motion was unanimously approved.
Update on Fox Mill Road. Mr. Millard stated that he visited the site earlier in the day and that Aaron Enterprises had completed drilling 200 feet of the 310 feet. Mr. Salisbury added that when Aaron Enterprises completed its work, then Follmer Excavating would complete the project.
Update on Lime Silo/Screen. Mr. Wendle reported that CET had reviewed the shop drawings for both the lime silo and the screen. He said that it was anticipated that Aaron Enterprises would meet the completion date on both projects. Mr. Rodemoyer stated that the Authority Office had received a PA One Call reporting that work would begin on May 29.
Reserve Capacity. No further report at this time; this item remains tabled.
Usage Fee Start (Certificate of Occupancy v. Connection to the Main Sewer Line). Mr. Millard said this item would be addressed during the codification of the tapping fee resolutions.
Reimbursement for Terrann Drive/Sandy Hollow Road. No further report at this time; this item remains tabled.
Update on Letter to Residents in Arrears. Mr. Yost stated that the letters would be sent out within the next ten days. Mrs. Martin suggested that perhaps Mr. Yost should wait to send the letter out, as she would be updating the arrears list within the next week. It was agreed that Mr. Yost would send the letter out after receiving an updated arrears listing from Mrs. Martin.
Set Date for Workshop to Discuss Codification of Tapping Fee Resolutions. Mrs. Zimmerman stated that she took exception to the statement that alluded to the fact that the Authority was seen in a Robin Hood role where the Authority robbed from the rich (business owners) to give to the poor (the residents). Further, she stated that she also took exception to the statement saying that the Authority needed to treat developers with the gratitude they deserve. She also stated that it was her opinion that the developers would not have been as willing to do what they did without Mr. Young’s presence on the Authority. Mr. Millard explained that he wrote the statement pertaining to the developers because had it not been for the ongoing development in the Township, the residents originally connected to the sewer would still be paying $66 per month.
By consensus, it was agreed that the workshop to discuss the codification of the tapping fee resolutions would be held on Wednesday, June 12, 2002 at 7 p.m.
Permission to Hire Summer Help. Mr. Salisbury stated that he was asking permission to hire a summer intern for the treatment plant. He indicated that, in discussion with Mr. Wendle, the hourly rate for a summer intern would be $9 to $12 per hour. Mr. Salisbury added that, if the Authority agreed, the intern would begin on May 30 and work until sometime in August, at which time he would be returning to college.
Mr. Jones moved, seconded by Mrs. Zimmerman, to hire a summer intern for the treatment plant at an hourly rate of $9. The motion was unanimously approved.
Acceptance of Marks Subdivision Sewer Lines. Mr. Millard referred the Authority members to the memorandum from Mrs. Martin stating that all of the conditions for acceptance had been met. Mr. Salisbury added that Mr. and Mrs. Marks currently had an 18-month maintenance bond on file with the Authority in the event any problems would occur. Following a brief discussion, it was decided that the Authority staff should track plans relative to maintenance bonds and letters of credit and that all approvals for reduction or release of funds should come before the Authority for a vote prior to any other actions being taken.
Mr. Ziltz moved, seconded by Mrs. Zimmerman to accept dedication of the sewer lines for the Marks subdivision. The motion was unanimously approved.
Mr. Millard directed Mrs. Martin to prepare a letter for his signature. Mrs. Martin concurred.
Spreadsheet Analysis of Financial Forecast. Mr. Millard reviewed five spreadsheets he had created showing five different financial forecasts for the Authority from 2002 through 2038.
Mr. Jones indicated that a meeting had taken place between West Hanover Township and Lower Paxton relative to the capacity at the Swatara plant. Mr. Jones also indicated that Lower Paxton was amenable to allowing West Hanover to transmit through its lines.
Following a review of the spreadsheets, Mr. Jones stated that he was not in favor of raising the rates and would agree to Scenario #1 only.
Forensic Audit. Mr. Millard stated that he is advocating having a forensic audit conducted for the Authority and that he had a difficult time finding an accounting firm that would was willing to do a forensic audit. He added that Lisa Ritter of Boles and Metzger, the Township’s auditor, was willing to come to an Authority meeting to offer some insight into what a forensic audit would entail.
Mr. Millard also stated that he was particularly interested in having a forensic audit conducted relative to the Rhoads and Sinon invoices. Mr. Yost said that he did not believe that a forensic audit would be very beneficial in the case of the Rhoads and Sinon invoices and that he believed the issues with Mr. Long could be resolved through other avenues.
Following a brief discussion, it was decided to wait until the June meeting to further discuss having a forensic audit conducted.
Errors and Omissions Insurance. Mr. Millard reviewed the memorandum from Mr. Rimer that he had distributed just prior to the meeting. Mr. Millard said that due to the high number of lawsuits that had been filed during the past year, the Township’s errors and omissions premium rose from $2,500 per year to $25,000 per year. He indicated that the Township had only renewed the policy through the end of December and that the total premium for that period was $17,702. Mr. Millard further indicated that the Authority had not paid any premiums for errors and omissions insurance in the past few years and that he believed that the Authority should be assessed a percentage of the new premium based on the amounts being set aside for pending litigation. Mr. Millard stated that according to the information received from Murray Insurance, the Township should be responsible for $5,809 of the total premium and that the Authority should be responsible for the balance, or $11,892.
By consensus, it was agreed that upon receipt of a bill from Township, the premium would be added to the invoice listing for approval.
The Authority members had no questions or comments regarding the correspondence that had been included with their packets.
Beth Carricato, 699 Knight Road. Mrs. Carricato congratulated the Authority members on the fact that at the past few meetings, it was evident that the Board was now running the program and not just Mr. Young. She added that Mr. Young should have been willing to share information with the public all along.
Mrs. Carricato again urged the Authority to pursue Rhoads and Sinon and return of the $50,000 retainer.
Donald Niland, Devonshire Heights Road. Mr. Niland asked what impact hiring a summer intern would have on the Authority’s budget. Mr. Salisbury responded saying that the cost for the summer would be approximately $3,000. Mr. Niland encouraged the Authority to plan for expenditures while preparing the budget to avoid exceeding the budget projections.
Mr. Niland also stated that he was in favor of codifying the tapping fee resolutions in order to streamline operations.
Mr. Niland stated that he was happy to see some progress on the Swatara capacity issue. In response to a question directed to Mrs. Zimmerman, she responded that she could not converse with Mr. Niland due to ongoing litigation.
Mr. Niland raised a question relative to the 537 Plan and whether or not the Authority could implement connection of Ritzie Village to the public sewer system. Mr. Wendle responded saying that the Authority would have to receive permission from the Board of Supervisors before proceeding with that project. Mr. Wendle pointed out that ultimately the Township was responsible to DEP relative to actions taken on the 537 Plan.
Bob Jones. Mr. Jones had no further comments.
Bob Ziltz. Mr. Ziltz stated that he would like to see a better way to show financial information. Mr. Millard asked if he would be interested in taking on that project, to which he responded in the affirmative.
Steve Millard. Mr. Millard had no further comments.
Gloria Zimmerman. Mrs. Zimmerman had no further comments.
There was no other business that came before the Authority.
Wastewater Treatment Superintendent. Mr. Salisbury submitted a written report (a copy of which is attached to the Minutes).
In response to a question regarding infiltration, Mr. Salisbury stated that flows had increased from 240,000 to 245,000 only one day during the week of May 13.
Engineer. Mr. Wendle submitted a written report (a copy of which is attached to the Minutes).
Mr. Jones welcomed Mr. Wendle back to the Authority. In response to a question regarding status of the Sandy Hollow Road project, Mr. Wendle said that as soon as the erosion and sedimentation review was completed a response would be sent to DEP.
Solicitor. Mr. Yost stated that he received a draft proposal from the Central Dauphin School District earlier in the day.
Mr. Jones moved, seconded by Mr. Ziltz, to adjourn the meeting. The motion was unanimously approved. The meeting was adjourned at 10:24 p.m.
Respectfully submitted,
Gail A. Martin
Recording Secretary