WEST HANOVER TOWNSHIP WATER AND SEWER AUTHORITY
7901 JONESTOWN ROAD, HARRISBURG, PA
17112
TUESDAY, JUNE 18, 2002, 7 P.M.
REGULAR MEETING
Chairman Millard called the regular meeting of June 18, 2002 to order at 7 p.m., followed by the Pledge of Allegiance.
Stephen L. Millard, Chairman
Robert Ziltz, Vice Chairman
Robert R. Jones, Secretary/Treasurer
Donald Steinmeier, 11 North Fairville Avenue. Mr. Steinmeier inquired as to the status of the $50,000 retainer paid to Rhoads and Sinon. Mr. Millard responded that the balance of the retainer had not yet been returned. Mr. Steinmeier stated that it was his opinion that Mr. Long had “ripped off the ratepayers.” He also stated that Mr. Young and Mr. Long had lied to the ratepayers of West Hanover Township.
Mr. Yost stated that he sent a letter to Mr. Long requesting an itemization of services provided to the Authority from 1998 until February 2002. He added that he received a response from Mr. Long on June 17 advising that Mr. Long assigned someone from his firm to analyze the charges and that the balance due from the $50,000 retainer would not be reimbursed to the Authority until after the analysis was completed.
Beth Carricato, 699 Knight Road. Mrs. Carricato stated that she recalled being present at the meeting when Mr. Long stated that he would not do any work on the possible takeover of the Authority until his firm received a $50,000 retainer and that Mr. Long had pointed out to the Authority members that the $50,000 retainer should be treated completely separate from the retainer agreement for routine representation of the Authority. She added that it was obvious that Mr. Long was now changing his story.
Mrs. Carricato also stated that she recently read an excellent article in one of the Philadelphia newspaper about planning for the future. The article discussed several authorities throughout the state that were in deep financial trouble because the sewer systems were aging and no plans or funds were in place for the upkeep and upgrading of the systems. As a result, those municipalities are experiencing problems with DEP wherein fines have been levied and moratoriums placed on construction within those communities. Mrs. Carricato encouraged the Authority members to plan for the future so that West Hanover Township did not suffer the same fate. Mr. Millard stated that the 2001 Authority Audit reflected that depreciation totaled $374,519 for 2001 and that since inception the depreciation totaled $1.996 million. He said that it was his opinion that the Authority would have to come to terms with that and asked that CET Engineering come up with a formula as to how much should be set aside annually to fund repairs and upgrades to the sewer system.
Mrs. Carricato also pointed out the fact that the June 18 meeting was the third meeting Mr. Young had missed.
Bob Jones. Mr. Jones stated that it was his understanding from the June 12 workshop that, when the total number of EDUs in the treatment plant were sold, the Authority could no longer charge the capacity portion of the fees. Mr. Salisbury stated that the EDUs totaled 3,120 and confirmed that Mr. Jones’ understanding was correct. Mr. Jones went on to say that the sewer system in the City of Harrisburg had to be over 100 years old and that the City continued to charge tapping fees. Mr. Frawley of CET Engineering stated that he could not confirm Mr. Jones’ comment but offered to check to determine what fees were being charged by the City of Harrisburg and report back to the Authority.
Mr. Jones asked Mr. Salisbury how much of the capacity was currently being used at the treatment plant, to which Mr. Salisbury responded that approximately one-third of the hydraulic capacity is being used. Mr. Salisbury added that once the plant reached capacity, it would be possible to upgrade the plant for $125,000 and add an additional 880 EDUs and that by doing that the tapping fees could continue to be collected.
Mr. Jones asked Mr. Yost whether or not the Dauphin County Bar Association had a disciplinary committee or other group where the Authority could file a complaint against Rhoads and Sinon. Mr. Yost said that the Dauphin County Bar Association had no such group but that there was a disciplinary board at the Pennsylvania Supreme Court level. However, he added that he did not believe that the matter had reached that point. He pointed out to the members that there certainly were issues that needed to be cleared up from the past leadership, but added that the members should do what had to be done and go from there. Mr. Yost stated that he would have a more detailed report for the Authority members at its next meeting.
Bob Ziltz. Mr. Ziltz had no comments.
Steve Millard. Mr. Millard had no comments.
Lisa Ritter of Boles, Grove, and Metzger was present to provide some information regarding forensic audits.
Ms. Ritter stated that she was the auditor for the Township and also a fraud examiner. Ms. Ritter proceeded to provide a brief overview of a forensic audit but added that she could not provide specific information relative to the Sewer Authority since she was unfamiliar with the checks and balances that were in place for the finances. She added that if the Authority decided to proceed with a forensic audit, she would need a clear direction as to what the members might be looking for. She suggested that absent the need for a forensic audit, perhaps the members would want her to review the checks and balances at the Authority and offer any suggestions that she might have.
April 9, 2002, Regular Meeting. By consensus, it was agreed to table the Minutes of April 9, 2002 as three members of the Authority present at that meeting were not present at the June 18 meeting to approve the Minutes.
May 23, 2002, Regular Meeting. Mr. Jones moved, seconded by Mr. Ziltz, to approve the May 23, 2002 Minutes. The motion was unanimously approved.
June 12, 2002, Workshop Meeting. Mr. Jones moved, seconded by Mr. Ziltz, to approve the June 12, 2002 Minutes. The motion was unanimously approved.
Operating Expenses. Mrs. Martin stated that the operating expenses for June totaled $80,532.44. She added that the balance in the Fulton Fund was $722,552.18. The members also briefly reviewed the income versus expenses for May 2002.
Mr. Ziltz moved, seconded by Mr. Jones, to approve the operating expenses in the amount of $80,532.44. The motion was unanimously approved.
A brief discussion took place relative
to the financial condition of the Authority from the aspect of income v.
expenses. It was noted that the
Authority was ahead by approximately $8,000 for 2002 but it was also pointed
out that the Authority was dependent upon tapping fees.
Update on Fox Mill Road. Mr. Salisbury reported that Aaron Enterprises had completed installation of the force main on Fox Mill Road and that Follmer Construction began its portion of the project on June 18. Mr. Salisbury also stated that he expected the project to be completed by the end of June and that the Township would then be notified so that Mr. Rimer could send out the 60-day connection letters. There was a brief discussion as to how much the residents would pay, and Mr. Salisbury stated that he thought it had been agreed that the residents on Fox Mill Road would not pay in excess of $2,600, the amount paid by the residents affected by the initial sewer project. There was a brief discussion as to whether or not a formal motion had been made on the subject. Mr. Salisbury stated that he would pull a copy of the Minutes from the joint meeting between the Township and the Authority to determine whether or not a decision had been made on the tapping fees.
Update on Lime Silo/Screen. Mr. Salisbury stated that work was proceeding on the lime silo and that, when that had been completed, work would begin on the screen. He also stated that both projects were scheduled for completion by August 1, 2002.
Reserve Capacity. Tabled.
Usage Fee Start (Certificate of Occupancy v. Connection to the Sewer Main Line). Tabled.
Reimbursement for Terrann Drive/Sandy Hollow Road. Mr. Millard inquired of Mr. Yost as to the status of the agreement he was drafting for the Authority and the developers. Mr. Yost responded saying that he was working on it.
Update on Letters to Residents in Arrears. Mr. Yost stated that the letters had been prepared and would be mailed shortly.
Spreadsheet Analysis of Financial Forecast. Tabled.
Deeds of Dedication. Mr. Salisbury stated that the solicitor was currently working on several Deeds of Dedication. He also advised that several of the developers had requested decreases in their Letters of Credit. Mr. Salisbury raised the question as to whether the Letters of Credit could be reduced before the Deeds of Dedication were completed and recorded. Mr. Yost advised that the Letters of Credit should remain as they are until such time as the Deeds of Dedication were completed and recorded.
Mr. Jones called the members’ attention to the 60-day notification letters to connect to the public sewer that were sent to NSM Enterprises and the Manada Hill Methodist Church. Mr. Jones stated that he had been contacted by representatives from the church expressing some concerns about the requirement to hook to the sewer. Mr. Salisbury advised that he had spoken with Karen Wagner from the church and she advised that there were approximately 10-14 members in the church, that the restroom facilities were in the basement of the church, and that the restrooms were not used. A brief discussion ensued. Mr. Salisbury also advised that he had directed Ms. Wagner to write a letter to the Board of Supervisors and ask for consideration if the church was experiencing hardship because of having to connect to the sewer.
Beth Carricato, 699 Knight Road. Mrs. Carricato stated that the situation with Rhoads and Sinon was a travesty and encouraged the Authority to vigorously pursue reimbursement of the $50,000 retainer.
Donald Steinmeier, 11 North Fairville Avenue. Mr. Steinmeier stated that he recalled Mr. Young saying on several occasions that the annual retainer covered all of the legal fees for Rhoads and Sinon. He said that there are videotapes from the meetings when Mr. Young made those statements. Mr. Steinmeier questioned the fact that Rhoads and Sinon now alleges that the Authority owes in excess of $12,000 in unpaid legal fees.
Mr. Steinmeier acknowledged the presence of Lisa Ritter at the meeting and suggested that, based on her comments to the Authority members, perhaps a workshop should be scheduled to discuss the accounting procedures.
Bob Jones. Mr. Jones said that he believed it was time to move forward with assuming responsibility of the Swatara capacity. He suggested that perhaps the Authority should purchase the capacity from the Township and that some sort of agreement could be structured wherein the Authority paid for it over a period of years. Mr. Jones added that he thought that the Township or the Authority should begin billing the 276 households of Country Manor and Westford Crossing as soon as possible. He also stated that at the Board of Supervisors’ meeting on July 1, 2002 he was going to make a motion to proceed by whatever means necessary to take the capacity back. Mr. Jones stated that based on his calculations, approximately $46,000 profit would be realized annually by having the Township or the Authority bill and collect from the 276 households affected. A brief discussion ensued wherein Mr. Millard stated that he believed some sort of transmission agreement would have to be in place between Lower Paxton and West Hanover Townships before that could happen. Mr. Jones disagreed with Mr. Millard’s assessment and directed Mr. Yost to be prepared to answer any questions at the Board meeting on July 1, 2002. Mr. Yost suggested that perhaps the Township could sell the capacity to the Authority on a sales agreement.
Mr. Jones asked Mr. Salisbury to obtain the cost of installing flow meters, both temporary and permanent. A brief discussion ensued relative to the method that could be used to ascertain the condition of the lines. Mr. Yost suggested that a representative from the Township should talk with representatives of Lower Paxton Township before any type of meter was installed or plans were made to check the lines.
Bob Ziltz. Mr. Ziltz had no comments.
Steve Millard. Mr. Millard noted that Mr. Young was not present at the May 23, June 12, or June 18 Authority meeting and that Title 53, Chapter 56, Municipal Authorities set forth that if a member missed three consecutive meetings, the appointing board could be requested to replace that member. Mr. Millard read §5610(f), which states:
“Removal. Unless excused by the board, a member of a board who fails to attend three consecutive meetings of the board may be removed by the appointing municipality up to 60 days after the date of the third meeting of the board which the member failed to attend.”
Mr.
Jones moved, seconded by Mr. Ziltz, to request the Board of Supervisors to
appoint someone to the Water and Sewer Authority to replace Henry Young. The motion was unanimously approved.
No other business came before the Authority.
Wastewater Treatment Superintendent. Mr. Salisbury submitted a written report (a copy of which is attached to the Minutes). Mr. Salisbury stated that, as requested by the Authority, he prepared information on sludge processing for the Borough of Middletown. Middletown processes its sludge to Class A whereby the sludge can be sold or given away to fertilize lawns, gardens, etc. A brief discussion ensued, and Mr. Salisbury was requested to set a date and time where any members of the Authority interested could visit the Middletown facility. Mr. Salisbury said that he would set up a date and time.
Engineer. Christopher Frawley was present in Mr. Wendle’s absence. Mr. Wendle and Mr. Frawley submitted a written report (a copy of which is attached to the Minutes).
Solicitor. Mr. Yost stated that he had reviewed several of the Deeds of Dedication that were forwarded to his office and that he is working with the various developers to finalize them. He added that the format for Deeds of Dedication varied and added that he wanted to establish a standard format that would be used by the developers when submitting the Deeds of Dedication to ease the amount of time required for review.
Mr. Jones moved, seconded by Mr. Ziltz, to adjourn the meeting. The motion was unanimously approved. The meeting was adjourned at 9:27 p.m.
Respectfully submitted,
Gail A. Martin
Recording Secretary