WEST HANOVER TOWNSHIP WATER AND SEWER AUTHORITY
7901 JONESTOWN ROAD, HARRISBURG, PA
17112
TUESDAY, AUGUST 20, 2002, 7 P.M.
REGULAR MEETING
Chairman Millard called the August 20, 2002 regular meeting to order at 7:01 p.m., followed by the Pledge of Allegiance.
Stephen L. Millard, Chairman
Robert R. Jones, Secretary/Treasurer
Donald L. Steinmeier
Beth Carricato, 699 Knight Road. Mrs. Carricato stated that she had reviewed the invoices submitted by Robert Long, Esq., of Rhoads and Sinon and that the charges for legal services go as far back as 1996. She added that review of the invoices raised many questions, and she urged the Authority members to move forward to resolve the matter in order to recover the remaining funds due from the $50,000 retainer. Mr. Yost stated he, as well as several of the Authority members, was continuing to gather information and that the review process was ongoing. Mr. Steinmeier added that he did not believe it was common for a solicitor to run a tab at the expense of taxpayers and then have substantial legal fees surface several years later. Mr. Steinmeier also stated that it was his understanding that the solicitor filed some type of letter with the auditor on an annual basis that would reflect outstanding charges. He added that he was also looking into the letters that were submitted over the past few years from Rhoads and Sinon to the Authority’s auditor. Mr. Steinmeier stated that he was glad to see the government of West Hanover Township back in the hands of persons who resided in the Township.
Bob Jones. Mr. Jones stated that he agreed with Mrs.
Carricato in that he believed the Authority should move forward to recover the
funds due from the retainer paid to Rhoads and Sinon. He suggested that perhaps the Authority should consider engaging
outside counsel or an accountant to sort out the invoices. Mr. Jones also raised the possibility of
having the matter submitted through a grievance committee at the Pennsylvania
Bar Association. Mr. Yost said that
until the research was completed, he did not believe that any disciplinary
action could be taken against Rhoads and Sinon. Mr. Yost stated that he was also looking into the possibility
that the statute of limitations may have run for recovering any legal fees due
in 1996. Mr. Yost suggested that
perhaps the Authority could form some type of subcommittee to complete the
research. Mr. Millard and Mr.
Steinmeier agreed to work together to review the invoices and asked Mrs.
Carricato to submit her copies of the invoices, along with her comments, to
them. Mrs. Carricato agreed to do so.
[Robert Ziltz arrived at 7:38 p.m.]
Bob Ziltz. Mr. Ziltz had no comments.
Donald Steinmeier. Mr. Steinmeier had no comments.
Steve Millard. Mr. Millard had no comments.
April 9, 2002, Regular Meeting. Mr. Millard stated that the April 9 meeting Minutes were not approved earlier because a majority of the present Authority members were not present at that meeting. He added that the tape was not available for that meeting.
Mr. Yost suggested that all of the Authority members, or a majority thereof, could vote to approve the Minutes based on verification from Mr. Jones and Mr. Millard, who were present at the April 9 meeting, that the Minutes accurately reflected what had occurred.
Mr. Jones moved, seconded by Mr. Millard, to approve the April 9, 2002 Minutes. The motion was approved 3-0, with Mr. Steinmeier voting yes based on verification from Mr. Jones and Mr. Millard as to the accuracy of the Minutes, although he was not a member of the Authority on that date however he was present in the audience at the April 9, 2002 meeting. Mr. Ziltz abstained.
July 16, 2002, Regular Meeting. Mr. Wendle stated that he had a correction to page 2 under the update on Fox Mill Road. The second sentence should read: “He stated that Aaron Enterprises made an application for payment, but because the paperwork was incorrectly completed, it was returned to Aaron.” Mr. Steinmeier stated that his middle initial was “L.”
Mr. Jones moved, seconded by Mr. Ziltz, to approve the July 16, 2002 Minutes as amended. The motion was unanimously approved.
Operating Expenses. Mrs. Martin stated that the operating expenses being presented for approval totaled $274,417.54. Mr. Jones called attention to the invoice from Pitney Bowes totaling $117. He suggested that staff might want to contact Pitney Bowes to determine if a better quarterly rate would be available. He added that he had been able to obtain a significant decrease in the quarterly rental for his business.
Mr. Jones moved, seconded by Mr. Steinmeier, to approve the operating expenses in the amount of $274,417.54.
Update on Fox Mill Road. Mr. Salisbury reported that the project was completed and that he had notified the three homeowners affected that they could obtain their Sewer Connection Permits and connect to the public sewer. He added that to date no one had obtained a permit. Further, a memorandum was sent to the Township Manager on August 6 requesting that the Township send the residents 60-day connection letters. Mr. Jones stated that he had been over to look at the project and that he thought the road crew had done an excellent job paving.
Update on Lime Silo/Screen. Mr. Salisbury reported that A&E was currently working on the punch list for the lime silo and that they had begun work on the screen. He also stated that he believed the screen would probably be set by the end of the current week.
Reserve Capacity. This item remained tabled.
Usage Fee Start (Certificate of Occupancy v. Connection to the Main Sewer Line). This item remained tabled.
Reimbursement for Terrann Drive/Sandy Hollow Road. Mr. Yost reported that a draft of the agreement had been completed and distributed to the developers, as well as the Authority members.
Update on Letters to Residents in Arrears. Mrs. Martin asked a question of Mr. Yost regarding the next step in this process. Mr. Yost suggested that Mrs. Martin send him the updated amounts owed for each property. She stated that she would send the listing after September 1, as the August billing would be completed by that date. Mr. Yost concurred.
Spreadsheet Analysis of Financial Forecast. Mr. Millard stated that he had e-mailed an updated spreadsheet to Mr. Jones, Mr. Ziltz, and staff. He added that he would be sure to furnish Mr. Steinmeier with one as well. Mr. Millard stated that he believed the spreadsheet could be used a tool to prepare the 2003 budget.
Codification of Tapping Fee Resolutions. Mr. Millard called the members’ attention to Resolutions 2002-A-4 and 2002-A-5, which were included with the packets.
A brief discussion followed during which several changes to the proposed resolution were made. The specific changes were as follows:
· Page 2, Section 1.C., should read: “Capacity Fee” is a component of the tapping fee that is charged against each appropriate owner of property hereafter connected or hereafter required to be connected to the Sewer System for the costs of the capacity related components of the Sewer System which is comprised of the treatment plant and capacity sewers.
· Page 5, Section 1.J., the last paragraph should read: For metered Non-Domestic Establishments, the Authority may use the actual water consumption values that facilitate the Usage Fee EDU calculation. Additional Tapping Fee charges should only occur if the calculated two-year average capacity exceeds the assigned Tapping Fee EDU value by 0.5 EDU. Changing the Tapping Fee EDU assignment will require approval from the Authority Board.
· Page 5, Section 1.O., should read: “Reimbursement Fee” is a component of the Tapping Fee and is a fee that is collected by the Authority to reimburse an owner that has been requested by the Authority to construct at their cost, sewer facilities that are not needed or capacity that is not needed by the owner’s project. The Reimbursement Fee will only be collected from Service Lines that connect directly to the owner’s Sewer, unless otherwise established by agreement.
· Page 6, Section 1.U., the last sentence should read: For each non-domestic establishment, the tapping fee EDU value is determined as set forth in paragraph J. above.
Mr.
Jones moved, seconded by Mr. Steinmeier, to adopt Resolution 2002-A-4 as
submitted and discussed. The motion was
unanimously approved.
Mr. Millard then referred the members to Mr. Wendle’s letter dated August 14, 2002, which set forth calculations for updating the tapping and collection fees based on the Engineering News Record Construction Cost Index (CCI). Mr. Millard stated that the members probably should review the information provided by Mr. Wendle prior to voting on Resolution 2002-A-5, as some of the dollar amounts shown in the resolution could change. Mr. Wendle reviewed his letter and the attachment thereto. He stated that the Authority had voted to raise the tapping fees for each of the past three years based on the CCI. A brief discussion followed.
The Authority then began review of Resolution 2002-A-5. It was noted that the sections should be renumbered from 1 through 10. Following a review of the resolution, it was also agreed that Section 2 should read: The Authority hereby determines that, as of the effective date of this Resolution, the Connection Fee will be the actual construction cost of the Service Lateral and $75 for Authority costs to inspect construction by others. In addition, it was agreed that the dollar figures should be as follows: Section 3 should be $120; Section 4 should be $125; and Section 5 should be $3,000.
Mr. Jones moved, seconded by Mr. Steinmeier, to adopt Resolution 2002-A-5. The motion was unanimously approved.
Developer’s Agreements for Sandy Hollow Road Project. As reported earlier by Mr. Yost, a draft agreement was completed and provided to the developers.
Authorize Payment for Fox Mill Road. Mr. Salisbury stated that Aaron Enterprises made an application for payment for the Fox Mill Road project in the amount of $41,109.
Mr. Jones moved, seconded by Mr. Ziltz, to approve Applications for Payment #1 and #2 in the amount of $41,109. The motion was unanimously approved.
Reduce Letter of Credit for Brynfield Phase VII. Mr. Jones moved, seconded by Mr. Steinmeier, to reduce Letter #D02402 from $18,900 to $2,835. The motion was unanimously approved.
Reduce Letter of Credit for Brynfield Phases V and X. Mr. Jones moved, seconded by Mr. Steinmeier, to reduce Letter #D02526 from $58,742 to $8,812. The motion was unanimously approved.
Reduce Letter of Credit for Bradford Estates Phase I. Mr. Jones moved, seconded by Mr. Steinmeier, to reduce Letter #D02681 from $245,096.39 to $36,764.46. The motion was unanimously approved.
Financing Options for Loader. Mr. Salisbury referred the members to Mrs. Martin’s memorandum dated August 16, 2002 outlining the financing option from Fulton and Commerce Banks. A lengthy discussion followed, during which Mr. Millard addressed some of the sludge removal options that were available to the Authority (outlined in Mr. Salisbury’s memorandum dated August 14, 2002) and raised the question as to whether or not the purchase of the loader should be postponed until a decision was made relative to the sludge removal. Mr. Wendle pointed out that the Authority currently had a very cost effective disposal plan for the sludge through Star Rock Farms. He added that the contract between the Authority and Star Rock Farms was for a period of ten years. Mr. Wendle suggested that it would be a good idea to research other options available for sludge removal so that another option could be considered near the end of the contract term. In response to a question raised by Mr. Jones, Mr. Salisbury stated that the Authority also had the option to set up a lease/purchase agreement through Furnival Equipment for a period of five years during which annual payments would be approximately $18,000. Mr. Salisbury added that the loader was on order through the Piggyback Program, as authorized by the Authority at its July meeting.
Mr. Jones moved, seconded by Mr. Ziltz, to enter a lease/purchase agreement for the loader. The motion was unanimously approved.
Update Sewer Billing Program. Mr. Millard stated that he was recommending that the Authority update the billing program from a DOS-based program to a Windows-based system. He referred to the quote from Engle Business in the amount of $3,200. Mr. Millard added that he had met with the staff on Thursday, August 15, to discuss what other options might be needed for the program. Mrs. Martin reported that based on that meeting, she had contacted Engle Business and that the additional options that the staff thought should be added would cost approximately $300, bringing the proposal to $3,500.
Mr. Jones moved, seconded by Mr. Steinmeier, to approve updating the billing program at a cost of $3,500. The motion was unanimously approved.
Sludge Disposal Options/Costs. Mr. Millard addressed this item earlier in the meeting.
Authorization for Purchase of Emergency Generator for Pump Station #2. Mr. Salisbury referred the members to the estimate from Cleveland Brothers in the amount of $15,925. He stated that Mr. Young and Mr. Yingst had discussed installation of an emergency generator at Pump Station #2. Mr. Young had agreed to have the Authority pay 40 percent of the cost since current residences would benefit from the installation of an emergency generator. Mr. Salisbury stated that the total cost would be $19,500 installed--Mr. Yingst would pay 60 percent of the cost and the Authority’s portion represented $7,800. Mr. Ziltz raised a question relative to the drawing attached to the estimate showing the placement of the generator. Mr. Wendle stated that he had not seen the specifications, etc., related to the generator but added that there were plans already drawn for Pump Station #2 and it would only be a matter of adding the emergency generator at the proper setbacks, etc. The amended drawing would provide a professional set of plans for the installers to follow.
Mr. Jones moved, seconded by Mr. Ziltz, to approve the payment of $7,800 toward the cost of an emergency generator for Pump Station #2 subject to the engineer’s review. The motion was unanimously approved.
There was no correspondence.
Gloria Zimmerman, 7805 Bridle Lane. Mrs. Zimmerman stated that it was her understanding that a memorandum was forwarded to the Township Manager from the Sewer Authority on August 6, 2002 advising that the residents on Fox Mill Road were ready for connection. She added that at the supervisor’s meeting on August 19, Mr. Rimer had advised the Board that the letters had not yet been sent out but that they would be sent on August 20, 2002. Mr. Millard stated that he would follow up with Mr. Rimer.
Mrs. Zimmerman also stated that it was her belief that by the time the Authority would reach the point of not being able to collect tapping fees, it would be necessary to upgrade the plant and that the tapping fees would continue.
Bob Jones. Mr. Jones inquired as to the status of the Millstone development. Mr. Wendle stated that a letter was received earlier in the week from the Army Corps of Engineers and that the necessary sign-offs were completed and returned to the Carlisle field office. He added that he expected the permit awaiting DEP’s approval would be received in the near future.
Mr. Jones also asked whether or not the Authority should be planning to extend the sewer up to Wells Drive and Slate Ridge Road. Mr. Wendle stated that there was preliminary engineering done for that project but that the Authority should probably wait to discuss that until the Millstone project was further along.
Bob Ziltz. Mr. Ziltz expressed concern relative to the amount of funds spent during the meeting that were not in the budget. He stated that he would like to see how the budget is faring in light of all the additional expenditures made in 2002.
Donald Steinmeier. Mr. Steinmeier inquired as to where the $1 million was housed. Mrs. Martin responded saying that it was invested in a one-year Certificate of Deposit at Commerce Bank drawing 3 percent interest. He suggested that the Authority might want to consider reallocating some of that money into longer term investments in order to obtain better interest rates.
Manager. Mr. Salisbury submitted a written report (a copy of which is attached to the Minutes).
Engineer. Mr. Wendle submitted a written report (a copy of which is attached to the Minutes).
Solicitor. Mr. Yost reiterated that a draft agreement for the three developers involved in the Sandy Hollow Road project had been completed and distributed to Authority members on August 19, 2002.
Mr. Jones moved, seconded by Mr. Ziltz, to adjourn the meeting. The motion was unanimously approved. The meeting was adjourned at 10:02 p.m.
Gail A. Martin
Recording Secretary