February 20, 2007

The 208th meeting of the Chadds Ford Township Sewer Authority was held on this date in the Chadds Ford Township building.

Present: Chairman Vincent Del Rossi, Vice Chairman Anthony J. Cutrona, Treasurer Keith C. Klaver, Paul Koch. Not present: Secretary Marc S. Altman.

Also in attendance were J. Michael Sheridan, Esquire, Authority Solicitor; Thomas R. Smith, PE, Authority Engineer; Joseph A. Spitko Jr., PE., Asst. Vice President of Spotts Stevens and McCoy; Joseph Dimatteo, representative of DELCORA Authority Plant Operator; and Mary J. Walter, asst. secretary/treasurer.

ANNOUNCEMENTS:

At the February meeting of the Chadds Ford Township Board of Supervisors, the BOS voted to guarantee the CFTSA loans that are being applied for the acquisition of the Turners Mill plant.
The CFTBOS also submitted an application for a Safe Water grant in the amount of $250,000.00.
Today, representatives of the Sewer Authority Board and the Authority engineer met with officials from the PA Dept. of Environmental Protection and DELCORA to discuss some issues with the Ridings Wastewater Treatment Plant.

MINUTES:

The minutes of the January 16 meeting of the Chadds Ford Township Sewer Authority meeting were approved upon a motion from Mr. Koch and seconded by Mr. Klaver. Approval was granted contingent upon revision of the minutes to reflect Mr. Klaver’s editorial changes regarding the PennVest loan. Motion carried.

RIDINGS WASTEWATER TREATMENT PLANT:

Joseph DiMatteo of DELCORA reviewed the January operations at the plant. He reported that the sand filter has been out of service for two weeks and that there were some violations in February directly related to the poor performance of the sand filter. A manufacturer’s representative evaluated the filter and made recommendations. The filter’s being taken out of service and all violations were reported to the DEP. Mr. DiMatteo expects that the Authority will not be fined because the DEP okayed taking the sand filter offline; however, the DEP wants the process expedited. And the manufacturer’s representative guaranteed that the changes being made will allow the sand filter to meet the criteria for the processing of waste. Sand filter is being rebuilt and is expected to be online by week’s end. There will be some violations in February due to the filter being offline.

Along with the sand filter problems, the air compressors appear to be “too small” and were running 13 to 15 hours per day. A new compressor is expected to be installed next week at a cost of $5800.00 per compressor. The old compressor will be maintained as a spare. Several board members questioned whether the compressors were mis-speced in the first place when the township engineer and DEP would have had to approve the installation plans at the time.

Mr. DiMatteo also reported that there are safety concerns regarding access to the sand filter through the existing platform and that it must be reconfigured. On a motion from Mr. Klaver and seconded by Mr. Cutrona, the Board authorized Spotts Stevens and McCoy to prepare a request for proposal for reconfiguring the sand filter access platform. Motion carried.

Mr. DiMatteo reported on some changes in sampling and discharge monitoring procedures that were made based on recommendations from the Authority Engineer.

At DELCORA’s expense, several upgrades have been made at the plant to allow equipment to be monitored by DELCORA’s SCADA system 24 hours per day.

DELCORA received authorization to make minor mechanical and electrical repairs at the plant. Mr. DelRossi had been contacted to give approval for minor expenses; the Authority Board will approve major expenses.

Mr. DelRossi reported that Hydra-Numatic currently inspects the pump stations quarterly. DELCORA now can perform the inspections as part of their monthly maintenance. On a motion from Mr. Cutrona and seconded by Mr. Klaver, the Board voted to approve that DELCORA conduct the inspections. Motion carried.

DELCORA has submitted a proposal for televising and evaluating all pipes and manholes in the system to determine infiltration over a 30-month period. A 6-part plan recommended by the DEP regarding infiltration and inflow must be included the DELCORA plan, as well as the corrective action plan and operations manual being developed by SSM. As well, perhaps the time frame and costs incurred and when should be re-evaluated. Mr. Koch has some concerns regarding the specifications of the contract regarding compliance with DEP regulations, certification and qualification of operators, and a description of what components of the system are to be evaluated. Mr. Klaver noted that because the proposal was submitted before the meeting with the DEP, the proposal will be revised to reflect the DEP’s concerns. On a motion from Mr. Klaver and seconded by Mr. Koch, the Board authorized Mr. DelRossi to negotiate the DELCORA contract to meet standard operating procedures and the DEP requirements, after input from the Authority counsel and engineer in advance of the next board meeting. Motion carried.

ENGINEER’S REPORT:

CFTSA has authorized SSM to prepare an operations and maintenance manual for the collection system. Two copies of a draft manual were prepared and mailed to CFTSA on February 9^th for distribution amongst the authority members, and a separate one was made for DELCORA. Mr. Smith requested that comments be sent to him within 2 weeks. Mr. Smith was advised that the DEP’s 6-point plan and SSM’s 2004 study should be included as appendices to the report.

SSM has been revising the electric generator description for an onsite transfer switch to use with a transportable generator. A drawing for this equipment has been prepared. This drawing can be provided to electrical contractors for pricing. Mr. Klaver noted that SSM should investigate the possibility of leasing a transportable generator on a continuing basis rather than purchasing one due to cost considerations. The Turner’s Mill generator is not transportable.

With DELCORA, SSM is developing the requirements for a debris basket at the Ridings influent pumping station to protect the process and sand filter piping from damage due to floatables and deleterious materials in the incoming wastewater. Mr. Smith stated that based on the meeting with the DEP, he expects there will be some requirements regarding sludge holding capacity and equalization tanks.

The Parkside Associates (shopping mall expansion on NW corner of Rt. 202 and Ridge Road) sanitary sewer has been installed. A plug is installed in the line pending testing the lines and manholes. DEP correspondence has indicted additional work must be done by the developer on module submittals prior to their acceptance by DEP.

SSM is preparing the 2006 Chapter 94 Municipal Wasteload Management Report for your review and comment. In addition SSM is reviewing the billing rate structure to make the system current with expected costs. Mr. Klaver noted that the billing re-rate will be focused on non-residential users. He further noted that the last re-rate review was completed in 2003 and recommended a rate increase that was not implemented.

Turners Mill WWTP is in the final punch list stages of construction. DEP will be called in for an inspection when the tanks thaw - they are presently frozen. Estates at Chadds Ford project is completed and tested. Only record plans remain to be furnished.

SOLICITOR’S REPORT:

The attorney for Tremonte Builders contacted Mr. Sheridan to determine what must be done to meet requirements for the dedication of the system, the maintenance fund and easements. Mr. Sheridan forwarded boilerplate documents, but has had no response.

Mr. Sheridan prepared for the Board’s review a discretionary resolution that allows for the shutoff of water should a user not pay his/her property’s quarterly user fees. The statute under which the resolution is enforceable provides due process and protection for the property owner if the property owner asserts a defense for why the fees have not been paid. Mr. DelRossi noted that the resolution at present would not be enforced against anyone. He believes it should be approved to be used only in rare circumstances. Mr. Klaver introduced and Mr. Koch seconded a motion that approved the resolution with the caveat that the approval of the Board must be obtained before the provisions of the resolution are enforced.

Mr. Sheridan has contacted PennVest regarding the status of the Board’s loan application but has had no response. It is expected that the application will be considered at the PennVest April meeting.

Mr. Sheridan has begun the process of placing liens on the RRE2 properties for which full and partial tapping fees are owed.

TREASURER’S REPORT:

The December financial statements have been revised to reflect some accruals.
Tapping fee collections are being focused upon each individual’s circumstances; several RRE2 residents have made no effort to respond to the Board or to obtain financing for the tapping fee. Liens have been placed upon all but one property for which full tapping fees have not been paid.
Regarding the January financial statements, the revenue represents three months revenue while the expenses represent only one month’s expenditures since fees are billed in advance. For the first month, costs are in line with the budget to be proposed for 2007. Mr. Cutrona asked whether the Board is going to meet with the BOS to discuss the fundamental financial deficiencies the Authority is facing, specifically in regard to capital costs. Mr. Klaver noted the meeting has been set for March 7.
The treasurer’s report and the accounts payable report including ACH payments for the Verizon and PECO accounts, debit card expenses, and bill payment list submitted for approval in the amount of $25254.81 were approved on a motion duly made and seconded (Cutrona/Koch).
Mr. Klaver noted that Pennoni and Associates has been developing 20-year projections that are needed for the DVRFA loan to be classified as a self-liquidating loan. Because the loan is self-liquidating the Township’s borrowing capability will not be affected.

PROPOSED 2007 BUDGET:

Mr. Klaver noted that the following assumptions must be made regarding the budget.

Because of the uncertainty regarding operating costs at Ridings, as the year unfolds costs could be higher than they currently are estimated;
How will Turner’s Mill affect revenue? It is hoped that Turner’s Mill will generate user fees during the 6 month period that Toll Bros. will manage the facility. Because of the uncertainty in timing, Turner’s Mill is not included in the budget.
Continuation of user rates for residential and non-residential as of the end of December. Although additional users are expected, because of timing, additional user fees and tapping fees are not anticipated.
There will be no pump and haul revenue.

Regarding operating income, it is consistent with the 2006 operating revenue with the addition of RRE2 customers.
Regarding expenses, most costs have been discussed or negotiated; all projections are used as estimates. There will be a benefit in 2007 of lower interest expense from refinancing the DVRFA loan to Sovereign.
The collection system expense of $32,400.00 is the DELCORA project for televising and examining the Ridings collection system.
The monthly DELCORA contract includes all visits to the plant, unlike the previous contract with Applied Water.
Plant maintenance expenses are budgeted for much less than expended in 2006. Expenses for 2006 were affected by $15,000.00 to $20,000.00 in unique repair costs for the plant. This category is also affected by a permit requirement to increase testing.
Pump station maintenance should be lower than last year because all pumps were replaced last year.
Utility expenses are expected to be consistent with 2006.
Mr. Klaver noted that the Authority is anticipating negative operating cash flow before loan principal and capital costs are considered.
The budget assumes $25,000.00 for plant improvements and $50,000.00 for repairs to the collection system to decrease water infiltration.

Mr. Cutrona questioned where the unpaid $144,000.00 in tapping fees will be applied to when they are paid. Mr. Klaver said that the tapping fees will be applied to the investment account to pay the debt; however, a substantial portion of these receivables are not budgeted to be collected in 2007. Mr. Cutrona noted that the only place to which the Authority can look for revenue at present is the users. To finance the 2007 budget, he projects that there would need to be a $50.00 per month increase in residential user fees, which he does not believe is reasonable. Mr. Klaver agreed that he does not see an opportunity for increases in residential user fees, but believes there is an opportunity to increase non-residential user fees. The Authority will have to ask for financial help from the Township for 2007. Mr. Cutrona expressed concern that the projections for capital improvements and I&I repair costs may not be high enough.

On a motion from Mr. Cutrona and seconded by Mr. Koch, the 2007 budget was approved.

OLD BUSINESS:

Mr. Del Rossi noted that the pump and haul agreement with Toll Bros. has been discontinued and that no waste is being accepted at the Ridings plant.

NEW BUSINESS:

At the February BOS meeting, the Authority requested the Supervisors passed a resolution requiring notification to the sewer authority regarding sales of homes and allowing an Authority representative to inspect the home for inappropriate laterals or sump pump discharge into the sewer system.
Mr. Klaver requested the Board authorize Mr. Sheridan to research whether the Authority can charge tapping fees for new EDUs and how much. Some future EDU holders already have paid the capacity portion of tapping fees but not the collection portion of tapping fees.

PUBLIC COMMENT:

ADJOURNMENT The meeting was adjourned at 10:00 p.m. (Del Rossi/Klaver)

Respectfully submitted,

Mary J. Walter

Asst. Secretary/Treasurer