CHADDS FORD TOWNSHIP SEWER AUTHORITY

                                                                     MINUTES

 

                                                                  March 21, 2006

 

The 198th   meeting of the Chadds Ford Township Sewer Authority was held on this date in the Chadds Ford Township building.

 

Present: Vincent Del Rossi, Chairman, Paul G. Linsen, Vice Chairman, Keith C. Klaver, Secretary, and Marc S. Altman.

 

Absent: Anthony J. Cutrona

 

Also in attendance were John J. Mezzanotte, Jr., Esquire, Thomas R. Smith, PE of SSM, Garry Paul, CFT BOS liaison, George M. Thorpe, CFT BOS, Richard Jensen, CFT CEO and Sabina J. Taylor, Secretary/Treasurer.

 

The meeting was called to order at 7:00 p.m. by Chairman Del Rossi,

 

ANNOUNCEMENTS:

 

1.         Vincent Del Rossi, Keith Klaver, Anthony J. Cutrona and Sabina Taylor met with Garry Paul on March 14, 2006 to discuss the pending loan re-financing and loan balance differences between the Township and Sewer Authority.

 

2.         Chairman Del Rossi, Keith Klaver, Marc Altman, Tom Smith, Gerry Weinsteiger and Richard Jensen met on March 16, 2006 with Kevin Callahan from Site Specific Design who explained the requirements for installation of the E-One Grinder pumps to be used in the RRE Phase II project.

 

3.         In a letter dated March 13, Anthony Cutrona resigned as Treasurer of the Chadds Ford Township Sewer Authority.  He will remain as a member of the board.  Chairman Del Rossi nominated Keith C. Klaver for Treasurer to replace Mr. Cutrona and Marc Altman to replace Mr. Klaver as Secretary.  Paul Linsen seconded the nominations and by a unanimous vote of those present, Keith C. Klaver was elected Treasurer and Marc Altman was elected Secretary.

 

4.         At 6:30 p.m. this evening, Marc Stein, Esquire met with Chairman Del Rossi, Paul Linsen, Keith Klaver, Marc Altman, John Mezzanotte and Gary Paul to explain some of the legal work and fees associated with the refinancing of the DVRFA loan.

 

5.         Earlier today, Chairman Del Rossi, Keith Klaver, Marc Altman and Garry Paul met to discuss short term financing that may be needed until funds from the grant are received.

 

6.         Chairman Del Ross commented on a recent statement in the Chadds Ford Post regarding a tapping fee amount for the Toll Brothers’ project.  He said this statement is incorrect.  He also stated that the Sewer Authority will not establish the tapping fee for the homes in the Toll Brother’s development.  Chairman Del Rossi said he would also like to go on record stating that the Chadds Ford Township Sewer Authority does not support Mr. Linsen’s statements and those statements in no way reflect the views of the Chadds Ford Township Sewer Authority.   

 

MINUTES:

The minutes of the February 21, 2006 Chadds Ford Township Sewer Authority meeting were

unanimously approved as written on a motion duly made and seconded (Altman/Klaver).

 

TREASURER’S REPORT:

The Treasurer’s Report was read.  Account balances were reported as follows:

            General Fund Account

                                    Beginning Balance                                                                $120,672.51

                                    Receipts                                                                                   4,215.87

                                    Balance                                                                              $124,888.38

 

            PLGIT Account - ROA

                        Beginning Balance                                                                   $4,771.47

                                    Transfer from Wachovia ROA                                    12,000.00

                                    Transfer from PLGIT tapping fee - Wexcon #2                 197,975.93

                                    Dividends                                                                                     48.50

                                    Balance                                                                              $214,795.90

 

PLGIT/Plus Account - Tapping Fee Account

                        Beginning Balance                                                                            $231,601.32

Receipts - Transfer from Wachovia                                                   0.00

                                         Dividends                                                                          0.00

                        Balance                                                                                           $231,601.32

 

Mr. Cutrona asked that the following statements be read for the record:

 

§         A detailed analysis was prepared of the DVRFA loan funds.  The Township borrowed these funds in 1996 on behalf of the Sewer Authority and held the funds in an investment account from 1996 until October, 2002.  During the time from 1996 until October, 2002 the Township made disbursements to the Sewer Authority and paid the interest and principal when due.  This analysis was made to determine if the Sewer Authority received credit for all of the funds received from the original loan balance and interest earned on such balances during the period that the Township held these funds.

 

It is my conclusion, that based on this analysis, the Sewer Authority did in fact receive credit for all of the funds received by the Township from the original loan balance including credit for all of the interest received by the Township on the investment of these fund balances, net of the principal and interest payments made by the Township with respect to this loan.

 

This analysis is available to any individual who may wish to review it.

 

Anthony J. Cutrona

Member of the Board of the

Chadds Ford Township Sewer Authority

 

§         Statement prepared by Anthony J. Cutrona to be made part of Treasurer’s Report:

 

Township did not provide any financial information to the Sewer Authority for the period from the take down of the loan in 1996 through the transfer of the close out balance of $5,068.08 in October, 2003.  As a result, the Sewer Authority had no knowledge as to what the Township’s accounting status of these funds was and the Sewer Authority could only rely on information available.  Furthermore, since the Township auditors, who are also the Sewer Authority’s auditors for two years, supposedly reconciled the two sets of books as they related to the DVRFA’s loan, the Sewer Authority believed our records to be correct.   

 

After reading Mr. Cutrona’s statements, Mrs. Taylor noted that an adjustment will be made to the Sewer Authority financial statements to show the correct amount due on the DVRFA loan.

 

ACCOUNTS PAYABLE:       

After review by the board, Marc Altman made a motion that the Sewer Authority pay $211,001.55 as detailed in the General Fund bill list dated March 16, 2006.  The motion was seconded by Keith Klaver and passed unanimously.

 

ACCOUNTS RECEIVABLE:

No report for this meeting.       

 

SOLICITOR’S REPORT:

§         As a follow-up to the session held earlier this evening with Marc Stein, Esquire, Mr. Mezzanotte reviewed the documents necessary to have Mr. Stein assist the Sewer Authority in the refinancing of the existing debt.   A “Go Forward Resolution” would need to be adopted and associated with that would be the execution of a fee agreement with Mr. Stein’s firm.  Responding to a question from Mr. Altman, Mr. Mezzanotte said should the board decide at a later date not to use Mr. Stein’s services, the board would only be obligated to pay Mr. Stein for work he has already done.  Following further discussion, Marc Altman made a motion that the board resolve to retain Mr. Stein and authorize him to “go forward”  as bond counsel for the Authority as set out in the proposed resolution.  The motion was seconded by Keith Klaver and passed with a unanimous vote. 

 

            Marc Altman moved to accept the terms of the Blank Rome, LLP engagement letter and addendum both dated March 21, 2006.   After the motion was seconded by Chairman Del Rossi, it passed unanimously.

 

§         Mr. Mezzanotte explained that although the Authority is not necessarily obligated to adopt by-laws, a lender my require it.  A draft of proposed by-laws will be circulated among the members for their review and comments, with the possibility of consideration at the next Sewer Authority meeting.

 

ENGINEER’S REPORT:

1.         RRE Phase II – This low-pressure sewer system project is now underway, and the sewers are nearly completed in the Raven Drive portion of the work.  The contractor, Wexcon,

            Inc., expects to have the project completed by mid-May.  Payment Application No. 2 in the amount of $197,975.93 has been approved at this meeting.  Also included with the written report is an updated Projection of Project Costs and General Information for Homeowners, Plumbers and Electricians.   Mr. Smith asked that the board members review the General Information and submit any suggestions and comments to him.

 

Mr. Jensen commented on the procedure for each property owner to receive the grinder pump needed for each connection in this project. 

 

A packet of information will be sent to each property owner.

 

2.         Ridings Wastewater Treatment Plant - The monthly report for January shows the maximum daily flow at 0.061 MGD; average daily flow 0.037 MGD, with a slight permit exceedence on TSS (11 actual vs. 10 permitted).  The Chapter 94 Report for 2005 is in the final stages of preparation.  Copies of the relevant graphs showing hydraulic and organic projections are included for the Board’s information.   Mr. Smith reviewed some of the projections.

 

3.         Toll Brothers/Turner’s Mill – Mr. Smith will be working with Mr. Mezzanotte to prepare a pump and haul agreement with Toll Brothers.  This agreement will be needed so the new homes being constructed at Camp Sunset Hill can be provided with sewer service before the Turner’s Mill plant is built and operating. 

           

4.         Toll Brothers - SSM is performing Inspection Services for Toll Brothers sanitary sewers, and performing other tasks to review developer submittals as authorized by the CFTSA.

 

RIDINGS WASTEWATER TREATMENT PLANT:

 

§         A Davit/Winch Crane for lifting the decant pump has been purchased and installed.

§         The CFTSA now has an agreement with Cummins Power Systems for regular maintenance of the Woodland Pump Station.

 

OLD BUSINESS:

            None for this meeting

 

NEW BUSINESS:

            None for this meeting

 

PUBLIC COMMENT:

§         Responding to a statement made by Mr. Linsen regarding the imputed tapping fee for the Toll Brothers Project, Mr. Paul explained the history of the plan to build Turner’s Mill, the costs involved and the benefits to the Township.

 

§         Mrs. Tobin, 190 Ridge Road, asked if the homeowner will need to pay for a new pump if the one provided by the Sewer Authority fails.  Chairman Del Rossi said yes they would, however the pumps have a 27 month warranty and a maintenance contract is available for approximately $150 per year.  He also noted that the E-One grinder pumps are very reliable and have a life expectancy of 30 years. 

 

Responding to another question from Mrs. Tobin, Mr. Smith said if a pump fails, sewage from a neighbor’s home would not back up into her home because each property will have a check valve that would prevent this from happening.   

 

Mrs. Tobin asked about the settlement with Raven Crest Homeowners.  Mr. Paul explained how any funds used in the settlement would be recouped by the Township, but not at taxpayers’ expense. 

 

Chairman Del Rossi responding to Mrs. Tobin’s question said the tapping fee for RRE Phase II has not been determined at this time and the $110,000 DEP grant will be applied.  Mr. Altman noted that there has been about a $40,000 cost reduction because the project is moving ahead so quickly. 

 

ADJOURNMENT:   

The meeting was adjourned at 9:13 p.m.  

 

Respectfully submitted,

 

 

 

 

Sabina J. Taylor, Secretary