CHADDS FORD TOWNSHIP SEWER AUTHORITY

MINUTES

April 17, 2007

 

The 210th 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, Secretary Marc S. Altman. Not present: Paul Koch.

 

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; Garry Paul, CFTBOS representative to the Sewer Authority; and Mary J. Walter, asst. secretary/treasurer.

 

ANNOUNCEMENTS:

  1. A draft of the follow-up letter due to the DEP is circulating among appropriate parties for feedback and input.

2.       The Chadds Ford Township Board of Supervisors (CFTBOS) at its April meeting passed Ordinance 118, which requires that every residential or commercial property that is going to be leased or sold must obtain a Certificate of Compliance from the Township Code Enforcement Officer. As related to sewer service, the Code Enforcement Officer will determine whether the property is in compliance with all regulations and rules of the CFTSA. As well, the property, if adjoining or adjacent to or with a principal building located within one-hundred (150) feet of a Township sewer line, must connect to the Township sewer system regardless of the condition of the on-lot sewage system. A notification process between the Sewer Authority and the Code Enforcement Officer is being developed with the Asst. Secretary/Asst. Treasurer.

  1. A request has been made to the CFTBOS to consider an ordinance allowing the CFTSA or its designee to inspect or review all sewer laterals on any segment of the collection system if there is evidence of groundwater entering the system and affecting I&I.
  2. Mr. DelRossi reported that he had a brief meeting with Congressman Joe Sestak, who expressed interest in visiting the plant.
  3. Two letters will be mailed to all customers: one regarding Ordinance 118 and a second about grease and groundwater in the collection system.

 

MINUTES:

The minutes of the March 20, 2007 meeting of the Chadds Ford Township Sewer Authority meeting were approved upon a motion from Mr. DelRossi and seconded by Mr. Altman. Motion carried.

 

RIDINGS WASTEWATER TREATMENT PLANT:

Joseph DiMatteo of DELCORA reviewed the March operations at the plant. He reported that there were 6 violations on the monthly discharge monitoring report; 4 of them were directly related to the sand filter, which was running only intermittently during March. At present, the filter is running continuously but at about one-third of flow. However, it still is not meeting parameters. The manufacturer’s representative who visited the plant and inspected the filter cannot identify the internal operations of the filter. No specifications or documentation is available from the manufacturer. It appears that the filter is a double bed rather than a single bed and requires more sand. He believes that the filter was not made to handle batch or intermittent discharge flows, which is what Ridings processes.

 

 

April 2007 minutes

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Mr. DiMatteo suggested to the Board that they might need to consider: re-building the sand filter so that it is a continuous run filter; purchasing a new sand filter; or instituting a different filtering process.

 

The representative believes the filter may be a prototype filter; he also does not believe the filter will be able to meet the TSS parameters. The manufacturer’s rep had no other suggestions other than what DELCORA already has tried.

 

Mr. Klaver asked how the sand filter issue might have been dealt with in the past. Mr. DiMatteo responded that only 6 violations were reported in the last 18 months prior to January 1, 2007, so he cannot speak to how the issue was being handled. He did note the former operator was running the filter with one ton less of sand that was needed; the manufacturer’s rep confirmed that the filter could not be running to specification with that little sand.

 

Mr. Altman asked for confirmation that DELCORA is monitoring differently and more often than the prior operator. Mr. DiMatteo responded that DELCORA as of January 1 is monitoring once per week on influent and effluent monitoring on 24-hour composite samples; total nitrogen and phosphorus is being monitored per permit requirements; and as of April 1 per request of the DEP, influent and effluent is being monitored twice a week on the 24-hour composite samples for 90 days. Mr. Altman asked about the rebuilt pumps. Mr. DiMatteo replied that a bid is being sought for spare pumps.

 

All other processes at the plant are meeting parameters.

 

The report from the televising and cleaning of the collection system lines in the southern section of the service area is not yet available. However, Mr. DiMatteo reported that a sump pump in the Ridings Way area was found to be running full-time; and that at the north end of Woodland Drive there appears to be a gravity sewer line that is located across the Greener Nursery property to the Volpe Tile property and that has a continuous flow.

 

 

ENGINEER’S REPORT:

  1. A meeting to begin implementing a program for infiltration inflow mitigation was held on March 13th between DELCORA, members of the Authority, and SSM. 

 

  1. SSM will provide the Corrective Action Plan that is required for the response to the March 1, 2007 letter from DEP.  

 

  1. Turners Mill WWTP is in the final punch list stages of construction.  DEP has performed an inspection and are expected to soon issue an Operating Permit.  SSM is looking for containment around the chute going into the dumpster. They have asked the plant designers for a plan.  As well, a fence to enclose the plant and lighting that shines into the tanks are needed.

 

 

 

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Mr. Paul reported that the Village project is approximately half-finished and should be completely finished by about June 10 if schedule holds. Toll Brothers wants to start the plant as soon as possible; however, the Township’s position is that the plant cannot be started until Painter’s Crossing’s pump station is active and generating flows. This will allow a sufficient amount of flow into Turner’s Mill. It is expected that the Turner’s Mill plant will be operational no earlier than the end of August. Letters to those Township residents whose properties will be connected to the new plant are expected to be mailed in late June/early July.  Mr. Klaver, Mr. Altman and Mr. Koch will draft the letter.

 

SOLICITOR’S REPORT:

  1. Mr. Sheridan reported that he has spoken with the attorney for Tremonte and informed him that the dedication documents are needed. The 18-month maintenance bond will cover the period beginning with the date of dedication.
  2. The partial extinguishment of the easement at 243 Heyburn Road will begin after an exchange of property with a neighbor is resolved.
  3. The loan agreement for Painter’s Crossing has been prepared. There is a question of whether there is sufficient collateral or security in the current agreement. At present the agreement stipulates a lien against common property. Alternatives to ensure sufficient collateral are: a UCC1 filing on the Painter’s Crossing pump station; a requirement that the Painter’s Crossing Association impose periodic assessments to insure the CFTSA recoups the debt; a “lien” on future cash flow; or a lien against every individual unit. That option would require a new lien every time a property is sold. Mr. Klaver also asked if the Association wants to wrap their legal costs into the DVRFA loan or pay them separately. DVRFA would like at least 45-day advance notice.

 

TREASURER’S REPORT:

  1. Mr. Klaver discussed a rate adjustment for the 12 non-residential users, based in part on a report from SSM.  The flat rate per EDU would increase from $173.13 to $211.22; the variable rate per 1000 gallons will change from $3.45 to $4.00. The adjustment would increase the non-residential income by approximately $2500.00 per quarter or approximately $10,000.00 per year. Mr. Altman moved and Mr. Cutrona seconded to approve Resolution 25 to adjust the non-residential fees as noted above, effective July 1, 2007. The adjustment would be reflected in the July 1, 2007 invoice due August 1, 2007. Mr. Klaver suggested that an overall rate study be commissioned within the next year.
  2. At its April meeting, the CFTBOS approved funding in the amount of $350,000.00 to the CFTSA. In turn, the CFTSA agreed to use a portion of the proceeds to pay the current $92,000.00 loan due to the Township. The $1500.00 monthly subsidy from the Township to the CFTSA will no longer be paid. The Board discussed the need to have ongoing discussions with the CFTBOS at least quarterly. The concern is that the $350,000.00 influx may not be sufficient considering the expenses the CFTSA may need to incur for the Ridings plant, other infrastructure and I&I mitigation. As well, Mr. Klaver noted that the Authority would need working capital from CFT when it acquires the Turner’s Mill facility. CFTSA agreed that CFTSA will need an additional contribution for working capital. Without incurring any expense, the CFTSA will have cash flow from the Turner’s Mill plant during the 6-month period that Toll Bros. will be responsible for the operation of that plant; however these funds are not expected to be sufficient for overall working capital requirements.  Mr. Cutrona expressed that he hopes CFTBOS realizes that the CFTSA may have to approach them for more funding after December 2007.

April 2007 Minutes

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  1. Through Rep. Stephen Barrar, CFTBOS secured a grant of $250,000.00 to be applied as a reduction for the cost of the Turner’s Mill plant.  That grant will allow the tapping fee to be reduced for all users for the Turner’s Mill facility.
  2. Mr. Klaver reported that the interest rate for the DVRFA loan at present is better than anticipated in November 2006. Painter’s Crossing Association must decide whether it wants a variable or fixed rate for its loan and how it wishes to handle the legal costs associated with the loan.
  3. PennVest will consider the CFTSA application at its April meeting.
  4. Operating costs under engineering are higher than anticipated due to special projects being completed by Spotts Stevens McCoy (the Chapter 94 report, I&I, and the O&M manual). Plant expenses represent only two months expenses for DELCORA and do not include expenses for the collection system televising/cleaning project. Sludge hauling costs are increased due to more frequent hauling.
  5. Overall, the CFTSA is operating at a loss of $10,300.00 before depreciation. This is a higher operating loss than anticipated.
  6. A major concern continues to be the uncertain cash outflow needed for the DEP response Corrective Action Plan, Ridings capital costs, and I&I.
  7. Little progress has been made in receiving tapping fees from those who have not paid. Five property owners still have not made any payment.  Liens have been placed on the properties that have any open tapping fee balance.
  8. Mr. Klaver hopes to consider in the future whether a partial payment could be made on the Sovereign loan. Mr. Altman agreed to assist in a review at the end of 2007. Does it make sense, based on the interest rate, to make that payment so it reduces cash outflow for interest costs.
  9. Mr. DelRossi noted that as of April 1, quarterly invoices will be sent through the Quickbooks billing service and that credit cards can now be accepted for payment. The discount is just under 2% and four months free.
  10. On a motion from Mr. Altman and a second from Mr. Cutrona, the board approved the treasurer’s report and the accounts payable report including ACH payments for the Verizon and PECO accounts, debit card expenses, payroll liabilities, and bill payment list submitted for approval in the amount of $27110.51.

 

OLD BUSINESS:

 

NEW BUSINESS:

  1. Mike Lyons, the attorney for the developer, and Kevin Madsen of Kelly Engineers discussed the land development plans for the Phase 2 office complex of Brandywine Summit. It is a 66,000 square foot office complex with 22 units in 3 or 4 buildings. It is proposed that a gravity line will run across the Enzo property per the existing easement and into the CFTSA collection system. That connection is different from the connection originally proposed in the Phase 1 of the project.

 

Total projected flows are 2640 gallons per day based on 10 gals per person per day, equal to 10 EDUs. The numbers were arrived at through the 264 additional parking spaces required, a per-building occupancy of 12 persons, and based on Resolution 96-1.

 

Mr. DelRossi confirmed that the current owner of the property owns 22 EDUs. He also noted that since there are 22 individual units, each unit would need its own EDU; this is April 2007 minutes

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comparable to a condominium development where each individual unit needs its own EDU.  There are not partial EDUs. Mr. Madsen countered that based on CFTSA resolutions, EDUs are based on 265 gallons or their equivalent for each residential building, and so the total projected flows for the new complex would be only 10 EDUs.

 

Discussion centered on how many buildings there would be and if the units in the buildings would be separately owned. Mr. Sheridan said that since there are 22 individual office units, each would require its own EDU; EDUs are not “fractionalized” over an entire development when the units of the development are going to be individually and separately owned. Consistent with that assertion, Mr. Madsen pointed out that each unit does have a separate electric and water bill.

 

Mr. Paul noted that a new law changed the EDU to 217 gallons and provided that an EDU can be fractionalized only for a multi-family dwelling. Mr. Klaver noted that the tapping fee when initially assessed for this extension was based on LAPA holding 22 EDUs; those EDUs went into the calculation of the tapping fee for the Longwood Summit extension, which was the total EDUS divided by the construction cost of that extension. He also noted that if the developer’s contention is that he needs to use only 10 EDUs, the developer still owns 22 EDUs and that the CFTSA is looking for the developer to pay for all 22 of the EDUs.

 

Mr. Lyons asked what the cost is for the 22 EDUs. Mr. Klaver stated that the original cost for the tapping fee was $11950.90 per EDU; the previous owner already has paid $1706.10 per EDU for the capacity; the balance per EDU is $10,244.80 plus interest at approximately 6% per the Pennsylvania Municipal Authorities Act since 2002 Through June 30, 2007, the total cost per EDU with interest is estimated to be approximately $13,300.00. Mr. Sheridan will communicate with Mr. Lyons as to how the tapping fee was calculated.

 

Mr. Madsen will submit appropriate documents to the Authority Engineer for review.

 

2. The Board agreed that the Asst. Secretary/Treasurer may send most documents for the May meeting via e-mail. Any appropriate hard copy documents still will be sent via snail mail the Friday before the meeting.

           

PUBLIC COMMENT:

                       

ADJOURNMENT   The meeting was adjourned at 9:07 p.m.   (Del Rossi/Altman)

 

Respectfully submitted,

 

Mary J. Walter

Asst. Secretary/Treasurer