CHADDS FORD TOWNSHIP SEWER AUTHORITY

MINUTES

 

June 19, 2007

 

 

The 212th 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, Secretary Marc Altman, Treasurer Keith C. Klaver, and Paul Koch.

 

Absent:  None

 

Also in attendance were J. Michael Sheridan, Esquire, Solicitor; John E. Spitko, Jr., PE, Authority Engineer; Garry Paul, CFTBOS liaison to CFTSA; and Joseph DiMatteo, site foreman for Delcora.

 

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

 

ANNOUNCEMENTS:

1.   The DEP has considered postponing the consent order issued against the CFTSA for 60 days.  The DEP also will consider waiving the Part II of the permit.

2.  The CFTSA has contracted with Yerkes Associates to investigate costs for new filter at the Ridings Plant.

3.  Delcora is performing extra testing at their own expense per DEP request. Testing is at the Ridings Plant.

 

MINUTES:

The minutes of the May 15, 2007 meeting of the Chadds Ford Township Sewer Authority meeting were unanimously approved as presented, on a motion duly made and seconded (DelRossi/Altman). 

 

DELCORA REPORT:

1.      Four violations all related to solids were reported to the DEP for the month of May.

2.      The sand filter still is not running efficiently. Delcora is using a temporary system of aluminum sulfate to help with solids issues. The sulfate is not affecting the solids, but it is positively affecting phosphorus. Phosphorus limits will be a permit requirement in 2009

3.      Removal of sludge has decreased; it is being compacted more due to the use of the aluminum sulfate.

4.      Jesse Goldberg and Jessica Hartely of the DEP visited the plant on May 4 and were “appalled” with the appearance of the Harvey Run stream.  Delcora disagrees with their assessment. The stream was cleaned on January 23. Delcora has asked a biologist to conduct a stream survey. The stream was cleaned again on May 9 and May 15. Mr. Goldberg visited the plant on May 18 and still was not satisfied with the condition of the stream. Mr. DiMatteo and Mr. Spitko noted that the Harvey Run stream is a low-flow stream, which may be affecting the condition of the stream. Even though the plant is within permit compliance, the DEP still has concerns with stream degradation. Delcora will keep monitoring and cleaning the stream as needed.

5.      Delcora is leading the effort to investigate the replacement of the sand filter with a disc filter applicable for an intermittent system. A new filter could be installed before the end of the year. A disc filter could be installed outside so the sand filter could still operate while the disc filter is being installed.  The Board discussed if the disc filter could be obtained without going through the formal bid process due to an “ermegency” issue at the plant.  Mr. Sheridan noted that there is an “emergency” exception in the Municipal Authorities Act, but there is a very narrow exception. He and Delcora’s legal representatives will investigate this possibility.  If the specifications and bid for the new disc filter are drafted in a timely fashion, the bid could be advertised by the end of the month and bids could be opened in July. Mr. Sheridan advised that the Board would have to hold a special meeting to review the bids, but that the Board could authorize that members could participate by phone.

6.      Mr. DiMatteo reported that the plant did not have to go on bypass during last week’s heavy rains.

7.      Mr. Klaver moved, Mr. Altman seconded that Delcora move forward with the line cleaning, installation of inserts in manholes, and resurfacing of manholes as indicated in its proposal for recommended work in the amount of $2275.60. Motion carried.

8.      Mr. DelRossi has received the final files for the I&I report. He will scan and e-mail

      them to the Board.

 

ENGINEER’S REPORT:

Mr. Spitko reviewed his written report.

1.      DELCORA has set up a flow monitoring program for the Ridings collection area, as outlined in the I / I plan approved by CFTSA and submitted to PADEP.  SSM has been contacted by DELCORA and we will assist as needed in flow analysis and the development of any mitigating repairs.

2.      On May 7, 2007, engineers from SSM visited Ridings WWTP for the purpose of reviewing the sand filter operation, and will be working with DELCORA in the development of a satisfactory filter alternative. Developers in the Township should be reminded that Section 1 of the CFTSA Standard Specifications requires that each Developer enter into an Agreement with the CFTSA, to provide reimbursement for plan reviews, also to provide escrow security for the construction, an engineering and legal escrow, etc.  The asst. secretary/treasurer will be the contact person to make sure the process is followed.

3.      The year-end maintenance inspection of Ridge Road Phase 2 occurred this past month, with no outstanding issues.  SSM recommends that the maintenance bond with Wexcon be allowed to lapse.  Mr. Klaver moved and Mr. Altman seconded that the bond be allowed to lapse on recommendation of the engineer.

 

SOLICITOR’S REPORT:

1.      Mr. Sheridan sent a letter to Ruggiero Associates regarding the tapping fee for Brandywine Summit II. The Municipal Authorities Act does specify interest rates for bonds and what the mechanism is to create that interest obligation; however, Mr. Sheridan believes that the spirit of the act is to create the obligation for financing. Mr. Sheridan drafted a resolution to set interest rates accrued for the tapping fees. Mr. Sheridan explained that the resolution incorporates two interest rates representing those rates actually incurred by CFTSA on outstanding debt from financial institutions: 6 percent from the original debt with DVRFA from January 2002 through May 2006 and 4.2 percent from the refinanced debt with Sovereign Bank from May 2006 to date, along with refinancing costs. The approximation rate used for terms of the resolution is 4.75 percent. On a motion from Mr. Klaver and a second by Mr. Altman, the Board approved resolution number 26 with two changes of the date from May 2007 to May 2006.

 

2.      A draft of the loan agreement has been reviewed by the attorney for Painters Crossing. The only point of concern on the part of Painters Crossing is the liening of the common area of the association. According to the Uniform Condominium Act, 85% of the members of the association would have to approve the liening of the common elements. The Association believes that the effort involved to do so would not be worthwhile since the value of the common area is insignificant. Mr. Klaver asked if 85% of the Association would need to approve the requirement for the pledging of cash flows for collateral. Mr. Sheridan said that the Painters Crossing Association Board has indicated that they are  authorized to do so. The Painters Crossing Board would need to provide the supporting documentation that they are authorized to take on the debt on behalf of the Association.  Painters Crossing has asked to close the loan on July 2, 2007. They have asked that the terms be at a variable rate and that the loan include the $800.00 cost of the transaction with DVRFA as a reduction of the proceeds.

 

Mr. Altman expressed concern if July 2 is a reasonable time frame for the funding of the loan since Painters Crossing has responded to Mr. Sheridan only recently and has not yet provided all necessary documentation. He also asked if it had been represented to Painters Crossing that the CFTSA will not receive the funds from DVRFA nor provide the funds to Painters Crossing unless CFTSA has a signed agreement in place. Mr. Klaver responded that in order for the funds to be received, DVRFA needs several days to execute the loan agreement.

 

Mr. Paul asked if Painters Crossing should be required to have a construction agreement in place to build the pump station before the loan monies are released to them. Mr. Sheridan noted that that loan agreement will indicate the purpose of the loan and the CFTSA’s requirement that allows the CFTSA engineer to approve specifications and plans for the pumping station and conduct inspections.  Mr. Klaver also noted that he discussed with Painters Crossing Manager Gail Dubrow that if CFTSA borrows before Painters Crossings needs the money, any interest costs incurred by the CFTSA, net a recovery from the CFTSA investment account, will be incurred by Painters Crossing as part of the costs of the loan. Mr. Sheridan’s fees and any other professional fees also will be billed to Painters Crossing separately. He will confirm that in an e-mail to Ms. Dubrow.  Mr. Del Rossi asked if the agreement included a requirement for single billing to the Association. Mr. Sheridan stated that it did and that that Association agreed to it.

 

Mr. Klaver moved that the CFTSA request DVRFA to fund a $200,000.00 loan to the CFTSA under the prior commitment made to CFTSA; such loan will be net of their costs of $800.00; and the net proceeds of $199,200.00 will be loaned to the Painters Crossing Condominium Association, the same amount repayable in the amount of $200,000.00 through a loan agreement similar to that to be finalized by the CFTSA counsel Michael Sheridan and executed by the Board Chairman and Secretary as indicated in the loan requirements; however, such funds will not be transferred to Painters Crossing until finalization of the loan agreement to Mr. Sheridan’s satisfaction. Mr. Altman seconded. Motion carried.

 

TREASURER’S REPORT:

Mr. Klaver reviewed:

1.      P & L statement for January through May 2007 – Costs are higher this month due to the I&I project costs incurred to Delcora.           

2.      The Balance Sheet as of end May 2007 does not include the monthly Delcora billing of about $3000.00 for May due to timing issues. The investment account has gone down because $20,000.00 has been transferred to the operating account. Receivables still are high due to non–payment of tapping fees. The fees are accumulating interest but not cash. Outside of tapping fees, Mr. DelRossi noted that receivables are good because bad debt is limited to only one or two accounts.

3.      The income statement includes the first two quarters of revenue from residential and nonresidential customers so there are 6 months of revenue and only 5 months of expenses. So rather than a net income of $343,000 there is non-operating income of $350,000.00 and an operating loss of $6700.00 plus another $3000.00 of an unrecorded Delcora bill; thus roughly the operating loss for the first quarter is $10,000.00. That is a little less than anticipated in the 2007 budget.

4.      The field work for the 2006 audit has been completed. Some audit adjustments are included in these financial statements. 2006 depreciation is included in the balance sheet.

5.      Bills – Included for approval are ACH payments of $1,909.69; bill payments of $28393.07, debit card payments of $182.35, QB merchant service of $191.42, and payroll liabilities of $1,005.00.  Following further discussion, the treasurer’s report and payments of $31681.53 were unanimously approved on a motion made and seconded (Koch/Klaver).

 

OLD BUSINESS:

1.      Mr. Klaver reported that a township ordinance regarding the operation and maintenance of sanitary sewers and septic systems, water conservation and surface water will be considered at the July Board of Supervisors meeting.  The Board discussed items that are included in the draft ordinance and which would effect change upon the Sewer Authority. Of particular note were requirements for inspection of grease traps, requirements for regular pumping of septic tanks every two years and the enforcement of those requirements, registration of septic systems, and whether the sewer enforcement officer would report to the Board of Supervisors or the Sewer Authority. The Board will send its comments to the Township Solicitor.

 

NEW BUSINESS:

1.      The Board voted on forgiving the late fees for WD00024. The property owner wanted to settle his account for payment of $1250.00 on a balance of  $3122.00 and requested waiver of late fees. The property owner repeatedly has been sent correspondence asking for documentation for any hardship situation; as well the property owner agreed to a payment plan that has never been adhered to. The Board agreed not to accept the property owner’s proposal for the settling of the account.

 

2.      The Board discussed possible meeting dates for informational meetings for property owners whose properties will be connected to the Turners Mill plant. The asst. secretary/asst. treasurer will check with the Township Secretary about open dates and forward them to the Board.  Mr. Paul pointed out that the tapping fee will not be determined until August. When the Board selects dates, a letter will be sent to those affected property owners.  It was agreed that the Township Engineer and a representative of a local supplier of grinder pumps should attend the meetings.

 

PUBLIC COMMENT:

None               

 

ADJOURNMENT  

The meeting was adjourned at 9:15 p.m. (Del Rossi/Koch)

 

Respectfully submitted,

 

Mary J. Walter, asst. secretary/asst. treasurer