July 18, 2006

The 202^nd 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, Treasurer; Marc S. Altman, Secretary; and Anthony J. Cutrona

Also in attendance were Thomas R. Smith, PE of SSM; George M. Thorpe, CFTBOS; and Mary J. Walter, Asst. Secretary/Treasurer.

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

ANNOUNCEMENTS:

1. Anthony J. Cutrona made a motion and Paul G. Linsen seconded that motion to appoint Michael J. Sheridan, Esq., as CFTSA Solicitor. Motion passed unanimously.

MINUTES: The minutes of the June 20, 2006 Chadds Ford Township Sewer Authority meeting were unanimously approved as written on a motion duly made and seconded (Klaver/DelRossi).

TREASURER’S REPORT:

Keith Klaver gave the Treasurer’s Report. Account balances were reported as of June 30, 2006:

Operating Account $45,292.00

Non-operating Account $93,277.00

As indicated on the profit and loss statement, there continues to be operating losses for the month ending June 30, 2006. User fees are in line with what was expected; however, the funds for the DEP grant have not yet been received. Approximately $116,500.00 is yet to be received. Cuurent financial resources are sufficient to pay July and August bills; however, the receipt of the balance of the grant will affect the Authority’s ability to repay the bridge loan to CFT that is due in September.

Expenses are in line with expected estimates per the 2006 budget with the exception of plant operations expenses. Those expenses are approximately 15-18 percent higher than anticipated due to repairs to equipment and deferred maintenance. Chairman Del Rossi is investigating the possibility of establishing maintenance agreements with vendors. Doing so will affect the budget.

Thomas Smith will review the system reports and plant inspection reports to determine if water infiltration and parts of the sewer process are affecting equipment performance and maintenance, and therefore also affecting the Authority’s budget in these areas.

Mr. Altman moved that the Authority pay $33,735.61 as detailed in the Check Detail and ACH Payments Lists in the board packet. Motion seconded by Mr. Klaver and passed unanimously.

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Mr. Cutrona and Mr. Altman commented that the Board considers a review of residential and non-residential user fees, perhaps in October or later, in light of the connection of 35 new users to the system.

Mr. Linsen commented that the Authority should expect Toll Brothers to pay the full amount of the processing of the Estates at Chadds Ford wastewater, regardless of the full cost. At present, Toll is charged 2 cents per gallon; the current cost is 1.8 cents per gallon. If the cost per gallon exceeds 2 cents, Toll should expect to pay the full cost.

The 2005 audit has been completed. There were two restatements from prior years.

SOLICITOR’S REPORT:

1. Discussion was deferred until the next meeting on the subject of raising the monthly late fee assessed on delinquent accounts.

ENGINEER’S REPORT:

1. Mr. Smith recommended payment of $27,000.00 to Wexcon for substantially completing the RRE2 project. 5% of the cost of the project is being retained until the punch list is completed. Mr. Altman moved and Mr. Klaver seconded; motion passed unanimously.

2. RRE Phase II – The low-pressure sewers are installed and tested, with remaining work being done on lawn and right of way restoration. Wexcon is scheduling additional landscaping based on the punch list. Money will be withheld from final payment to assure satisfactory completion of work.

3. Ridings Wastewater Treatment Plant – The renewal for the NPDES permit has been completed. Renewals are due every 5 years. DEP has 6 months to review the application; the renewal allows them an opportunity to modify discharge requirements per current legislation. The application for a DEP laboratory accreditation has been completed.

4. Toll Brothers/Turner’s Mill – SSM is performing inspection services for Toll Brothers sanitary sewers and other tasks to review developer submittals from Toll Brothers and other developers as authorized by CFTSA.

5. Annual inspections of several private wastewater treatment plants in CFT were conducted on June 28. Reports have been forwarded to the CFTSA Board.

6. Drawings for the Pantos Pumping Station are expected in the near future.

RIDINGS WASTEWATER TREATMENT PLANT:

1. Starting October 1, Delcora will install monitoring equipment for the January startup of plant operations. Delcora will communicate with AWS if any changes are made that will affect AWS ability to maintain the plant before Jan. 1. Delcora can make repairs at the plant at their prevailing rate, which may be lower that what the Authority is paying now.

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OLD BUSINESS:

1. It was noted that the September meeting is scheduled for Wed., Sept. 20, rather than Tues., Sept. 19. The date change already has been advertised.

NEW BUSINESS:

1. The Board voted to cancel the August 2006 meeting. The cancellation will be advertised. A bill list for August will be e-mailed to Board members for review and approval.

2. Mailings will be sent to RRE2 homeowners by the end of next week. Mr. DelRossi explained the deadlines to the RRE2 residents attending the meeting. He clarified that a representative of the pump manufacturer does not have to be at the pump installation for the pump warranty to be effective.

3. Mr. Klaver reminded the RRE2 residents that the Authority is working with local banks to assist with low-cost financing for the tapping fees. He also reported that Delaware County Housing and Rehabilitation could make low cost financing available to individuals who meet income requirements.

PUBLIC COMMENT:

1. Several homeowners affected by the RRE2 project requested further clarification on several issues, including:

a. A breakdown of how RRE2 tapping fees were arrived at and why they vary from others within the township, county, and state;

b. If the Township is able to borrow money or receive grants to help decrease the costs to RRE2 residents;

c. Why the cost estimates provided by the Authority are not in line with the quotes being obtained by the homeowners;

d. If the Authority can recommend plumbers who can complete installations.

Members of the Board, Solicitor Sheridan, and CFTBOS representative George Thorpe addressed the residents’ concerns. Also, Mr. DelRossi and Mr. Klaver agreed to meet representatives of the RRE2 homeowners to discuss in detail financial cost and tapping fee calculations.

ADJOURNMENT:

Mr. Klaver moved and Mr. Altman seconded to adjourn the meeting at 8:55 p.m.

Respectfully submitted,

Mary J. Walter, Asst. Secretary/Treasurer