CHADDS FORD TOWNSHIP SEWER AUTHORITY
MINUTES
August 21, 2007
The 214th 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 President Anthony J. Cutrona, Member at Large, Paul Koch, Secretary Marc Altman,
Absent: Treasurer Keith C. Klaver.
Also in attendance were J. Michael Sheridan, Esquire, Solicitor; John E. Spitko, Jr., PE, Authority Engineer; and Joseph DiMatteo, Delcora Remote Systems Foreman.
Chairman Del Rossi called the meeting to order at 7:07 p.m.
ANNOUNCEMENTS:
1. Mr. Del Rossi attended the Board of Supervisors special meeting on August 13, 2007 at which the BOS set the tapping fee for the Turners Mills/Chadds Ford Village sewer connection project. The tapping fee per EDU will be $5485.00. Mr. Altman commented that he believed there was some confusion as to what the tapping fee would be for Painters Crossing and Southpoint. Mr. Koch commented that he believed that it was made clear at the meeting that Painters Crossing and Southpoint residents would be 70% of the per-EDU tapping fee. Mr. Altman also related that he was concerned that a resident at the BOS meeting was advising property owners not to pay their tapping fees. Mr. Del Rossi invited that resident, who is an attorney, to the Sewer Authority meeting to discuss the issue of non-payment with Mr. Sheridan. It is believed that the resident owns two units in a multi-family dwelling in the Township.
2. The Board of Supervisors approved the resolution establishing the tapping fee for the Turners Mills/Chadds Ford Village sewer connection project at a meeting on August 16, 2007.
3. All board members were present at the two informational meetings held on July 30 and July 31, 2007.
MINUTES:
The minutes of the July 19, 2007 and July 30, 2007 meetings were approved on a motion made by Mr. DelRossi and seconded by Mr. Altman.
DELCORA REPORT:
Mr. DiMatteo reviewed his written report for the month of July.
1. Mr. DiMatteo believes that the plant has reached its maximum efficiency in operating with the sand filter. Repairs still are being made.
2. Considerably lower daily flows of 31,872 gallons average. The lower flows are partially attributable to dry weather, but also to the I&I improvements made by the Authority.
3. Two violations all related to total suspended solids were reported to the DEP for the month of July.
4. Chlorine use has increased due to meeting the parameters for fecal choliform. The higher wastewater temperatures affect the growth of bacteria such as fecal choliform.
5. The use of aluminum sulfate continues to positively affect the removal of phosphorus as well as the thickening of sludge. CFTSA did not pay for sludge hauling in July. Usually hauling increases in the summer. A permanent chemical addition facility may need to be considered for the aluminum sulfate, as it will freeze in the winter.
6. DELCORA continues to inspect the outfall cascade and creek weekly. The dewatering of the tanks is helping to retard solids discharge. Dewatering will not be done after periods of heavy rain. The creek has not had to be cleaned since mid- June.
7. The modems have been turned off back to the autodialers at the Ridings Plant and the pumping station due to consistent redialing of phone numbers. The redialing has resulted in significant increases in phone bills. DELCORA is working with Verizon to provide a breakdown of where the calls are going.
8. DEP can now accept electronic DMRs. Mr. DiMatteo at present recommends continuing the hard copy DMR before more information is recordable on the hard copy DMR rather than the electronic DMR.
9. In regard to the mixed liquor issue reported last month, DELCORA will change tide flex check valves to try to correct the problem.
10. Nine of 10 manhole inserts have been installed as indicated on the I&I video. The manhole at Old Ridge Village could not be accessed. That insert and the manhole waterproofing and rehabilitation on four manholes will be completed after Labor Day.
ENGINEER’S REPORT:
Mr. Spitko reviewed his written report.
Mr. Altman asked it the CFTSA fails to inspect the plants in a timely fashion, will this be considered dereliction by the DEP? Mr. Spitko will confirm if the Township or the DEP mandates the inspections.
SOLICITOR’S REPORT:
1. Mr. Sheridan reported that the Painters Crossing Condominium Association does not want to be responsible for the receiving and paying of the quarterly sewer service fee bills for all residents of the Association, as specified in the proposed loan agreement. The Painters Crossing Board already has removed the funds designated for sewer service from their condominium fees. The CFTSA will need to bill each property owner in Painters Crossing individually. Mr. Del Rossi reported that Painters Crossing Management has not kept the CFTSA advised as to the changes in ownership, and that is why the billing requirement was included in the proposed loan agreement. Having an updated list doing so would be critical in assuring that bills are sent to the appropriate property owners.
Mr. Koch asked if, as part of the loan agreement, could the CFTSA require that Painters Crossing provide updated ownership lists; and what recourse would the CFTSA have if Painters Crossing does not provide the updated ownership lists after providing an initial list. Mr. Sheridan said that if it is a contractual agreement, Painters Crossing would be in breach of contract. Mr. Altman asked if the loan could be “called” if the requirement of providing updated ownership lists is not met. Mr. Sheridan said failure to provide the lists may not be considered a material breach of the contract. Mr. Altman asked that if there is a regular pattern of failing to provide updated lists could that be argued as a material breach. Mr. Sheridan believed that it could be argued as such.
Mr. Sheridan reported that it is the opinion of the attorney for the Painters Crossing Condominium Association that once Painters Crossing Condominium Association repays the loan within three years or so, the obligation to provide updated ownership lists would not be ongoing. Mr. Sheridan disagrees with that opinion.
Mr. Altman moved that the CFTSA amend the proposed loan agreement with the Painters Crossing Condominium Association to allow for individual unit quarterly sewer service fee billing subject to the inclusion in the master loan agreement between the CFTSA and the Painters Crossing Condominium Association to require the Painters Crossing Condominium Association update the Sewer Authority monthly on the 1st of every month on ownership changes among the units of the Painters Crossing Condominium Association; and this monthly, first-of-the-month reporting obligation on the part of the Painters Crossing Condominium Association to the CFTSA shall survive the repayment of the loan obligation in perpetuity as long as the CFTSA provides sewer service to the Painters Crossing Condominium Association. Mr. Koch seconded the motion. Motion carried.
Mr. Koch asked if there had been a similar issue with billing and obtaining up-to-date addresses for Southpoint. Mr. DelRossi believes that there will be one billing to Southpoint, and Southpoint Management will then bill individual owners. Mrs. Walter reported that most “not-good” addresses are for The Commons at Chadds Ford.
2. Mr. Sheridan has been in contact with Wendall Hobbs regarding the revised Siemens contract for the disc filter for the Ridings Wastewater Treatment Plant. Siemens pared off the warranties into a manufacturer’s warranty and a performance warranty. Mr. Sheridan sent the proposed performance warranty verbiage to Mr. Spitko and David Linehan of Yerkes and Associates for review. Mr. Spitko still recommends a performance bond. His concern is that the testing requirements of the warranty are conducted only over one-week; and if the disc filter passes, then the performance warranty is satisfied. Mr. Spitko noted that the contract provides for a separate, three-year mechanical warranty; and under the terms if the seller and buyer don’t agree on the mechanical failures, a third-party dispute resolution process is spelled out. Mr. Sheridan noted that provision was made to deal with the previous provision that only the seller would determine mechanical failure.
Mr. Spitko noted that some language in the performance warranty provides that if the filter does not successfully pass the one-week testing, Siemens has a reasonable amount of time to correct the non-conformance with the performance warranty.
Mr. Koch noted that his impression is that under normal circumstances, if there is a problem with a piece of equipment after testing confirms the equipment is working to specifications or the customer creates a punch list to be resolved, the customer then is able to begin the normal, customary trouble-reporting warranty process. Mr. Koch does not believe that there is the “safety net” of the performance warranty after the first-week testing, although there is a three-year “safety net” of the mechanical warranty.
Mr. DiMatteo asked if there are influent limits in the contract. He noted that if there is a requirement to keep the influent under 30 from the SBR that may jeopardize the warranty.
Mr. Koch suggested that Mr. Sheridan convey to Siemens that, in light of the fact that CFTSA would be the first installation in the United States, the Board has specific concerns that need to be addressed to feel comfortable with using the filter. In consideration of Siemens agreeing to “go the extra step” to agree to the Board’s terms, CFTSA would be willing to commit contractually to be a visitation site for prospective customers. Mr. Sheridan has discussed that possibility, but not in terms of a contractual obligation. Mr. Sheridan’s opinion of the contract language is that Siemens’ obligation does not end after the testing is complete, but it does limit the warranty to the option of the CFTSA requiring full ownership of the filter for a percentage of the purchase price or Siemens’s reassuming ownership, at the seller’s discretion.
The Board agreed that Mr. Sheridan request further clarification of why Siemens believes
they need some of these terms in the proposed contract. The Board also requested that Siemens clarify that the Board will have access to Siemens’ engineers during the testing time. And again, that Siemens provide a performance bond or letter of credit for 36 months.
3. In regard to three property owners who have not paid their tapping fees for the RRE2 project, their interest on the tapping fees, and their quarterly sewer service fees, Mr. Sheridan recommended that documents be filed to start a collection of funds proceedings. These documents would be the next step after the filing of liens, which already has been done. The Delaware County Sheriff would serve the documents. The process can be stopped at anytime. Beginning the process does not mean the Board is trying to begin Sheriff’s sale proceedings or foreclosure on the properties. Mr. DelRossi noted that the property owners in question have not responded to any communication from the CFTSA, including certified letters and 30-day collection letters, since the tapping fees were imposed in October 2006.. Mr. Altman noted that he is in favor as long as the Board is completely cognizant that there may some unpleasant public relations consequences if this process is begun. Mr. Koch noted that the response to any inquiry would be that the persons who have experienced this proceeding are overdue on their accounts, yet have been taking advantage of the services without paying. The Board concurred.
4. Mr. Sheridan has placed the appropriate liens on the three Tremonte properties. The properties have been listed for a Sheriff’s upset sale.
TREASURER’S REPORT:
Mr. Altman reviewed the provided written reports.
NEW BUSINESS:
1. The Board approved the Asst. Secretary/Asst. Treasurer request for a change in office hours. The new office hours will be Mondays, Wednesdays, and Fridays from 8:30 a.m. to noon.
2. Mr. DelRossi and Mr. Klaver met with the owners, attorney and engineer for Brandywine Summit Partners II. They have agreed to pay the collection portion of the tapping fees for the 22 EDUs. The EDUs will be billed to the office park association and the billing will go to the association. The association will in turn deal with their tenants individually. They understand that the 22 EDUs represent a certain number of gallons and that those gallons will not be exceeded. There will be one water meter for the association. BSII Partners will send the planning modules to the Authority.
PUBLIC COMMENT:
None
ADJOURNMENT
The meeting was adjourned at 8:38 p.m. (Altman/Cutrona)
Respectfully submitted,
Mary J. Walter, asst. secretary/asst. treasurer