CHADDS FORD TOWNSHIP SEWER AUTHORITY

CHADDS FORD TOWNSHIP SEWER AUTHORITY

MINUTES

March 16, 2004

The 175^th meeting of the Chadds Ford Township Sewer Authority was held on this date in the Chadds Ford Township building.

Present: James J. Murray, Chairman, Vincent Del Rossi, Vice Chairman, John Spoehr, Secretary, Anthony J. Cutrona, Treasurer and Paul Linsen. Also in attendance were John J. Mezzanotte, Jr., Esquire, Angelika B. Forndran, PE, Garry Paul, CFT liaison, and Sabina J. Taylor, Secretary/Treasurer.

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

ANNOUNCEMENTS:

None.

PUBLIC COMMENT:

None.

CFT BOS LIAISON REPORT:

Garry Paul told those present that the $150,000 grant the Township will be applying for on behalf

of the Sewer Authority has been placed in the state budget for the second half of the year. It is planned that the application will be submitted in May and the money will be dispersed after July 1, 2004. Mr. Paul explained some possible uses for these funds when they are received. He noted that the money may not be used for paying down any current debt.

MINUTES:

There being no additions or corrections, the minutes of the February 17, 2004 Chadds Ford Township Sewer Authority meeting were unanimously approved on a motion duly made and seconded (Spoehr/Linsen).

TREASURER’S REPORT:

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

General Fund Account

Beginning Balance $16,492.08

Receipts 1,515.00

Balance $18,007.08

PLGIT/Plus Account - Tapping Fee Account

Beginning Balance $385,804.41

Receipts - Transfer from Wachovia 0.00

Dividends 0.00

Balance $385,804.41

Ridings Operating Account - Wachovia

Beginning Balance $1,000.00

Receipts 2,277.95

Balance $3,277.95

PLGIT Account - ROA

Beginning Balance $37,000.87

Transfer from Wachovia ROA 2,277.95

Dividends 29.41

Balance $39,308.23

Mongiovi Escrow Account

Beginning Balance $15,281.77

Interest 9.94

Balance $15,291.71

Mrs. Taylor reported:

1. Pipe Services Invoice - Because of the rapid and efficient response to an emergency call from Chairman Murray, Mrs. Taylor suggested that the invoice from Pipe Services in the amount of $742.50 be added to the bill list for consideration at tonight’s meeting, even though the invoice was received less than10 days prior to the meeting date.

2. PECO Meters - After a phone call to PECO today, all four meters, including the Eckman Pump Station, are now on the remote read system. There should be no more estimated billings from PECO.

3. Wachovia Checking Accounts - Mrs. Taylor requested that she be permitted to close the Wachovia Ridings Operating checking account. If approved, Yvonne Hunter, of the Wachovia Government Banking Department, has suggested the General Fund account be changed to a Wachovia Government Advantage checking account.

After discussion, Mr. Cutrona made a motion to authorize Mrs. Taylor to close the Wachovia Ridings Operating checking account and change the Wachovia General Fund checking account to a Government Advantage checking account. The motion was seconded by Mr. Del Rossi, and passed unanimously. All PLGIT accounts will remain unchanged.

4. DRFA Loan Payment - A payment of principal and interest is due by April 14, 2004. The principal amount is $20,000 and the interest is $27,711.25. There will probably be an administrative charge added also. The administrative charge for the payment made in October 2003 was $236.25. Because the payment will be due before the next Authority meeting, Mrs. Taylor requested permission to wire the payment when due. Following discussion, Mrs. Taylor was advised to wire the payment as requested. She was asked to call Chairman Murray and Mr. Mezzanotte if the administrative fee for this payment is over $300.

5. St. Cornelius School Water Meter Reading - The meter at the preschool and the meter at the elementary school appear to have malfunctioned since Mrs. Taylor read them in December 2003. The March 9, 2004 reading of both meters was lower than the December 2003 readings. After discussion, it was suggested Mrs. Taylor calculate the last quarter’s water use, for billing purposes, at her best estimate. She will advise Ms. Forndran of the estimate and ask for her comments. Mrs. Taylor was also asked to send a letter to the pastor reminding him of the obligation to have the annual meter calibration done as referenced in the Sewer Agreement. A confirmation of the calibration is to be sent to the Authority.

6. Tapping fees - After the accounts receivable report for this meeting was prepared, one more tapping fee has been received. Currently outstanding are two residential and two non-residential tapping fees from the LSWSS Project and one residential tapping fee from the Ridge Road Phase 1 project.

ANNUAL AUDIT:

Mr. Cutrona, Treasurer, reported that the Annual Audit for 2002 is 99.9% completed. He explained there are some issues relating to loans from the Township to the Authority that the Authority’s auditor has said need to be addressed. Mr. Cutrona is working on getting this resolved. It was noted that loan balances on both the Authority’s and the Township’s books agree as of December 31, 2002. Discussion relating to the loans followed.

In response to a question from Chairman Murray regarding the 2003 Audit, Mr. Cutrona said, given the input he has received, he believes Harrisburg requires an audit, not a financial review, be done for 2003. Mr. Mezzanotte said the Authority is required by law to have an annual audit and it must be done by a Certified Public Accountant.

ESCROW ACCOUNTS:

Mrs. Taylor was asked to send Mr. Tremonte a copy of Ms. Forndran’s letter to Chairman Murray, dated March 15, 2004, detailing the amount of escrow required for the construction phase of the Tremonte subdivision on Ridge Road. A cover letter is to be included to advise Mr. Tremonte of the need to deposit money in an escrow account as defined in Ms. Forndran’s letter.

ACCOUNTS PAYABLE:

RIDINGS OPERATING ACCOUNT - After lengthy review and discussion of the engineering invoices, bills to be paid from the Ridings Operating Account in the amount of $9,250.15 were unanimously approved for payment, on a motion duly made and seconded (Cutrona/Del Rossi).

GENERAL FUND ACCOUNT - Following review, invoices totaling $10,359.96 were recommended for payment from the General Fund. A motion was made and seconded to approve payment of the invoices as recommended (Del Rossi/Cutrona). The motion passed unanimously.

The members discussed ways to shorten the time required for the bill approval process at meetings. Mr. Paul suggested that the members receive copies of the invoices by the Thursday preceding the monthly meetings. Mrs. Taylor said this is already being done for the Chairman and Treasurer. It was recommended by Mr. Cutrona that invoices, engineering in particular, be submitted to Chairman Murray for his approval before being added to the bill list for each meeting. Also regarding engineering invoices, Mr. Del Rossi asked that they be cut off at the end of the previous month so that Chairman Murray has time to review them and forward those to be considered for payment to Mrs. Taylor. She will use these invoices to prepare the bill list sent to members on the Friday before the monthly meeting. It is understood any invoices not received in time to be reviewed by the Chairman will not be considered for payment until the following month.

ACCOUNTS RECEIVABLE:

1. Kids First - A new attorney is now representing Kids First. He and Mr. Mezzanotte have discussed an agreement that will compromise on the amount owed. Mr. Mezzanotte has advised them that capacity is available from CCMC.

2. Lafferty Property - A letter has been sent to Mr. Jensen, CFT CEO, requesting his assessment of the use of this property. If it is determined that this property is being used as non-residential, capacity will need to be purchased.

3. Concord Nissan - The attorney representing Concord Nissan has contacted Mr. Mezzanotte to inquire about the possibility of the Authority approving pumping and hauling sewage from the holding tanks on this property to the Springhill Farms Wastewater Treatment Plant. It was explained that the Authority would not be the one to give that approval. Because Concord Nissan holds capacity at the Ridings Wastewater Treatment Plant, a question was raised regarding the possibility of hauling the sewage to that plant. Chairman Murray said he would not be in favor of that and explained why.

4. Possible Liens - The status of those property owners who have not paid the tapping fee was reported. Mr. Mezzanotte noted that, as the weather improves, the Authority will move forward with plans to connect these properties. The properties will then have liens placed on them to cover all costs associated with connecting them to the public sewer.

5. Tremonte Subdivision - An agreement is to be prepared including four principal points:

a. Maintenance obligation to be assumed by the developer

b. The line being put in on the church easement will be dedicated to the Authority’s use.

c. Developer not to be reimbursed for future connections

< Holding Tank Inspections - Chairman Murray noted that he would like to see holding tank inspections done at the time of the annual inspections of privately owned wastewater treatment plants. He expressed concern regarding the condition of the tanks, and when and where the sewage is pumped and hauled. He asked Mr. Mezzanotte for guidance on fees to be charged for this inspection. Ms. Forndran suggested a fee of $200 would be reasonable for holding tank inspections.

< Manhole-45 at Enzo’s South - The need to replace MH-45 was explained by Chairman Murray. The owners of the three properties that will connect to this manhole, Enzo’s South, Parkside Associates and LAPA 1 agreed to share the cost of the new manhole. Mr. Varialle, of Enzo’s South, and LAPA 1 have each agreed to pay $3,800. Mr. Pileggi of Parkside has offered to pay only $500. Mr. Varialle is willing to pay the difference asking that the Authority give him credit against his quarterly user fee for the additional expense. The members agreed to this solution. It was also noted that Parkside Associates will be billed for the expenses incurred in providing services that enabled the shops at Olde Ridge Village to remain open during the manhole installation.

ENGINEERS REPORT:

Parkside Associates - Because Walter Pileggi was present, Ms. Forndran suggested she discussed matters relating to the sewer construction at Parkside Associates planned land development before she begins reviewing her written report. Since last month, Ms. Forndran has reviewed the first set of plans and the revised plans for the development. She has provided comments on both plans to Mr. Pileggi and Chairman Murray. Ms. Forndran explained some of the issues relating to the construction and location of the sewers at this property. She also noted that the Authority plans to include the pump tanks at Olde Ridge Village in the annual inspections. It was also noted that copies of all correspondence from Ms. Forndran to developers are on file with Mrs. Taylor, if anyone wants to see them.

Ms. Forndran continued with her written report.

RRE PROJECT - PHASE 2:

Discussion followed regarding cash flow concerns, history of the project so far, the reluctance to authorize further work without official DEP approval, and possible cost revisions. It was agreed that Ms. Forndran would continue with previously authorized work, and not bother contacting DEP further. Mr. Spoehr asked if the tapping fee could be raised for the Phase 2 if the project is delayed causing higher costs for the project. Ms. Forndran assured him that once the project is completed, the tapping fee amount could be raised, if costs are more than estimated.

ADJOURNMENT:

The meeting was adjourned at 11:00 p.m.

Respectfully submitted,

Sabina J. Taylor, Secretary