CHADDS FORD TOWNSHIP SEWER AUTHORITY

CHADDS FORD TOWNSHIP SEWER AUTHORITY

MINUTES

September 17, 2002

The 157^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, Sandra L. Morgan, Vice Chairman, Paul G. Linsen, Treasurer, John Spoehr and Jerome S. Heisler, Jr. Also in attendance were John J. Mezzanotte, Jr., Esquire, Solicitor, Angelika B. Forndran, P.E., Engineer, Deborah L. D’Elia, CFT Supervisor and Sabina J. Taylor, Secretary/Treasurer.

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

ANNOUNCEMENTS:

Chairman Murray reported that on September 10, 2002 members representing the CFTSA and CFT Financial Advisory Committee met with Michael Wolf, of Dolphin and Bradbury to discuss the ten year cash flow study and capital investment plan.

PUBLIC COMMENT:

None

MINUTES:

The minutes of the August 20, 2002 meeting were approved by a majority vote, on a motion duly made and seconded. Jerome S. Heisler abstained because he had not read the minutes.

TREASURER’S REPORT:

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

General Fund Account

Beginning Balance $52,530.81

Receipts 26,958.70

Balance $79,489.51

PLGIT/Plus Account - Tapping Fee Account

Beginning Balance $441,436.03

Receipts 0.00

Balance $441,436.03

Ridings Operating Account - First Union

Beginning Balance $1,000.00

Receipts .63

Balance $1,000.63

PLGIT Account - ROA

Beginning Balance $44,179.28

Transfer from First Union ROA 0.00

Dividends for July 60.16

Balance $44,239.44

Disciascio Escrow Account

Beginning Balance $15,035.45

Interest 17.76

Balance $15,053.21

Mrs. Taylor reported on:

< 110 Residential and 3 Nonresidential sewer service invoices for the 4^th quarter of 2002 were mailed out on September 16, 2002.

< Two more residential tapping fees were collected this afternoon.

< Mr. Krupiak, of CWA, sent a fax on September 16, 2002 stating that the $1,585.36 to cover the cost of repairs to the sewer line caused by CWA will be paid by September 27, 2002.

ACCOUNTS RECEIVABLE:

Chairman Murray said the issue of property owners that have not responded to the Notice to Connect must be addressed.

ACCOUNTS PAYABLE:

Mrs. Morgan said the invoice from American Water Services includes $135 for evaluation of the influent pump station for the Ridge Road Project connection. It should be included in the General Fund bill list as a Ridge Road Extension Project expense. Corrections were made to the bill lists, after which, invoices totaling $9,213.41 were unanimously approved for payment from the General Fund, on a motion duly made and seconded.

A motion was made and seconded to approve payment of invoices totaling $6,348.03 from the Ridings Operating Account. The motion was approved unanimously.

A clarification was requested on several items listed on the General Fund Balance Details Report as distributed by Mrs. Taylor. Mrs. Taylor explained that some of the funds in the General Fund as shown in the Treasurer’s Report are funds held in escrow against tapping fees. When these funds are transferred to the tapping fee account, that does create a deficit in the

General Fund. This deficit is offset somewhat by General Fund Accounts Receivable in the amount of $5,721.84. Mrs. Morgan reminded the members that the Authority is in a negative cash flow situation.

SOLICITOR’S REPORT:

Mr. Mezzanotte reported on the following:

1. Thomas Lawrie - At his request, a list of holders of potential surplus capacity has been provided to Mr. Lawrie. He is present at this meeting to make a brief presentation regarding property his family owns in Chadds Ford Township and, when developed, how the sewage from the site may be handled. Mr. Lawrie presented a sketch of a possible plan and said he would anticipate needing approximately 24 edu of capacity. This would include service for the auto dealer and the residential development. Mrs. Morgan told Mr. Lawrie he would have to contact those with potential surplus capacity to see if he can purchase the capacity he needs from them.

Mr. Kelly suggested that it might be best for Mr. Lawrie to start with presenting plans to the Planning Commission, so that he would have some direction as to how the site could be developed and then how sewage disposal might be handled.

2. 19 & 20 Longview Road - The tapping fee for the property at 20 Longview Road is now paid in full.

The owner of 19 Longview Road has not responded to recent correspondence regarding the amount outstanding on that tapping fee. It was suggested that Mr. Mezzanotte should follow up with another letter to this homeowner.

3. Metro/UTC, Ltd. - Mr. Mezzanotte said he has been interacting with the contractor to make sure, in closing out the contract and arranging for final payment, that Metro has satisfied its contractual obligations. Mr. Mezzanotte said he understands that the restoration work was performed to the Sewer Authority’s satisfaction early in September and this afternoon Metro supplied the paperwork he had requested. Mr. Mezzanotte said, in his judgement, Metro/UTC, Ltd. is in a position to receive final payment. Conditions for releasing the final check were discussed.

4. CCMC & Rullo - The signed agreement has been received from Mr. Rullo with a check for the tapping fee. Mr. Mezzanotte said they also advised him they are making arrangements to convey capacity to two other users who need to purchase capacity.

Mr. Mezzanotte has spoken today with the attorney for CCMC who informed him that his client has the paperwork and he will make a follow up call regarding that agreement. Mr. Mezzanotte said he expects to have the agreement and the tapping fee check in short order.

5.Kassab - The Assignment Agreement between Brandywine Summit Partners and LAPA I, LP. assigning the 22.5 edu of capacity owned by Brandywine Summit Partners does not contain the language requested by Mr. Mezzanotte. He responded by letter informing them the original agreement required that future assignments of the capacity were subject to the written approval of the Sewer Authority. The seller has passed Mr. Mezzanotte’s letter, regarding the required language, on to the buyer and maybe they will accept that language. Mr. Mezzanotte noted he originally said if the language is not incorporated into the assignment agreement, the Authority will notify the buyer and the township that the capacity has not been effectively assigned.

6. Delinquent Nonresidential Account - A formal notice of intent to file a lien has been sent to the owners of the property.

Mr. Mezzanotte explained that, in order to charge attorney’s fees for filing the lien, the Authority’s fee schedule should include this charge. Mr. Mezzanotte said he would send Chairman Murray the statutory language requiring this and then something could be prepared for the other members by the next meeting.

There are a couple of other items from previous meetings that need to be addressed. One of these is the Resolution regarding the methodology for setting edu requirements for nonresidential properties. Methods being considered are flow calculation based on metered usage or, to select some reliable source or reference work to set a standard to evaluate what to allocate to these users. Chairman Murray suggested that the draft resolution be reviewed and the members should be prepared to discuss and act on it at next month’s meeting. Mr. Mezzanotte said he will send a revised draft, including Mrs. Morgan’s comments, to the Authority members for their review.

Chairman Murray asked for the status of the Kids First Agreement. Mr. Mezzanotte said he has not had any response to the last letter sent from Mrs. Morgan. He said he will call their attorney. Chairman Murray noted at the next billing, on December 15, 2002, all properties that are part of the BSSE Project will be billed for service whether they are connected or not.

Mr. Heisler reminded Mr. Mezzanotte that it was discussed that a resolution needs to be prepared to provide for an increase in the tapping fee for each year. It was explained that this resolution would pertain to tapping fees for existing systems and it would be adjusted for inflation.

ENGINEERS REPORT:

Mrs. Morgan reported on:

1. St. Cornelius Holding Tanks - The tanks were pumped out on September 3, 2002 as planned and no problems were encountered. It is estimated that they will need to be pumped out two times a week, with sampling done once a month.

2. Ridge Road Sanitary Sewer Design -

a. A meeting was held on August 28 with a representative of the Township Engineer to coordinate detour plans and to finalize alignment for extent of sounding for depth of rock.

b. Met on site with Township Engineer on September 13 while Enviroscan was ultrasounding route for rock. Report to be delivered to Township Engineer by September 20 for inclusion in bid package.

c. Resubmitted revised detour plans to Penn DOT on September 10 for Highway Occupancy Permit. The township work on Heyburn road can be sequenced with the sewer work.

d. Met with Conservation District on September 13 to finalize Erosion and Sediment requirements.

e. Preliminary copy of final bid package is being submitted for Sewer Authority review. Permits from DEP, DCCD, and HOP, standard labor wage rates and the Enviroscan report need to be added.

f. The Sewer Authority is only required to advertise for bids once. It is planned to advertise for bids on September 23, 2002 in the Delaware County Daily Times and the Philadelphia Construction News. Notice of Intent to Award Contract will be at the October 15, 2002 CFTSA meeting.

Mr. Heisler asked if St. Cornelius Church was still interesting in bidding the project. Chairman Murray explained that the estimates the church received were considerably higher than the engineers estimate. Ms. Forndran explained some changes that are shown on the most recent revised plans for the Ridge Road Extension Project. She also noted how these changes will effect the engineers estimate for the project. The plans were displayed and Ms. Forndran asked if anyone had any concerns or comments regarding the plans, to please let her know as soon as possible, because the bid documents will have to be ready by Monday.

Ms. Forndran said the Authority will work on an Easement Agreement across the church property to provide for future connections.

Tapping fee calculations for the Ridge Road Extension Project were discussed.

Mr. Heisler asked if there were any way to accelerate the project in anticipation of winter weather conditions. Ms. Forndran said the way the schedule is now, is very tight.

After further discussion regarding future connections, A motion was made to authorize the bid advertisement be published on Monday, September 23, 2002. The motion was seconded and passed unanimously.

Ms. Forndran explained that there will be a charge for the bid package and copies will be available by mail and may be picked up at Spotts, Stevens and McCoy or at the township building.

OTHER MATTERS: