MINUTES
May 10, 2006
The Chadds Ford Township Sewer Authority met on this date in the township building. The purpose of the meeting was to publicly review the findings of the Tapping Fee Committee, and adopt a Resolution establishing the tapping fee for the area served by the Ridge Road Extension Phase II project. This special meeting was advertised as required.
Present: Chairman Vincent Del Rossi, Vice Chairman Paul G. Linsen, Secretary Marc S. Altman, Treasurer Keith C. Klaver, and Anthony J. Cutrona.
Absent: None
Also
in attendance were John J. Mezzanotte, Jr., Esquire, Thomas R. Smith, PE of
SSM, and Sabina J. Taylor, Assistant Secretary.
Call
to Order
The meeting
was called to order at 8:00 p.m. by Chairman Del Rossi.
Introduction
Chairman
Del Rossi began the meeting by announcing that a committee of two Board
members, Vincent Del Rossi and Marc Altman, met with Authority Engineer Thomas
R. Smith to review information related to determining a tapping fee for the
area to be served by the Ridge Road Extension Phase II Project, and to develop
a proposed tapping fee for consideration by the full Board. He
then told those present that Marc Altman would publicly explain to the Board the
details of the proposed tapping fee and how it was calculated. Chairman Del Rossi asked that questions be
held until after Mr. Altman’s presentation.
Marc
Altman - Secretary
The
first slide in the presentation was Historic Perspective. Mr. Altman explained that tapping fees
historically were designed to reimburse Sewer Authorities for the cost of
providing sewers. He further noted in
2003 State Legislature passed Act 57 which provided a legislatively determined
formula to calculate maximum tapping fees.
Following slides reviewed by Mr. Altman were titled: Key Determinants, Legal Maximums, Legal
Maximums After Grant, Other Considerations, Construction Cost Increases, Actual
Phase II Costs and Recommended Tapping Fee.
Each slide detailed the process of how the committee arrived at the
recommended tapping fee of $15,200.
Public
Comment
A
resident asked why the tapping fee was so much higher than the one set for
Phase I. Mr. Klaver noted that the
increased cost of construction due to delays in receiving permitting from DEP,
delays relating to the legal issue, and the cost of re-bidding the project have
led to the recommended tapping fee for Phase II. The increase in fuel and oil based products
needed for the project have all increased significantly since the original
proposed start date of September 2003.
Chairman
Del Rossi explained how the legal issue impacted the start of the project, even
though the suit was against the Township and not the Sewer Authority. He said he believes an agreement between the
parties involved has been reached.
Responding
further to residents’ questions, Mr. Smith gave a description of how the
project proceeded from a combination gravity and low-pressure system to an
entirely low-pressure system. He also
explained that due to the legal issue, when the project went to bid it was bid
in two parts, so that the part not involved in the suit could be done while
waiting for the legal decision. As
construction was about to begin, the issue was resolved and construction began
on the whole project.
Appreciation
was expressed by a resident for the effort in trying to keep the tapping fee
down, but he noted that the proposed Phase II tapping fee is still about 50%
higher than the fee for Phase I.
Mr.
Cutrona asked if the committee included any of the Phase I construction costs
in calculating the proposed Phase II tapping fee. Mr. Altman responded that those costs incurred
in the construction of Phase I and determined to also benefit Phase II were
proportionately shared by both phases and, as legally permitted, included in
the Phase II tapping fee.
Mr. Smith
said last year’s hurricanes greatly affected this year’s costs, in particular the
cost of PVC pipe. Both phases of the
project were publicly bid and opened. There
were more than one bid for each bidding and the lowest bid was selected.
A resident asked what process the Sewer Authority went
through to be sure that the bids were in line and the increases in costs were
reasonable. He also asked if he could
see some supporting information. Mr.
Smith said he found the increases in the bid prices to be reasonable and he
would provide the information requested.
Another resident said that it doesn’t seem fair that
because a few property owners involved in the lawsuit against the Township held
up the project, everyone’s tapping fee is higher. It will be a real hardship and she feels they
are being punished. She noted those not
involved in the lawsuit will not share in any financial benefit as a result of
the settlement.
Mr. Cutrona responding to her comment said he agrees that a
lot of people who were not a part of the lawsuit will be impacted by this fee
and he feels very strongly about that. This
cost, he said, is a tremendous hardship on many people who are in the Phase II
group. Mr. Cutrona said, “I don’t know
what the answer is, but when you say it’s fairness, then I suggest that we’ve
got to find a better way.”
A question was raised asking why the quarterly user fees
remain so high. Mr. Altman said, once
the new connections are made, the Authority plans to re-evaluate the costs of
running the plant with the idea of reducing the users’ fees.
Chairman Del Rossi reminded those present that although the
quarterly user fee is high, it has never been increased and in fact was reduced
slightly several years ago. He also said
even though costs related to running the plant such as sludge hauling,
chemicals, etc., have gone up, these increases have been offset by modernizing
some things. He said the board is
constantly looking for ways to lower operating costs and some anticipated
changes at the Ridings Plant should help.
Mr. Smith reviewed the status of the Ridge Road Extension
Phase II project. He explained what
needs to be completed in the next few weeks.
When all the paperwork is completed and a final inspection done, the
system will be ready for connections. It
was explained that the tapping fee will be due sixty days from the notice to
connect. Information needed regarding
connecting properties to the system will be sent to all property owners.
Some residents said they were having difficulty finding a
plumber to do the necessary work. Mr.
Del Rossi said he has located two firms willing to give proposals and a letter
will be sent out with those names for anyone wishing to contact them. There was also a question regarding the start
up of the pumps and the warranty. Mr.
Smith said he would check on this with the manufacturer.
A copy of Mr. Altman’s presentation, and details of Phase
II and Phase I costs will be emailed to those supplying their email address on
the sign-in sheet that was passed around at this meeting.
A resident said he wanted to go on record saying that
communication on this project was horrendous.
Chairman Del Rossi replied that several mailings were sent out and the
Sewer Authority public meetings are held on the third Tuesday of each
month. Mr. Klaver asked those present
to let the Board know what sort of information they would like and it will be
provided.
Questions relating to lawn repair and damage were
raised. Mr. Smith will check on how the
lawn reseeding will be maintained until it is established. Anyone with property damage was encouraged to
complete the complaint form as soon as possible and forward it to the
Authority, so that complaints can be resolved while the Authority still retains
funds.
Motion to Adopt Resolution
Marc Altman motioned to adopt Chadds Ford Township Sewer
Authority Resolution No. 18 designating a Heyburn Road Sewerage District and modifying
the Township Sewer Connection Fees and Sewage Services Fees Schedule to provide
for a tapping fee for the Heyburn Road Sewerage District of $15,200 per edu (consisting
of a Capacity Part in the amount of $1,668 and a Distribution or Collection part
in the amount of $13,532.) The motion
was seconded by Keith Klaver. The motion
being made and seconded was open for discussion.
Paul Linsen said he has been on the Sewer Authority Board
longer than anyone currently on the Board and during that time sewage costs
have been extraordinarily high. He then read
a prepared statement of statistics from a survey of sewer costs across the
state done in 2004 by the Pennsylvania Municipal Authorities Association. Mr. Linsen reviewed the statistics and how
they relate to sewer costs in
Mr. Klaver said, as pointed out before, the Sewer Authority
is here neither to make nor to lose money.
To date the user fees have not been absorbing the operating costs. There is a deficit and the question is
whether it should be covered by just the sewer users or spread throughout the
township. Mr. Klaver said it is a valid
question and in his opinion it should be raised not with the Sewer Authority
but at the township supervisors’ level.
Mr. Cutrona said he agrees with Mr. Klaver that somebody
has to bear the cost, and he commended Mr. Altman for the excellent job he did in
coming up with the numbers. “However,”
Mr. Cutrona said, “I can not in good conscience have 38 households bear the
cost.”
Following the discussion, Resolution No. 18 passed by a
majority vote with Vincent Del Rossi, Marc Altman and Keith Klaver voting in
favor and Paul Linsen and Anthony Cutrona voting against adoption of the
Resolution.
Other Business
No other business came before the Board at this meeting.
Adjournment:
The meeting was adjourned at 9:30 p.m.
Respectfully submitted,
Sabina J. Taylor, Secretary