CHADDS FORD TOWNSHIP SEWER AUTHORITY

MINUTES

 

                                                                   May 16, 2006

 

The 200th 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 Chairman Paul G. Linsen, Treasurer Keith C. Klaver, and Anthony J. Cutrona.

 

Absent:  Secretary Marc S. Altman

 

Also in attendance were John J. Mezzanotte, Jr., Esquire, Garry Paul, CFT BOS liaison, and Sabina J. Taylor, Secretary/Treasurer.

 

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

 

ANNOUNCEMENTS

 

1.         May 2, 2006 – Chairman Del Rossi, Paul Linsen, Keith Klaver, Marc Altman, Anthony Cutrona and Bonnie Taylor met with John Mezzanotte and Tom Smith to further review information relating to setting the tapping fee for RRE Phase II.

 

2.         May 10, 2006 – A special meeting was held on this date, as advertised, to determine and set the tapping fee for RRE Phase II.

 

MINUTES

After Mr. Klaver asked that Mr. Altman’s presentation on the refinancing of the DVRFA loan be included as an addendum, the minutes of the April 18, 2006 Chadds Ford Township Sewer Authority meeting were unanimously approved as presented, on a motion duly made and seconded (Klaver/Linsen). 

 

TREASURER’S REPORT

Before the reporting of bank balances, Mrs. Taylor asked that the corrected bill list amount from the April 18, 2006 meeting be confirmed.  The correct amount should have been $97,331.56.   Mr. Klaver noted the correction and the board agreed.

 

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

 

            Wachovia - General Fund Account

            Beginning Balance                                                                    $14,240.49

            Receipts                                                                                      2,134.45

            Balance                                                                                   $16,374.94

            This balance was transferred to the Sovereign Operating Account and the Wachovia account was closed.

PLGIT Account - ROA

            Beginning Balance                                                                      $6,586.40                                    

                        Dividends                                                                                             130.75

                        Balance                                                                                                  $6,717.15     

                        This balance was transferred to the Sovereign Operating Account leaving a $0 balance in the PLGIT Ridings Operating Account

 

Sovereign Bank – General Fund Operating Account

                        Beginning Balance                                                         $12,196.39

                        Receipts – Deposits and transfers                                                          132,785.37                                                                        

                        Balance                                                                                  $            144,981.76

 

Sovereign Bank - Investment Account

            Beginning Balance – Opened New Account                                       $0.00                                                                        

Receipts – Loan Proceeds                                                     1,000,000.00                                                                                            

                        Balance                                                                               $1,000,000.00

 

REFINANCING LOAN

Mr. Klaver explained that the DVRFA loan can not be paid off until May 30, 2006 due to the 30

days notice requirement.   Until the payoff date, the funds from the new loan will remain in an investment account at Sovereign Bank earning interest that slightly exceeds the interest cost of the loan.  After the payment is made, the operating account will be maintained at Sovereign Bank, but

any excess funds will be invested wherever the best and most advantageous rate can be earned.   Mr. Klaver also said the remaining loan proceeds are restricted to construction projects only.  The money can not be used for operating funds.  This month approximately $20,000 of those funds will be used to pay engineering bills for the RRE Phase II project.  It is anticipated that additional funds from the loan proceeds will be used in the next few months to pay the balance of the RRE Phase II contractor’s bills amounting to roughly $50,000. 

 

SHORT TERM LOAN

It was further noted by Mr. Klaver that the Township has approved a $60,000 short term bridge loan to the Sewer Authority.  This will help with bill paying for this month.  “Quite frankly,” Mr. Klaver said, “the Sewer Authority’s liquidity continues to be a problem.” 

 

Mr. Cutrona asked if the $60,000 bridge loan had been quantified regarding the amount of the loan and length of time it will be needed.  Mr. Klaver responded that it was anticipated that the amount would be adequate, but since the approved DEP grant money has not been received, it may be necessary to ask the Township for an additional short term loan. 

 

REVISED 2006 BUDGET

Copies were made available of the revised 2006 Budget.  The revised budget now includes figures relating to the refinancing of the DVRFA loan and the tapping fee for the area covered by the RRE Phase II Project.   Noting the operating shortfall shown in the 2006 Budget, the ongoing under capitalization of the Sewer Authority and possible solutions were discussed.   

 

Mr. Tobin, 190 Ridge Road, said he feels the Sewer Authority owes the homeowners in the RRE Phase II Project area a complete accounting of how the tapping fee amount was determined.  Chairman Del Rossi said that information will be emailed, by the end of this month, to everyone who requested it and supplied an email address. 

 

SOLICITOR’S REPORT

Mr. Mezzanotte reviewed for the members:

 

1.         CFTSA Resolution No. 19 – This Resolution prepared by Mr. Mezzanotte authorizes the Sewer Authority to borrow $60,000 from the Township under the terms set forth in the Loan Agreement attached to the Resolution.   As previously discussed, the short term loan from Chadds Ford Township is in the amount of $60,000 at 0% interest and to be paid off on or before September 10, 2006. 

 

A motion to adopt CFTSA Resolution No. 19 was made by Keith Klaver, seconded by Paul Linsen and passed unanimously.

 

2.         Toll Brothers Pump and Haul Agreement – Liability, cost, and length of time were discussed.  Following the discussion, Keith Klaver motioned to accept the Pump and Haul Agreement with Toll Brothers to be ultimately negotiated with Toll Brothers and with a final reviewed by Mr. Mezzanotte; and authorize Vincent Del Rossi, or in his absence Paul Linsen, to sign the agreement on behalf of the Sewer Authority.  The motion was seconded by Vincent Del Rossi and passed by a unanimous vote.    

 

ACCOUNTS PAYABLE       

Mr. Klaver explained that some of the Spotts, Stevens and McCoy invoices totaling around $26,000 represent bills that are being paid on behalf of the township for work done relating to sewer lines at the Toll Brothers development, the force main to Route 1 and some costs for the line to Chadds Ford Village.  The Sewer Authority has paid this type of bill in the past for which they were reimbursed by Toll Brothers.  In the future, invoices for these services will go directly to the township. The check written tonight to Spotts, Stevens and McCoy for the reimbursable expenses is to be held until the funds are received from Toll Brothers.  

 

Keith Klaver made a motion that the bills totaling $163,612.67 be paid as submitted.  The motion was seconded by Vincent Del Rossi and passed unanimously.

 

ENGINEER’S REPORT

In Mr. Smith’s absence, the engineer’s report he prepared was read by Paul Linsen.

 

1.         RRE Phase II – The low-pressure sewers are installed and tested, with remaining work being roadway, lawn and right of way restoration.  The contractor, Wexcon,

            Inc., has contacted a local landscaper to do the restoration, and money is being withheld until the project is completed.  Payment Application No. 4 in the amount of $88,754.22 is available for action at this meeting.  This will bring the amount paid to $358,765.75; the Contract amount is $397,257.75.   Hook-ups can begin after a substantial completion inspection, expected to be within two weeks.

 

2.         Ridings Wastewater Treatment Plant – In reviewing the March flows for Ridings WWTP, the maximum daily flow was 0.0389 MGD; average daily flow was 0.0317 MGD, all less than the permitted 0.080 MGD, with no permit exceedence.

 

3.         Toll Brothers – Spotts, Stevens and McCoy is performing inspection services for Toll Brothers sanitary sewers, and performing other tasks to review developer submittals from Toll Brothers and other Developers as authorized.   

 

4.         Annual Wastewater Treatment Plant Inspections – The annual inspection of wastewater treatment plants in Chadds Ford is scheduled for the morning of June 28, 2006.

           

RIDINGS WASTEWATER TREATMENT PLANT

§         Chairman Del Rossi reported that the autodialer at the plant failed and a new one has been ordered and should be installed by the end of this week.

 

§         The air compressor has been repaired and returned to the plant.

 

OLD BUSINESS

No report for this meeting.

 

NEW BUSINESS

§         Chairman Del Rossi said he is assembling the information regarding the RRE Phase II costs and he will email it to those who requested a copy at the May 10, 2006 tapping fee meeting.  Mr. Mezzanotte said he would like a copy of the information also.

 

Mr. Mezzanotte commented on CFTSA Resolution No. 8 which dictates how the Sewer Authority will respond to citizens’ requests for information.  He further reviewed some of the provisions of the resolution.

 

§         It was announced by Chairman Del Rossi that Bonnie Taylor is resigning as Sewer Authority Secretary/Treasurer effective May 30, 2006.  Mrs. Taylor has agreed to take minutes at the June 20 meeting, as requested.

 

§         Mary Walter was introduced as the new Secretary/Treasurer.  Ms. Walter is to begin her new position on July 1, 2006.

 

§         Responding to a question from Mr. Klaver, Mr. Cutrona explained the purpose of a meeting with the Supervisors planned for tomorrow. 

 

§         Mr. Paul offered comments relating to township finances, past and present.

 

PUBLIC COMMENT

            Lew Hall, of Heyburn Road, commenting on the sewer installation in his area, said the contractor, Wexcon, Inc. is doing a good job.  Mr. Hall said the people at the job site are very congenial and the work is well done.

 

ADJOURNMENT  

The meeting was adjourned at 8:22 p.m.  

 

Respectfully submitted,

 

 

 

 

Sabina J. Taylor, Secretary