A Regular Public Meeting of the Franklin Township Municipal Sanitary Authority was held on December 17, 2009, at 7:37 P.M. at the Authority office located at 3001 Meadowbrook Road, Murrysville, Pennsylvania.
Those Present: James S. Hamilton James C. Brucker
William S. Kagarise, Jr. Steve Polen
Robert Klingensmith Donald Snyder
Allan J. Sarver Kevin Kaplan
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MINUTES - A motion was made by Mr. Kagarise to approve the minutes from the Regular Public Meeting of November 19, 2009. Motion was seconded by Mr. Sarver and passed unanimously.
AUDIENCE - Jeff Bradshaw from HMM was in the audience.
UNFINISHED BUSINESS -
A. Plant Security - Nothing new.
B. Cost Savings - Mr. Brucker reported a savings of $123,000. He was working with our investment banker. We can refinance our 2004 and 2005 bond issues without extending any terms. He will have something in more detail to present to the Board at the January meeting. Mr. Hamilton would like the information before the meeting so he can study it. We will get a check for the $123,000 and put it in our Surplus Fund. Mr. Hamilton wanted to know when we do this, how do we get cash back? Mr. Brucker said we are going to buy the bonds back, and resell them on the market for a lesser interest rate. The broker will make $65,000. Mr. Hamilton wanted to know when we say bond insurance and we say cost of issuance, do we have to pay bond counsel and everyone else again? Mr. Brucker said bond counsel will put the deal together. Mr. Hamilton asked if we were back on the market again to sell it to whoever will buy it? Mr. Brucker said that was correct.
The bond were issued in 2004/2005. Mr. Klingensmith asked if we get a break on the re-issuance rate, and maybe it’s time now to start shopping Bond Counsel? Mr. Snyder frankly doesn’t think so. He feels we have confidence that Bond Counsel acts in the best interest of the Authority. Mr. Lynch is very competent. When he has an issue, he can call him and get an answer. We are signing our names on the line for the full number, and it doesn’t matter that there is an underlying issue that is being refunded, we are on for the whole hook. So, if there is something wrong, we are there. The underwriter is sort of like the real estate agent, they walk with their feet, but if there is anybody who has ongoing liability, it’s Mr. Lynch and Mr. Snyder in addition to the Authority. Mr. Snyder is very comfortable with Lynch and Lynch.
Mr. Sarver asked Mr. Brucker how he got onto this? Mr. Brucker said he was thinking about the market, and he called our investment banker. He ran the numbers and said we could make some money. It was callable so we could do it.
Mr. Kagarise asked what would happen if we could not sell all of it? Mr. Hamilton said it is not that we won’t sell them, it’s a price issue. Mr. Snyder said that they will move them, but the discount may be higher. Mr. Hamilton said that it is like the government today, they owned 65% of Citi Corp, and they wanted to sell some of the equity shares, but the underwriters would not give them enough money. So they were going to give them $3.15 but the taxpayers own it at $3.75, so the government said to forget it, we are not going to sell it this year because we are not going to take an $800,000 loss on selling that stock. We will next year, when the stock price is higher. On this issue, if we have trouble going to the market on this deal, and it’s only a matter of price, then what? Mr. Brucker said that the way this works is Public Financial Market, which is our investment banker in Harrisburg, if he recalls, they will buy this. That is part of the fee. Mr. Snyder said that they pre-sell them. Mr. Hamilton said that there is a high demand for tax-free bonds today. He likes the idea of saving the money.
Mr. Hamilton asked if we are able to save any more money since the bonds are callable? Mr. Snyder said that we can call them in and stop our interest at that rate. If they are not callable, you have to wait before you escrow to maturity.
Mr. Klingensmith asked if there could possibly be a better time than now to do this with these bonds hypothetically in his experience? Mr. Hamilton said the only issue is that yesterday the fed chairman said they were going to keep the rates low for the next six months. But, after the next six months, the fed may decide this coming June to start to raise the rates. If they raise the rates, it hurts us on the value of our bonds. Mr. Brucker talked to the investment banker today, and he is recommending that we should close at the latest somewhere around April. He feels confident that the rates will stay the same, but he said that we should not go further than April. Mr. Brucker told him he would bring this up tonight.
Mr. Hamilton said if we do this in January, and Mr. Brucker gets the papers to him ahead of time, his suggestion would be that we ratify everything in January 2010 if the Board is all satisfied with this deal, and we go to market right after that, because the longer we wait, the more chance that the market will change, and we don’t need that. We should do the whole refinancing in February, make our money, and then we are done. He likes the idea of making this money, and appreciates Mr. Brucker thinking about this and calling the investment bankers.
Mr. Hamilton asked Mr. Snyder if he could give him a breakdown on the $65,000 cost of issuance? He wants to know all the fees involved. Mr. Brucker will know all the figures by the January meeting after meeting with our Bond Counsel. Mr. Hamilton wanted to know if Mr. Brucker is going to tell Murrysville Council about the refinancing? Mr. Brucker said he will tell them, but he doesn’t think we need their backing. We won’t need their guarantee if we buy the insurance. Mr. Lynch will have to evaluate that, it is all market driven. Mr. Hamilton would like to know what Mr. Lynch thinks about the insurance so that we have our AAA rating.
C. Class "A" Biosolids - Mr. Brucker sent out the bi-weekly report. Everything is working fine. The permit application went in December 4th. He is expecting a minimum of at least two months before we get the actual permit. We are finalizing now all of the lab reports to go with the permit. He tried to meet with the DEP guy. They moved him from downtown Pittsburgh to the Uniontown office, and they don’t have a secretary so you have to leave a message on the machine. He has left two messages, and he thinks he might be on vacation. He will hopefully get hold of him next week.
Mr. Snyder said that the word he has received through the grapevine is that if you thought they were slow before, now they are really slow. Mr. Brucker said Bill told him that he has orders from Rendell that anything innovative they are to drop everything and get on it. Last summer he told Mr. Brucker that he got an edict from Rendell, and he said that he could get that permit in 2-3 months. All the tests are coming out fine. Mr. Brucker and Mr. Sarver are working on the scum. Since we stopped putting the scum or the grease into the egg, we started getting the fecal coliform out that we needed. He has been trucking it out. We are doing a lab bench study on buying a biodegradable germ that is going to separate the grease. The problem with the grease is that it plugs up our heat exchangers in the TTSS. So, if this is effective which they think it will be, all the hunks of grease will be soupy, and we can put it back through the TTSS and treat it all. Mr. Kaplan has been doing all the lab testing. Mr. Sarver even brought us up a mixer from his plant, and he feels we are moving in the right direction.
D. Septage Receiving - Nothing is going to happen until spring. He hopes to get out the letters this winter or early spring.
E. Export CSO - Mr. Snyder said that Gibson/Thomas has the sites identified where they are going to do the monitoring.
Mr. Klingensmith asked what is upstream of Export? Mr. Brucker said Delmont, Salem, White Valley and Route 22. He showed the Board on the map where our system goes. Mr. Klingensmith wants to know when was the last time we did some studies and he pointed to the areas? Mr. Brucker said about 15 years. Mr. Klingensmith wanted to know why the studies are that dated? Mr. Brucker said that the studies from 20 years ago were for EPA where we actually used the TV camera on every line, we did night-time isolation, smoke and dye testing. We got money and fixed everything we found. The only thing that he would be interested in now would be if someone snuck another downspout in. The lines are from 1970. They put in plastic truss pipe. When the contract was put out he thinks there were 18 subcontracts, and every contractor got his pick of materials including terra cotta. It’s our system, and we own the main line going through Export (24"). Mr. Klingensmith would like to discuss the rest in Executive Session.
F. Inspections of Homes - Mr. Kaplan sent out a report. Just for their information only, Mr. Snyder is reviewing it. We should have the final Resolution done for the January meeting. Mr. Kaplan will forward a copy to Murrysville for review. Mr. Hamilton asked exactly what is this? Mr. Brucker said it is mandatory smoke and die testing when you sell or refinance your home. The customer’s will have to comply with the new ordinance that we will get Murrysville to pass where a registered plumber will have to make sure your downspouts are not tied in, no french drains can be tied in, and they have to pass that test for financing from the bank. We are doing this basically to require that the inspection be done mandatory. It will get done at no cost to us.
Mr. Klingensmith’s point, and his differs from Mr. Brucker’s, is he wants the homes inspected at point of sale. If we don’t get the inspection done, we won’t do a no-lien letter which will not allow the closing to occur. This puts the responsibility on the seller to make sure that it is done. He said that Mr. Brucker wants to do this through a registered plumber, but Mr. Klingensmith wants us to do them. He has seen and heard of too many inspections by plumbers not actually being done. That is why he would prefer our staff actually doing the work. We then have more control. At point of entry to our system, he thinks that we should be doing it.
Mr. Hamilton asked if we have the employees to do this? Mr. Brucker said that we absolutely do not have enough employees. This started about a year ago, and Mr. Brucker had reported to the Board that he would have to hire two new employees and buy two new vehicles to do this program.
Mr. Klingensmith said that these tests will help pay for the new employees. Mr. Hamilton asked what we would charge? Mr. Klingensmith said that we would charge whatever is necessary when Mr. Polen breaks down the costs for the employees and vehicles so that our fee that is charged to the home seller would be directly appropriate to our costs. It would not be a for profit operation, but a pass through on the costs. Mr. Hamilton asked if other communities do this? Mr. Brucker said yes. Mr. Snyder has one client that the failure rate is 36%. Mr. Hamilton asked if the real purpose then is to protect us on the inflows? Mr. Brucker said it was. Mr. Klingensmith said that when he sold his home in Monroeville, the plumber said they could do the test, or we can do the test. He had smoke coming out of his gutters and downspouts which had to be fixed. Therefore, it is through his personal experience that it is most appropriate that we do this with our own staff and with the cost spread to the sellers of the homes for that inspection. What we are going to end up with is two employees whose job firstly is to do the inspection, and when they are not busy doing the inspections, Mr. Brucker has two other employees that we could use on the system for system management and maintenance. To him this is a good opportunity to do it, and gives us a good management tool.
Mr. Kagarise asked what we would charge? Mr. Brucker said that costs would have to be calculated. Mr. Sarver commented that as long as it is cost-effective, he is for it. Mr. Brucker will update all his numbers and let the Board know the costs.
2009 ANNUAL REPORT (2010 BUDGET) - Overall in this report, Mr. Brucker commented that there is no rate increase necessary. When he put the budget together several months ago, the budget will cover the wages and the increase on health benefits. We saved $45,000 on the health benefits,
so that simply means that instead of a $200,000 surplus it would be $245,000. Any money we don’t spend ends up in the surplus. Mr. Polen said the bond savings is not reflected in the report. Mr. Brucker said that it is not in there, but we will reap that benefit on payment on the debt service going down by $10,000 per year. Mr. Polen added that is what will show up on the Annual Report or your budget. Mr. Brucker’s recommendation is to take that check at closing and put it in the Surplus Fund. Mr. Snyder commented that out of the Surplus Fund you can make capital additions. Mr. Brucker said that next year’s report will show the variances. Any excess money at the end of the year is automatically dumped into the Surplus Fund for capital improvements.
Mr. Hamilton asked about page 4.9 where we are increasing Salem and Delmont. Mr. Brucker said their rates are separate. We have rates to maintain their systems, and basically, this manpower cost went up. The cost of the insurance and wages, that reflects in their charge to maintain their system. Mr. Snyder said that Delmont wants an internal increase. This money is clearly explained in their enactment that the money is theirs, but we collect it and give it to them. Mr. Brucker said that he has not been notified yet, and he is not going to change the rate structure on what he reads in the newspaper. Penn Township and Monroeville’s people opted to pay the same identical rates as Murrysville. Delmont and Salem wanted a separate agreement. They hired us on the side to maintain their system, so Mr. Brucker had to come up with a transportation rate and sometimes it goes up and down depending on wages, and he put a blending over what it costs us on our transportation system and prorated for theirs. So every year it goes up $.30, down $.20, up $.60 and that is what that is.
Mr. Klingensmith wanted to go back to page 3.5, Table A where it says "Bio-solids Disposal Expense." The proposed budget for 2009 versus 2010, the 2010 budget went down $10,000, and he wanted to know why. Mr. Brucker said the tipping fees went down. Mr. Klingensmith asked if the 2009 figure of $95,000 would have been less if we would have had our Part A license? Mr. Brucker said that was correct. Mr. Klingensmith asked of that given percentage, what percent would we have still spent for purposes of sludge disposal? Mr. Brucker said we would have saved 90% of that number. Mr. Brucker said if we are successful, we would only spend about $5,000 per year to cover for the rags and grit.
Mr. Sarver asked when the gears are coming in? Mr. Brucker replied that the chopper blades are here. Mr. Klingensmith asked if we were going to plate them? Mr. Brucker said that was on the pumps. We have a company coming in with a different type of pump, and they are going to experiment and do if for free for us. Mr. Sarver has really been helping Mr. Brucker out.
Mr. Hamilton wanted to know if there were any other major items in the budget that the Board needed to look at. Mr. Brucker said there is not much movement on any of the other costs. He did up the cost of electrical. He is concerned about the electrical bills for next year. He heard that deregulation is going to change, and it could go up 10-20% so he increased the amount. Mr. Hamilton could not believe that they could get a 20% increase in one year.
Mr. Sarver explained his dealings with the utility company regarding industrial users. Mr. Klingensmith commented that if we budget an increase of 20% for electrical, it is just a line item, and if we don’t use the extra money, it goes back into the budget.
On capital improvements, Mr. Brucker is recommending a new TV camera reel. Our camera doesn’t go up the lateral lines. We do have a100' small-head camera that we can look at laterals by hand. Mr. Klingensmith said that if we are going to do the home inspections, we want to very efficiently be able to get in and get out quickly. Mr. Brucker will have to look into new camera equipment otherwise everything will have to be done manually with the small camera. Mr. Brucker will prepare a report.
Mr. Brucker said we need to have our computers (PC’s) replaced. The girls in the office have been having problems. Mr. Klingensmith asked who we get for computer support. Mr. Brucker said we have a company we deal with for billing, but he or Mr. Kaplan fix simple things, and we have gotten Elcon to help on some things. We will work on this in January 2010.
On the Information Management Needs Assessment and Information Management Master Plan, Mr. Brucker will be working with Mr. Polen to update and install the maintenance program. For example, it will tell employees when to change oil and do maintenance on various lines, etc. He is estimating $15,000 for that project. After they do the maintenance, that information is feed into the computer for history on the equipment and lines. It will let us know why this pump was fixed three times and that pump hasn’t been fixed at all, etc.
We have to purchase a backhoe for loading up the TTSS sludge when it is up and running. Also, anything over an 8' depth on sewer line repair we called a contractor to do the repair. Anything under 8' we would borrow a backhoe from Murrysville or someone else, or we would rent a small backhoe and our employees would do the repair. Mr. Klingensmith recommended that we also get a low-boy with it as well, that way if we need it out on a project, we will have the ability to transport the equipment. Mr. Brucker said our existing trailer will haul it. Mr. Sarver thinks it is a good idea. Mr. Brucker will do a report. Mr. Klingensmith suggested using Cleveland Brothers. Mr. Sarver agreed that we should buy local. Mr. Snyder said that you have to look at the State list. They may be on that list.
The next thing on the list was to replace the boiler in the control building. The existing building was put up in 1969. We are still running the existing boiler. We have been having trouble with it the last couple of years, so we need to replace it with a more efficient type heating system.
On the pretreatment for the grit, we need to replace chains and buckets with stainless steel in the Degritter Building. We will double or triple the life.
We need to replace the double doors at the maintenance garage with fiberglass doors. The steel doors rust because of the sulfide.
The last item recommended is the bypass of the Bel-Aire Pump Station. He has to do right-of-way work and has talked to the owner. The station is not worth anything and was built in the early 60's. The generator is a 1985 so he is sure he can sell the generator. The equipment is from 1960 and not worth anything. It was put in by a developer back in the 1960's.
Mr. Kagarise asked about the repair of the trickling filter arms because he thought we were in dire straits? Mr. Brucker said that it is still a big problem, but he had to prioritize, and the Main Pump Station had to come first. He is hoping the housing market comes back and that we get more tap-in money to cover the costs. Mr. Kagarise asked what will happen if something happens and it has to be replaced? Mr. Brucker said that he would have to spend the money and fix it. Mr. Sarver asked if we priced stainless steel for this project before the costs go up? Mr. Brucker said the report is done, but we did not have the money to do the project. Mr. Sarver commented that last year it was a serious problem, and we had to have it. Let’s play like we have to have it and get the cost. Mr. Brucker said it has to be made by a company who does this. Mr. Sarver said that fabricating companies are hurting so bad that they are taking on jobs just to keep some of their people working. Mr. Brucker said we already have the figures, it just has to be updated. If we are short on money, maybe we could borrow some to get it done. That’s why Mr. Kagarise brought this up, because we were in dire need two years ago. He continued that we can always put the Bel Aire Pump Station on hold while we do this, and also the Chains and Buckets in the Degritter Building. Mr. Brucker said this report has to be passed by December 31st. This was also due at the bank by December 15th, and they gave him another week.
Mr. Hamilton would appreciate it if the Board had this budget in October for review so we can make a motion on it in November next year.
A motion was made by Mr. Sarver to approve the 2009 Annual Report (2010 Budget). Motion was seconded by Mr. Kagarise and passed unanimously.
RESOLUTION NO. 09-04 - This is our rate resolution setting all the rates for all the communities.
RESOLUTION NO. 09-04
BE IT RESOLVED THAT, Section A. 1. of Resolution No. 77-2, as adopted by the Board of Franklin Township Municipal Sanitary Authority on July 14, 1977, has been previously amended and revised, and will be further amended and revised to read as follows, and will be effective on January 1, 2010:
SECTION A. SEWAGE COLLECTION, TRANSPORTATION AND TREATMENT RATES
1. All property owners having property connected directly or indirectly to the Sewer System shall pay the following sewage collection, transportation and treatment charges to be computed and billed monthly:
(a) RESIDENTIAL CUSTOMERS
(1) Municipality of Murrysville Residential Sewer Customers - $28.27 per month
(2) Municipality of Murrysville Residential Sewer Customers with garbage grinders
- $30.07 per month
(3) Municipality of Murrysville (Plum Borough Service) Residential Sewer Customers - $4.73 per month
(4) Export Borough Residential Sewer Customers - $24.95 per month
(5) Export Borough Residential Sewer Customers with garbage grinders - $26.75 per month
(6) Delmont Borough Residential Sewer Customers - $28.53 per month
(7) Delmont Borough Residential Sewer Customers with garbage grinders - $30.33
per month
(8) Salem Township Residential Sewer Customers - $29.18 per month
(9) Salem Township Residential Sewer Customers with garbage grinders - $30.98
per month
(10) Penn Township Residential Sewer Customers - $28.27 per month
(11) Penn Township Residential Sewer Customers with garbage grinders - $30.07
per month
(b) NON-RESIDENTIAL CUSTOMERS
(1) Municipality of Murrysville Non-Residential Sewer Customers on metered water supply :
$4.81 per 1,000 gallons
Subject to a minimum monthly charge of $28.27
(2) Municipality of Murrysville Non-Residential Sewer Customers on private non-
metered water supply:
The monthly charge shall be computed upon the charges set forth in (b) (1),
based upon the estimated sewage discharge for the specific customer.
(3) Export Borough Non-Residential Sewer Customers:
$4.23 per 1,000 gallons
Subject to a minimum monthly charge of $24.95
(4) Export Borough Non-Residential Sewer Customers on private non-metered
water supply:
The monthly charge shall be computed upon the charges set forth in (b) (3),
based upon the estimated sewage discharge for the specific customer.
(5) Delmont Borough Non-Residential Sewer Customers:
$4.23 per 1,000 gallons
Subject to a minimum monthly charge of $28.53
(6) Delmont Borough Non-Residential Sewer Customers on private non-metered
water supply:
The monthly charge shall be computed upon the charges set forth in (b) (5),
based upon the estimated sewage discharge for the specific customer.
(7) Salem Township Non-Residential Sewer Customers:
$4.23 per 1,000 gallons
Subject to a minimum monthly charge of $29.18
(8) Salem Township Non-Residential Sewer Customers on private non-metered
water supply:
The monthly charge shall be computed upon the charges set forth in (b) (7),
based upon the estimated sewage discharge for the specific customer.
(9) Penn Township Non-Residential Sewer Customers:
$4.81 per 1,000 gallons
Subject to a minimum monthly charge of $28.27
(10) Penn Township Non-Residential Sewer Customers on private non-metered
water supply:
The monthly charge shall be computed upon the charges set forth in (b) (9),
based upon the estimated sewage discharge for the specific customer.
(11) Municipality of Murrysville (Plum Borough Service) - Non-Residential Sewer
Customers:
$4.73 per month per EDU
(c) COMBINED USE CUSTOMERS
(1) Municipality of Murrysville:
A customer with both residential and non-residential users on the premises
shall be billed as in (b) (1) above, with a minimum charge of $28.27 per
month for each dwelling unit on the premises and connected to the sanitary
sewer.
(2) Municipality of Murrysville with garbage grinders:
A customer with both residential and non-residential users on the premises
shall be billed as in (b) (1) above, with a minimum charge of $30.07 per
month for each dwelling unit on the premises and connected to the sanitary
sewer.
(3) Export Borough:
A customer with both residential and non-residential users on the premises
shall be billed as in (b) (3) above, with a minimum charge of $24.95 per
month for each dwelling unit on the premises and connected to the sanitary
sewer.
(4) Export Borough with garbage grinders:
A customer with both residential and non-residential users on the premises
shall be billed as in (b) (3) above, with a minimum charge of $26.75 per
month for each dwelling unit on the premises and connected to the sanitary
sewer.
(5) Delmont Borough:
A customer with both residential and non-residential users on the premises
shall be billed as in (b) (5) above, with a minimum charge of $28.53 per
month for each dwelling unit on the premises and connected to the sanitary
sewer.
(6) Delmont Borough with garbage grinders:
A customer with both residential and non-residential users on the premises
shall be billed as in (b) (5) above, with a minimum charge of $30.33 per
month for each dwelling unit on the premises and connected to the sanitary
sewer.
(7) Salem Township:
A customer with both residential and non-residential users on the premises
shall be billed as in (b) (7) above, with a minimum charge of $29.18 per
month for each dwelling unit on the premises and connected to the sanitary
sewer.
(8) Salem Township with garbage grinders:
A customer with both residential and non-residential users on the premises
shall be billed as in (b) (7) above, with a minimum charge of $30.98 per
month for each dwelling unit on the premises and connected to the sanitary
sewer.
(9) Penn Township:
A customer with both residential and non-residential users on the premises
shall be billed as in (b) (9) above, with a minimum charge of $28.27 per
month for each dwelling unit on the premises and connected to the sanitary
sewer.
(10) Penn Township with garbage grinders:
A customer with both residential and non-residential users on the premises
shall be billed as in (b) (9) above, with a minimum charge of $30.07 per
month for each dwelling unit on the premises and connected to the sanitary
sewer.
IN WITNESS WHEREOF, I have hereunto placed my hand and the seal of Franklin Township Municipal Sanitary Authority on this 17TH day December, 2009.
FRANKLIN TOWNSHIP MUNICIPAL
SANITARY AUTHORITY
By ______________________________________
Chairman
ATTEST:
________________________________
Secretary
(AUTHORITY SEAL)
A motion was made by Mr. Kagarise to approve Resolution No. 09-04. Motion was seconded by Mr. Sarver and passed unanimously.
SHAG BARK PLAN - Mr. Brucker said that the sewer line is completed between Manhole 1 to Manhole 12. The rest is not constructed. By doing this he can allow the people between these manholes to connect since the line has been tested. Mr. Snyder said that this has been brewing for some time, and it solves an existing problem for the people who have malfunctioning septic systems. It is very positive for us to have affected that, and Mr. Brucker has had patience with the Developer who has tried that patience. We got a line built which serves those people, and if we had not had it built by the developer, eventually we would have been compelled to build it. So this is a positive.
Mr. Klingensmith commented that it is worthy of note that we respected private property rights of those individuals who live along that area, and we did not allow that developer to use us as an arm of his development company. Mr. Snyder said that is correct because there was a dispute there and the developer had to pay whatever it was even though that’s the number that Mr. Brucker told him at the outset of what he should have paid. Mr. Klingensmith is right from that perspective, but he is going to say that there will be times when the Board will face a situation where we have to acquire rights-of-way in order to alleviate what is an on-lot system or some other problem with an area, and we are going to have to do it whether it benefits somebody ultimately or not. That’s just how you have to consider it, but once again, we didn’t have to use our power inappropriately. Mr. Klingensmith said he understands what he said and agrees. There is an appropriate time to use for a taking, and there is an inappropriate time, and the difference is as clear as night and day. In this particular case, the developer failed the plan and created an emergency on his part and ran in here and demanded that we do his job. He won’t respond to that, and he doesn’t feel that as an Authority that we are the taking arm of developers. That needs to be communicated very clearly to the developers. Mr. Brucker said that is in our policy manual. Mr. Klingensmith continued that this was not respected by the developers. Shag Bark is a classic case in point.
A motion was made by Mr. Kagarise to approve the sewer lines in Shag Bark Plan between Manhole 1 to Manhole 12. Motion was seconded by Mr. Sarver and passed unanimously.
NEW EMPLOYEE - TOM BLASKOVICH - This employee has successfully completed his six-month probation period. Mr. Brucker is recommending hiring him full-time.
A motion was made by Mr. Kagarise to hire Tom Blaskovich as a full-time employee. Motion was seconded by Mr. Sarver and passed unanimously.
PURCHASE OF THREE LAP-TOP COMPUTERS - Mr. Brucker has a lap-top now, but it is eleven years old. The biggest problem he is having is that when he gets a call-out it takes him 10-15 minutes to boot up.
A motion was made by Mr. Kagarise to approve the purchase of three lap-top computers. Motion was seconded by Mr. Sarver and passed unanimously.
INTERN - A student from Saint Vincent college wants to get his state operator’s license. He realized he can’t take the state test because he needs the state’s minimum of six-months of experience. He asked if we would give him that experience at no fee to us?
Mr. Hamilton asked if we should pay him something so that we are paying taxes? Mr. Klingensmith said that when we bring him onboard, we are going to have to give him a physical because of all the pathogen testing we have to do. Mr. Kagarise said if we are not paying him, and he gets hurt, he could sue us. We should pay him minimum wage. Mr. Snyder said if we put him on at minimum wage, then he’s covered for workman’s compensation. Mr. Brucker said there is fighting over giving the guys any money, we are arguing over manpower, and he got us a guy for nothing and the Board wants him to pay him. Mr. Hamilton wants us to pay him. Mr. Sarver commented that either we do the right thing, or we can’t have him. Mr. Snyder said he should be covered for insurance purposes and the insurance carrier said yes. Mr. Klingensmith asked if there are any union problems? Mr. Snyder said he is not filling a union position anyhow. He’s just here for training. If you hire him, he has to be covered for comp.
A motion was made by Mr. Kagarise to approve the Manager retaining an intern at minimum wage for a limited period of time. Motion was seconded by Mr. Sarver and passed unanimously.
TREASURER'S REPORT - A motion was made by Mr. Kagarise to approve the Treasurer's Report. Motion was seconded by Mr. Sarver and passed unanimously.
LIST OF INVOICES - A motion was made by Mr. Kagarise to approve the list of invoices in the amount of $171,691.53 for payment. Motion was seconded by Mr. Sarver and passed unanimously.
ENGINEER'S REPORT -
Item No. 1. Plant Performance Report - Mr. Polen reviewed the Plant Performance Report with the Board for the month of November 2009. The plant operated within its permit limits.
Item No. 2. TTSS System - A memo dated 12-4-09 was submitted to Mr. Brucker reporting on current TTSS operation.
Item No. 3. Main Pump Station Upgrade Project - The contractors are working together to try and get the equipment on site. The last discussion they had was getting the stairs fabricated and on site so that when the old stairs are taken out, they can install the new ones immediately. They are waiting for the variable frequency drives.
Item No. 4. Permit for Beneficial Use of Biosolids by Land Application - Submitted permit on December 4, 2009. They are still gathering background test data. In January, a supplemental package will be submitted. Test results have been coming in really nice and low.
SURPLUS FUND REQUISITION NO. 378 - A motion was made by Mr. Klingensmith to approve Surplus Fund Requisition No. 378 in the amount of $25,713.56 for payment. Motion was seconded by Mr. Sarver and passed unanimously.
SOLICITOR'S REPORT -
GRANDVIEW VILLAGE - No new developments.
COX STORM WATER CLAIM - They cancelled Mr. Brucker’s deposition. Mr. Snyder said that he thinks they are going to try and settle the case, but he doesn’t know if they did or not.
CONSTRUCTION PROJECT ISSUES - To be discussed during Executive Session.
EXPORT BOROUGH - No new developments since the last meeting. We have approval for four testing locations.
BOARD MEMBER COMMENTS - There were no comments.
AUDIENCE (COMMENTS OR QUESTIONS FROM REPORTERS) - None.
EXECUTIVE SESSION - At approximately 9:10 P.M., the Board went into Executive Session to discuss litigation and other purposes that are exempt from the Sunshine Law. At 10:50 P.M., the meeting was called back to order.
A motion was made by Mr. Sarver that the Board approve Mr. Snyder’s recommendation that McDonald, Snyder & Lightcap be given the authority to settle the HMM matter for a consideration of $100,000, with $30,000 going toward current invoices for the TTSS System, and the remaining $70,000 at Mr. Snyder’s discretion, not to exceed three years. Motion was seconded by Mr. Kagarise and passed unanimously.
If the Union signs the contract, Mr. Brucker suggested a Special Public Meeting for December 28th for the Board to approve the Union Contract.
ADJOURNMENT - A motion was made by Mr. Kagarise that the meeting be adjourned. Motion was seconded by Mr. Sarver and passed unanimously. The meeting ended at 10:54 P.M.
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William S. Kagarise, Jr., Secretary
EXECUTIVE SESSION
The Board discussed litigation matters.
The Board discussed union negotiations.
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Williams S. Kagarise, Jr., Secretary
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