April 15, 2013

Quincy Sewer Authority

Minutes of April 15, 2013 Meeting

 

              The meeting was called to order at 7:01 pm by Chairman Wilhide followed by the Pledge of Allegiance with members Eugene Flasher, Kerry Bumbaugh, Aaron Moats and Laura Justus present.  Solicitor Rahauser and Robert Gunder were also in attendance. One Township resident was in attendance.

              Chairman Wilhide asked that the Board observe a moment of silence in memory of George Crouch who passed away last week. He was a devoted member of the Sewer Authority since the beginning.

             The Minutes of October 15, 2012 were approved on a Bumbaugh/Moats motion along with the bills for October 2012, November 2012, December 2012, January 2013, February 2013 and March 2013. Motion carried unanimously.  Also the authority noted that the purchase of the Nunnery property by Michael Noll did not go through. A Question was asked about the residence paying the $3000 tap fee and it was explained that Mr. Noll was going to add another residence on the property.

There was no public comment.

Reorganization was held. A Flasher/Bumbaugh motion approved the officers remaining the same as last year except for the Secretary/Treasurer; Kerry Bumbaugh will be the Secretary/Treasurer position, because Laura Justus is resigning from the authority after this evening. Motion carried unanimously. The Supervisors will need to get another member for the Sewer Authority.

A Bumbaugh/Moats motion approved keeping David Rahauser as the Sewer Authority’s Solicitor. Motion carried unanimously.

A Wilhide /Flasher motion approved Resolution 2013-1, Accepting the Tender of Transfer of Ownership by a Bill of Sale from White Rock, Inc. of that portion of a Sanitary Sewer Line, pipes, fittings and appurtenances constructed pursuant to an agreement between the parties dated September 21, 2004 as amended, being phase I as identified in said agreement. Motion carried unanimously.

A Bumbaugh/Moats motion approved Resolution 2013-2 accepting the dedication of the sewer line easement for Westminster place. Motion carried unanimously.

Sewer Main repairs per engineers’ findings was discussed. Solicitor Rahauser informed the Authority that it was brought to his attention through solicitor Lisko about the repairs. Solicitor Lisko had looked at the Township lease back agreement. Under Article 10, section 10.03 through 10.13, this compels the Township to do repairs. Solicitor Lisko advised the Supervisors that it was their duty according to that section of the lease back to make the repair based on the engineers report. Solicitor Rahauser stated that his opinion was that Solicitor Rahauser was correct in his interpretation of the lease back. Member Wilhide questioned about information he received about repairing the wall which was quite a difference in price from replacing a wall. Carroll was away when wall was replaced and he heard that there had been a hornet’s nest about it. Solicitor Rahauser stated that there should be protocol when repairs need to be made so the Sewer Authority is made aware of them. That way Sewer authority can give their advice on repair. Member Wilhide and Member Bumbaugh had talked about the wall, member Wilhide was under the understanding that Kerry was going to contribute to the cost of replacement of wall. He was going to give $5000. There were actually two walls that were going to be replaced. The second wall was not replaced because it would have cost the Township another approximately $10,000, so Kerry did not have it replaced and therefore did not contribute any money toward the replacement, which saved the Township around $$5,000 which would have been their share of the cost of the second wall. Member Wilhide is still looking for a contribution from Kerry. Member Moats stated that he hopes we didn’t set precedence. Solicitor Rahauser explained that any repair that needs done must meet the definition under the lease back agreement. Member Moats question why have an Authority if we don’t know anything about the repairs and operation of the plant. He was informed that need an Authority because an Authority is the only entity that can set a tap fee. The authority is primarily in charge of the management aspect of the line. Supervisor Gunder believes member wilhide hit on something. Supervisor Gunder thought that the replacement of the wall had been brought to the Authority, if he had known it was he would have made sure they knew before going forward with the replacement. He believes not have regular meetings is part of the problem Solicitor Rahauser would like some type of protocol put in place so the Authority and the Board of Supervisors, both know what is happening with the Sewer. Member wilhide hated to complain because he knows the Supervisors worked very hard to get refinancing for the sewer loan. The members questioned whether money for the replacement of the wall was taken out of the Authorities account and was informed no. Then they asked about being taken out of tax payers’ money and was informed it came out of the Sewer Operation Fund which is Supervisors money. The Operation Fund is the users fess. The only money that the Authority gets is for the tap fees. Which this is a problem with having a leaseback. Even though h different entities have control it is still two separate entities. A brief discussion followed on the engineers used to build the plant and lines and also on having to have RUS approve any plans.

Member Bumbaugh informed that Authority that Dollar General Store has submitted plans to the Township. They believe they should only pay one tap fee. Ed Wilson would like a meter placed at the store. The Authority will need to make a decision on meter or regular. This might be the time to think about metering commercial establishments.

Member Bumbaugh also inform the Authority that he received notice that Greene Township is raising their sewer rates this year, but with refinance we will be able to lock ours in for a few years.

Member Bumbaugh also explained the Bond Issue for refinancing the Sewer loan. In June 2011, Bo Gunder talked to RUS about refinancing and they would like at it if we would raise our sewer rates. Then Solicitor Rahauser who deals with Frank Leibers office informed us to look at bond issuance which at the time was not a good idea.in April 2012, Ed Wilson told the Authority about the school district doing a bond issuance, Solicitor Rahauser said he would check with David Twadell at Leiber’s office, but not sure would be a good time for a municipality. In December 2012, Solicitor Rahauser told the Supervisors and member Wilhide, Bumbaugh and Supervisor Gunder met with Solicitor Rahauser and David Twadell, because the time was right to do a bond issue. After all the work was completed we saved $770,000 over the life of the bond. Member Bumbaugh wanted the Authority to know that Supervisor Gunder and the office staff were able to provide all the information needed for the refinancing and the Jim Maun from Brindle and Associates reviewed and gave it an engineer’s stamp of approval.

Also extending the sewer line to the Angle property on Anthony Highway and beyond was discussed. Charlie Pentz has purchased the property on the upper side of Richard Angles. He is going to be using 11.5 acres for storage units and a business complex. The remaining acreage at the present time has no plans for. The Authority will need to make a decision if they are going to extend the sewer line and make that area Quincy Township’s customers or allow them to connect to Mont Alto’s system. A Wilhide/Falser motion approved having an engineering feasibility study completed for the Charlie Pentz property to connect to our sewer line.  The study should be with the two different ways of running the line and extension would be on the contingency of needing sewer for that property. Motion carried unanimously.

Laura Justus has given her resignation from the sewer Authority effective this evening. A Wilhide /Bumbaugh motion thanked Laura for service to the Authority and gave their appreciation to her for her service. Motion carried unanimously.

Meeting adjourned at 8:30 pm on a Moats/Flasher motion.