LYCOMING COUNTY WATER AND SEWER AUTHORITY Board Meeting Minutes December 3, 2014

Transcription

1 LYCOMING COUNTY WATER AND SEWER AUTHORITY Board Meeting Minutes December 3, 2014 MEMBERS PRESENT: Robert Hippenstiel, Paul Wentzler, Richard Haas, Mary Bennardi, Jan Ransdorf, Donald Konkle, Jr., James Carpenter, Charles Hall. MEMBERS ABSENT: Scott Slocum. OTHERS PRESENT: J. David Smith, McCormick Law Firm; Christine Weigle, LCWSA Executive Director; Sylvia Lukpetris, LCWSA Finance Director; Duane Martzall, LCWSA Compliance Manager; John Bickhart, LCWSA Engineering Services Manager; David Brinjac, Brinjac Engineering; David Swisher, HRG; Bill Kelly, Lycoming County Planning Department; Megan Lehman, Lycoming County Planning Department; Don King, Montoursville Borough. I. CALL TO ORDER Chair Robert Hippenstiel called the meeting to order at 7:03 p.m. and noted that there was an executive session prior to the meeting pertaining to legal and personnel issues. II. MINUTES Jan Ransdorf made a motion to accept the minutes from the November 5, 2014 LCWSA Board meeting as presented. Mary Bennardi seconded the motion, which was unanimously approved. Paul Wentzler made a motion to accept the minutes from the November 19, 2014 LCWSA Finance Committee meeting. Don Konkle seconded the motion, which was unanimously approved. III. BILL APPROVAL/FINANCIAL STATEMENTS The check register for the month of November 2014 was presented with the addition of postage for the monthly billing. Following a few questions, Paul Wentzler made a motion to accept the check register report and approve the payment of the bills for November 2014 with the addition for postage as noted. James Carpenter seconded the motion, Ms. Lukpetris presented the October 2014 Financial Statements and further explained the notes included on the budget-to-actual graphs provided for the various funds. Don Konkle made a motion to accept the October 2014 Financial Statements as presented. Richard Haas seconded the motion, - 1 -

2 IV. PUBLIC COMMENT In anticipation of his retirement, Bill Kelly offered well wishes to the Authority and gratitude for the support over the years and for the work accomplished between the County and the Authority. Mr. Kelly introduced Megan Lehman as his replacement as liaison to the Authority from the County Planning staff highlighting her experience and background. On behalf of the Board, Resolution was presented acknowledging William Kelly s commitment and dedication to the advancement of infrastructure in Lycoming County most notably water and sewer projects. Additionally, Resolution commended Mr. Kelly for his professional accomplishments and offered the Authority s appreciation to Mr. Kelly for his support of the Authority. Jan Ransdorf made a motion to adopt Resolution as presented. Charles Hall seconded the motion, V. ACTION ITEMS A. Adjudication Steel Procurement Act Following comments by Solicitor J. David Smith, Richard Haas made a motion to approve the adjudication regarding the Steel Procurement Act subject to final legal review and editing. Mary Bennardi seconded the motion. Charles Hall abstained from voting on the matter due to limited knowledge of the matter and availability to participate in the hearing previously held. With the exception of Mr. Hall, the motion was unanimously approved. B Budget Adoption Christine Weigle and Sylvia Lukpetris presented the proposed 2015 Budget which addresses revenue, expenses, debt service, and capital reserves by fund. It was noted that the Finance Committee discussed the proposed budget in detail at three Finance committee meetings and that staff had been working on the budget for nearly four months. As in the past, the 2015 Budget package includes not only the financial plans, but also the 2015 Strategic Plan Goals & Objectives, the 2015 Capital Plan, and the corresponding 2015 Personnel Plan. Mrs. Weigle and Ms. Lukpetris reviewed the budget details by fund explaining that the budget process includes five-year projections to allow for a realistic and long-term approach to budgeting and rate setting. Mrs. Weigle explained that the LCWSA Board sets water and sewer rates only for those systems that are owned by the Authority. The Parent Fund addresses anticipated revenues and expenses associated with those systems where services are provided but are not owned by the Authority. The 2015 Budget results in a rate increase for the Armstrong Sewer System from $60 to $65 per month per Equivalent Dwelling Unit (or EDU). Over the five-year window, rates are anticipated to reach $72 per month per EDU. The 2015 increase is due to the ongoing and increasing costs of treatment and capital expenditures of the treatment facilities a cost passed onto the Armstrong Sewer System from the Williamsport - 2 -

3 Sanitary Authority together with anticipated capital contributions to South Williamsport for the conveyance system improvements. For the Beaver Lake Sewer System, the 2015 budget holds the monthly sewer rates at $131 per month per EDU (dwellings) and $40 per month per unimproved lot. For the Limestone Water System, the 2015 budget maintains the water system rates for the 2015 calendar year while continuing to review operational needs and system costs over the next year. LCWSA became the owner of the small water system in Limestone Township (formerly the Limestone Township Municipal Water Authority system) in January 2014, and it was recommended that the operating costs be further evaluated under the second year of operation when a more steady state operation is expected. The Montoursville Regional Sewer System (MRSS) rates for the calendar year 2015 are maintained at $60 per month per EDU due to favorable financial results and bond refinance savings in The last rate increase was 2010 when rates increased from $55 to $60 per month per EDU. A steady increase in customer base has also benefitted the system. During the bond refinance, MRSS sewer rates were projected at $63 to $65 per month per EDU. However, the five-year budget holds rates in 2015 at $60 per month per EDU and then anticipates an increase to $65 per month per EDU in The LCWSA Regional Water system has again been challenged with limited customer growth and regulatory red tape. Although rates were held in 2014, the system can no longer sustain the debt service and operating expenses with the current rate structure. The water rates for the LCWSA Regional Water system propose an increase by 10% for consumption/water usage from $7.28 to $8.00 per 1,000 gallons and an increase by 10% for fire protection fees. The fixed meter charge (based on meter size) is more than doubling. The increase in rates is due to the debt service that exists among a small number of customers. Rates have been held for several years while expecting growth to occur. Unfortunately, due to limited growth in customer base, the rates must increase to assure annual debt service and operating expenses are covered by annual revenues. A few examples of the LCWSA Regional Water System rates were provided and also included a comparison of the rates in the Limestone Water System. Mrs. Weigle also explained that depreciation by fund is also included in the 2015 budget. It was noted that the customers of the MRSS, Armstrong, and Beaver Lake areas continue to offer the prepay discount of 3% for 2015 pre-paying twelve months in advance with payment received by January 20, Past due balances must be paid in full before a customer can take advantage of the prepay discount for the 2015 calendar year. Mrs. Weigle and Ms. Lukpetris thanked the Finance Committee for their time and commitment throughout the budget process. Jan Ransdorf, Chair of the Finance Committee, commended the staff for the work on the budget and for the awareness and management of costs/expenses throughout the - 3 -

4 year; and further thanked the Management Team for effectively managing the challenges faced over the past year. Following the budget discussion, Jan Ransdorf made a motion to approve the 2015 Budget and adopt Budget Resolution as presented. Richard Haas seconded the motion, Rate Resolutions Consistent with the adopted 2015 Budget, Richard Haas made a motion to adopt the 2015 Armstrong Sewer Rate Resolution; the 2015 Beaver Lake Sewer Rate Resolution; the 2015 Limestone Water Rate Resolution; 2015 MRSS Sewer Rate Resolution; the 2015 LCWSA Regional Water Rate Resolution; the 2015 Lab Services Rate Resolution; the 2015 TV Camera Rate Resolution; the 2015 Vactor Rate Resolution; and the 2015 Facility Rental Resolution. Don Konkle seconded the motion, It was noted that David Brinjac of Brinjac Engineering participated in the budget review process and attended the October and November Finance Committee meetings. As required by the Trustee Agreement for the MRSS Sewer Bond, David Brinjac has reviewed the 2015 budget as it relates to the requirements of the trustee and following adoption and will offer an official statement that the rates/revenue adequately cover the bond requirements. Mr. Brinjac explained that with the proposed rate increase for the LCWSA Regional Water System, he was comfortable with the budget and felt that the 2015 was more realistic than C Meeting Dates 1. Board Meetings Jan Ransdorf made a motion to approve the 2015 Board Meeting dates for the first Wednesday of each month at 7 PM. Charles Hall seconded the motion, 2. Finance Committee Richard Haas made a motion to approve the Finance Committee dates typically for the third Wednesday of each month at 10:30 AM with October s meeting on the 5 th Wednesday; and no December Finance Committee scheduled unless necessary. Paul Wentzler seconded the motion, D Professional Services 1. Audit Firm Paul Wentzler made a motion to approve the engagement of Baker Tilly Virchow Krause for the 2014 audit per the engagement letter dated November 17, 2014 with anticipated fees ranging between $26,500 and $29,000. The motion is contingent upon final legal review of the terms and conditions. Mary Bennardi seconded the motion, 2. Solicitor Retainer - 4 -

5 Jan Ransdorf made a motion to retain McCormick Law Firm as legal counsel for the 2015 calendar year as outlined in the November 26, 2014 proposal. Don Konkle seconded the motion, 3. Engineering Retainer Mary Bennardi made a motion to accept the Herbert, Rowland, and Grubic, Inc. engineering proposal for 2015 Retained Engineering Services. Paul Wentzler seconded the motion, E. Nomination Report Charles Hall offered appreciation on behalf of the Board to David Brinjac for his service and long-standing relationship with Lycoming County Water and Sewer Authority. Mr. Hall noted that the foundation for the success of the Authority was established with Brinjac Engineering supporting its efforts over the past twenty years. Charles Hall reminded Board members that the January 2015 meeting will serve as the re-organization when the 2015 LCWSA Officers will be elected. Board members interested in serving in an officer s role or maintaining a position, or those who may want to nominate a person, should notify Mr. Hall before December 17 th. The Nominating Committee Report will be presented for the January meeting. Charles Hall departed at 7:55 PM. F. MRSS 1. Nutrient Credit Agreements Christine Weigle presented a nutrient credit agreement of sale for phosphorus credits generated at the MRSS. Don Konkle made a motion to ratify the Agreement of Sale for eleven (11) phosphorus credits with Gettysburg Energy and Nutrient Recovery Facility LLC as presented. Jan Ransdorf seconded the motion, which was unanimously approved A Capital Additions Requisition #3 Christine Weigle presented Requisition #3 for the 2014A Construction Projects. The requisition totaled $ and included payment to Quality Air Mechanical for the heating upgrade project. Richard Haas made a motion to approve Requisition #3 as presented. Paul Wentzler seconded the motion, G. Septage Receiving Facility John Bickhart reported that executed sales agreements have been received on two of the three recently subdivided lots on Sydney Street at the former SRF location. Don Konkle made a motion to ratify the Agreement of Sale for Lot #1 and the Agreement of Sale for Lot #2 as presented. James Carpenter seconded the motion, - 5 -

6 H. Beaver Lake Sewer County Act 13 Amendment Paul Wentzler made a motion to approve the Amendment to the Agreement between the County of Lycoming and LCWSA for County Act 13 funding of $20,000 to be released for the Beaver Lake Controls Upgrade project with an extension of the agreement to April 30, Mary Bennardi seconded the motion, which was unanimously approved. Christine Weigle thanked the Penn Township Supervisors for their recent commitment to match the County Act 13 funding for the Beaver Lake Controls Upgrade which ultimately led to the authorization of the amendment. I. LCWSA Regional Water System 1. Water Loan Christine Weigle reminded the Board that the closing of the Citizens & Northern Bank loan was scheduled for December 16, 2014 and the following actions were related to the details of the closing. i. Citizens & Northern (C&N) Bank Corporate Resolution Jan Ransdorf made a motion to authorize the resolution to open a deposit account and assign the authorized signers for the new Regional Water account. Richard Haas seconded the motion, which was unanimously approved. ii. C&N Bank Resolution of Board of Directors Don Konkle made a motion to authorize the resolution of the Board of Directors as required for the C&N Bank new Regional Water deposit account. Mary Bennardi seconded the motion, which was unanimously approved. iii. Santander Ninth Amendment to Line of Credit Paul Wentzler made a motion to authorize the Ninth Amendment to the Santander Line of Credit which reduces the line to $1.0M effective December 16, 2014 following final legal review and following the closing of the C&N loan which will result in paying down the line of credit to a zero balance. Richard Haas seconded the motion, which was unanimously approved. J. Developer Activity Dedication of MRSS Sewer Collection Lines John Bickhart explained the history associated with the developer activity and sewer extension ongoing north of Interstate I-180 and along Turkey Run. Mary Bennardi made a motion to authorize LCWSA to accept a deed of dedication for the Alexander Family Partnership s Northeastern Sanitary Sewer Extension subject to final legal review and the completion of the Developer s Act 57 Study for the documentation of the reimbursement component of the Tapping Fees to be returned to the Developer. Don Konkle seconded the motion - 6 -

7 K. Board Recognition Resolution was presented recognizing Mary Bennardi for her service on the LCWSA Board and for the leadership roles she undertook during her tenure and offering her much appreciation for her years of service to the Authority. Jan Ransdorf made a motion to adopt Resolution as presented. Richard Haas seconded the motion, VI. STATUS REPORTS A. Engineer 1. Brinjac David Brinjac presented the Brinjac Engineer s report for the month of November. Mr. Brinjac thanked the Board for the opportunity to serve the Authority as its engineer for twenty plus years. 2. HRG, Inc - David Swisher presented the HRG Engineer s report for the month of November noting a few details regarding the Fairfield Water Storage Tank project. B. LCWSA Reports 1. Operations Report Duane Martzall presented the Operations Report for the month of November. 2. Engineering Services Manager Report John Bickhart presented the Engineering Services Manager Report for the month of November and offered comments regarding the Duboistown Borough sewer budget which is currently under consideration by the Borough Council. It was noted that Duboistown Council considers LCWSA a partner in managing their sewer system and appreciates the support that LCWSA and its staff offers. 3. Executive Director Report - Christine Weigle presented the Executive Director Report for the month of November. VII. RECESS/ADJOURN Mary Bennardi made a motion to adjourn at 8:25 p.m. James Carpenter seconded the motion, Respectfully submitted, Donald E. Konkle, Jr., Secretary Christine Weigle, Assistant Secretary DATE: - 7 -