December 15, 2009
MINUTES OF THE BOARD

The meeting was called to order by Chairman, Troy Clair, at 7:15 PM.

GUEST RECOGNITION There were no guests to recognize.

The MINUTES of the November 17, 2009 meeting were unanimously approved as written on a motion by D. Engle, seconded by L. Spangler.

The TREASURER’S REPORT was unanimously approved on a motion by T. Clair, seconded by E. Stone.

PAYMENT OF THE BILLS, in the amount of $157,819.35, for the period from November 17, 2009 through 12/15/2009, was approved on a motion by D. Engle seconded by J. Tennis. Passed unanimously.

The WATER OPERATING REQUISITION, in the amount of $28,000.00, for operation of the water system through January 19, 2010 and the SEWER OPERATING REQUISITION, in the amount of $153,000.00, for operation of the sewer system through January 19, 2010, were unanimously approved on a motion by T. Clair, seconded by E. Stone.

The following REQUISITIONS from the Water Bond Redemption & Improvement Fund were unanimously approved on a motion by D. Engle, seconded by L. Spangler:

The following REQUISITION from the Sewer Construction Fund was unanimously approved on a motion by E. Stone, seconded by L. Spangler:

REQ.	PAYEE	REASON	AMOUNT
SC6	Lititz Sewer Authority	WWTP Project - 5 invoices	$281,254.98

The following REQUISITIONS from the Sewer Bond Redemption & Improvement Fund were unanimously approved on a motion by E. Stone, seconded by L. Spangler:

REQ.	PAYEE	REASON	AMOUNT
B380	JWC Environmental	PS #1 Muffin Monster	$29,781.00
B381	Morgan, Hallgren, Crosswell & Kane	Dev. Manual & Rates, Rules & Regulations	$102.00
Total			$29,883.00

ADMINISTRATORS REPORT
Shoppes at Kissel Village - North Expansion (Target) - D. Zimmerman said that the Target Agreement has not been finalized. Target, Inc. brought in a new legal team which must now review all of the documents. Warwick Devco is hopeful that the Agreements will be signed by next month. Final settlement on the project has been pushed back to April, 2010.

MAINTENANCE REPORT
C. Haws reported on the following maintenance to the water and sewer systems:

• Maintenance personnel jetted the sewer line at Station 10 that runs under Rte. 501. This maintenance is done on a quarterly basis.
• A check valve was replaced in the meter pit at Shoppes at Kissel Village. The cost of the repair was billed to R. J. Waters.
• Hydrants in the Owl Hill and Pennwick/Laurel meter pit areas were flow tested for the Water Model, in coordination with Entech, Inc. and Severn Trent Environmental Services.
• The new influent grinder for Station 1 was delivered on Tuesday, November 24^th. The grinder was installed by Heisey Mechanical today.
• At the Rothsville wellhouse, a check valve in the waste pump discharge line and an effluent valve between units 1 and 2 were replaced. A bypass meter and the meter that controls nitrate unit #2 were also replaced. The meters will be sent out to be rebuilt.
• At Station 7, the pumps were pulled to check for clogged impellers and check valves were rebuilt.
• At Station 11, pump 1 was pulled due to high hours and to check for a clogged impeller.
• Maintenance personnel have been exercising valves in the Regents and Rudy Dam areas.
• Heisey Mechanical is repairing rusted pump railings at the submersible stations and will install the original influent grinder from Station 1 at Station 7.
• The fourth quarter meter readings began this week.

SOLICITOR’S REPORT
B. Crosswell reported that a resolution to adopt the Water and Sewer Rates, Rules and Regulations and Developers’ Manual all dated 12/15/09 was prepared.

As D. Zimmerman reported, a response from the Target legal team has been delayed. The Solicitor’s office is waiting to get the revised draft Agreement regarding the fire suppression system and water line improvements.

The Solicitor’s office was contacted by the attorney for Shoppes at Kissel Village regarding the Reservation of Capacity Program.

The property at 10 Loop Road, on which the Authority has a lien, was scheduled for Sheriff Sale on November 25^th. The Sheriff Sale was continued to January 27^th. The reason for the continuance was loss mitigation. This is part of the Obama Administration’s HAMP (Home Affordable Modification Program) where lenders are being asked to modify loans to a level that is affordable for the borrower. A lot of the foreclosure sales are being postponed as lenders attempt to mitigate their losses. This trend may exist for a while.

Regarding 11 Church Street (Bolich Estate), a few months ago the Bank of New York, Mellon has commenced a foreclosure action. For some unknown reason, they withdrew it without prejudice and filed a new one, which restarted the process.

ENGINEER’S REPORT
S. Carl presented the following report on Engineering services:

• Misc. Consulting - S. Carl attended the workshop meeting with Authority Staff on December 3^rd.
       
• Shoppes at Kissel Village - received and reviewed the Final Drawing package.
       
• Pennwick/Laurel Meter Pit Hydraulic Analysis - Coordinated and conducted additional fire flow tests with WTMA and Severn Trent. The additional field work was necessary due to Severn Trent not being able to retrieve the original data from the Kissel Hill Booster Station computer program. Entech reviewed the recent data, conducted model inputs, ran simulations and compared model output results against field data and the Kissel Hill Booster Station test data. There are major differences between the actual field data and the model output results. Entech is attempting to confirm the model that was previously done. They are trying to determine if deficiencies existed in the original model as they are unable to calibrate the model with the two rounds of data.
                    
• Wastewater Treatment Plant - During the past month, a lot of big equipment was started up. All of the controls, SCADA system and software which is monitoring, controlling and operating the plant is up and running through a single computer. There are multiple fail safes. The new head works screen was started up today and is operational. The plant continues to operate on Train A while all the new equipment in Train B is being installed and wired up.
                         
  A credit of $300,287 was taken from the General Contractor and Electrical Contractors for elimination of the anaerobic tank cover system. Monitoring of the process and resultant sludge over the past several months has shown that odors have been less since the new train is in operation and the covers are not necessary. This brings the construction portion of the project under budget by $32,000. However, Severn Trent is recommending that LSA approve additional change orders for a security system to the main entrance gate and control room which will be tied into the SCADA system.
                                
  Construction progress is as follows: general construction/ 62% complete, electrical construction/64% complete and mechanical construction/76% complete.
                                                         
  All of the paperwork related to the PA H2O Grant was completed and the application for payment was submitted to the PA Department of Economic and Community Development ("DCED") on Friday. An electronic copy was sent to McCullough Consulting Group. The Grant Agreement says payment will be made two to three weeks after submission of a complete payment request.

ISSUES PENDING
2010 Water and Sewer Budgets - D. Zimmerman said that the final water and sewer budgets presented for approval at tonight’s meeting were the same as the drafts presented at the November meeting, including increases in the water and sewer rates as previously discussed. As there were no further questions or comments, a motion was made by T. Clair, seconded by L. Spangler, to approve RESOLUTION 12/15/09-01 adopting the 2010 Sewer Operating Budget and RESOLUTION 12/15/09-02 adopting the 2010 Water Operating Budget as presented. Passed unanimously.

Water and Sewer Rates - D. Zimmerman stated that resolutions were prepared to adopt the new water and sewer rates as discussed at the November meeting. A motion was made by D. Engle, seconded by L. Spangler to adopt RESOLUTION #12/15/09-03 increasing the water rate from a quarterly minimum of $27.00 to $32.00 for usage up to 6,000 and also increasing the quarterly standby fire protection rate to $32.00; and RESOLUTION 12/15/09-04 increasing the quarterly sewer rate from $72.00 to $77.00 and the quarterly minimum metered sewer rate from $72.00 to $77.00 for usage of up to 12,000 GPQ. Passed unanimously.

Rates, Rules and Regulations and Developers’ Manual - D. Zimmerman said that a resolution was prepared by the Solicitor which would revise and update both documents. Staff has been working on the revisions with the Engineer and Solicitor for the past several months and the changes were discussed at prior Board meetings. A motion was made by D. Engle, seconded by L. Spangler, to adopt RESOLUTION #12/15/09-05, revising and restating the Rates, Rules and Regulations and Developers’ Manual of the Authority for use of the Authority’s water and sewerage systems.

As there was no further business to discuss, the meeting ADJOURNED at 7:40 PM on a motion by D. Engle, seconded by E. Stone.

Respectfully submitted,

Daniel L. Zimmerman, Asst. Secretary