WAYNESBORO BOROUGH AUTHORITY

MAY 20, 2008

MINUTES

Authority Chairman Jon Fleagle called the regularly scheduled meeting of the Waynesboro Borough Authority to order at 7:30 p.m. with the following in attendance:

Borough Authority Members – S. Allen Stine, Christopher Snively, William Pflager, Jon Fleagle and Lee Layman

          Borough Staff – S. Leiter Pryor, Director of Borough Utilities

                     D. Lloyd Reichard, II, Authority Solicitor

APPROVE MINUTES: Lee Layman made a motion to approve the minutes of the April 15, 2008 meeting, as written. William Pflager seconded; the motion passed unanimously.

SOURCE DEVELOPMENT UPDATE: Leiter Pryor noted that he has provided additional information requested for the Act 313 grant from the Corp of Engineers, and he was assured that the Authority will receive the approved $200,000 no later than September. He added that this will be used for engineering costs at the McCleaf well site.

Chairman Fleagle questioned if the Engineering Department has made any progress on the well site plan with regard to distribution. Mr. Pryor noted that Scott Crum has been working on it, but he is not sure how far along it is at this point. A report will be provided at the Authority’s next meeting.

Mr. Pryor noted that, pursuant to the Authority’s direction, he forwarded correspondence to Gerald Zeigler regarding the abandoned vehicles on the adjoining property at the well site. Township Manager Mike Christopher responded that they are limited in what they can do, because the people occupying the building have a used car/salvage license; and the use would be consistent with their zoning regulations. Mr. Pryor suggested, however, that they be put on notice to remove their vehicles from the WBA’s property. Solicitor Lloyd Reichard advised that the correspondence should be addressed to the McCleafs (as owners), with a copy being mailed to the Baers (as tenants).

MEMBRANE FILTRATION PLANT CONSTRUCTION BIDS: Leiter Pryor provided Authority members with a synopsis from Gannett Fleming regarding the bids. He noted that seven (7) bids were received for Contract 2 - General Contract; and Gannett Fleming evaluated the three (3) lowest. The lowest bid, $1,595,396, was from Johnston Construction Company. He explained that there were several deductions which Johnston was recommending, and he outlined those in-depth. After review of their qualifications, Gannett Fleming is recommending the contract be awarded to them (without substitutions). Mr. Pryor noted his agreement. Allen Stine made a motion to award Contract 2 - General Contract to Johnston Construction Company, with no substitutions. William Pflager seconded; the motion passed unanimously.

Mr. Pryor then reviewed bids received for Contract 3 - Electrical. Three (3) bids were received, and Gannett Fleming evaluated all three (3) bidders. Hickes Associates was the lowest bidder at $325,700; and they were deemed to be qualified by Gannett Fleming. Accordingly, it is their recommendation to award Contract 3 to Hickes Associates. Leiter Pryor agreed. Lee Layman made a motion to award Contract 3 - Electrical to Hickes Associates. Christopher Snively seconded; the motion passed unanimously.

Mr. Pryor added that it will be several months before work can begin on the project, as a lot of paperwork needs to be completed prior to actual construction.

PENNVEST CLOSING TIME LINE: Leiter Pryor noted that he has been in contact with a staff member from Dave Franklin’s firm who is very familiar with PENNVEST procedures. He explained that, when attempting to schedule a closing date with PENNVEST, he was told that they have an electronic closing system. All signed contract documents need to be at PENNVEST prior to the closing; so July will not be realistic. He feels that the end of August or the beginning of September is more feasible. He will report back to the Authority with a firm closing date at the next meeting.

ENTERPRISE AVENUE PUMP STATION: Leiter Pryor stated that the pump station upgrade is approximately 98% complete. The only outstanding item is the installation of a manhole in the automatic control valve on E. Second Street. They will wait to do this until after school is out because of safety factors. The station has been running for approximately three (3) weeks now, and all is well. He noted that the station hasn’t been formally accepted, so the warranty period hasn’t begun yet. Mr. Pryor suggested that the Authority members take a trip to view the upgrades after painting has been finished.

Mr. Pryor noted that, several meetings ago the Authority discussed the issue regarding final reimbursement for the total project cost of the Enterprise Avenue Pump Station upgrade. He contacted Gemcraft (the developer) via e-mail, but received no real response or commitment. When Mr. Pryor relayed to them that no more tap fees would be granted for the Hollengreen Development until this matter had been straightened out, Lloyd Reichard received a telephone call from their attorney. Their complaint is that they were only notified about this several weeks ago, and the WBA has already “pulled the plug” on their taps. Mr. Pryor noted his position is that the WBA wants to work with them, but they weren’t responding or returning his calls. A payment plan can be worked out, but some type of agreement should be entered into regarding re-payment before taps will be granted. Mr. Pryor further explained that the original agreement regarding this matter was with Brian McNew. A rough estimate was provided for the project – and he was informed that it would probably cost more. Soonafter the papers were signed, the development was sold to Gemcraft (who was apparently not aware of that agreement). The project then came in a lot higher due to several factors, including the fact that no engineering costs were included in the estimate. Their attorney suggested that an extension be granted for the taps if they enter into an agreement regarding periodic payments. Mr. Reichard suggested that they attend the WBA meeting tonight to discuss the matter. After discussion on the matter, the WBA agreed to work out a payment arrangement; and Leiter Pryor was directed to contact Gemcraft regarding a schedule. The Authority authorized Mr. Pryor to proceed if the schedule seems reasonable; but if not, he was advised to contact the Authority members for further direction. Mr. Stine suggested that re-payment be concluded within one (1) year. The Authority agreed that this would be fair.

Chairman Fleagle also noted he has observed that the electric box attached to the fence for the Waynesboro Area School District has not yet been removed. Leiter Pryor was directed to contact them regarding its removal.

PROPOSAL - SHENTEL PCS: Leiter Pryor noted that he received correspondence from Tucker Lahr of Launch Wireless (for Shentel PCS) regarding the installation of antennas on the Authority’s Broad Street standpipe. They are basically proposing the same deal as entered into with AT&T and T-Mobile, but they need to go higher due to FCC regulations. They would like to build a 10' monopole structure on top of the tank for this purpose. Jon Fleagle wondered ... with the amount of monthly revenue being taken in, would it be feasible for the WBA to install a tower strictly for this purpose? After discussion on the matter, Leiter Pryor was instructed to contact several tower companies (Liberty Tower, U.S. Tower, etc.) to pursue this possibility. He was also asked to invite representatives of Shentel PCS to attend the Authority’s next meeting to review their proposal further.

CORRESPONDENCE RE: BIOSOLIDS: Leiter Pryor noted that he received correspondence from New Brunswick Township, who has formulated an ordinance in opposition of the application of biosolids. The ordinance has been challenged, and they are looking to other municipalities and/or authorities for their support. Members voiced their opinions that biosolids are safe (as they are highly regulated by DEP) and they want to continue using them. If the sludge would go to a landfill, disposal costs would double. After further discussion on the matter, Allen Stine made a motion that the WBA is not interested in participating in their endeavor. William Pflager seconded; the motion passed unanimously.

PROGRESS REPORTS: Chairman Fleagle asked for updates on the following items –

          •         Billing software – Leiter Pryor noted data conversion is being done at this time and he anticipates “going live” in a few weeks.

          •         Water tank inspection – Leiter Pryor noted that proposals have been obtained, and they are awaiting a tentative start date from the contractor.

          •         Tick Ridge Development (William Brindle) – Allen Stine noted that quite a few changes are being proposed; and Leiter Pryor responded that a lot of those changes were pursuant to recommendations made by Scott Crum.

          •         Indirect Water Service Area – Jon Fleagle asked if WTMA has been provided with progress updates on maintenance conducted in the Indirect Water Service Area. Leiter Pryor stated that he will do that, as well as provide information on any capital improvements needed.

          •         Roof (Water Treatment Plant) – Leiter Pryor noted he is still working on the specifications.

PAY BILLS: Allen Stine made a motion to approve the payment of the following requisitions –

Water Requisition #08-12 - Gannett Fleming Companies - $81.14 - Annual services of the Authority’s consulting engineer as authorized under the Annual Services Agreement for the period of March 1, 2008 through March 28, 2008

Water Requisition #08-13 - Gannett Fleming Companies - $41,632.54 - Preliminary design, final design and bidding of Well No. 2 membrane facilities for the period of March 1, 2008 through March 28, 2008

Water Requisition #08-14 - Gannett Fleming Companies - $162.26 - Annual services of the Authority’s consulting engineer as authorized under the Annual Services Agreement for the period of March 29, 2008 through April 25, 2008

Sewer Requisition #890 - The Pennsylvania State University - $325.00 - 1 DEP Permit 271-Biosolids

William Pflager seconded; the motion passed unanimously.

Allen Stine requested information on water usage by Northside Pool and the Municipal Golf Course. Discussion ensued on water losses, which were 16-17% this year.

The Authority members agreed to hold their next meeting, June 17^th, at the Sewer Treatment Plant.

Having no further business to discuss, the meeting adjourned at 8:29 p.m. on a Snively/Layman motion which passed unanimously.

                                                                Respectfully Submitted,

                                                                Melinda S. Knott

                                                                Administrative Assistant