WEST MWFLLN SANITARY SEWER MUNICIPAL AUTHORITY

BOARD OF DIRECTORS’

REGULAR MEETING

THURSDAY, AUGUST 6, 1998

MINUTES

BOARD MEMBERS PRESENT

Cynthia A. Sullivan, Roberta Chonko, Donald Trimbath, Michael Price, Donna Diener

ALSO PRESENT

Irene Parkinson, Ronald Hess, Ira Weiss, Esq., Engineer David M. Meredith

A quorum was established with the majority of the Members of the Board present and the meeting commenced at 7:00 PM.

1. On motion (Trimbath-Diener) approved the minutes of July 2, 1998 Board of Director’s Meeting.

2. On motion (Chonko-Price) approved the Treasurer’s report for June, 1998.

3. On motion (Trimbath-Chonko) accepted bid of Arnco Construction, 1033 Gill Hall Road, Jefferson Borough, Pennsylvania as the lowest responsible bidder as the General Contractor for the construction of a Maintenance Building, including the masonry wall, in the amount of $537,184.

4. On motion (Trimbath-Price) accepted bid of David W. Jones Company, Charleroi, Pennsylvania as the lowest responsible bidder as the Electrical Contractor on the construction of a Maintenance Building in the amount of $76,780.

5. On motion (Chonko-Price) moved to accept the Borough of West Muffin’s Council’s offer of Room 202 located at 3000 Lebanon Church Road at no cost to the Authority and to use at the Authority’s discretion.

6. On motion (Price-Trimbath) moved to advertise to receive bids for construction of the Kenmore Pump Station and to receive bids for the construction of the Kenmore Force Main.

7. On motion (Price-Trimbath) moved to accept the revised Plan and Implementation Schedule, of the Consent Order, dated July 30, 1998.

8. On motion (Chonko-Trimbath) authorized Twin Rivers Council of Governments to accept the low bidder, Fisher Scientific, for laboratory equipment in the amount of $7355.

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9. On motion (authorized payment of Requisition #25 for drawdown on the Bond Issue from National City Bank, Cleveland, Ohio in the amount of $871,083.19.

10. On motion (approved Change Order #4, Contract 97-2R of the Consent Order to David W. Jones Company in the amount of $10,980.63.

11. On motion (Chonko-Diener) approved an easement for the Zapf residence on WMSSMA Homeville Pumping Station property for a sanitary sewer connection.

12. On motion (Trimbath-Diener) adopted resolution to amend Resolution Number 27-98 in order to clarify the definition of rate classifications.

13. Report of Ira Weiss, Esq. (Solicitor)

Attorney Weiss reported that he had a Bond Resolution which authorizes execution of a Bond Purchase Agreement which meets the approval of the Chair and myself. The purpose of the issue is to provide funds for Phase II Consent Order projects and to refund a portion of the 1996 Bonds to achieve a savings. This Resolution will authorize the signing of that Agreements, authorizes inclusion in that Agreement new terms required by the rating agency and bond insurers, and further authorizes publication of any necessary official statements.

This would enable the Underwriters Commerce Capital of Arkins, Inc. to select the time most advantageous to the Authority for going to market.

On motion (Trimbath-Price) approved Bond Resolution No. 30-98 (Resolution 30-98 attached to minutes)

Mr. Joseph Wiesner, Senior Vice-President of A. H. Williams & Co. Incorporated stated that he concurs with Solicitor Weiss’s comments. They (A&H Williams & Co.) are proceeding with it, and should have a contract very soon.

Mr. Joseph Krolowski, and Mr. Chip of A. H. Williams & Co. were also present.

14. Report of Chester Engineers: Engineer David M. Meredith Report attached to minutes.

15. Report of Operations Manager, Ronald Hess Report attached to minutes.

16. Reception of Visitors:

Mr. James Wassick of 6914 Wilson Street, West Mifflin.

Subject: Minimum Users Fee of $12.08/4200 gallons

Mr. Wassick concurred with the need for upgrading and maintaining the sewer facility per DEP requirements. What was the method used to establish minimum residential charges and in may instances is double and in some cases triple more than the usage.

Engineer Meredith: What you are saying that the minimum usage under or up to 4200 gallons; some residents are using less than this but are still charged the minimum rate. The minimum rate of 4200 galls is a lone standing minimum that the Municipality used prior to the Authority’s adoption and existence. When the Authority was formed in 1996 the 4200 gallon minum rate was kept since the structrue was in place for sometime. In late ‘97 and early ‘98 a rate study was conducted based more on a needs analysis for revenues rather than a cost of service. A detailed cost of service study was not conducted but a rate analysis was conducted based on the belief and assumption that the current structure would be kept based on 4200 gallon minimum. The 4200 gallons represents a little less than average customer use. The 1997 Engineer’s Report represented the average daily usage of $13,000 a quarter.

Mr. Wassick: This penalizes and punished the conservative individual for environmental purposes and the individual on a low or fixed income must pay to to 200%/300% when other consumers are 2 or 3% higher in 1996. The new rates are 45% higher, and this is grossly inequitable. I am curious as to the number of residences that pay the minimum fee. I don’t have a problem in paying this fee, but others can’t. Mr. Wassick pointed out that Baldwin has a minimum fee of $1.65 for the first 500 gallons. Baldwin pays minimum residential charges.

Ms Sullivan: On utilities, each and every month you pay a service cost. I’m one of the minimum users with 600 gallons one month and 1100 another, and I sympathize with you. Mr. Wassick stated that he did not mind paying the minimum fee and that Ms Sullivan was not constricted in paying the minimum fee. Ms Sullivan stated you cannot catagorize us under the minimum fee.

Mr. Trimbath: When the Authority took over the system, the minimum of 4200 gallons was already set. When the Borough withdrew from the sewage treatment system, they were using $75,000 of other monies to subsidize the sewage fees. Whtn the Authority took over they had to overcome the $75,000 increase, and it was recommended to them to have a rate of $2.87 a thousand with a minimum of 4200 gallons. The Authority decided to start with $1.78 per thousand, then raise it later as needed.

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Ms. Sullivan: We ill take a look at this and get back to you after Mr. Meredith goes back and looks into this. He will get back to us.

Mr. Wassick: It would be incumbent on the Board to do this.

17. On motion (Price-Trimbath) the meeting was adjourned at 8:45 PM.

Respectfully submitted:

Michael Price, Jr., Secretary

West Miff in Sanitary Sewer Municipal Authority