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Meeting Minutes - Meeting Minutes

Present

Chairman Jerome Theobald; Vice-Chairman John Haggarty; Secretary James LaPoint; Assistant Treasurer James Brennan; Mary Peters, Entech Engineering; Solicitor Anthony Magnotta; Tammy Jensen, Administrator; Dan Guinther, Plant Superintendent.

 

Absent

Board Member John Feik and Assistant Secretary George Firmstone

 

Visitors

Jens H. Damgaard, Esq – Authority Bond Counsel

Richard B. Henry, Esq – Honesdale Borough Solicitor

Judith Poltanis – Honesdale Borough Secretary

John Rickard – Cherry Ridge Township

Don Doney – Texas Township

Joann Hancock – Texas Township Secretary

Dan Weidner – Texas Township

Michael Augello – Honesdale Borough

David Sporer – Cherry Ridge Township

James Jennings – Honesdale Borough

Tim Lauffenburger – Honesdale Borough

James Brennan – Honesdale Borough

 

Pledge of Allegiance

 

Chairman Jerry Theobald thanked all the municipalities for attending the meeting in order to completed documents for the USDA Projects Loan Closing.

 

Honesdale Borough, Texas Township, and Cherry Ridge Township called their meetings to order.

 

The Authority’s Bond Counsel, Jens Damgaard, explained that the Authority had received funding from USDA in the form of $7,815,000 in loans and $3,901,800 in grants. The funds are for the White Mills Sewer Installation Projects and the Lackawaxen River Interceptor Project. Municipal guarantees are Texas Township 60% and Honesdale Borough 40%.  In order to complete the 40 - year loan, the life of the Authority needs to be extended for an additional 50 years through December 1, 2069. This extension would be an amendment to the Authority’s Articles of Incorporation. All three of the municipalities that form the Authority will pass Resolutions to extend the life of the Authority.  The municipal funding guaranty for Honesdale Borough and Texas Township does not count against their borrowing ability under the Local Government Unit Debt Act.  The funding filing process takes approximately a month with the Commonwealth of Pennsylvania.

 

 

Honesdale Borough made a motion and approved the adoption of Ordinance No. 699 – incurring lease rental debt in the principal amount of $3,126,000 for the Authority’s $7,815,000 sewer revenue bonds.

 

Honesdale Borough made a motion and approved Resolution 2019-042 to extend the life of the Authority until December 1, 2069.

 

Texas Township made a motion and approved a Resolution to extend the life of the Authority until December 1, 2069.

 

Texas Township made a motion and approved Ordinance No. 2019-1223 – incurring lease rental debt in the principal amount of $4,689,000 for the Authority’s $7,815,000 sewer revenue bonds.

 

Cherry Ridge Township made a motion and approved Resolution 2019-12-23 to extend the life of the Authority until December 1, 2069.

 

The municipal meetings were adjourned at 6:20 p.m.

 

 

Motion

On a motion made by John Haggarty and seconded by James LaPoint the Board approved Resolution 12-23-2019-1. Authorizing and securing two guaranteed sewer revenue bonds of the Authority, in the aggregate principal amount of $7,815,000 to refund and retire the Authority’s $7,115,000 sewer project note held by The Dime Bank for the USDA funded projects.

Motion carried.

Roll Call

Mr. Firmstone, Absent                        Mr. Feik, Absent                                  Mr. LaPoint, Yes

Mr. Haggarty, Yes                               Mr. Theobald, Yes                               Mr. Brennan, Yes

 

Motion

On a motion made by James LaPoint and seconded by John Haggarty the Board of Directors approved Resolution No. 12-23-2019-2 Authorizing and approving a guaranty agreement, by the Borough of Honesdale and the Township of Texas as Guarantors for the Authority’s loan with Rural Utilities Service - USDA.   Motion carried.

Roll Call

Mr. Feik, Absent                                  Mr. LaPoint, Yes                                  Mr. Haggarty, Yes

Mr. Theobald, Yes                               Mr. Brennan, Yes                                Mr. Firmstone, Absent

 

Motion

On a motion made by John Haggarty and seconded by James LaPoint the Board approved Resolution 12-23-2019-3. A loan resolution authorizing indebtedness of $700,000 pursuant to the Pennsylvania Municipality Authorities Act. Loan funds received from Rural Utilities Service -USDA.

Motion carried.

Roll Call

Mr. LaPoint, Yes                                  Mr. Haggarty, Yes                               Mr. Theobald, Yes

Mr. Brennan, Yes                                Mr. Firmstone, Absent                        Mr. Feik, Absent

 

Motion

On a motion made by James Brennan and seconded by James LaPoint the Board approved Resolution 12-23-2019-4, Amending the Authorities Articles of Incorporation #7 – The term of existence of the Authority shall end on December 1, 2069. Motion carried.

Roll Call

Mr. Haggarty, Yes                               Mr. Theobald, Yes                   Mr. Brennan, Yes

Mr. Firmstone, Absent                        Mr. Feik, Absent                      Mr. LaPoint, Yes

 

Motion

On a motion made by James Brennan and seconded by James LaPoint the Board approved the meeting minutes from November 25, 2019 as presented. Motion carried.

Roll Call

Mr. Theobald, Yes                   Mr. Brennan, Yes                    Mr. Firmstone, Absent

Mr. Feik, Absent                      Mr. LaPoint, Yes                      Mr. Haggarty, Yes

 

Solicitor’s Report

RUS Closing

Tonight’s meeting will include a joint meeting of the Borough of Honesdale, Texas Township and Cherry Ridge Township in order for the Borough of Honesdale and Texas Township to guarantee the $7.815M loan as follows:

Honesdale Borough - $3,126,000; Texas Township - $4,689,000.

Jens Damgaard, Bond Counsel to the Authority, will be present at tonight’s meeting and will be reviewing the documents that have been prepared for execution both by the Authority and by the Borough of Honesdale and Texas Township.  The Authority will be asked to sign a RUS Loan Resolution, a Guaranty Agreement Resolution, an Amendment to the Articles of Incorporation Resolution, a Projected Annual Cashflow and Guaranty Agreement.  Bond Counsel has prepared these documents and they have been reviewed and approved.

 

Engineer’s Report

  1. 1) WHITE MILLS SEWER INSTALLATION PROJECT (USDA RUS)
  2. Contract #1 – White Mills Sanitary Sewer Installation
    1. Contract Information:

(1)  Contractor: Leeward Construction, Inc

(2)  Dates:

  1. Notice to Proceed: January 9, 2019
  2. Substantial Completion: February 13, 2020 (400 days)
  3. Final Completion: March 29, 2020 (445 days)

(3)  Contract Amount: $5,193,193.00

  1. Change Order #1 – $27,973.90 (RR Boring) – RUS Approved
  2. Change Order #2 – $9,103.14 (Road Base Drain) – Need Approval
    1. $14.73/lf of Road Base Drain – Previously Approved by Authority
    2. Change Order #3 – Time Extension (120 Days) – Need Approval
      1. Substantial: June 12, 2020, Final: July 27, 2020
    3. Schedule/Meetings:

(1)  Progress Meeting #12 – January 22, 2020 at 10:00 am

  1. Payment Applications:

(1)  Payment Application #11 – $300,803.55 (Recommended for Payment)

  1. Items for Discussion:

(1)  Canal Mobile Home Park/ Schedule

  1. Contract #2 – Pump Station, Conditioning Station, and Sanitary Sewer Installation
    1. Contract Information:

(1)  Contractor: Pioneer Construction Co, Inc.

(2)  Dates:

  1. Notice to Proceed: October 24, 2018
  2. Substantial Completion: July 21, 2019 (270 days)
  3. Final Completion: August 20, 2019 (300 days)

(3)  Contract Amount: $2,560,969.00

  1. Change Order #1 - $72,045.00 (Texas Township Bridge) – RUS Approved
  2. Change Order #2 – Time Extension (120 Days) – RUS Approved
    1. Substantial: November 18, 2019, Final: December 18, 2019
    2. Change Order #3 – $226,751.61 (Old Willow Pave) – RUS Approved
    3. Change Order #4 – Time Extension (Sub: 102 Days; Final: 134 Days) – Need Approval
      1. Substantial: February 28, 2020, Final: April 30, 2020
    4. Schedule/Meetings:

(1)  99% Substantially Completed

(2)  Final Punch List Items/ Restoration to Occur in Spring

  1. Payment Applications:

(1)  Payment Application #10 – $408,469.37 (Recommended for Payment)

  1. 2) CAPITAL IMPROVEMENT PROJECTs (PENNVEST)
  2. 2018 Sewer Main Replacement
    1. Contract Information:

(1)  Contractor: Leeward Construction, Inc.

(2)  Dates:

  1. Notice to Proceed: April 15, 2019
  2. Substantial Completion: July 14, 2019 (90 Days)
  3. Final Completion: August 13, 2019 (120 Days)

(3)  Contract Amount: $875,875.00

  1. Change Order #1 – $2,850.00 (Tree Removal) – DEP Approved
  2. Change Order #2 – Time Extension (60 Days) – DEP Approved
    1. Substantial: September 12, 2019, Final: October 12, 2019
    2. Change Order #3 – Time Extension (309 Days) – Need Approval
      1. Substantial: July 17, 2020, Final: August 16, 2020
    3. Schedule/Meetings:

(1)  Progress Meeting #8 – January 22, 2020 at 11:00 am

  1. Payment Applications:

(1)  Payment Application #6 (Includes Stored Materials) – $15,321.92 (Recommended for Payment)

(2)  Payment Application #6 (Excludes Stored Materials) – $2,707.50

  1. Items for Discussion:

(1)  Schedule/ HOP Permit

  1. Cliff Street Area
    1. Contract Information:

(1)  Contractor: Leeward Construction, Inc.

(2)  Dates:

  1. Notice to Proceed: April 22, 2019
  2. Substantial Completion: July 21, 2019 (90 Days)
  3. Final Completion: August 20, 2019 (120 Days)

(3)  Contract Amount: $947,749.00

  1. Change Order #1 – Time Extension (143 Days) – DEP Approved
    1. Substantial: December 11, 2109, Final: January 10, 2020
    2. Change Order #2 – Time Extension (233 Days) – Need Approval
      1. Substantial: July 31, 2020, Final: August 30, 2020
      2. Change Order #3 – $6,289.36 (Road Base Drain) – Need Approval
        1. $14.73/lf of Road Base Drain – Same as White Mills
    3. Schedule/Meetings:

(1)  Progress Meeting #8 – January 22, 2020 at 11:00 am

  1. Payment Applications:

(1)  Payment Application #6 – $193,266.30 (Recommended for Payment)

  1. Lackawaxen River Interceptor
    1. Contract Information:

(1)  Contractor: Mobile Dredging & Video Pipe, Inc.

(2)  Dates:

  1. Notice to Proceed: April 22, 2019
  2. Substantial Completion: July 21, 2019 (90 Days)
  3. Final Completion: August 20, 2019 (120 Days)

(3)  Contract Amount: $199,105.00

  1. Change Order #1 – $3,600.00 (Additional TV Work) – DEP Approved
  2. Change Order #2 – Time Extension (20 Days) – DEP Approved
  3. Change Order #3 – -$32,874.00 (Balancing Change Order) – Submitted to DEP
  4. Schedule/Meetings:

(1)  Complete – Need to Schedule Final Inspection

  1. SBR Tanks
    1. Contract Information:

(1)  Contractor: Titan Industrial Services, Inc

(2)  Dates:

  1. Notice to Proceed: April 24, 2019
  2. Substantial Completion: 120 Days Total (60 Days per set of Tanks)
  3. Final Completion: 150 Days

(3)  Contract Amount: $849,532.00

  1. Payment Applications:

(1)  Payment Application #3 – $463,727.20 (Recommended for Payment)

  1. Includes Release of Retainage
  2. Schedule/Meetings:

(1)  Completed November 17, 2019

(2)  Approve Substantial Completion

  1. 3) 5th STREET BRIDGE REALIGNMENT
  2. Approved by DEP

 

PennDOT Vehicle Wash – Indian Orchard.  The Authority has repeatedly asked for winter sampling from other PennDOT vehicle washes in order to review for the potential connection to the Authority’s collection system.

 

PennDOT has required the Authority to resubmit a full HOP application and payment in order to complete the 2018 Sewer Main Replacement Project. The project was delayed because PennDOT did not approve a section of work near Bold’s Florist. The Authority then opted to rehab the area instead of replace as originally intended. The Authority had to pay permit fees for a second time for areas of the project that have already been completed in order to obtain the permit to finish the project.

 

Motion

On a motion made by John Haggarty and seconded by James LaPoint the Board approved Change Order No. 2 with Leeward Construction Inc. for the White Mills Project in the amount of $9,103.14. The change order is for repair and replacement of road base drains on PennDOT roads. Motion carried.

Roll Call

Mr. Brennan, Yes                    Mr. Firmstone, Absent            Mr. Feik, Absent

Mr. LaPoint, Yes                      Mr. Haggarty, Yes                   Mr. Theobald, Yes

 

Motion

On a motion made by James LaPoint and seconded by John Haggarty the Board approved Change Order No. 3 with Leeward Construction, Inc. for a 120 - day time extension on the White Mills Project.  The change order is due to lack of response from GSP Management, the owner of the Mobile Home Park in White Mills. Construction of this area cannot occur until all the utilities within the park are physically located and marked. There are no records of the existing utilities and field work must be conducted to locate them. Motion carried.

Roll Call

Mr. Firmstone, Absent            Mr. Feik, Absent                      Mr. LaPoint, Yes

Mr. Haggarty, Yes                   Mr. Theobald, Yes                   Mr. Brennan, Yes

 

Motion

On a motion made by James LaPoint and seconded by James Brennan the Board approved Change Order No. 4 with Pioneer Construction Co. Inc. for a 134 - day time extension on the White Mills Project. Motion carried.

Roll Call

Mr. Feik, Absent                      Mr. LaPoint, Yes                      Mr. Haggarty, Yes

Mr. Theobald, Yes                   Mr. Brennan, Yes                    Mr. Firmstone, Absent

 

Motion

On a motion made by James LaPoint and seconded by John Haggarty the Board approved Change Order No.3 with Leeward Construction, Inc. for a 309-day time extension on the 2018 Sewer Main Replacement Project.

Motion carried.

Roll Call

Mr. LaPoint, Yes                                  Mr. Haggarty, Yes                               Mr. Theobald, Yes

Mr. Brennan, Yes                                Mr. Firmstone, Absent                        Mr. Feik, Absent

 

Motion

On a motion made by James LaPoint and seconded by John Haggarty the Board approved payment request #6 with Leeward Construction, Inc. for the 2018 Sewer Main Replacement Project in the amount of $15,321.92. Motion carried.

Roll Call

Mr. Haggarty, Yes                               Mr. Theobald, Yes                   Mr. Brennan, Yes

Mr. Firmstone, Absent                        Mr. Feik, Absent                      Mr. LaPoint, Yes

 

Motion

On a motion made by John Haggarty and seconded by James Brennan the Board approved Change Order No. 2 with Leeward Construction, Inc. for a 233-time extension on the Cliff Street Sewer Main Replacement Project. Motion carried.

Roll Call

Mr. Theobald, Yes                   Mr. Brennan, Yes                    Mr. Firmstone, Absent

Mr. Feik, Absent                      Mr. LaPoint, Yes                      Mr. Haggarty, Yes

 

Motion

On a motion made by John Haggarty and seconded by James Brennan the Board approved Change Order No. 3 with Leeward Construction Inc. for the Cliff Street Sewer Main Replacement Project in the amount of $6,289.36. The change order is for repair and replacement of road base drains on PennDOT roads.  Motion carried.

Roll Call

Mr. Brennan, Yes                    Mr. Firmstone, Absent            Mr. Feik, Absent

Mr. LaPoint, Yes                      Mr. Haggarty, Yes                   Mr. Theobald, Yes

 

Motion

On a motion made by James LaPoint and seconded by John Haggarty the Board approved pay application No. 3 for the final payment to Titan Industrial Services, Inc. for the SBR Tank Project in the amount of $463,727.20. The Authority approved the Certificate of Substantial Completion for the project upon final engineer’s review.  Motion carried.

Roll Call

Mr. Firmstone, Absent            Mr. Feik, Absent                      Mr. LaPoint, Yes

Mr. Haggarty, Yes                   Mr. Theobald, Yes                   Mr. Brennan, Yes

 

Plant Report

  • The monthly discharge monitoring and plant reports were reviewed.
  • The grease trap inspection report was reviewed. Re-inspections were conducted and follow-up letters sent where necessary.
  • The purchase of a battery backup for the SBR was approved for purchase. If the battery fails it shuts down the plant operating computer.
  • The new garage overhead door will be installed next month.
  • The plant is running well after the SBR tank startup.
  • Dan was given permission to attend a 4-day conference in March.
  • A float problem was repaired at the Lake Cadjaw pump station.

Collection System Report

Contract No. 1 - Leeward

  • Two crews installing grinder pumps.  These units will not be complete until discharge lines are run and control panels are mounted and wired.

Contract No. 2 - Pioneer

  • Conditioning station is on-line.
  • Need to get ARV units supported and on-line.
  • Need to complete as much of the punch list as possible, will need to wait until spring for final completion.

2018 Project (Willow Ave):

  • Project on hold due to no permit at this time.

Cliff Street (Leeward Construction)

  • Main line is in but not complete until manholes are purged and temporary tie-ins are removed.
  • Contractor is waiting on Aqua to complete work before service laterals are installed.  Aqua is still waiting on a supplement with PennDOT to complete the project.
  • Today is the last day contractor will be on the job until whenever, probably spring.

Debt Collection Report

  • 90 Initial collection letters were mailed
  • 16 Lien Pending letters were sent out by certified mail
  • 4 Liens will be filed with the Wayne County Prothonotary
  • 1 Account will be filed with the District Magistrate
  • Municipal liens on properties total $21,228.81
  • 12 accounts scheduled for water termination on January 20, 2020

Administration Report

  • The monthly invoices and financial reports were reviewed.
  • Letters were mailed to customers to notify them up of account services offered through the Authority’s website beginning February 1st.
  • Reminders were sent to White Mills customers to complete their electric service for grinder pumps and pay their tapping fees.
  • The 2020 Operating Budget was reviewed and approved.
  • H20 Grant applications were submitted for the Cherry Ridge and Crestmont Area Projects.
  • Entech Engineering has made a monetary donation to the Wayne County Food Pantry Program on behalf of the Authority.
  • A letter was sent to the owners of McDonald’s Restaurant regarding snow plowing around the Authority’s pump station near the restaurant.

 

Motion

On a motion made by James LaPoint and seconded by John Haggarty the Board approved the 2020 Operating Budget as presented. Motion carried.

Roll Call

Mr. Feik, Absent                      Mr. LaPoint, Yes                      Mr. Haggarty, Yes

Mr. Theobald, Yes                   Mr. Brennan, Yes                    Mr. Firmstone, Absent

 

Motion

On a motion made by James LaPoint and seconded by James Brennan the Board approved the monthly invoices for payment as presented. The USDA Project invoices will be paid upon approval by RUS.

Motion carried.

Roll Call

Mr. LaPoint, Yes                                  Mr. Haggarty, Yes                               Mr. Theobald, Yes

Mr. Brennan, Yes                                Mr. Firmstone, Absent                        Mr. Feik, Absent

 

Public Comment – none.

 

The Board entered into an executive session for matter of personnel at 7:49 p.m.

The Board returned from executive session at 8:00 p.m.

 

The meeting was adjourned at 8:00 p.m.

The next Board meeting is scheduled for January 27, 2020.

 

 

 

James LaPoint, Secretary

 
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