Regular Meeting                                                                         February 9, 2010

The regular meeting of the Millcreek Township Municipal Building was called to order at 9:33 a.m. by Chairman Kujawa in the Assembly Room of the Millcreek Township Municipal Building .  Present were Gerald Wolf, Brian McGrath , Joseph Kujawa , Richard Figaski, Evan Adair , Esq., Phyllis Vollbrecht, and Richard Morris, P.E.

Following the Pledge to the Flag, Chairman Kujawa called for public comment on agenda items other than development or rezoning applications.  No comments were received.

It was moved by Mr. McGrath and seconded by Mr. Figaski to approve the minutes of the meeting of January 26, 2010 .  Voting yes:  McGrath, Figaski.  Mr. Kujawa was absent.  It was moved by Mr. McGrath and seconded by Mr. Figaski to approve the minutes of the Board’s February 2, 2010 meeting.  Voting yes:  McGrath, Figaski.  Mr. Kujawa abstained. 

On motion by Mr. Figaski and seconded by Mr. McGrath, payment of the weekly General Fund bills in the amount of $131,029.55 was approved.  Motion carried by unanimous roll call vote.

Jeff Skonieczki and Ray Bauer, Belle Valley Fire Department representatives, appeared to present the Belle Valley Fire Department 2009 Operational Report as recommended by PSCI.  Mr. Skonieczki reviewed the 15-page report which included comments on membership, call statistics, training, apparatus and equipment, website statistics, and the outlook for 2010.  The fire department experienced serious flooding on June 30, 2009 that damaged everything in the building from 60” down.  Insurance covered 95 percent of the damage.  With an outstanding membership, exceptional training and equipment that is second to none, the Belle Valley Fire Department is without a doubt as professional a fire department as any other department, paid or volunteer. On behalf of Belle Valley , Mr. Skonieczki thanked Bob Mitchell , Charlie Heffner, Streets Department, all other fire departments, Joe Kujawa , Brian McGrath , and Larry Curtis for all the help the day of and days after the flood.  Mr. Kujawa explained that there are many jobs around the fire department, other than a trained fire fighter, if anyone would like to serve.  Mr. McGrath thanked Mr. Skonieczki and Mr. Bauer for the report and Mr. Petrone for his work on the budget to meet the requirements of new State laws regarding funding provided by Millcreek Township . 

Mr. Kujawa announced the following proposals received for engineering services for the Millcreek Township solar panels and Garage 2 retrofit which will be funded using an Energy Efficiency and Conservation Block Grant (EECBG):

            Struxtures, LLC                                      $32,000.00

            Rectenwald Architects, Inc.                       Not to exceed grant terms

                                                                        Extras – hourly + expenses

            Michael Grab, Architect                           Not to exceed grant terms

                                                                        Extras – hourly + expenses

            Roth Marz Partnership, Inc.                       $14,900.00

It was moved by Mr. McGrath and seconded by Mr. Figaski to award the contract to Roth Marz Partnership, Inc. for $14,900.00 conditioned on approval from the Department of Energy.  Motion carried by unanimous roll call vote. 

Mr. Kujawa announced the following quotations received for the 2010 Catch Basin Replacement Project:

            McCaslin Construction                             $9,700.00

                                                                        + $825.00/each additional basin

            Jim Brozell Construction                           $9,890.00

                                                                        + $705.00/each additional basin

            Shingledecker Welding, Inc.                       No quotation received

            Paul Amendola                                        $9,170.00

                                                                        + $750.00/each additional basin

            Chiver’s Construction                               No quotation received.

On the recommendation of Anne Sokol, Asst. Engineer, it was moved by Mr. Kujawa and seconded by Mr. McGrath to award the contract to Paul Amendola for $9,170.00 and $750.00 for each additional basin.  Motion carried by unanimous roll call vote.

Regarding consideration of the following:

Preliminary Plan for Laurel Springs .  Preliminary Land Development Plan.  A modified preliminary land development plan to show an increase of total proposed apartment units to 402 with proposed private roads, located along the south line of West Grandview Boulevard (S.R. 4014) west of West Street in the South Gore Tract and Tract 348.  (Tabled at Supervisors’ meeting on January 26, 2010 .)

Engineer Morris reported receipt of a letter from the developer dated January 28, 2010 asking for a three-week extension of time.  It was moved by Mr. Figaski and seconded by Mr. McGrath to table consideration of the Preliminary Land Development Plan for Laurel Springs until March 2, 2010 .  Motion carried by unanimous roll call vote.

Laurel Springs – Phase 3A.  Land Development Plan.  A land development plan showing the construction of a 52-unit apartment building with associated driveway and parking areas located at the southwest corner of West Grandview Boulevard (S.R. 4014) and West Street in Tract 348 and the South Gore Tract.  (Tabled at Supervisors’ meeting on January 26, 2010 .)

It was moved by Mr. Figaski and seconded by Mr. McGrath to table consideration of the Land Development Plan for Laurel Springs – Phase 3A until March 2, 2010 .  Motion carried by unanimous roll call vote.

Regarding Ordinance No. 2010-1; an Ordinance to amend and restate Ordinance No. 99-8, commonly known as the Millcreek Township Sewer Rental Ordinance, as amended and restated by Ordinance Nos. 2004-15 and 2006-14, to increase from $70.00 to $80.00 the quarterly rental assessment per equivalent domestic unit effective January 1, 2010; containing severability and repealor clauses, Mr. Figaski said he is not in favor of this ordinance to raise sewer rates; however, he realizes there is a large bill that needs to be paid.  Different alternatives need to be considered so he proposed the following two resolutions:

1.         In the matter of the proposed increase of sewer rates within Millcreek Township , the Board of Supervisors recognizes that there exist alternative billing structures which could impact the rates Millcreek residents currently pay for sanitary sewer services.  In an effort to determine the impact on the ratepayers within Millcreek Township, the Board of Supervisors hereby resolves (A) to require that the Department of Sewer Revenue immediately begin to conduct a cost of service study to determine the benefit to ratepayers of converting their billing structure from the current flat fee billing model to a billing structure based on water usage, and (B) that such study be completed on a date not to exceed July 1, 2010.

2.       In the matter of the lease of the Millcreek Township Water Authority system to the Erie Water Works, the Millcreek Township Board of Supervisors hereby resolves (A) that an agreement for said lease shall be negotiated by the Millcreek Township Board of Supervisors by a date not to exceed July 1, 2010, and (B) that the operations of the Millcreek Township Water Authority shall be turned over to the Erie Water Works by January 1, 2011.

Mr. Figaski moved to approve the first resolution and Mr. McGrath seconded.  Mr. McGrath said the cost of service study is a good idea but is concerned about the affect the sewer billing based on water usage would have on residents of the Township; some positively and some negatively.  Without the study, no one would know.  In discussions with other Supervisors across the State, Mr. McGrath learned that sewer billing based on water usage is about 50/50 because determination is made on the number of residents on wells.  He thinks there are about 15 to 20 percent of Township residents on wells.  Barry Baker, CFO of the Sewer Authority, felt the July 1, 2010 date would work.  Motion carried by unanimous roll call vote.

Mr. Figaski moved to approve the second resolution.  In reply to Mr. Kujawa’s question, Mr. Figaski said the Schaffner Report is due out the end of February.  Whatever is in the report, there are about five months to get the lease done.  No significant progress has been made since April of last year.  Mr. McGrath is not comfortable yet making a commitment without all the facts.  He also feels that raising the sewer rates and the lease of the Water Authority should not be tied together.  Mr. Figaski believes that even with some questions still to be answered, the lease could be completed within five months.  Erie Water Works also feels this date is realistic. The Board has the ability to save people money and should be working toward that. Mr. Kujawa does not want to make a decision until all the facts are in.  If the Board has to borrow money to pay the $1,120,000 bill due the end of March, about $59,000 will be paid in interest to repay the loan.  Also, it would take about three months to process a loan.  He emphasized that the Board does not want to raise sewer rates, but it must be done.  By not approving the second resolution, Mr. Figaski said a lot of time is being wasted and deadlines should be set.  Mr. Figaski’s motion died for lack of a second.

Mr. McGrath said that something has to be done with the sewer bills in order to pay the City of Erie .  There are many reasons that sewer rates have increased over the years; transportation and treatment is one.  The Township has been very aggressive and successful in cleaning up our system to keep from polluting Lake Erie .  Mr. Figaski pointed out that studies have been done on the water lease issue and we can lower the water rates for these 7,000 customers.  At a recent meeting with the Sewer Authority finance people, he asked if water rates would ever be the same between Erie and Millcreek customers based on the model that is currently used.  The answer was no because a middle man system is used. 

It was moved by Mr. McGrath to approve Ordinance 2010-1.  Motion died for lack of a second.  

It was recommended by Engineer Morris, moved by Mr. McGrath and seconded by Mr. Figaski to approve the Stormwater Maintenance Agreement for Ridgebury Apartments located at West Ridge Road and Tamarack Drive .  Motion carried by unanimous roll call vote.

Mr. McGrath presented the Building Construction Report for January as follows:

            Total Residential Structures                                               $500,000.00

            Total Non-residential Structures                                         $  46,000.00

                                                                                                $546,000.00

            Zoning Permits Issued                                                                   5

            Zoning Permit Fees                                                          $    2,250.00

Treasurer Wolf reported that several months ago the Board approved a contract with Industrial Appraisal for an update on fixed assets.  On Mr. Wolf’s recommendation, it was moved by Mr. McGrath and seconded by Mr. Figaski to approve a contract with New World Systems to provide financial software to convert the fixed asset data from Industrial Appraisal at the cost of $5,000.00.  There being no public comment, the motion carried by unanimous roll call vote.

It was recommended by Parks and Recreation Director James Sperry, moved by Mr. McGrath and seconded by Mr. Figaski to approve the following for the 2010 spring season staff:

            Kenneth Fromknecht         Part-time Maintenance                  $10.00/hour

                                                02/15/10 – 09/30/10

            John Bucci                      Part-time Maintenance                  $10.00/hour

                                                04/05/10 – 09/30/10

            Dave Madden                  Part-time Maintenance                  $10.00/hour

                                                04/26/10 – 09/02/10

There being no public comment, the motion carried by unanimous roll call vote.

It was recommended by Streets Foreman Mark Dietz , moved by Mr. McGrath and seconded by Mr. Figaski that two Streets Department employees be permitted to attend a North East Center of Excellence for Pavement Technology annual update on March 9, 2010 offered at Penn State at the cost of $460.00 and $25.00 for new certification cards.  There being no public comment, the motion carried by unanimous roll call vote.

It was moved by Mr. McGrath and seconded by Mr. Figaski that John Blose be the new I & I Department Job Foreman effective February 5, 2010.  There being no public comment on the matter; the motion carried by unanimous roll call vote.

It was moved by Mr. Kujawa, seconded by Mr. McGrath, to permit Christine Walter to attend a Regional Recycling Sustainability Forum on February 17, 2010 at the Regional Office and that a Township vehicle be used for transportation.  There being no public comment, the motion carried by unanimous roll call vote.

In response to Mr. Kujawa’s question, Barry Baker, CFO of the Millcreek Township Sewer Authority, reported that a semi-annual debt payment in the amount of $600,000.00 will have to be made after the March payment to the City of Erie .  Bank balances will have to be checked after the payment to the City is made.  Mr. Figaski asked if the semi-annual payment was built into the current sewer rate.  It was built into the 2010 Budget according to Mr. Baker.  Regardless of whether a flat rate billing system or a consumption based billing system was used, a rate increase would still have to be made to cover the excess charges of the City. 
Mr. McGrath pointed out that the additional debt service was accounted for in the 2010 Budget as well as the $10.00 sewer bill increase.  Without the increase, both bills will not be able to be paid according to Mr. Baker.  He said one borrows money for capital improvements, not for maintenance and operation expenses. 

Chris Campbell, 3720 Dominic Drive , said he already paid $80.00 and asked if the Ordinance has not been passed yet, how can residents be charged the additional amount.  Mr. McGrath explained that it is a timing issue and if it’s not passed, those who have already paid will be credited.  Mr. Campbell also asked if two or three meetings each month could be in the evening rather than just one.  Mr. Kujawa said the meeting schedule has already been advertised.  Unless there is a subdivision matter or rezoning matter on the agenda, Mr. McGrath said the evening meetings are very short with few people in attendance. 

Mr. Kujawa asked Mr. McGrath and Mr. Figaski if they were in agreement to borrow money to pay the sewer bill.  Mr. McGrath is not.  Mr. Figaski said now the Board has the ability to do something about the two different water rates.  He asked those in attendance to voice their opinions.  He has not received one phone call or email since he has opposed this increase indicating that he is wrong.

Lou Arcovio, 3927 Vista Drive , said that Mr. Figaski is not wrong and 7,300 families have been held hostage for many, many years.  Mr. Kujawa explained that the water and sewer issues are separate issues.  The Township is moving in the right direction regarding the water least but perhaps not as fast as Mr. Arcovio’s committee would like.  Other townships’ involvement must be considered under the water lease agreement.  Mr. Riedesel and staff had not been invited to meetings with Erie Water Works until Mr. Kujawa requested that they attend and it was beneficial at the last meeting because many questions were answered.  Mr. Figaski said Erie Water Works has already indicated that agreements with other municipalities will not change.  All he is asking with his second resolution is for the Board to commit to a five-month period during which negotiations can be completed. 

Mr. McGrath said he cannot base his decisions on whether or not he is fearful of getting re-elected, he has to do what he feels is best for the citizens of Millcreek Township.  He is waiting to see the new proposal from the City and the Schaffner report. 

Roy First, 4103 Vista Drive , commended Mr. Figaski for fighting for 18,000 Millcreek residents that the other two have forgotten.  He asked Mr. McGrath why he voted to allow the Millcreek Water Authority to borrow $1 million when they had the money in the bank. Mr. McGrath explained that money was for capital improvements, not to pay a utility bill. 
Mr. First said the Cheaper Cleaner Water Task Force wants this lease to go through and suggested the Board get moving.

George Riedesel, Executive Director of the Millcreek Township Sewer and Water Authorities, explained that this is a cash flow issue—the time the revenues come in versus the time the bills are due.  The Sewer Revenue Department and Supervisors have contracted obligations in the $9 million budget so the department guarantees to other that payments will be made in a timely fashion.  There are penalties if that isn’t done.  Defaults on loan payments impact the future borrowing of the Township and the Authorities.  An alternative to this is to remove politics from utilities and basic services.  The Board could re-open the Sewer Authority as an operating authority.  A 2002 regionalism study done by the State recommended consideration of
semi-regionalization but the strongest recommendation was to change the representation.  That is one of the positions the Water Authority feels is a deal killer which agrees with the 2002 report.  The Kugler Report also suggested that regionalization and representative are very important issues.  He invited anybody to go on the Cheaper Cleaner Water website and try to come up with a rate that is 50 percent more.  The best that bills could be cut is about 30 percent, not 50 percent.  The Authority has been cutting the rate differential for the last few years.  The debt pay downs are scheduled to end in the very near future.  The combination of the Water Authority’s itemized plan will result in a sustainable rate that will be less than Erie Water Works—with any success on the rate issue at all—for the long term.  Mr. Riedesel feels that this administration has made the Erie Water Works situation worse so they have managed to obligate everyone to pay $170 million to the City of Erie for absolutely nothing—no capital improvements, no operating efficiencies and it needs to be addressed.  Mr. Figaski asked him about the water rates being less than the rates being charged by Erie Water Works. 
Mr. Riedesel believes that the current model overcharges Millcreek Township Water Authority and that is what the rate dispute is about.  He offered to review the rates with Mr. Figaski. 

It was moved by Mr. McGrath and seconded by Mr. Kujawa to approve Ordinance No. 2010-1; an Ordinance to amend and restate Ordinance No. 99-8, commonly known as the Millcreek Township Sewer Rental Ordinance, as amended and restated by Ordinance Nos. 2004-15 and 2006-14, to increase from $70.00 to $80.00 the quarterly rental assessment per equivalent domestic unit effective January 1, 2010; containing severability and repealor clauses.  Voting yes:  McGrath, Kujawa.  Voting no:  Figaski.  Mr. Figaski commented that he admired the courage of the other two Supervisors; however, he made promises to the people of Millcreek Township and he is going to remain true to those promises.  He feels there are alternatives to explore for the benefit of all Millcreek residents. 

It was moved by Mr. Figaski, seconded by Mr. McGrath, that Daniel Ouellet, Fire Chief of West Ridge Fire Department and Sewer Department employee, be permitted to attend the annual Fire House World Conference in San Diego , California from March 1 to 5, 2010 with West Ridge covering all costs associated with the conference.  Mr. Ouellet will be permitted to attend using 2.5 days paid leave and 2.5 days of vacation.  There being no public comment, the motion carried by unanimous roll call vote.

It was requested by Chief Carlotti that Sgt. Scott Irwin and Cpl. Donald Kucenski attend the Western Pennsylvania SWAT Commanders meeting on February 19, 2010 at the Beaver County 911 Center in Ambridge , Pennsylvania .  Travel will be by Township vehicle.  It was moved by Mr. Figaski and seconded by Mr. McGrath to approve the request.  There being no public comment, the motion carried by unanimous roll call vote.

Chief Carlotti requested permission to purchase a new Computer Voice Stress Analyzer system (CVSA) to replace the current eight-year old system.  The latest CVSA system retails for between $9,000 and $12,000 but with a trade-in and the requirement that two officers (Cpls. Skonieczka and Mitchell) attend training at the Erie County 911 Center at the usual cost of $1,295 each, the package for the system and training would be $3,885.  It was moved by Mr. Figaski and seconded by Mr. McGrath to approve the purchase of the new CVSA system with training at a total cost of $3,885.00.  There being no public comment, the motion carried by unanimous roll call vote.

It was recommended by Atty. Adair, moved by Mr. McGrath and seconded by Mr. Figaski to authorize the sale from the Repository for Unsold Properties of a parcel known as 516 Oregon Avenue (trailer) through the Tax Claim Bureau for $250.00.  There being no public comment, the motion carried by unanimous roll call vote.

Atty. Adair reported that in 2003, the Township and the Sewer Authority were advised by the Department of Environmental Protection that it was time to resolve once and for all to fix the Kearsarge Bypass which discharged sanitary sewage into Walnut Creek after storm events for the sole purpose of protecting homes from being flooded with sewage.  Within five months, a Consent Order and Agreement was put together to eliminate the problem that led to the sewage retention devices on Zimmerly Road as well as millions of dollars to upgrade the sewer system throughout the Township.  After all that was done, some environmental groups filed a federal lawsuit claiming that the Township and Sewer Authority took too long to correct the problems.  Everything the Township said it would do has been done and restrictions of limitations of new connections to the sewer were terminated earlier than expected because the bypass is gone and there has been no discharge in years.  Even more was done because Millcreek threw the unlawful connection issue in and proceeded to take clean water out of the sewer system.  It was moved by Mr. McGrath and seconded by Mr. Figaski to approve a Settlement Agreement involving a payment of $25,000; $20,000 to the plaintiffs for legal fees and $5,000 to the Pennsylvania Steelhead Association.  Mr. McGrath called this a perfect nuisance lawsuit.  There being no public comment on the matter; the motion carried by unanimous roll call vote.

It was recommended by Engineer Morris, moved by Mr. McGrath and seconded by Mr. Figaski to approve the submittal of Emergency Action Plans to the Dam Safety Division of the Department of Environmental Protection for the Riviera Estates and the McDowell Intermediate High School .  There being no public comment on the matter, the motion carried by unanimous roll call vote.

On the recommendation of Engineer Morris, it was moved by Mr. McGrath and seconded by Mr. Figaski to award the contract to supply the Township with three (3) sluice gates for the Pebble Creek, Glen Meadows and Tuscany Lane flood detention basins to R. M. Headlee Company, Inc. in the amount of $19,289.00 (bids opened in November, 2009).  Signed easement agreements have been received from the developers so the Township can now proceed to install the sluice gates.  There being no public comment, the motion carried by unanimous roll call vote.

Engineer Morris requested permission to travel with Clay Fails and Tim Wells of Hill Engineering to tour the J. M. Eagle HDPE Pipe Plant and attend a technical seminar in Meadville , Pennsylvania on the afternoon of February 9, 2010.  This pipe is expected to be used throughout the Township, so inspection is necessary to insure compliance with existing specifications.  It was moved by Mr. McGrath and seconded by Mr. Figaski to approve the request.  There being no public comment on the matter, the motion carried by unanimous roll call vote.

Gerald Servidio, 1720 West Gore Road , commended the Board on their discussion to continue negotiation of water rates.  He asked about Erie Water Works incentive to lease the Millcreek Water Authority.  Mr. Figaski feels it is a sense of regionalization of services.  He also asked if Erie Water Works would assume the debts and the reserves of Millcreek Water Authority.  They would, according to Mr. Figaski and the reserves would be earmarked for Millcreek Township water system improvements.  Mr. Servidio is concerned about the future of the current work force. 

Attorney Adair left the meeting at 11:35 a.m.

Mr. McGrath explained that as positions become available within the Township, the Board has given dispatchers who would be displaced by moving the operation to the 911 Center the opportunity to bid on those open positions.  Mr. Servidio said there would be too many employees who would lose their jobs if the lease is approved and whole families affected.  Mr. Figaski believes he has to look out for a greater number of people, but everything will be done to try to minimize the loss of jobs.

There being no other citizens to be heard or further business to come before the Board, it was moved by Mr. McGrath and seconded by Mr. Figaski to adjourn the meeting.  The motion carried and the meeting adjourned at 11:37 a.m.

                                                                                    Phyllis A. Vollbrecht
                                                                                    Assistant Secretary

_______________________________________________________________________________

APPROVED:    February 16, 2010

Joseph S. Kujawa
Brian P. McGrath
Richard P. Figaski