Sanitary Authority

Greenville Sanitary Authority 11-10-22 GREENVILLE SANITARY AUTHORITY GREENVILLE, PENNSYLVANIA SPECIAL SESSION MINUTES Thursday, November 10, 2022, ~ 6:00 p.m. CALL TO ORDER Mr. Bailey called the meeting to order at 6:04 pm ROLL CALL: Jonathan Bailey, Chairperson Chad Bromley Anne Butcher Robin Douglas – via phone Paul Hamill OTHERS PRESENT: Jasson Urey, Town Manager Rosalynn Reagle, Assistant Town Manager James Douglas, Solicitor Rob Horvat, KLH Engineers PUBLIC: Marc Lucca, Aqua Pennsylvania, Inc. Kelly Lima Tom Rafferty, Aqua Pennsylvania, Inc. Gary Beatty Luke Ravenstahl, Aqua Pennsylvania, Inc. Tracy Beil Zach Martin, Aqua Pennsylvania, Inc. Linda Alcorn Leslie Dix, Aqua Pennsylvania, Inc. Patty Rose John Andrews, Aqua Pennsylvania, Inc. Stephanie Williams Vince Donahue, Aqua Pennsylvania, Inc. – zoom Tom Strahler Heather Doyle-Connelly, Aqua Pennsylvania Inc. Carol Paul Rod Paul Nichole Fenstmaker Isaiah Vernon Jacob McCann Rod Wilt Earl Corp, Record Argus 1. INFORMATIONAL – None 2. PUBLIC COMMENTS – None 3. PRESENTATION FROM AQUA PENNSLVANIA INC. Mr. Marc Lucca spoke introducing himself and the Aqua Pennsylvania Inc. members that were in attendance for this informational setting. He also thanked the Authority for inviting them to return, granting them yet another opportunity to discuss their presentation to the interested public. Mr. Tom Rafferty began the presentation on by providing a brief overview of Aqua Pennsylvania Inc., who they are and what they do. Mr. Rafferty then invited Mr. Zach Martin to speak regarding the customer service and employee benefits that Aqua can provide. Mr. Martin announced that they had scheduled another meeting with the Treatment Plant employees to address their questions and concerns as the Authority works through this process. Mr. Martin then provided announced that if this agreement should proceed, Aqua planned to begin by investing $20 million over the first ten (10) years into the system to address the deficiencies and get the system in compliance with DEP Page 1 of 4 Greenville Sanitary Authority 11-10-22 requirements. Mr. Rafferty continued the discussion with Aqua’s community and engagement programs available through a foundation they have created. Mr. Rafferty spoke about ways they have assisted the communities they already serve. That led into a discussion regarding the benefits to be gained by the Municipality and by the residents should the Authority choose to sell their asset. Mr. Rafferty then proposed and discussed the purchase offer prices and how that amount affects the user rates accordingly and the how the PUC regulates the setting and adjusting rates moving forward. It was emphasized that the rates presented were at full cost of service and were worst case scenario for transparency purposes. Mr. Bailey asked for clarification on the rates as presented. Mr. Bailey asked if the rates did not include any possible PennVEST funding that could be secured for upgrades and without have the total costs of upgrades and how would that adjust the rates as a whole. Mr. Lucca responded by explaining how Aqua has the ability to spread the costs across their entire customer base and not just customers in the specific system area. By having that larger customer base, it keeps the rates lower overall. Mr. Rafferty resumed his discussion of PUC regulations that Aqua must follow prior to adjusting user rates. Mr. Gary Beatty asked of the Authority Board members what the plans are for the money since the Board would no longer be needed. Mr. Douglas responded that the Sewer Authority also oversees the Storm Water system so the Sanitary System would have to be separated out and they would still be responsible for overseeing the Storm Water system and as far as what would be done with the money, that was an excellent question that could not be answered at this point in time. Mr. Urey went into further details regarding the process if the Authority would decide to dissolve and presented the option of placing the proceeds into a foundation and not just into an account with the Town. Mr. Rod Wilt spoke up about what Penn-Northwest Development Corp. was and how they could help the Authority as far as investing and planning through economic development. Mr. Bailey invited any questions, comments or input from the public. No comments were made. Mr. Bailey then asked Mr. Rob Horvat, KLH Engineers Inc., to give an update on the current Sewer Upgrade Project numbers. The estimated cost has increased $46.5 million and the rate adjustment to cover that debt, using a combination of PennVEST and Bonds for financing, would be an estimated $84 per month. Mr. Horvat discussed if the Authority would eliminate some of the project lowering the project cost down to $20 million, matching Aqua’s proposed initial investment, for 20 years at PennVEST Cap rate adjust the user rate to about $58 per month. Mr. Gary Beatty asked how the sale would affect Hempfield residents because he owns properties in both municipalities. Mr. Rafferty explained the sale includes a hold on current rates for the first two years. Mr. Urey explained that the Township residents are charge a flat rate usage. 4. NEW BUSINESS A. Mr. Hamill started the conversation with questioning if the Board should decide which offer price and how that determines the user rates. Mr. Bailey announced that the first motion should be to determine if there is interest in a sale and then a price could be decided from there. MOTION by Mrs. Butcher, seconded by Mr. Bromley as to whether or not to sell the asset to Aqua Pennsylvania, Inc. The Board held lengthy discussions regarding what would be done with the proceeds from the sale. The Board took and responded to comments from Mr. Rod Wilt, Mrs. Tracy Biel and Mr. Urey during their discussions. Mr. Bailey asked Mr. Zach Martin to explain the project cost differences in the upgrade projects between what the Authority would have to spend and what Aqua would be able to accomplish at a much lower cost. Mr. Zach Page 2 of 4 Greenville Sanitary Authority 11-10-22 Martin explained that Aqua has a much greater purchasing power position that what the Authority does and they can spread the costs associated over a much larger customer base. They are purchasing materials in much larger quantities because they are purchasing for several facilities and not just one so purchases in bulk tend to be at a lower rate than what the Authority can purchase for itself. Mr. Bailey asked for a roll call vote. Motion Carried as follows: Mr. Bailey – YES; Mr. Bromley – YES; Mrs. Butcher – YES; Mrs. Douglas – YES; Mr. Hamill - YES. B. MOTION by Mrs. Butcher, seconded by Mr. Bromley to adopt Resolution 2022-01, Approving Sale of Sewer System. Mr. Bailey asked for a roll call vote. Motion Carried as follows: Mr. Bailey – YES; Mr. Bromley – YES; Mrs. Butcher – YES; Mrs. Douglas – YES; Mr. Hamill - YES. C. MOTION by Mrs. Butcher, seconded by Mr. Bromley to address the sale press. The Board held some discussion regarding the offer prices and user rates associated. MOTION AMENDED by Mrs. Butcher, amendment seconded by Mrs. Douglas to sell the Sewer System assets to Aqua Pennsylvania, Inc. for the amount of $18 Million. The Board held additional discussions regarding that specific amount. Mr. Bailey asked for a roll call vote. Motion Carried as follows: Mr. Bailey – NO; Mr. Bromley – YES: Mrs. Butcher – YES; Mrs. Douglas – YES; Mr. Hamill - YES. Mr. Isaiah Vernon, Plant Foreman, made comments regarding the opportunities available to the six (6) member staff through Aqua that they would not have had through the municipality and discussed the meetings that had been and will be held between the staff and Aqua representatives, including the meeting scheduled for tomorrow (11/11/22). 5. AUTHORITY MEMBERS COMMENTS - No additional comments were made. 6. TOWN MANAGER COMMENTS - Mr. Urey spoke regarding the employee/employer relationship with the current six (6) member staff at the Plant and how the municipality has limited resources because of our size and that we were doing the best we could and how they would have opportunities through Aqua that we were unable to provide. Mrs. Carol Paul spoke regarding the opportunities and support available since leaving her position as the manager of the Water Authority and take a position with Aqua. The Board asked to review the timeline slide again and discuss that with Mr. Rafferty. Mr. Rafferty explained that the next step would be to have KLH Engineers provide the Board with an Engineer’s Assessment of the Facility and then a UVE would have to be performed by an independent company. Mr. Rafferty stated they could help in making some recommendations for companies to fulfill that requirement. Mr. Bailey asked for Mr. Rafferty to make a recommendation and Mr. Rafferty recommended Scott Madden Company. Mr. Bailey asked what the evaluation costs approximately. Mr. Rafferty responded that those evaluations typically cost between $30,000 and $40,000 for a full report. MOTION by Mr. Bromley, seconded by Mrs. Butcher to authorize up to $50,000 for the UVE by retaining Scott Madden Company. Motion carried 5-0. 7. ASSISTANT TOWN MANAGER COMMENTS - Mr. Urey questioned the Board if they should set a special session meeting in case there was something that would need to be addressed prior to the next regularly scheduled meeting in January 2023. The Board held discussions and set a special Page 3 of 4 Greenville Sanitary Authority 11-10-22 meeting date of Thursday, December 15th @ 6pm in Council Chambers with the understanding that it could be cancelled if not needed. 8. ADJOURNMENT A. MOTION by Mr. Bromley, second by Mrs. Butcher to adjourn the meeting at 7:28 PM. Motion carried 5-0. Respectfully submitted, Chad Bromley, Secretary Page 4 of 4