The Conewago Township Board of Supervisors held a special meeting Wednesday, March 19, 2003. Those present were:

The meeting was called to order by Chairman, John Graybill at 7:30PM. The solicitor announced there was an executive session meeting from 6:30-730 PM to discuss agreement with DTMA.

The township has been working on a joint project with Derry Township Municipal Authority (DTMA) pertaining to our Act 537 for Phase I, which is primarily the Laurel Woods area. The last two years we have been working with DTMA for a rough outline of agreement, which was drafted two months ago, and thereafter, was brought to our attention that we may be eligible for Penn Vest funding. At the same time we did move ahead with having project bidded and paying engineering fees etc. The basic sewer service agreement with DTMA, is they would own and operate the system, construct it in accordance with outstanding bids. The proposed adoption of DTMA owning and operating the system would be: They agreed to the Connection Fee, $6,000 and would fund this at 4.91% for 6 years, which is what their residents pay; Current User Fee, $25.50; plus Capital Surcharge/Monthly Fee, Approx. $50.00; and added to current user fees would be $75-$80/Monthly.

We don't know if we will get Penn Vest funding, however, we requested a letter of NO prejudice which indicates we can go ahead with project and if we get funding, they would still reimburse us for the cost. There is a supplement to the basic agreement with DTMA which would let us continue to function as if Derry Twp. owned and operated the system, and Penn Vest would allow us to take the system in our name and than lease it back to DTMA for a nominal fee and give them the right to buy the system when the debt service is paid off. DTMA was uncomfortable because this created some problems for them, setting rates, ordinances, and adding people that aren't part of the project now.

The hope is that we would get the funding and get it at a rate that would shorten the term of debt service, but more importantly lower the monthly fee for every resident, but mostly for those that are unable to pay the $75./monthly fee. This is basically the jest of the agreement, but the first option would be that DTMA would own and operate, but they have given us the flexibility, if we get PENN VEST funding and absolutely can't do it in a way that Derry could own and operate, that we would have the right to purchase it and operate it ourselves if we choose to. The board members and our solicitor want to commend DTMA, Ralph Watters, and Dick Foreman, Solicitor for working with our township and giving us more alternatives. Rochat said he is comfortable with the agreement and DTMA needs an approval tonight of the agreement for their March 24, 2003 meeting. Both boards recognize that they may have to discuss details and may have to go back to the other board, but the solicitor said this is an excellent example of how townships can work together.

Questions were opened to the public: 1. The pumping station at Steinruck Road can handle 400 more customers and the money from Conewago or Londonderry - tapping fee would go toward reducing the bond. 2. [Editor's Note: this sentence is as corrected in April 9, 2003 minutes.] All residents will pay same hookup fee of $6,000, but those residents with grinder pumps would receive a partial credit from DTMA to help offset the cost of the grinder pumps, but the resident will own and maintain it. 3. The bond interest will start when tapping fee is paid and have 60 days to hookup. DTMA will spend a weekend in certain neighborhood to answer questions and help with applications. 4. The Dauphin County Assistance Program is geared for everyone and DTMA will be attending meetings this fall. The interest grants are based on income, number of children, etc.

The Chairman closed the question period and Rochat made a motion second by Graybill to adopt the sewer service agreement along with the supplement to sewer service agreement with DTMA to include the definition of Conewago Customer to include other parties that would connect to the Laurel Woods Project.

Motion by Rochat second by Graybill to adjourn at 7:45 PM.

   Submitted by,
   Shirley A. Bretz,
   Township Secretary