[HISTORY: Adopted by the Board of Directors of the Valley Forge Sewer
Authority 10-10-1989. Amendments noted where applicable.]
A.Â
The Valley Forge Sewer Authority (the "Authority") is
a municipal authority incorporated under the Pennsylvania Municipality Authorities
Act of 1945, as amended (the "Act"),[1] pursuant to ordinances enacted by Schuylkill, East Pikeland and
Charlestown Townships (collectively the "incorporating municipalities").
[1]
Editor's Note: See 53 P.S. § 301 et seq.
B.Â
The Authority is regulated by the Act and is deemed to
be an instrumentality of the commonwealth. It has certain powers and duties
specified in the Act. These include the power to determine the scope of its
services, to impose sewer rentals and tapping fees and to finance its activities
through the issuance of bonds. These powers are exercised by decisions of
its Board, whose members are appointed by the incorporating municipalities.
D.Â
The Authority has entered into various agreements in
order to organize and facilitate construction of its sewer system, including
the following:
(1)Â
Its Trust Indenture in 1976 securing its revenue bonds.
(2)Â
Various grant agreements with the United States Environmental
Protection Agency (EPA), and especially a Supplement to Grant Agreements,
dated July 1, 1974 (the "Supplemental Grant Agreement").
(3)Â
The Treatment Plant Agreement (the "Plant Agreement")
entered with its incorporating municipalities, as well as the following municipalities
and their related authorities: Easttown Township, East Whiteland Township,
the Borough of Malvern, Tredyffrin Township and Willistown Township (collectively
called the "contract municipalities").
E.Â
The Authority has also executed two (2) agreements with
the contract municipalities similar to the Plant Agreement, the Valley Creek
Trunk Sewer Agreement and the East Whiteland Trunk Line Agreement. All three
(3) of these agreements provide for the construction and operation of sewage
facilities. Pursuant to them, the plant is owned and operated by the Authority;
and the conveyance systems are owned and operated by the Tredyffrin Township
Municipal Authority and East Whiteland Municipal Authority, respectively.
These three (3) agreements also provide for the reservation of capacity in
the facilities, for use by the Authority and the contract municipalities.
F.Â
The Plant Agreement created a body called the Joint Board,
empowered to make certain decisions regarding the plant. Neither of the other
two (2) agreements has such a mechanism. All three (3) of the agreements,
however, contain provisions negating the creation of a joint venture or joint
liability.
G.Â
The incorporating municipalities and all other municipalities
served by the Authority are subject to certain other Pennsylvania statutes,
including the Sewage Facilities Planing Act (Act 537).[3] This Act requires municipalities to plan for the orderly extension
of public sewers where needed. This involves the preparation by each municipality
of a sewage facilities plan designating the areas within the municipality
which are to be provided with public sewers within the planning period of
the plan. These plans (Act 537 Plans) must be submitted to the Department
of Environmental Protection (DEP) and approved by it. A required part of the
plan is the designation of an agency to implement the plan. The Authority
has either been designated, or is acting as, the agent of its incorporating
municipalities to implement their 537 Plans.
[3]
Editor's Note: See 35 P.S. § 750.1 et seq.
H.Â
The Act 537 Plans are intended to reflect the comprehensive
land use plans and zoning of the respective municipalities. The Authority
has no legal responsibilities in this area other than to implement the Act
537 Plan of the various municipalities served by it, as approved from time
to time by the respective municipalities and DEP.
A.Â
The Authority will strive to implement the objectives
and provisions of the Act 537 Plans of its incorporating municipalities and
the contract municipalities, as approved from time to time by DEP. The Authority
encourages all municipalities to revise their Act 537 Plans from time to time
in accordance with their applicable comprehensive plans and zoning ordinances.
B.Â
The Authority will not approve any main extensions to
its collection system to provide service in any area except those areas which
the municipalities have designated to receive public sewer service consistent
with their applicable Act 537 Plans as amended from time to time.
C.Â
The Authority recognizes that the applicable plan is
the plan of the municipality where service is to be provided. If a transmission
main extends through an area not designated for public sewers within a municipality,
but no connections are provided within that municipality, the Authority's
position is that the 537 Plan of that municipality does not apply to the main.
The Supplemental Grant Agreement with EPA recognizes the right of the Authority
to construct mains through areas which are not designated for service, so
long as no service is provided along the route of the line.
D.Â
While recognizing that the incorporating municipalities
and the contract municipalities all have responsibilities to determine the
areas to be served, as reflected in their Act 537 Plans, the Authority, as
an instrumentality of the commonwealth, has the obligation to determine the
method and details of providing such service, subject to the approval of individual
projects by DEP under the applicable statutes.
E.Â
In order to minimize costly duplication or reconstruction
of lines, the Authority will design these facilities to be capable of providing
service for the long term, anticipating the needs of users in each drainage
basin, as projected under applicable zoning. This will provide service at
the least possible total construction cost and subsequent cost of operation
and maintenance.
F.Â
In order to minimize operation and maintenance costs,
all sewer extension shall be designed to utilize gravity collectors or interceptors
wherever possible.
G.Â
Under applicable law, the Authority does not have the
power to undersize facilities or construct them along routes which would prevent
or impede the development of real estate.
H.Â
Because regulation of land development is a responsibility
of the municipalities under the Pennsylvania Municipalities Planning Code,[1] the Authority does not intend to plan or construct projects in
such a way as to encourage or discourage real estate development. The Authority
will remain growth-neutral.
[1]
Editor's Note: See 53 P.S. § 10101 et seq.
A.Â
The Articles of Incorporation and incorporating ordinances
do not specify any geographical limitation on the Authority's operations,
although they do limit its type of operations to a sewer system.
B.Â
Although the Authority has the corporate power and rights
under applicable law and contracts to extend its collection system, subject
to complying with the capacity ceiling established for it in the Plant Agreement,
the Authority will not commence to provide service in any additional municipality
directly or indirectly outside the incorporating municipalities, unless it
determines, after study, that such service is in the best interest of the
existing users of the system, and the Boards of Supervisors of any two (2)
of the incorporating municipalities concur with the Authority's decision.
This does not apply to extensions by contract municipalities.
C.Â
The Authority, however, will consider applications for
service by noncontract neighboring municipalities and will review all relevant
information provided with respect to such applications. No service will be
provided which is inconsistent with the provisions of the Act 537 Plans applicable
to the incorporating and new municipalities.
A.Â
The Authority will comply with Article VII of the Plant Agreement, which provides detailed procedures for expansions of capacity.[1] The Authority will also require the other parties to that agreement
to comply with their obligations under the Plant Agreement, in order to avoid
operating the plant in excess of its authorized capacity.
[1]
Editor's Note: The Plant Agreement is on file with the Business
Manager.
B.Â
In particular, the Authority will present to the Joint
Board plans for enlargement, replacement or improvement at the time the actual
or estimated use of the plant reaches the percentages of capacity specified
in Section 7.02 of the Plant Agreement.
C.Â
The Authority will not proceed with upgrade, expansion
or improvement until approval by the Joint Board, which as provided in Section
7.02, "may be withheld only for sound engineering reasons."
D.Â
In determining the timing and size of required expansions
and improvements, the Authority will be guided by the advice of its consulting
engineers and will consult with the consulting engineers of the incorporating
municipalities and the contract municipalities, as provided in Section 7.02.
E.Â
The Authority will allocate the cost of expansions and
upgrading in accordance with the provisions of the Plant Agreement.
A.Â
The Authority will comply with the rate covenant in its
Trust Indenture. The Authority also will comply with the requirement of the
Authorities Act that its rates be reasonable and uniform. It is recognized
that such statutory requirement does not prevent the establishment of individual
rate districts if the Authority should, in the future, determine that such
is advisable.
B.Â
The Authority will establish its tapping fees[1] at a level which will compensate it for the value of equity resulting
from the payment over prior years of annual sewer rentals by the preexisting
users as well as the anticipated future capital needs of the system.
C.Â
The Authority will attempt to minimize the cost of service
to its customers by development of additional sources of revenue.
A.Â
The Authority will operate and maintain its collection
system and the plant in compliance with all applicable environmental laws
and regulations to the best of its ability.
B.Â
The Authority will attempt to minimize environmental
impacts of its construction and operation of its facilities, recognizing,
however, that the provision of public sewer service, where required, is itself
an environmental improvement.
C.Â
The Authority assumes that the municipalities will exercise
their responsibilities under the Municipalities Planning Code,[1] the Supplemental Grant Agreement and other environmental regulations,
to regulate real estate development, through the continued implementation
of sound planning and zoning ordinances and environmental regulations, such
as erosion and sedimentation controls and stormwater management regulation.
[1]
Editor's Note: See 53 P.S. § 10101 et seq.
A.Â
The Authority will maintain active communication with
its incorporating municipalities and the contract municipalities, as well
as other public agencies and the general public.
B.Â
The Authority will carefully consider comments and suggestions
by all of the above-mentioned parties prior to making major policy decisions.
The Authority reserves the right to amend these policies by action of
its Board as it may deem necessary or advisable from time to time.