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November 2000, the Stillwater Sewer Corporation received a $1,343,000 Penn vest loan to expand the treatment plant, repair two pump stations, replace more than a mile of collection lines and make other improvements to eliminate hydraulic overloading of the treatment plant and the periodic discharge of inadequately treated wastewater. If the past Board of Directors had exercised their fiduciary duty and implemented reserve funding in some form, the Community would not have needed to borrow the $1,343,000.

Reserves are an essential part of running a planned community. It provides the Board with a systematic way to track repair and replace community assets over a 30-year period and a fair way to distribute the costs of those events to all the members who benefit from them. A properly funded Reserve eliminates the need of special assessments, which are unfair to those that have to pay them. In June 1997, Zavada & Associates provided our Association with a written letter informing them, that they have not properly budgeted for or funded reserves. They also informed the Board “It is a prudent fiscal practice as well as a fiduciary duty of the Board to implement reserve funding in some form”.

Due to the past and current Boards severe incompetence and lack of fiduciary duty, regarding reserve planning we now have a severe groundwater inflow and infiltration problem due to deteriorating pipes and sewer lines. The board will tell you that there is a high potential that future development in nearby areas may provide a solution to the high cost of fixing the deteriorating pipes and sewer lines. In fact, the Board already contracted HRG engineering to perform an Act 537 Special Study of the surrounding area at a cost of $100,000 without providing the membership an opportunity to comment.

How could the members of SLCA Inc without any knowledge, information, or opportunity to comment, be funding a 100,000 dollar Act 537 study which covers our Community, the 537 acres of Pocono Mountains Industries, Inc., Pocono Mountains Business Park (who currently sends their sewage flow to Mt Pocono Sewer, this study is looking at re-directing some flow to Stillwater Sewer, and Pocono’s Star Properties (78 acre), and 1,242 acre tract of state game lands. How could this happen without membership knowledge or permission?

Our research indicates, that the Monroe ·County Economic Development Corporation (MCEDC), is interested in buying the Stillwater Sewer Corporation. I was told by HRG that the most likely scenario to control the groundwater infiltration would be to convert the sewer pipes into a low-pressure system. A low-pressure system consists of installing a small grinder pump at each home and a small-diameter low-pressure pipe to transport sewage to a lift or pump station where it will be pumped to the wastewater treatment plant. I was also told by HRG, that this could cost each homeowner up to $10,000. It appears, in my opinion, the $1,343,000 loan was used to expand the sewer plant, and repair two pump stations, making the sewer plant a very attractive solution to the limited development options of the surrounding areas, while simultaneously hiding the Boards lack of fiduciary duty, regarding reserve planning.

Note: While we have made every effort to provide current, accurate information, because the SLCA Board of Directors insist on a no comunication policy, we make no representation or warranty, express or implied, as to the timeliness, accuracy or completeness of any information on this website.

User Comments

Comment by 4414 on 2008-11-19 16:49:52
I don't think you have all the information. I also think that you are not going about trying to get all the information you need. The system is broken and needs to be fixed, I also recall there is a law suite that is in the court about our system in which the money which was paid to fix the system. The company didn't do what they were paid to do and that is real reasons that we are talking about it today.
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