Meeting Call to Order
The meeting was called to order at 6:00 PM by Jim Haney.
- Present: Jim Haney, Mike DeWald, Parke Smith, Sue Ann Mitchell, Bob Marcuccilli, Greg Mitchell, and Frank Kurth
Report of Meeting Notice
The meeting date and time were posted and advertised as required.
Approval of Previous Minutes
Parke Smith presented the March 20, 2019 regular meeting minutes. Parke made a motion to approve. The motion was seconded by Mike DeWald, and on call of roll was carried by the vote:
6 Yeas 0 Nays 1 Abstain
Treasurers Report and Other Financial Matters:
Mike DeWald presented financial reports and commentary.
- Mike reported that he was streamlining the reports process as he presented the information.
- Mike noted that legal expenses remained higher than expected and receipts remained in the normal range.
- Mike also presented the Financial Matrix and noted that there were a significant number of liens filed last month for failure to connect penalties and late fees.
- Mike DeWald made a motion to approve the Unaudited Schedule of Cash Receipts and Disbursements, the Monthly Analysis of Funds and Balances, Monthly Analysis of Cash Investment Accounts, and Monthly Analysis of Fund Balances. The motion was seconded by Bob Marcuccilli, and on call of roll was carried by the vote:
7 Yeas 0 Nays 0 Abstain
Mike DeWald presented the Monthly Claim Approval Form.
- Mike noted that there were fewer claims than normal this month.
- Jim Haney made a motion to approve the Monthly Claim Approval Form and the list of bills paid after 3/20/19 in the amount of $32,027.37. The motion was seconded by Bob Marcuccilli, and on call of roll was carried by the vote:
7 Yeas 0 Nays 0 Abstain
- It was suggested that LRSD needs a contingency to be able to transfer funds into the Construction Fund.
- Mike DeWald made a motion to transfer $25,000 from the Operations and Maintenance Fund to the Construction Fund. The motion was seconded by Bob Marcuccilli, and on call of roll was carried by the vote:
7 Yeas 0 Nays 0 Abstain
JPR Update Updates
- No JPR representative was present, so no update was provided.
Gasvoda/Scadata Agreement
- Carson reported that the settlement proposal has been received and reviewed.
- The settlement proposal establishes that Gasvoda will continue to make monthly payments to Scadata, who will in turn pay Verizon (network carrier) for cell service for a period of 7 years, to conclude on July 31, 2024. At the end of 7 years, LRSD retains the option to pay directly to a network carrier for the services.
- Jim Haney made a motion to authorize the LRSD Board President to sign the settlement agreement. The motion was seconded by Bob Marcuccilli, and on call of roll was carried by the vote:
7 Yeas 0 Nays 0 Abstain
Engineering Update/ Haskins Pay Application- DLZ
Casey Erwin of DLZ submitted written updates prior to the meeting. Melissa Oyer was present and asked the board to approve the Substantial Completion Document, Change Order #2, and Pay Application #1.
- New Connection Reviews (no updates)
- Tank Items and Bypass Channels
- Contractor substantially completed in March
- Punch List Item: Address leaking adjustable gate
- District Action Item: Review and Approve Substantial Complete Document
- Pending: Review and approve Change-order 2 & Final
- Pending: Review and approve Pay Application 1
- Jim Haney made a motion to approve the Substantial Completion Document, Change Order #2, and Pay Application #1. The motion was seconded by Parke Smith, and on call of roll was carried by the vote:
7 Yeas 0 Nays 0 Abstain
- WWTP (RE Crosby, sub-contractor GAI/SCADATA)
- Settlement agreement in process by Carson
- WH Bockman Drain
- Possible county claim of damaged tile; county has excavated and investigated the area.
- There has been no claim from the County to this point.
Astbury Monthly Report
Matt Rippey was present and provided the updates from Astbury.
- Jim Haney noted a letter received by the Board from a Saw Mill Lake resident regarding the outstanding service provided by Josh Koontz from Astbury at their property. Jim extended appreciation to Josh and the Astbury Team from the Board.
- Matt reported an excess of $8,344.73 (for 2018) in the Annual Maintenance Fund which will be refunded by check.
- Influent flow meter investigation is ongoing. Matt reported that they have gotten correct readings for 3 consecutive weeks and the meters are matching, since the pipe vents were installed to release trapped air. They will continue to monitor the situation for discrepancies.
Property Owner Connection Status
Greg Gear reported that there are 18 properties still unconnected. Of those 18, 4 are up for tax sale, 1 is in bankruptcy, 1 claims to be connected, 1 is working to secure funding through 504 grant funds, and 1 has pulled a permit. The board asked Greg to gather additional information on the other 10 properties and to confirm the number of properties in tax sale.
Resume Failure to Connect Penalties
In February, the Board voted to suspend failure to connect penalties for the period between January 1, 2019 and April 30, 2019. Penalties are set to resume at $75 per day on May 1, 2019 and increase to $100 per day on June 1, 2019.
- Jim Haney made a motion to confirm the resumption of failure to connect penalties as previously outlined. The motion was seconded by Mike DeWald, and on call of roll was carried by the vote:
7 Yeas 0 Nays 0 Abstain
Failure to Connect Penalties Involving Properties Purchased at a Tax Sale
A concern has been raised regarding properties that are involved in tax sales and commissioner’s sales. The concern is that the amount of debt on some of these properties as a result of failure to connect penalties can be a deterrent to the eventual sale of the properties.
- Several Board members noted that the intended purpose of the failure to connect penalty structure was to provide incentive for property owners to connect, not to create financial burdens on the potential sale of the property.
- There was much discussion among the board as to possible solutions to the issue.
- The board asked Greg Gear to gather information regarding the processes around these sales from Area Plan.
- It was suggested that the board establish a policy or ordinance that may alleviate the financial deterrents to the sale of these properties.
- One potential solution that was discussed is for the LRSD to suspend penalties during the redemption period in tax sale scenarios.
- Jim Haney made a motion to direct Carson to draft language for a policy that would suspend penalties during the redemption period during tax sale. The motion was seconded by Bob Marcuccilli, and on call of roll was carried by the vote:
7 Yeas 0 Nays 0 Abstain
Requests to have Failure to Connect Penalties Waived-Cassidy, Prather, Sechrist
Property Owner Cassidy (B11) requested that late fees and penalties be waived. The property owner attended the March meeting with this request and was asked by the board to provide information regarding communications that may have occurred between the property owner and the LRSD office. The plumbing has been removed, the septic was properly abandoned, and a rate reduction was approved at the November 21, 2018 board meeting and the Failure to Connect Penalties stopped accruing as of November 7, 2018.
- The property owner provided some records to establish that there has been contact between both parties. However, the content of the communications cannot be verified.
- The board reiterated that the LRSD has been providing regular contact from the district regarding the requirement to connect, as well as associated penalties and fees, including notice of lien.
- The board agreed to research communications records and provide information about specific contacts to the property owner, particularly if receipt of a certified letter can be verified.
- The board took no action regarding the request to waive fees and penalties.
Property Owner Prather requested that late fees and penalties be waived. The property owner submitted a letter with a timeline of activities for the board to review.
- The property owner entered into an agreement with a contractor to complete the connection in June of 2017. The contractor informed the property owner that the property owner would be responsible to complete the plumbing portion of the project. The property owner was not able to secure a plumber to complete the work.
- The property owner was out of the country between June and September of 2018.
- Owner stated that he did not receive communications from LRSD regarding late fees and failure to connect penalties and was unaware of the debt until he received notice of pending lien.
- The board directed Greg Gear to gather information regarding the communications provided by the LRSD, particularly if receipt of a certified letter can be verified.
- The board tabled any action on this request until next month, pending communications gathered and the property owner reconciling of dates in the written timeline provided with dates provided verbally at the meeting.
Property Owner Sechrist requested that late fees and penalties be waived. The property owner attended the March meeting and was asked by the board to complete the connection (it was in process in March) and provide records to verify the number of attempts and contacts made to contractors to find a contractor willing to complete the work.
- The connection has been completed and inspected.
- The property owner provided records and documentation as to the numerous attempts to contact.
- Jim Haney made a motion to waive all penalties and fees for both parcels in the amount of $4,445.00 each. The motion was seconded by Frank Kurth, and on call of roll was carried by the vote:
6 Yeas 1 Nays 0 Abstain
Other Items
Property owner Swinhart had previously inquired regarding a potential rate elimination or reduction. The paperwork was submitted the day of this meeting.
- The board provided a written communication to Mr. Swinhart’s attorney dated 5/29/18 stating that the property is not eligible for rate elimination.
- The board informed the property owner that the property would be eligible for a rate reduction as of 5/1/19.
Public Q & A
None
Adjournment
Motion to adjourn the meeting at 8:14 PM was made by Frank Kurth, seconded by Greg Mitchell, and on call of roll was carried by the vote:
7 Yeas 0 Nays 0 Abstain
Parke Smith, Secretary