January 16, 2019 Minutes

January 16, 2019 Minutes

Meeting Call to Order

The meeting was called to order at 6:00 PM by Jim Haney.

  • Present: Jim Haney, Greg Mitchell, Mike DeWald, Parke Smith, and Sue Ann Mitchell
  • Absent: Bob Marcuccilli, Frank Kurth

Report of Meeting Notice

The meeting date and time were posted and advertised as required.

Election of LRSD Officers for 2019

President Jim Haney noted that it was time to renew officers for the 2019 calendar year.

  • Parke Smith made a motion to nominate Jim Haney as President. The motion was seconded by Sue Ann Mitchell and on call of roll was carried by the vote:

4 Yeas 0 Nays 1 Abstain

  • Jim Haney made a motion to nominate Bob Marcuccilli as Vice President and Assistant Secretary. The motion was seconded by Mike DeWald and on call of roll was carried by the vote:

5 Yeas 0 Nays 0 Abstain

  • Jim Haney made a motion to nominate Mike DeWald as Treasurer. The motion was seconded by Sue Ann Mitchell and on call of roll was carried by the vote:

4 Yeas 0 Nays 1 Abstain

  • Jim Haney made a motion to nominate Parke Smith as Secretary. The motion was seconded by Mike DeWald and on call of roll was carried by the vote:

4 Yeas 0 Nays 1 Abstain

Approval of Previous Minutes

Jim Haney presented the December 19, 2018 regular meeting minutes. Jim Haney made a motion to approve. The motion was seconded by Sue Ann Mitchell, and on call of roll failed to carry by the vote:

3 Yeas 0 Nays 2 Abstain

The December Meeting Minutes will be presented again at the February meeting for consideration and approval.

Treasurers Report and Other Financial Matters:

Mike DeWald presented the financial reports. Mike noted:

  • The Crowe audit has been completed with just a few minor issues to report. In general, the audit was considered successful. Mike thanked Carter for their assistance in the process.
  • Mike noted that the board had previously and erroneously authorized payment to Crowe in the amount of $5,386. The correct amount should be $8,079. Jim Haney made a motion to modify the authorized payment to Crowe from $5,386 to $8,079. The motion was seconded by Sue Ann Mitchell, and on call of roll was carried by the vote:

5 Yeas 0 Nays 0 Abstain

  • As a result of the audit process, Mike suggested that the board establish depreciation rates for the total cost sheet. After some discussion, Mike made a motion to approve 40 years useful life on infrastructure and plant, 15 years on grinders, 10 years on future equipment, and 0 years on land. The motion was seconded by Sue Ann Mitchell, and on call of roll was carried by the vote:

5 Yeas 0 Nays 0 Abstain

Mike presented the Analysis of Aged Trial Balance of Accounts Receivable. Mike noted:

  • Same base numbers as last month.
  • Larger than normal month in equipment sales.
  • There is a $25 deposit that was delinquent in recording – Mike is still investigating the issue.

Mike presented 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. Mike recommended that the funds currently listed under the Bypassed Properties Fund be moved to the Construction Fund.

  • Mike 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, including moving the funds currently listed under the Bypassed Properties Fund to the Construction Fund. The motion was seconded by Greg Mitchell, and on call of roll was carried by the vote:

5 Yeas 0 Nays 0 Abstain

  • Mike also noted the picture that emerged in a review of this previous budget cycle was positive, including $159,000 better than budgeted in the areas of operations and maintenance.

Mike DeWald presented the Monthly Claim Approval Form.

  • Jim Haney made a motion to approve the Monthly Claim Approval Form and the list of bills paid after 12/19/18 in the amount of $45,318.61. The motion was seconded by Sue Ann Mitchell, and on call of roll was carried by the vote:

5 Yeas 0 Nays 0 Abstain

JPR Update (ACH and Late Payment Fees)

  • JPR was unable to attend and the report will be tabled until the next meeting.

Engineering Update – DLZ

Melissa Oyer of DLZ was present and provided updates on the report previously submitted prior to the meeting.

1-New Connection Reviews (no updates)

2-Tank Items and Bypass Channels

  • Status: Construction pending
  • Contractor start is pending completion of equipment and steel fox fabrication
  • DLZ is requesting a change-order 1 Time Extension.   Per December 2018 meeting, change-order 1 for a Time Extension for a substantial completion date of March 29, 2019 has been submitted.  Document has been sent to contractor for review and signed version will presented at meeting.
  • The April 1 completion date should be acceptable to Astbury.
  • Jim Haney asked that the board be provided with project updates at the end of January, mid-February, and the end of February.
  • Jim Haney made a motion to approve the change order for a 1-time extension to March 29, 2019. The motion was seconded by Parke Smith, and on call of roll was carried by the vote:

5 Yeas 0 Nays 0 Abstain

3-WWTP (RE Crosby, sub-contractor GAI/SCADATA)

  • Settlement agreement is in process (Carson, DLZ assisting as requested)
  • Andy Boxberger reported that agreement is complete and will be ready to report at the next regular meeting.

4-DLZ 2019 Engineering Services Agreement

  • Action Item:  Review, consider and approve Work-order for 2019 DLZ Engineering Services Agreement.
  • The 2019 agreement was provided.
  • The 2017 agreement was also provided for reference.
  • 2019 Agreement general summary:  all time paid based on hourly rates, other than $350 lump sum fee for each Type 1 new connection review, includes $10,000 maximum, some of hourly rates have been increased from 2017 agreement (see 2017 for referenced).
  • The agreement needs to be reviewed by Andy Boxberger.
  • Jim Haney made a motion to authorize him to sign the agreement pending review by Andy Boxberger. The motion was seconded by Mike DeWald, and on call of roll was carried by the vote:

5 Yeas 0 Nays 0 Abstain

Astbury Monthly Report

  • Astbury provided an estimated cost to establish an in-house repair shop to be $3,878. There was some discussion as to the pros and cons of establishing the shop. The board did not feel that LRSD should fund the establishment of the shop that would benefit Crane as much, if not more, than the district. Jim Haney directed Astbury to ask Crane if they would be willing to fund some, if not all, of the costs to establish the shop.
  • There is an issue of inflow and outflow that has not been identified. Astbury will have a third party look at the issue and evaluate. They hope to have a resolution next month.
  • Odor control at the lift stations was discussed. Astbury presented multiple options for the board to consider, including purchasing larger quantity of chemicals, moving to forced air activated carbon (charcoal) at all three lift stations, and moving to the charcoal option only at lift station #1, where the issue was most prominent.
  • Mike DeWald made a motion to shift to the charcoal system (purchase product and installation by Astbury) at lift station #1 at a cost of $11,200. The motion was seconded by Greg Mitchell, and on call of roll was carried by the vote:

5 Yeas 0 Nays 0 Abstain

  • Astbury reported that they have completed the plant inventory and are in the process of switching their maintenance processes to a preventative maintenance software database (90% complete).

Property Connection Status

Greg Gear reported:

  • 26 properties remain non-connected.
  • 2 are bank owned, 2 are vacant, 5 have pulled permits.

Requests to Have Penalties Waived – Deitz/Jones

Property owner Deitz (5403 E. Brown Rd. Leesburg) made a request to rescind all non-connection penalties and late charges.

  • The grinder installation was inspected and approved 12/21/18.
  • Due to property title issues, no easement has been signed and recorded to date.
  • Parke Smith made a motion to waive all penalties ($3,895) with the stipulation that the property owner maintains ownership and maintenance responsibility for the grinder until a signed easement is recorded and a bill of sale presented. The motion was seconded by Mike DeWald, and failed to carry by the vote:

3 Yeas 2 Nays 0 Abstain

Property Owner Jones (90 ems B20d Lane) made a request to rescind all non-connection penalties and late charges.

  • Mr. Jones said he took position of the property in January 2017 after legal settlement and was not aware of the requirements to connect.
  • Permit was pulled 7/20/18 and sent to Engineer for approval.
  • Contractor came in to pay for grinder kit 8/23/18, approval had not been granted.
  • Engineering approval granted 9-7-18 and owner and contractor were notified.
  • Grinder kit was purchased by the owner on 12/6/18.
  • Grinder installation was inspected and approved on 12/21/18.
  • Jim Haney made a motion to rescind up to 28 days of penalties in the amount of $1,400 ($1,000 in December and $400 in November). The motion was seconded by Parke Smith, and on call of roll was carried by the vote:

5 Yeas 0 Nays 0 Abstain

Update on Mobile Home Litigation

  • The court of appeals ruled in favor of the LRSD in the Pine Bay matter in late December. Pine Bay has 11 days to petition the Supreme Court.
  • The Clearwater issue was dismissed for lack of jurisdiction by the IURC based on the court of appeals decision. They have 6 days to respond.

Other Items

  • Sue Ann Mitchell inquired regarding the status of the Pick-a-Spot billing issue. Jim Haney responded that he believes LRSD has sent the appropriate information to JPR and that JPR has sent an adjusted bill.

Public Q & A

  • Property Owner Keith Kellogg (South Barbee Drive) inquired about potential waiving or rescinding of late fees and penalties. Jim Haney directed him to Greg Gear to make a formal request before the LRSD board could review the issue.

Adjournment

Motion to adjourn the meeting at 7:44 PM was made by Greg Mitchell, seconded by Jim Haney, and on call of roll was carried by the vote:

5 Yeas 0 Nays 0 Abstain

Parke Smith, Secretary