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, and Frank Kurth
- Absent: Greg Mitchell
Report of Meeting Notice
The meeting date and time were posted and advertised as required.
Approval of Previous Minutes
Parke Smith presented the February 20, 2019 regular meeting minutes. Mike DeWald made a motion to approve. The motion was seconded by Sue Ann Mitchell, and on call of roll was carried by the vote:
6 Yeas 0 Nays 0 Abstain
Treasurers Report and Other Financial Matters:
Mike DeWald presented financial reports and commentary.
- Mike DeWald and Andy Boxberger noted that a new resolution was needed to provide signing authority by LRSD officers for Lake City Bank. Mike DeWald made a motion to adopt Resolution 2019-01 granting all four LRSD Board Officers signing authority with Lake City Bank. The motion was seconded by Bob Marcuccilli, and on call of roll was carried by the vote:
6 Yeas 0 Nays 0 Abstain
- Mike DeWald presented the financial statements for February. Mike reported nothing unusual but called out a few items of interest:
- The audit is now complete. Mike extended appreciation to Jim Haney, Bob Marcuccilli, and Steve Carter for their assistance in the process.
- The purchase of $500,000 of CD’s at Lake City are shown on this month’s reports.
- Receipts were very good for February. Regular customer payments were higher than usual, and the district collected $10,000 in non-connect fees.
- Expenses were relatively low, especially recognizing that the district spent $16,000 for materials to be resold.
- Required transfers were made as scheduled.
- The district had $52,000 more receipts that expenses in February.
- Mike did not attach the spreadsheets related to JPR’s billing. He has established the integrity of the JPR reports and has traced the cash to the bank, so they will not be included in the future.
- The district has $220,000 in accounts receivable, approximately two-thirds of which are unpaid non-connect penalties. EDU’s remain at 2024.
Mike DeWald 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.
- Jim Haney 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 Sue Ann Mitchell, and on call of roll was carried by the vote:
6 Yeas 0 Nays 0 Abstain
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 2/20/19 in the amount of $124,794.32. The motion was seconded by Bob Marcuccilli, and on call of roll was carried by the vote:
6 Yeas 0 Nays 0 Abstain
JPR Update Updates
JPR provided an update on collections, liens, and responses, citing no significant issues, but noting:
- A few customer payment plans have been established.
- They are preparing to file liens next week.
- There is one satisfied lien that may need refunded to the customer.
Engineering Update – DLZ
Casey Erwin of DLZ was present and provided updates on the report previously submitted prior to the meeting.
- New Connection Reviews (no updates)
- Tank Items and Bypass Channels
- Contractor had indicated that they planned to finish on Monday, March 18.
- The majority of the work is completed, but some modifications will still be made within the next week or two.
- Substantial Completion documentation will be presented at the next meeting.
- WWTP (RE Crosby, sub-contractor GAI/SCADATA)
- Settlement agreement in process by Carson.
Astbury Monthly Report (flow meter, pump repair, odor control)
- Repaired pumps are expected to arrive the week of March 22. Astbury will check issues and provide a report.
- HP Thompson and JWC Environmental conducted reviews and identified a couple of issues. The first issue being that the control panel screen has failed. The second issue is that the filter screen size being used is too large and is not catching sufficient materials, causing a lack of efficiency and potential damage to plant aerators. Astbury did secure a quote from JWC Environmental to replace the filter screen with a smaller size and to replace the control panel for $10,394.18. Given that the issue is not urgent, and the district currently lacks a Purchase Order process, a decision to move forward with the repairs was tabled until the next meeting.
- Influent flow meter investigation is ongoing. The meter reading appears to be fine. The issue may be caused by trapped air, so Astbury will install pipe vents to release the trapped air. The cost is approximately $670.00, which will come from the maintenance fund.
- Astbury reported that all affluent needs to be disinfected between April 1-30. This is done with an ultraviolet system to disinfect the affluent. Those bulbs need to be changed every other season and are due to be changed now. New bulbs have been purchased and this will be a recurring process.
Property Owner Connection Status/Failure to Connect Penalties
Greg Gear reported that there are 20 properties still unconnected. Of those 20, 3 will be requesting rate reductions, 2 are in a tax sale, and 1 is bank owned. One additional inspection is expected within the next week.
Requests to have Failure to Connect Penalties Waived – Cassidy, Sechrist, Vansickle
Property Owner Cassidy (B11) requested that late fees and penalties be waived. The property owner attended the February meeting with this request during the Public QA period and was advised by the board to submit a formal request, which she did for this meeting.
- The property owner has been receiving regular contact from the district regarding the requirement to connect, as well as associated penalties and fees, including notice of lien.
- The property owner stated that she did not see the need to connect, since they planned to tear down the existing structure and build a new one. To date, the old structure has not been torn down.
- The property owner claims that she was advised by LRSD to wait until the new structure was complete to request relief. No board members or staff have recollections or records to that effect; however, 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.
- Given the facts that the property owner has been receiving regular communication regarding the requirement to connect and the associated penalties for failure to connect, the board took no action regarding the request to waive fees and penalties.
Property Owner Sechrist requested that late fees and penalties be waived. The property owners have 2 parcels with a main house, a guest house, and a detached garage. They were originally receiving billing for 3 parcels, but billing was corrected to 2 in Spring 2017.
- The original permit was pulled in August 2017.
- Property owners reported that they have had significant difficulty getting commitments and/or follow-up from contractors to complete the work. They provided a detailed letter of contractor names and dates.
- Their intent has always been to connect, but due to the lack of commitment and follow through of contactors have not been able to connect in a timely manner.
- The property owners, with assistance from Greg Gear, have secured a contractor and the main house is connected, but the guest house is not. The guest house connection is scheduled within the next couple of weeks.
- The board recognized the good faith effort on the part of the property owners and recommended that the property owners finalize the connections, gather and submit any contact records and/or agreements with contractors, and re-apply for waiver consideration. In the interim, Jim Haney made a motion to not file the lien on the Sechrist property. The motion was seconded by Bob Marcuccilli, and on call of roll was carried by the vote:
6 Yeas 0 Nays 0 Abstain
Property Owner Vansickle requested that late fees and penalties be waived.
- A permit was pulled in August 2017.
- The property owner claims to be connected and inspected.
- LRSD has no inspection records or septic tank abandonment documentation.
- The property owner was not present, and without additional information, the board took no action.
Marsh Tax Sale
A district property was purchased through Tax Sale by pending new owner Skidmore, if the property is not redeemed by the current owner. The question was raised as to the level of obligation the district may, or may not, have to notify the new pending owner of the status of the property, potential penalties and fees, or provide any extended time for connection, given the new owner cannot access the property until October 20, 2019. After discussion, Jim Haney made a motion to have Andy Boxberger draft a letter of notification to pending new property owner Skidmore that late fees and penalties will continue to accrue until October 19, 2019. The motion was seconded by Sue Ann Mitchell, and on call of roll was carried by the vote:
6 Yeas 0 Nays 0 Abstain
Other Items
- Sue Ann Mitchell noted that she has spoken to Pam Kennedy regarding potential grants that may be available to district property owners with critical needs. Sue Ann will follow-up to gather more information.
Public Q & A
- Property Owner Swinhart (B74) asked if his property was eligible for a rate elimination.
- Property owner began the purchase process of the adjacent property in October 2017 and became deeded owner as of January 22, 2019.
- The structure on the property was torn down in 2015.
- The board informed the property owner that he may be eligible for a rate reduction or rate elimination depending upon the specific date that the original structure was torn down and septic properly abandoned. The board will investigate the specific date and inform the property owner of potential eligibility of any adjustment in rates.
- Property Owner Custer is considering purchasing a property in the district at a tax sale and was seeking information relative to assumed penalties and fees. Based on the information provided, the board was able to inform the property owner of potential obligations regarding future penalties and monthly billing amounts. No action was needed.
- The conversation regarding property owner Custer caused the board to discuss issues with properties that have been abandoned and/or are going to tax sale or sheriff sale and have fallen into disrepair. It was suggested that the LRSD board may want to engage with the County Commissioners to address these concerns.
Adjournment
Motion to adjourn the meeting at 7:56 PM was made by Bob Marcuccilli, seconded by Parke Smith, and on call of roll was carried by the vote:
6 Yeas 0 Nays 0 Abstain
Parke Smith, Secretary