Call Meeting to Order
The meeting was called to order at 6:00 PM by Jim Haney.
- Present: Jim Haney, Frank Kurth, Bob Marcuccilli, Sue Ann Mitchell, Parke Smith, Mike DeWald, Joe Cleland
- Absent: none
Report of Meeting Notice
The meeting date and time were posted and advertised as required.
Approval of Previous Minutes
- Parke Smith presented the July 15, 2020 regular meeting minutes and made a motion to approve. The motion was seconded by Sue Ann Mitchell and was carried by the voice vote of:
- 7 Yeas
- 0 Nays
- 0 Abstain
Treasurers Report and Other Financial Matters:
- Mike DeWald reviewed the financial reports. Mike noted the following:
- The district received approximately $94k in liens from Kosciusko County this month.
- The district saw an increase of approximately $182K this month.
- The ending balance was $1,821,975.
- Jim Haney made a motion to approve the Unaudited Schedule of Cash Receipts and Disbursements, the Monthly Analysis of Funds and Balances, and the Monthly Analysis of Cash Investment Accounts. The motion was seconded by Bob Marcuccilli and was carried by the voice vote of:
- 7 Yeas
- 0 Nays
- 0 Abstain
- Mike DeWald also presented the Monthly Cash Budget, the May Checkbook, the Accounts Matrix, and the CD Schedule. Mike noted:
- A CD reached maturity on 8/22 in the amount of $200K.
- A Bond Payment (approx. $394,000) was made on 8/1.
- There is still positive cash flow.
- The budget showed an overage of $123,915 on lien receipts.
- Mike DeWald made a motion to authorize him to purchase an additional $200K 6-Month CD at Lake City Bank at a rate of .17%. The motion was seconded by Sue Ann Mitchell and was carried by the voice vote of:
- 7 Yeas
- 0 Nays
- 0 Abstain
- Jim Haney made a motion to approve the July monthly claims report in the amount of $43,419.19. The motion was seconded by Bob Marcuccilli and was carried by the voice vote of:
- 7 Yeas
- 0 Nays
- 0 Abstain
Rate Study – Krohn and Associates
- District Ordinance requires that a new Rate Study be conducted after the first full year of operation.
- Steve Carter (Krohn and Associates) presented the following to the board:
- Bond ordinances and state statutes require regional sewer districts to cover operations and management, debt service, and capital expenditure costs.
- Current Operations costs are at $1,625,400, including:
- $630K Expenses
- $790K Debt Service
- $79K Debt Service Reserve
- $33K in Capital Improvements
- The current rate is performing as intended and covers expenses plus $94,000.
- Increased expenditures may not be covered.
- No recommendation to raise rates at this time.
- Jim Haney noted that the district needs to review the current metered rates for campgrounds. That review will be conducted using data gathered during the periods of July 9, August 9, and September 9, all of which should provide a good indicator of peak flow trends.
Asset Replacement Fund
In conjunction with the Rate Study process and the projected $94K in surplus funds annually, Jim Haney noted that he and Mike DeWald are recommending the Board establish an Asset Replacement Fund as previously discussed. Initial funding would be as follows:
- Eliminate the Construction Fund and transfer the $167,347 to the Asset Replacement Fund.
- Transfer an additional $432,653 from the O&M Fund to the Asset Replacement Fund for a total funding of $600K as of 12/31/19.
- Effective January 2020, transfer $8K per month from the O&M Fund to the Asset Replacement Fund. If approved by the board, this would require a one-time transfer of $56K to cover January 2020-July 2020.
- Starting February 2021 and each year thereafter, review any surplus funds from the prior year actual results and transfer some or all of the surplus from the O&M Fund to the Asset Replacement Fund.
- Jim Haney made a motion to transfer $167,347 from the Construction Fund and $432,653 from the O&M Fund into the newly created Asset Replacement Fund. Starting January 2020, transfer $8K per month from the O&M Fund to the Asset Replacement Fund and starting February 2021, review any surplus funds from the prior year actual results and transfer some or all of the surplus funds from the O&M Fund to the Asset Replacement Fund. The motion was seconded by Mike DeWald and was carried by the voice vote of:
- 7 Yeas
- 0 Nays
- 0 Abstain
Astbury Monthly Report
Don Neff provided a written report to the board prior to the meeting and attended in person. Don noted:
- He is gathering quotes for an alarm system and back-up generator for Lake Estates.
Collection Agencies – Update
- Andy Boxberger presented a proposal from Snow and Sauerteig for collection services.
- The board discussed the comparison of collection options including liens, small claims, and collection services.
- Most of fees in question are incurred as a result of property transactions.
- The board directed Andy Boxberger to gather additional information regarding collection service minimum threshold amounts and Greg Gear to survey other area sewer districts to solicit ideas as to how they address collection issues.
- Jim Haney made a motion to table any action until the September meeting, pending further investigation regarding dollar amount thresholds for collection agencies and input from other districts about their practices and policies with regard to this issue. The motion was seconded by Mike DeWald and was carried by the voice vote of:
- 7 Yeas
- 0 Nays
- 0 Abstain
Subdivision Control Ordinance – Committee Update
- The Committee had its first meeting prior to the board meeting
- The committee will be prepared to present and update at the September meeting.
Property Owner Connection Status
- Greg Gear reported that we are still holding at 8 properties that have not connected.
Resumption of Failure to Connect Penalties
- The Indiana Governor has extended Stage 4.5 of the State Reopening plan through August 26.
- The board discussed whether or not to extend the suspension of failure to connect penalties as well.
- Jim Haney made a motion to continue suspension of Failure to Connect penalties until such time as the Governor of Indiana issues Stage 5 of the Reopening Plan. The motion was seconded by Bob Marcuccilli and was carried by the voice vote of:
- 7 Yeas
- 0 Nays
- 0 Abstain
Other Items That May Come Before the Board
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- It was noted that the district will be sending out 90-day past due letter.
- The district will also be reviewing and updating construction forms.
Public Q & A
- David Cruea (17 B40E) asked for a credit or refund for an increase in electrical consumption during the high-water period between May 15 and June 15.
- The property owner stated that the pump was running every four or five minutes for long periods of time. That was verified by Donn Neff of Astbury as a result of a vent pipe which was not sealed properly.
- Based on a comparison of electric bills and kilowatt usage between this year and last year, the property owner requested a credit or refund of $24.18.
- Jim Haney made a motion to issue a credit in the amount of $25.00 to account for excessive electrical costs as the result of district equipment failure. The motion was seconded by Bob Marcuccilli and was carried by the voice vote of:
- 7 Yeas
- 0 Nays
- 0 Abstain
Adjournment
- Motion to adjourn the meeting at 7:44 was made by Mike DeWald, seconded by Sue Ann Mitchell, and was carried by the voice vote of:
- 7 Yeas
- 0 Nays
- 0 Abstain
Parke Smith, Secretary