December 11, 2019 Minutes

December 11, 2019 Minutes

Meeting Call to Order

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

  • Present: Jim Haney, Mike DeWald, Parke Smith, Bob Marcuccilli, Frank Kurth, Sue Ann Mitchell
  • Vacant Seat: 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 November 13, 2019 regular meeting minutes and 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 statements from Steve Carter and provided commentary. Mike reported:

  • The monthly reports reflected business as usual with no significant issues.
  • It was noted that checks for refunds to former property owner who had overpaid were distributed, based on approval from last month.
  • Nothing else unusual to report from the statements, although we do have an increase in cash.
  • Mike DeWald 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 on call of roll was carried by the vote:

6 Yeas 0 Nays 0 Abstain

Mike DeWald presented the Cash and Fund Balance Matrix, the Management Cash Budget, and the Monthly Claim Approval Form.

  • Mike provided some comments on the Management cash budget:
    • Line 7: We had an equipment sale last month.
    • Line 16: Billing fees are high due to JPR’s sorting and mailing bill and Astbury’s extra charge for liens filed. This charge is passed on to the customers.
    • Our surplus for the month is $28,000 and $268,000 YTD.
  • Mike also presented a new report called Matrix Recap. It begins with the fund balances from last year end and accounts for all cash transactions so far in 2019. LRSD began the year with $1,043,609 and is ending Nov. with $1,368,962. That’s about $325,000 that the district retained through 11 months. Of that amount, LRSD has set aside about $100,000 for USDA’s required funds. That’s above the amounts for the semiannual bond payments, which are in and out during the year. December won’t change that total significantly, perhaps $30,000.
  • Mike expects 2020 to be very similar to 2019. This represents a better performance than the budget predicted, but the budget was created very conservatively. Those numbers will be important when LRSD begins to discuss the replacements “reserve”.
  • Mike also noted that 54 past due letters have been sent prior to lien filing.
  • Jim Haney made a motion to approve the Monthly Claim Approval Form and the list of bills paid after 11/11/19 in the amount of $44,017.40. The motion was seconded by Sue Ann Mitchell, and on call of roll was carried by the vote:

6 Yeas 0 Nays 0 Abstain

Engineering Update- DLZ

Casey Erwin submitted a report prior to the meeting and Bill Boyle was in attendance, representing DLZ and provided comment. Bill Reported:

  • Item #1 – Blower noise at WWTP
    • Bill asked if the board requested any additional action – the board considers the report to be sufficient with no other action needed.
  • Item #2 – Equipment and Asset Inventory (current, no action items)
  • Item #3 – Grinder Station at 42 EMS B61H Lan (current, no action items)
  • Item #4 – Astbury Pump Station Recommendation (current, no action items)
  • Item #5 – Standards Update for Equipment Vacation and Home Tear Downs-Reconnects
    • DLZ updated Standards, Details and Process Forms.
    • Update relates to vacating district infrastructure or vacating/reconnecting private taps for tear downs.
    • The process has been reviewed by Astbury and is awaiting board approval.
    • Jim Haney made a motion to approve the Standards Update for Equipment Vacation and Home Tear Downs-Reconnects. The motion was seconded by Mike DeWald, and on call of roll was carried by the vote:

6 Yeas 0 Nays 0 Abstain

  • Item #6 – Misc.
    • District Map for website – In process, will be emailed to Greg Gear.
    • Correspondence should no longer be sent or cc’d to Melissa Oyer as she is no longer with DLZ.

Astbury Monthly Report

Matt Rippey provided a written report to the board prior to the meeting and was present and provided the updates from Astbury. Matt reported:

  • Due to a noise complaint from the home owners at 5057 E 100 N the district had DLZ conduct decibel level readings. These readings were taken during the summer and late fall of 2019 when the treatment plant blowers were running and when they were off. This study showed no nuisance noise levels were being produced from the treatment plant. The results of the testing along with an explanation of the readings were sent to the homeowner.
  • On November 25th, a customer on EMS B42D reported that there was sewage bubbling up from the center of the lane. It was determined that the sewage was coming from the districts force main. Haskin’s Underground was called in to excavate and repair the leak. The leak was coming from a two-inch compression fitting which was cracked. The leak was repaired, and the affected area was cleaned and limed. A spill report was submitted to IDEM.
  • Over the past three months, multiple issues at 38 EMS B38 have been reported. There have been several call outs at this location. The grinder station seemed to have a plugged discharge line. Several steps were taken to correct this problem including flushing the line, changing the check valve, changing the pump, and eliminating air entrainment. After each of these steps was taken, the pump would operate normally for a period of time, but the same problem would reoccur. At this point Astbury believes that there is some type of restriction in the discharge line. Astbury believes that the best solution to correct this problem is to have a contactor replace the discharge line to the main.
    • Jim Haney made a motion to approve the repair for this issue at EMS B38 at a cost not to exceed $4,000.00. The motion was seconded by Mike DeWald, and on call of roll was carried by the vote:

6 Yeas 0 Nays 0 Abstain

Property Owner Connection Status

Greg Gear reported:

  • There are currently 10 properties that are not connected. Of the remaining properties, 5 are involved in tax sales and 1 has been returned to the bank.

Request to Waive Failure to Connect Penalties- KKP Living Trust and Sellers

  • KKP Living Trust
    • This item was a carryover from the previous month
    • It was previously suggested that the property buyers pay down all outstanding fees and penalties, with the exception of failure to connect penalties.
    • Multiple liens have been filed on the property by LRSD.
    • The district has documentation from the property owner that they have paid all liens, but not the failure to connect penalties.
    • The property owner is requesting the District waive outstanding Failure to Connect Penalties in the amount is $4,889.50. In addition, there are $15,125.00 in failure to connect penalties that are currently on the account at Astbury. The combined amount of penalties is $20,014.50.
    • The property is now connected, as of 10/6/19.
    • The property owner provided additional information as to circumstances regarding the failure to connect prior to 10/6/19.
    • Parke Smith made a motion to approve the waiving of failure to connect penalties as part of the lien in the amount of $4,889.50 as well as the $15,125.00 remaining on the account. The motion was seconded by Sue Ann Mitchell, and on call of roll was carried by the vote:

5 Yeas 1 Nays 0 Abstain

  • Sellers
    • The property (38 EMS B60D Ln) was offered in the October 2019 tax sale and redeemed on November 6, 2019. The previous owner sold the property to the new owner (brother of the former owner) for the amount that covered the tax sale price plus all sewer district liens. The new owner then redeemed the property and connected to the system on 12/4/19.
    • The new property owner is requesting all non-connection penalties, since the purchase of the property, be rescinded.
    • Jim Haney made a motion, based on board policy regarding tax sale properties, to waive failure to connect penalties for October and November of 2019, as well as any penalties that would have been assessed through 12/4/19. The motion was seconded by Bob Marcuccilli.
    • While the motion was based on board practice and policy related to properties that are transferred as the result of a tax sale, Chris Nusbaum noted that this was not a true tax sale in that the property was transferred and redeemed prior to completion of the sale, and therefore the policy does not contemplate this scenario.
    • After much discussion, and based on the information presented, Jim Haney amended his motion to waive failure to connect penalties for Anthony Sellers (new owner) for the period of 11/6/19 through 12/4/19 in the amount of $2,900, but not to waive failure to connect penalties for the previous owner for the period of 10/1/19 through 11/5/19. The motion was seconded by Sue Ann Mitchell, and on call of roll was carried by the vote:

6 Yeas 0 Nays 0 Abstain

Request for Rate Reductions- Swihart and Spencer

Property owner Swihart (12 EMS B33 Ln) made a request for rate reduction under Section 7 and a waiver of failure to connect penalties.

  • Greg Gear reported that all criteria were met, and the inspection was performed on 10/25/19, all appropriate forms are signed, but the account is not current.
  • Jim Haney made a motion to grant the rate reduction effective on the date the account becomes current, however the assessment of non-connect penalty fees will cease as of the date of the 10/25/19 inspection. The motion was seconded by Mike DeWald, and on call of roll was carried by the vote:

6 Yeas 0 Nays 0 Abstain

Property owner Spencer (164 EMS B40 Ln) made a request for rate reduction under Section 7 and a waiver of failure to connect penalties.

  • Greg Gear reported that this property was a by-passed property with no signed easement agreement, but that all criteria were met, and the inspection was performed on 11/15/19, and all appropriate forms are signed.
  • Jim Haney made a motion to grant the rate reduction effective on the date the account becomes current, however the non-connect penalty fees will cease as of the 11/15/19 inspection date. The motion was seconded by Parke Smith, and on call of roll was carried by the vote:

6 Yeas 0 Nays 0 Abstain

Approve Filing a Motion to Collect Surplus Funds Related to the Nosich Property

  • Christine Jinks submitted a bid to purchase the Nosich property (54 EMS B36 Ln) at the October 2018 tax sale. Her bid covered all taxes and outstanding liens, including a LRSD lien filed in April 2018. After paying the taxes and liens, a surplus of $6,008.56 remains. Board legal counsel, Carson, has indicated that this surplus mostly will be returned to Nosich if unclaimed. Since the tax sale, LRSD has filed two liens that total $6,173.60. Included in this amount are 2018 Failure to Connect Penalties of $4,445.00.
  • Carson suggested that LRSD file a motion to have the surplus of $6,008.56 released to the District and if the motion is granted, LRSD will, in turn, release their two liens. Since the motion needed to be filed no later than November 25th, Jim Haney authorized Carson to proceed in filing the motion, with the understanding a formal vote would occur at the 12/11/19 meeting. If the board does not approve this action on 12/11/19, the motion can be withdrawn. Carson’s estimated cost to file the motion is $500.
  • Jim Haney made a motion to formally approve that Carson file a motion with Kosciusko County to collect the surplus funds related to the Nosich Property. The motion was seconded by Sue Ann Mitchell, and on call of roll was carried by the vote:

6 Yeas 0 Nays 0 Abstain

Updates to LRSD Website

Parke Smith reported:

  • Ripfish as provided the committee with a password protected staging server for the committee to be able to review the beta version of the new website.
  • Ripfish has also provided a new drone clip with additional high-level video added.
  • Parke forwarded the information regarding the staging server and new drone footage to the entire board for review and asked for feedback.
  • Greg Gear will continue to work with Ripfish to complete tasks on the punch list.

Guidelines for Updating Rate Study

The LRSD Board has determined that a new rate study would be conducted after 2 full years of operations and has begun the process of getting feedback from rate consultants.

  • Jim Haney presented a draft report with several different potential long-range scenarios. Some of the variables that will be under review will be the updated EDU count, current loan rates, and a more informed cost projection. Jim suggested that these guidelines be provided to two vendors for the purpose of soliciting quotes to conduct the new study. The cost of the new rate study is expected to be between $5,000-7,000.
  • Jim Haney made a motion to provide the guidelines to two separate companies to develop quotes for a new rate study. The motion was seconded by Parke Smith, and on call of roll was carried by the vote:

6 Yeas 0 Nays 0 Abstain

Other Items That May Come Before the Board

Property owner Bruner contacted the LRSD board to request that LRSD hold on submitting the filing of a lien on her property until she receives her tax refund check in February or March.

  • The board noted that 54 other property owners have also received 120-day lien notices.
  • The board agreed that the district is not in position to grant the request, given property owners who may be in similar situations and the fact that the board cannot become an institution to essentially provide loans by deferring payment and/or accepting partial payments.

Public Q & A

  • None

Adjournment

Motion to adjourn the meeting at 7:30 PM was made by Mike DeWald, seconded by Bob Marcuccilli, and on call of roll was carried by the vote:

6 Yeas 0 Nays 0 Abstain

Parke Smith, Secretary