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November 18, 2020 Minutes

NEWS

November 18, 2020 Minutes

Call Meeting to Order

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

  • Present: Jim Haney, Parke Smith, Mike DeWald, Joe Cleland, Sue Ann Mitchell, Bob Marcuccilli, Frank Kurth
  • 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 October 21, 2020 regular meeting minutes.  Parke Smith made a motion to approve. The motion was seconded by Bob Marcuccilli and was carried by the voice vote of:
    • 6 Yeas
    • 0 Nays
    • 1 Abstain

Treasurers Report and Other Financial Matters:

  • Mike DeWald reviewed the financial reports.  Mike noted the following:
    • Comparative data was provided for 2017 – YTD.
    • Annual Insurance payment was made this month of approximately $18K.
    • Billing was higher than normal as the result of liens being processed in October.
    • The ending balance was $1,706,304.
  • 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 Sue Ann Mitchell and was carried by the voice vote of:
    • 7 Yeas
    • 0 Nays
    • 0 Abstain
  • Mike DeWald also presented the Monthly Cash Budget, the Accounts Matrix, and the CD Schedule.  Mike noted:
    • Revenues are substantially higher than normal.  LRSD follows (as required) the cash basis of accounting, revenue is recognized when it is collected, not when it is billed.
    • On a year-to-date basis, maintenance and repairs and supplies have been under budget.  As the plant ages, that may shift.
    • Plant operations has an extra month’s expense this year due to the “catch-up” payment to Astbury earlier in the year.
    • Billing had an extra $6k in it this month due to liens being filed.  These fees will be added to customers’ accounts.  The district will recognize those revenues when (if) they are collected.
    • Accounting is running over budget due to the rate study.
    • The annual insurance bill was paid in October.  By the end of the year, the variance should be favorable.
    • Refunds are not budgeted.  Since the district recognized income when it received the excess payment, the refund merely gives it back, so it’s self-funded with no effect on the bottom line.
    • Line 30, total expenses, is over budget by $25k, which is the net effect of all expenses, over and under.
    • Line 40, Excess of Receipts over Disbursements, shows that the district has had a positive cash flow of $182k, against a budget of $124k, or a favorable variance of about $58k.   That positive variance exists even after making $80,000 of transfers into the Asset Replacement Fund.
    • Not expecting any dramatic changes in the last 2 months.
  • Jim Haney made a motion to approve the monthly claims report in the amount of $49,270.62.  The motion was seconded by Sue Ann Mitchell and was carried by the voice vote of:
    • 7 Yeas
    • 0 Nays
    • 0 Abstain

2021 Budget Submission to USDA

  • Mike DeWald presented the 2021 Proposed Budget for LRSD as required by the USDA.  Mike noted:
    • No substantial changes from the current budget.
    • Billing has been stabilized.
  • Jim Haney made a motion to approve the 2021 budget as submitted.  The motion was seconded by Bob Marcuccilli and was carried by the voice vote of:
    • 7 Yeas
    • 0 Nays
    • 0 Abstain

Customer Request for Refund (22 EMS T9)

  • A lien was filed against this property on 10/5/20.
  • On 10/16/20, Astbury received a money order in the amount of $700, which was intended by the customer to be applied to the lien but was applied to the regular bill.  The amount is not sufficient to cover the entire amount of the lien.
  • After October’s sewer bill was processed in early November, the customer requested that LRSD refund $630.05 to Kosciusko County in order to apply that amount to the lien.
  • Jim Haney noted that this is the third lien filed against this property.
  • Bob Marcuccilli made a motion to refund $630.05, made payable to Kosciusko County, to apply to the lien which was filed on 10/5/20 in the amount of $947.98.  The motion was seconded by Sue Ann Mitchell and was carried by the voice vote of:
    • 5 Yeas
    • 2 Nays (Mike DeWald and Joe Cleland requested their nay votes be recorded in writing)
    • 0 Abstain

Astbury Monthly Report

Donn Neff provided a written report to the board prior to the meeting and attended in person.  Donn noted:

  • Monthly Analytics
    • Some of the analytic reports have been delayed because they are currently awaiting completion in Indianapolis.
    • After discussion, the board was in general agreement that there was dissatisfaction that the reports were not available prior to the board meeting and that Astbury should be put on notice for the failure to deliver the reports in a timely manner.
    • Jim Haney will contact Tom Astbury to notify Astbury of the dissatisfaction via both phone and in writing.
  • Other General Issues
    • It’s been a relatively quiet month, in terms of callouts.
    • The cell phone booster has been installed and seems to be working.
    • There is some issue at Lift Station #2, but there is no specific information at this time – Donn will follow-up.
    • 45 B48A – The grinder at this location is lower than the surrounding area and regularly has water on top of it. Greg Gear indicated that this installation was prior to the home on the north being built and that it appears as though some site excavation was done during the home construction, raising the level of the property above the grinder level.  The home to the south, which shares this grinder, is higher also and has a down spout draining in the direction of the grinder and the fall goes toward the grinder.  Donn will forward the location to Casey Irwin at DLZ and Casey will review installation data for this grinder.
    • 214 B60 – The grinder station lid at this location has damage.  Donn reported that it appears as though the property owner has extended the driveway and/or parking area to include the area in the immediate vicinity of the grinder, encroaching on the district easement.  The grinder does not have a traffic rated lid.  Andy Boxberger will check the easement specifications.  If the property owner is in violation of the easement specifications, the district will notify the property owner of the violation and the amount owed for repair.

Property Owner Connection Status

  • Greg Gear reported no changes in the total number (8) of unconnected properties.
  • The potential new owners of the Dice property intend to connect or file for a rate reduction after receiving ownership in early 2021.

Resumption of Failure to Connect Penalties

  • In the September 2020 meeting, the LRSD Board voted to continue to suspend Failure to Connect penalties until such time as the Governor of the State of Indiana issued Stage 5 of the State Reopening Plan, which occurred on September 26, 2020.  However, the board voted again in October to continue to suspend Failure to Connect Penalties until the November meeting.  The Governor rescinded Stage 5 on November 14, 2020 and instilled a new method of measuring restrictions on a county by county basis.
  • The board was in general agreement that it would be best to no longer connect failure to connect penalties to a particular stage of the State Reopening Plan.
  • Parke Smith made a motion to resume Failure to Connect penalties as of December 1, 2020, with a total amount not to exceed $34,170 and with no associations to state health emergency decrees and to be added to the Use Ordinance.  The motion was seconded by Joe Cleland and was carried by the voice vote of:
    • 5 Yeas
    • 2 Nays
    • 0 Abstain
  • After some additional discussion about the amount being of an unusual amount, Jim Haney made a motion to amend the maximum amount for Failure to Connect penalties to an amount not to exceed $35,000.  The motion was seconded by Bob Marcuccilli and was carried by the voice vote of:
    • 7 Yeas
    • 0 Nays
    • 0 Abstain

Metered Campground Rate Analysis by Baker Tilley

  • Additional analysis on potential changes to the metered rate for campgrounds was conducted by Baker Tilly.
  • Jim Haney made a motion to approve payment to Baker Tilley for metered campground rate analysis not to exceed $1,000.00.  The motion was seconded by Mike DeWald and was carried by the voice vote of:
    • 7 Yeas
    • 0 Nays
    • 0 Abstain
  • Jim Haney made a motion to request that a representative of Baker Tilley be present at the public hearing in December, either in person or virtually by Zoom or some other virtual technology, to be available to address potential questions regarding the analysis.  The motion was seconded by Parke Smith and was carried by the voice vote of:
    • 7 Yeas
    • 0 Nays
    • 0 Abstain

Ordinances – Subdivision Control, Use, and Rate (Metered Campground)

  • At this meeting, the board initiated the process for the proposed creation of, or changes to the Subdivision Control, Use, and Rate Ordinances.  The ordinance proposals will be submitted for adoption in this meeting (October 2020), and will be presented for public hearing and a board vote in subsequent meetings, as required.
  • Subdivision Control Ordinance 2020-01
    • The committee circulated a final draft of the proposed ordinance to the full board.
    • Jim Haney made a motion to adopt Subdivision Control Ordinance 2020-01 as submitted.  The motion was seconded by Bob Marcuccilli and was carried by the voice vote of:
      • 7 Yeas
      • 0 Nays
      • 0 Abstain
  • Use Ordinance 2020-02
    • The primary purpose for the amendments is to incorporate the Subdivision Control Ordinance into the Use Ordinance along with some general clarification to existing items.
    • Also included will be modified language in Section 29.13.3 to cap Failure to Connect Penalties at $35,000, as was passed earlier in this meeting.
    • Jim Haney made a motion to amend and restate Use Ordinance 2020-01 as submitted, with the addition of modified language in Section 29.13.3 to cap Failure to Connect Penalties at $35,000.  The motion was seconded by Bob Marcuccilli and was carried by the voice vote of:
      • 7 Yeas
      • 0 Nays
      • 0 Abstain
  • Rate Ordinance 2020-03
    • The primary purpose for the amendment is to:
      • Clarify the fees charged to the customer if they use bank cards, credit cards, etc. to pay their sewer bill (Page 8).
      • Allow the LRSD Board to determine whether or not to use a third party to conduct rate studies (Page 10).
      • Change the amount per 1,000 gallons charged for campground metered rates (Exhibit A).
      • In addition, there are some general clarifications to existing items.
    • Jim Haney made a motion to amend and restate Rate Ordinance 2020-03 as submitted, which includes a change in metered rates for campgrounds from $14.70 to $35.06 per 1000 gallons.  The motion was seconded by Bob Marcuccilli and was carried by the voice vote of:
      • 7 Yeas
      • 0 Nays
      • 0 Abstain
    • Note:  Notice of proposed changes to campground rates will be provided by Andy Boxberger to property owners who may be affected.

Use of Collection Agencies

  • There are currently 24 properties that have uncollected debt from a former owner
  • Jim Haney made a motion to write off as bad debt those accounts that have debts that were incurred prior to January 1, 2020 (22 accounts), but to continue to pursue those uncollected accounts for properties with debts incurred after January 1, 2020 (Prater and Taylor properties).  The motion was seconded by Mike DeWald and was carried by the voice vote of:
    • 7 Yeas
    • 0 Nays
    • 0 Abstain

2021 LRSD Board Meeting Schedule

  • Jim Haney submitted a proposed calendar of meetings for 2021.
  • Jim Haney made a motion to approve the proposed meeting schedule for 2021 LRSD meetings to occur on the third Wednesday of each month at 6:00 Eastern Time.  The motion was seconded by Joe Cleland and was carried by the voice vote of:
    • 7 Yeas
    • 0 Nays
    • 0 Abstain

Other Items That May Come Before the Board

  • Jim Haney noted that the public hearing for the proposed ordinance changes will be schedule for 6:00 on December 16, with the regular LRSD meeting to follow.
  • It was suggested that the district make the proactive planning to continue to keep rates stable more visible to the community.  Those with information or ideas were encouraged to submit information to Parke Smith for inclusion on the LRSD website.

Public Q & A

  • None

Adjournment

  • Motion to adjourn the meeting at 8:05 was made by Jim Haney, seconded by Bob Marcuccilli, and was carried by the voice vote of:
    • 7 Yeas
    • 0 Nays
    • 0 Abstain

Parke Smith, Secretary