Meeting Minutes March 8, 2016
Chairman Robert Hughey called the meeting to order at 7:00 p.m. A roll call was taken and present were: Chairman Robert Hughey, Vice Chairman Robert Jacobini, District Secretary Karen Dunn, and Water Supply Operator Ron Lada; and Trustees Jenny Anderson, Jospeh Burrow, Jay Ruble and Grace Brewer. Absent was Treasurer Mike Williamsen.
Professionals in attendance were Mr. Mike Twomey and Mr. Joe Boyke.
The Board reviewed the minutes of the February 9, 2016, regular meeting. A motion was made by Ms. Anderson to accept the minutes as presented. Seconded by Mr. Burrow and with (5) yes and (0) no votes, the minutes were approved. Next, Mr. Burrow made the motion to accept the minutes for the special meeting. Seconded by Mr. Ruble and with (5) yes and (0) no votes, the motion carried.
Chairman Hughey gave the floor to Mr. Twomey who informed the Board of a situation related to crop loss of a property owner as a result of the new water main installation. Mr. Twomey explained thee details of the situation as well as the calculation used to arrive at an amendable reimbursement. After related discussion, Mr. Burrow made a motion to reimburse Ms. Cherry Biggs, property owner, in the agreed amount of $1,500.00 for crop damage related to the water line installation with those funds to be expended from the Frist Mid Illinois Bank Surplus Account. Seconded by Vice Chairman Jacobini and with (5) yes and (0) no votes, the motion carried.
Next on the agenda, a copy of the Certificate of Liability Insurance provided by the Illinois Counties Risk Management Trust was provided for the Board’s information, followed by discussion. Mr. Boyke indicated that the certificate has been provided to the Canadian Nation Railroad, and we are now awaiting their permit. He also made mention that there may be further fees such as for flagmen and/pr locating. At this time the Chairman and Trustees commended the Vice Chairman and District Secretary for their efforts in research and presentation of the District as well as the current project.
Related to a review of water rates, Chairman Hughey turned to the District Secretary to explain her findings related to rate modification. She explained that, with the assistance of Auditor Scott Hickam, and Commercial Lending Officer John Barnett, it was mutually agreed that allocations within the current project budget and a redistribution of available funds within the operating budget would be enough to satisfy the monthly interest payment without a need to increase water rates at this time; however, nearing project completion (approximately one year) a rate increase review is recommended. The District Secretary then proposed a specific plan to distribute particular funds earmarked for the purpose of bond interest payments to the appropriate accounts.
After related discussion, a motion was made by Mr. Burrow to redistribute funds as recommended by the District Secretary.
First, a transfer in the amount of $20,000.00 (identified as “Interest During Construction” in the project budget) be transferred from the First Mid Illinios Bank “Construction” Account to the First Mid Illinois Bank “Bond/Interest” Account
Second, a transfer in the amount of $93,910.40 (identified as “Unobligated Funds” in the project budget) be transferred from the First Mid Illinois Bank “Construction” Account to the First Mid Illinois Bank “Surplus” Account.
Third, a cashier’s check in the amount of $10,000.00 (identified as “Land Purchases” in the project budget) be processed from the Mid Illinois Bank “Construction” Account to the Buncombe Public Water District for reimbursement of operating funds used to purchase the pump station prior to the project loan closing.
The motion to transfer those funds as presented by the District Secretary was seconded by Ms. Anderson with (5) yes and (0) no votes, the motion was approved.
Next, The District Secretary proposed the opportunity to utilize online banking services of First Mid Illinois Bank. After related discussion, it was recognized by the Board that it would be beneficial for the Chairman, Vice Chairman, Treasurer, and District Secretary to have the ability to view and monitor account activity online. However, it was also agreed that manual banking would better serve the District need for accountability. The District Secretary was advised to prepare the necessary paperwork.
Mr. Boyke first addressed the SIU mapping project of the new line extension as proposed at the February meeting of the Board. He addressed previous questions related to valves and hydrants. There was also discussion pertaining to GPS locating and reading software. The Board requested of Mr. Boyke further information related to costs, and further discussion of the project was tabled until the next regular meeting.
Mr. Boyke continued by addressing the construction status related to the new water line. He indicated that the entire path had been staked and further addressed activities of the Inspectors. After related discussion, Mr. Boyke presented Invoce #14850 from Clarida & Ziegler Engineering detailing charges in the amount of $5,72.00 related to the previously discussed inspections. A motion was made by Mr. Ruble to pay the Engineering bill as presented for March. Seconded by Mr. Burrow and with (5) yes and (0) no votes, the motion carried.
Mr. Twomey, with no specific legalties to discuss related to the project, made mention of his recent conversation with Rural Development regarding opportunities of acquiring low interest loans or possibly funding from grants. The Board readdressed previous consideration of a line extension on Lower Cobden Road and further discussed the needs of customers as sell as benefits to the District. Mr. Twomey suggested the Board research the names, addressed, and interest of those who would be serviced by this line, and he also noted preliminary engineering work would be necessary. No action was taken at this time.
As a point of interest, Mr. Ruble suggested consideration be given to a water vending station to provide an alternate water source for those without water service in remote areas. Discussion ensued after which Mr. Twomey volunteered to acquire further information from other Districts which have pursued this avenue.
No information related to the South Highway Water District was presented at this time.
Financial for January 2016 were presented and reviewed.
The Edward Jones Investment Report for February 2016 was unavailable.
The Secretary/Treasurer Report and the Accounts Payable Report for July 2016 were presented by the District Secretary and reviewed. Discussion followed related to increasing the amount of the regular monthly deposit of $1,200.00 to Depreciation for the purpose of satisfying bond interest requirements as previously in the meeting. A motion was made by Vice Chairman Jacobini to increase the monthly Depreciation deposit to $2,400.00. Seconded by Mr. Burrow and with (5) yes and (0) no votes, the motion carried. After presentation of the reports, a motion was made by Mr. Burrow to accept eh reports as presented and pay the bills. Seconded by Mrs. Brewer and with (5) yes and (0) no votes, the motion was approved.
The Water Supply Operator Report was presented by Ron Lada with no discrepancies; Brief discussion followed related elevated water loss and an investigative course of action to locate the problem(s)
No additional public comments or questions were presented.
There was no move for an executive session.
There being no further business, a motion was made by Vice Chairman Jacobini to adjourn; seconded by Mr. Ruble and with (5) yes votes and (0) no votes, the meeting closed.