Meeting Minutes of August 14, 2001
Chairman Daniel Cook called the meeting to order at 7:00pm. A roll was taken and present were: Chairman Daniel Cook, Vice Chairman Joseph Burrow, and Trustees Greg Dunn, James Keller, and Mike Starling. Also present were employees Karen Dunn and Ron Lada.
A visitor in attendance at the meeting was Mr. Steve Glodo of Blankenship Engineering, and Mr. J. Brooks Venable of Edward Jones Investments.
First addressed were plans presented by Mr. Steve Glodo for the Pieter and Lisa Schmidt line extension to be constructed approximately 2000 feet of the inspection of New Route 51 and Makanda Road going north on the west side of New 51. The Trustees and the Water Supply Operator reviewed and discussed the proposed plans. Mr. Glodo indicated that IDOT will allow the line extension to be installed within the state easement. The plans specified a 4″ line and some discussion followed related to an upgrade to a 6″ line with the Water District absorbing the additional costs. As was inquired, the Board informed Mr. Glodo that the application should be filed with the EPA as a developer and not as a District. Costs for construction at this time are estimated at $8,500. The members of the Board discussed and agreed that the plans be submitted to the District appointed Engineers, Asaturian, Eaton and Associates for review and approval. Motion was made by Vice Chairman Burrow to accept the line extension as presented by Mr. Glodo contingent upon approval in writing from the District Engineering firm. Seconded by Mr. Starling, and with 4 yes and 0 no votes, the motion carried. Immediately following, another motion was made by Mr. Dunn for the Buncombe Public Water District to absorb additionll costs in upgrading the Schmidt Line Extension from a 4″ to a 6″ with the inclusion of a 6″ flush hydrant, also to be approved by Asaturian, Eaton and Associates. Seconded by Vice Chairman Burrow and with 4 yes and 0 no votes, the motion was approved.
Mr. J. Brooks Venable, an Investment Consultant with Edward Jones of Carbondale, began with an introduction of himself, his company and their services. Several suggestions were made related to investment options with the goal of achieving the best rate of return. Also discussed were laws required of a Public Water District related to FDIC insured investments. Mr. Venable explained how Edward Jones shops the entire county to get the best rates; whereas local banks only raise rates when they need money. He suggested an investment plan staggered over a five-year period to assure 20% of District funds would be available at any given time. By staggering investments, returns can be maximized by investing in longer terms at higher rates. As Edward Jones is tied to the bond market, Mr. Venable mentioned that there are no penalties for early withdrawal with brokers; the CD acts as a bond. Next reviewed were current District investments. After considerable discussion, a motion was made by Mr. Keller to accept the services of J. Brooks Venable of Edward Jones as the investment representative for District CDs and request that Mr. Venable prepare an investment plan as discussed with current funds as they become available. Seconded by Mr. Starling, and with 4 yes and 0 no votes, the motion was approved.
Next on the agenda was the review of the minutes for the July 2001 meeting. A motion was made by Mr. Dunn to accept the minutes as presented. Seconded by Mr. Starling, and with 4 yes and 0 no votes, the minutes were approved.
A request was made for water cost adjustment from Mr. David Floeter, Meter #83300, at 256 South Poplar Camp Road was addressed related to a recent leak found when filling his above ground pool. As verification by the WSO of this leak did not follow procedures as outlined in District Ordinances, the Board agreed that standard calculation for excess water usage did not apply in this situation. After discussion regarding the hardship of this customer, a motion was made by Mr. Keller to allow a one-time flat discount of $100.00 be applied to this account to offset costs of the leak; seconded by Vice Chairman Burrow and with 4 yes and 0 no, the adjustment was approved.
A request was made by Ms. Linda Stromberg, Meter #08900, of 237 Church Street to have services reconnected at that location. It was noted that residence had been abandoned in January 2000 leaving a balance due with no notification or address of party responsible for payment to account. The meter had been locked and minimum payment for “0” usage and penalties have been accruing from that date through current arriving at a past due balance of $571.31, this date. After discussion, it was agreed by the Board that due to the above mentioned circumstances and neglect of responsibility, full payment of the amount due to be paid in cash or money order prior to reconnection of water service. This motion, made by Mr. Dunn and seconded by Mr. Starling, and with (4) yes and (0) no votes, was approved.
May 2001 Financials as submitted by the Kemper CPA Group were submitted for review. No comments or discussion at this time.
No old business was discussed at this time.
Vice Chairman Burrow brought up for discussion the issue of increasing the amount of the Chairman’s fee in appreciation for services of the position. It was noted that there had been no increase in Chair fees on record within at least the past ten years. Discussion followed related tot he standard fee for both Chair positions, as well as increase incentive for Trustees to join and remain on the Board. Options were discussed as incentives as well as monetary appreciation for services rendered to the Water District for both employees and members of the Board. Upon agreement, a motion was made by Vice Chairman Burrow to increase the Chairman fee to $60 per month and the Vice Chairman fee to $50 per month, effective the September 2001 Meeting of the Board. In addition, motion was made to offer each Water District employee and each Trustee, while serving on the Water Board, an incentive water rate of 10% over cost to be applied to their personal accounts effective August 2001 billing. Mr. Starling seconded these motions, and with 4 yes and 0 no votes, the fees increased and employee/trustee rate reduction was approved.
There were no issues related to the South Highway Water District.
The Secretary/Treasurer Report was presented by Karen Dunn along with the Accounts Payable Report detailing bills to payment in August. It was noted that a CD investments had matured and current rates of interest were discussed for re-investing. It was decided that the CD not be renewed with the Frist Bank, cashed, and deposited into a regular savings account at Old National Bank until an investment plan can be arranged by Mr. Venable and agreed and voted upon by the Board at a future date. Motion was made by Mr. Starling to cash in the CD and deposit funds into an ONB savings, accept the Secretary/Treasurer Report and pay the bills as presented. Seconded by Mr. Dunn, and with 4 yes and 0 no votes, the motion was approved.
The Water Supply Operator Report was presented by Ron Lada with no major problems or discrepancies.
There were no additional public comments or questions.
No ordinances were reviewed at this time.
There being no further business, the motion was made for adjournment by Vice Chairman Burrow and seconded by Mr. Starling. A voice count was taken and with 4 yes and 0 no votes, the meeting adjourned.