2 August 2007 DCRSD Meeting NotesSubmitted by Ralph Thompson
Commissioner District 3:
The following notes are provided in an effort to record the transactions of the meeting without editorial comment, except clarification of events. Copies of documents presented in meeting and the claims were requested in writing from Secretary, Benning, so they could be attached. She indicated she did not have authorization to release them and request was forwarded to Hankins with no response thus far. Note: Benning is a former Commissioner and should know that public documents are available to any Citizen upon request.
2 August 2007
DCRSD Meeting NotesPresent: Chairman, Hankins, Pruss, Dennerline, Maxwell and Fehrman Adams and Enzweiler were not present.
Also Present: Doug Baer, Executive Secretary; Quinn, Quinn Engineering; Benning (VB), Secretary; Frank Kramer (FK), Board Attorney; Robert Hrezo, Hrezo Engineering; 8 others and Ralph Thompson.
Meeting started at approximately 7:00 PM in the Commissioner's Meeting Room. Meeting was not recorded.
Meeting NotesMeeting Notes for July 17, 2007: Maxwell said had discussed an RFP process for the West Aurora project. Hankins indicated in previous meeting (where Maxwell was not present) Board decided to move forward with Quinn Engineering. Pruss moved and Dennerline seconded, approved.
Treasurer's ReportNothing new to report.
Special RequestsA Proposed Timetable for the Purchase of a Privately-Owned Utility was presented to the Board by unidentified individual (was in discussion with Hankins before meeting), to proceed with merger (for the acquisition of VRUC by DCRSD). Hankins indicated it was to be left with the Board for next meeting.
Serenity RidgeHave estimates for main line, hardware and engineering costs. Have two responses so far for service.
Baer: $77,000 should be the project cost. Will there be 11 houses or all to divide the cost? Statute says everyone gets a letter to participate to "jump start" the Health Department. All would provide a prorated amount of $4,800, with 60 days to respond.
Kramer: First have to decide whether to proceed with the project.
Baer: Then the letters go out. If 11 participate, cost is $7,000 each, if all $4,200 to $4,500. Don't know what funds.
Kramer: DCRSD cannot let contract without funds. Invite the residents to advance funds.
Baer: Then we can send letters to force people on. If one then $77,000, if 2 then $37,500, etc.
Hankins: Assume 11 or 12 Owners are willing to participate. Can collect the money and put it into an account.
Fehrman: Can lots be approved for septic?
Baer: Very expensive, $20,000 versus sewer, less than half.
Fehrman: Send letter to everyone delineating costs.
Baer: A letter has already gone out. Have not reviewed existing systems. Health Dept. (Baer) will review after. Homeowners should know projected costs. There are 19 buildable lots. Mainline costs include hardware estimates. If 11 are willing should we collect the money? Need a statement of commitment.
Kramer: Collect the money and deposit it. Then the money will be in.
Hankins: Need documented commitment to determine amount.
Baer: If you force people on later?
Kramer: Can't proceed without the money in the bank.
Hankins: How to determine amount of check with multiple people to divide. Have to craft letter for initial participation.
Several people talking at once. Tried to get as much of what was said as possible.
Resident from audience: The compel letter goes out, then the money?
Baer: No. If 11 people now and more later?
Hankins: Prorata rebate later.
Dennerline: In due time.
Hankins: No. Never done in the County before.
Resident from audience: What is check (amount)?
Hankins:Don't know.
Resident from audience: If we write the check for $11,000 and all don't participate, will need more?
Dennerline: Send out a contract to sign and notarize.
_______: Lady there says she doesn't have the money. Can we have a letter from the bank, if they are going to borrow?
Dennerline: Have Kramer write out a simple letter to commit and submit the money by a certain date. Plain old simple contract to commit.
Baer: Need deadline.
Hankins: Send out letter and require response in 14 days.
Dennerline: If only 2 or 3 it's over. Make check out to "DCRSD Serenity Ridge". Scale by commitment.
Resident from audience: With commitment can you notify people of the amount?
Hankins: Send tabular table of costs.
Kramer: After two weeks, notify of the amount.
Moved and seconded to send the letter.
Resident from audience: Then letter to compel can go as soon as money is in the bank?
Maxwell: Is $55,000 engineering estimate? LMH will charge wholesale rate. No tie-in charge.
Hankins: Have letter from LMH- not signed.
Motion approved.
West Aurora ProjectAt last meeting, had discussion to move forward with engineering and permitting. Didn't have funds. Council released $116,000. Can proceed with design and permits; but, don't have the money to build yet. Haven't received appraisal on property at Walston.
Quinn: Talked to State Revolving Fund for loan at 3.2%. Can cover engineering costs.
Quinn switched to Cole Lane and Stewart Road: Talked to Randy Turner. 28 have signed up. More than half. Don't know breakdown.
_______: Three did it on their own, five hired other, twenty paid.
Quinn: 19 remain.
Quinn back to West Aurora project: The application (for loan) doesn't commit. They (State Revolving Fund) will only come down during the day. Can file on whole project expense. 20 year life.
Several talking.
Hankins: Rural development is quirky. Want to see both owning and maintenance.
Quinn: No such thing as an easy easement, unless you are doing Rodney.
Dennerline: Approach about Right of Way.
Hankins: Agreeable as long as restored.
Dennerline: Did it include excavation?
Quinn: Excavation; but, not leveling ground. Hankins has to sign it. Will give it to Vera. Won't be around for next meeting, going on vacation.
Discussion on his vacation.
Claims Claim for Kramer. Dennerline moved to pay claims, Maxwell seconded. Approved.
West Aurora ProjectBaer presented spreadsheet for debt service and cost for Higridge. "Will be difficult to do in a fashion affordable to everyone."
SDRSD Received a response from Zerbe for SDRSD.
Benning: Looking into funding avenues, State Revolving Fund. Shelly Love wants form filled out for application. Bunker Hill example has 2.9% rate.
Person in audience: Anything we can do to help.
Dennerline: Move to adjourn.
Maxwell: What appears to be fighting with Greendale and SDRSD bothers him. Also some of the work on Cole Lane. Want to talk in executive session to discuss Greendale & SDRSD and Cole Lane. What's the procedure.Kramer: Must have 48 hours notice. There are two pages of what can be discussed in executive session.
Hankins: Be glad to discuss. Like to move on in peace. Attempts to change way things are done have not been successful. There's ill will on the part of Mayor and SDRSD. Need to concentrate on West Aurora & Serenity Ridge. Have been pushed along path by elected officials and created ill will, when one is restrained on the part of others. It is inevitable to work toward county wide sewers. Don't see real good chances for reconciliation in the short run.
Maxwell: The idea of participation in SDRSD had understandable value. County would buy into and participate. SDRSD didn't want that to happen - Greendale.
Hankins: (Maxwell) Explained it well. When new things come to happen there's anger, then regret. The acquisition of HVL has led to inflammation. Doesn't seem to be on the table in a way to be talked about. If movement on HVL acquisition into DCRSD is not welcome. If HVL is paying $2.18 per thousand, that's great.
As all relates to Greendale & SDRSD and us, we don't know about LMH, need discussion. Need to step back from all area around perimeter temporarily, till discussion on how we can serve the County, it's highly counter productive.
Asked Stan Beeler (VRUC Board member) how things are coming.
Beeler: VRUC turned down contract 4 to 2.
Fehrman: Can you shed any light on that?
Beeler: Not sure of story. Three are in favor, four voted not to sign up - using DCRSD as white knight to come and bail them out.
Hankins: New contract for 30 years for sewer and water at rate. DCRSD could only hope to provide sewer.
Kramer: Need 48 hours, Maxwell needs to relay concerns to Hankins and if it falls into the standards it can be scheduled.
Hankins: It does fall into the standards. Need to set a date for executive session.
Maxwell: Can it be before or after the next session?
Hankins: OK. Intended to suggest since projects are limited, we don't need to meet every other week. Suggest we eliminate the third Thursday meeting till further notice.
Moved to eliminate, Fehrman, seconded Pruss. Question asked if notice needs to be given, Kramer to check. Approved.Executive session set for third Thursday in August in lieu of regular meeting. Dennerline asked if they could discuss St. Leon and HVL there. Hankins indicated contract could be discussed.Dennerline: $2.18 is a fantastic rate. DCRSD would be 5 or 6 times that and no water.
Beeler: Don't feel contract would be _______. Talking at same time, missed it.
Dennerline: ________ go away from HVL. If some metro sewer district fine! Gotten thrown into this. Shouldn't be a political football. The $4.5 million is for St. Leon, not for HVL. Never understood this! Based on current understanding, recommend VRUC proceed with Greendale. Greendale has given best possible deal he can imagine with water & sewer. If DCRSD, at last three or four times, DCRSD doesn't belong there and can't handle it.
Fehrman: $2.18 is a great rate, what is the heart burn?
Maria La Rosa in audience: Had to do with a 180 day clause to get out of the contract, if DCRSD could provide, per Mr. Bittner.
Maxwell said he will get on the phone with Bittner from his own perspective.
Hankins said he will call Hensley, Spyniewski and Arbrecht.
Maria Larosa indicated the contract would give a start to fix the infrastructure.
Dennerline: move to adjourn.
Hrezo: Has the construction report on Cole Lane and Stewart Road based on his inspection.
Directed to give it to Benning.
Moved to adjourn, Dennerline, seconded Pruss, adjourned.
Adjourned at approximately 9:00 PM.
The following was sublitted at the DCRSD meeting for their consideration:DEARBORN COUNTY REGIONAL SEWER DISTRICT 8/2/07
PROPOSED TIMETABLE FOR THE PURCHASE OF A PRIVATELY-OWNED UTILITY Task/Activity listed first then the Primary Responsible Party
Already Done Letter of Intent/Memorandum of Understanding Client and
to transfer assets- Local Counsel
Due Diligence Phase:
Confidentiality agreement - Local Counsel
Evaluate condition and value of assets currently in place - Engineer
Outline improvements (if any) that are required - Engineer
Financial feasibility analysis - Umbaugh
Valuation analysis Engineers & Urnbaugh
Negotiate final terms with utility owners - Board, Counsel and Professionals
Execute purchase agreement - Client
File petition with IURC requesting approval - lURC Counsel
Petitioner's pre-file date- IURC Counsel,
Board and Professionals
Public (OUCC) pre-file date - N/A
Evidentiary hearing - Board and Professionals
Obtain IURC approving order* - IURC Counsel & All
Close on transaction - All
* In order to obtain Commission approval for the transfer of all assets, the IURC considers the following factors:
- whether or not the assets lie within an area in which the buyer is authorized to render services
- whether or not the buyer is prepared to render comparable sewage disposal service without loss of continuity of service
- whether or not the terms of the sale, assignment, lease, or transfer are reasonable
- whether the sale is in the public interest
However, once the commission has given its approval to such transaction and the ~ transaction itself is actually complete, the commission shall have no control over the utility service henceforth rendered by the district.
DRAFT
VALLEY RURAL UTILITIES, INC.
(Water)
OPERATING REVENUES AND OPERATION AND MAINTENANCEEXPENSES
(Per IURC Annual Reports) Operating Revenues: Calendar Year
2005 listed first and 2006 listed 2nd
Residential metered sales $494,009 $488,122
Private fire protection 17,820 17,820
Forfeited discounts 3,693 3,864
Other revenues 68,969 65,350
Total Operating Revenues 584,491 575,156
Operation and Maintenance Expenses:
Salaries and wages 83,184 87,014
Employee pensions and benefits 17,686 22,538
Purchased water 120,448 131,339
Purchased power 16,490 15,701
Materials and supplies 11,325 10,194
Contractual services:
Accounting 4,994 4,579
Legal 156,954 20,003
Other 981 117
Rental of equipment 118
Transportation 5,304 3,368
Insurance:
Vehicle 7,893
General liability 1,061 8,387
Workman's compensation 1,256
Bad debt 2,400 2,400
Miscellaneous 97,370 26,388
Total Operation and Maintenance Expenses 526,208 333,284
Excess/(Shortfall) of Operating Revenues
over Operation and Maintenance Expenses $58,283 $241,872
DRAFT
VALLEY RURAL UTILITIES, INC.
(Wastewater)
OPERATING REVENUES AND OPERATION AND MAINTENANCE EXPENSES
(Per lURC Annual Reports) Operating Revenues: Calendar Year
2005 lsted first and 2006 listed 2nd
Residential revenue $815,331 $809,088
Forfeited discounts 4,873
Sale of sludge 5,055
Other revenues 39,094 36,991
Total Operating Revenues 859,298 851,134
Operation and Maintenance Expenses:
Salaries and wages 130,1 09 142,708
Employee pensions and benefits 27,664 35,250
Purchased wastewater treatment 295,384 384,495
Purchased power 30,675 37,445
Chemicals 17,179 10,583
Materials and supplies 10,664 13,040
Contractual services:
Engineering 5,307
Accounting 7,812 7,163
Legal 255,830 180,462
Other 14,680
Rental of equipment 84 323
Transportation 8,293 5,268
Insurance:
General liability 12,345 13,117
Workman's compensation 1,661 1,964
Bad debt 2,400 2,400
Miscellaneous 46,583 35,756
Total Operation and Maintenance Expenses 866,670 869,974
Excess/(Shortfall) of Operating Revenues
over Operation and Maintenance Expenses ($7,372) ($18,840)
DRAFT
LMH UTILITIES, INC.
CALENDAR YEAR 2005 OPERATING REVENUES
AND OPERATION AND MAINTENANCE EXPENSES
(Per TIJRC Annual Report for year ended 12/31/05) Operating Revenues:
Residential revenues $481,921
Commercial revenues 39,636
Industrial revenues 33,328
Total Operating Revenues 554,885
Operation and Maintenance Expenses:
Salaries and wages:
Employees 29,847
Officers, directors and majority shareholders 45,999
Employee pensions and benefits 15,453
Sludge removal 37,934
Purchased power 45,610
Fuel for power production 2,003
Chemicals 26,403
Materials and supplies 16.678
Contractual services:
Accounting 1,830
Legal 1,235
Other 200,816
Rental of building/real property 6,000
Transportation 649
Insurance:
General liability 11,856
Workman's compensation 688
Miscellaneous 1,359
Total Operation and Maintenance Expenses 444,360
Excess/(Shortfall) of Operating Revenues
over Operation and Maintenance Expenses $110,525
DRAFT