DeKalb Sanitary District Board Meeting Minutes
Meetings are held at 303 Hollister Avenue in DeKalb.
DeKalb Sanitary District
April 15, 2009
Minutes
Approved May 20, 2009
The April meeting of the DeKalb Sanitary District Board of Trustees was held at noon on April 15, 2009. Trustees Dennis Collins, Tim Struthers and Carol Zar were present. Attorney for the District Keith Foster and District Treasurer Richard Stokke were present. Michael Zima, District Manager; Janice Tripp, Assistant Manager Administration; Steve Olsen, Plant Foreman and Betty Jones, Secretary for the District attended. Scott Trotter, P.E., Mike Holland, P.E., and Mark Eddington, P.E. of Trotter & Associates, Inc. were also present. Randy Much of Midwest Contract Operations, Inc. and Tim Bronn of McMahon Associates attended for a portion of the meeting. Jim Schneider attended.
President of the Board Collins called the meeting to order.
Trustee Zar moved and Trustee Struthers seconded approval of the April agenda with the exception that the discussion of the Pretreatment Program Update be moved forward in the agenda. There were no objections. Motion carried.
Trustee Collins moved approval of the March minutes. Trustee Struthers seconded. Motion carried.
Randy Much said that most of the Pretreatment Program Update Project has been completed, with each of the requirements of the EPA having been addressed. Documentation is being submitted to them. He praised DeKalb Sanitary District administration, staff and attorney for expeditions cooperation with all requests made of them. The Pretreatment Ordinance has been separated from the Sewer Use Ordinance and awaits the Board's review and passage after the EPA review and approval, which is the final step in completing the update. Mike Zima and the Board complimented McMahon Associates and Midwest Contract Operations on the rapidity and thoroughness of their work.
Trustee Collins moved to approve the transfer of $325,000.00 to the O & M Fund for Operations from the Capital Fund; $6,160.99 to the O & M Fund from the Dedicated Tax-IMRF Account (plus amount to cover last payroll of the fiscal year.); $4,399.08 to the O & M Fund from the Dedicated Tax-FICA Account (plus amount to cover last payroll of the fiscal year.); $48,500.00 to the O & M Fund from the Dedicated Tax-Corporate Account; $379,661.20 to the O & M Fund from the EPA Replacement Account; $136,585.00 to the EPA Replacement Account from the Revenue Fund for annual funding; $3,911.84 to the Revenue Fund from the Bond & Interest Fund; $633,500.00 to the Revolving Loan Main Plant Fund from the Revenue Fund; $375,000.00 to the Revenue Fund from the O & M Fund. Trustee Zar seconded. Motion carried.
Trustee Struthers moved for payment of bills as presented. Trustee Zar seconded the motion. Motion carried.
Trustee Struthers moved and Trustee Zar seconded approval to pay the bills received between now and the end of the fiscal year at the end of this month. Motion carried.
In Public Input and Communications, Jim Schneider asked about the impact of potential phosphate reduction in cleaning products on the plant, and was answered by Scott Trotter. He also asked more questions and expressed concern about the District's planned expenditures in the current fiscal climate. He requested and received feedback about the "general conditions" portion of the explanation of costs that had been presented at the last meeting.
At 1 p.m. Trustee Collins opened the Public Hearing in regard to the Project Summary & Preliminary Environmental Impact Determination for the project including Biosolids Rehabilitation and Improvements, Tertiary Filter Rehabilitation and Country Club Lift Station Rehabilitation. Although the meeting had been advertised, Jim Schneider was the only member of the public who attended. Scott Trotter said that the Illinois Historic Preservation Officer, the Illinois Department of Natural Resources, the Illinois Department of Agriculture and the U.S. Army Corps of Engineers have already given sign-offs on environmental impacts of the project. He explained that the Illinois Environmental Protection Agency has reviewed the justification for the project, the proposed implementation plan, cost, financing and environmental impact of the project, and has generally approved it subject to feedback from today's public hearing and a 15-day opportunity for written comments. He said the only adverse environmental impacts anticipated from the project would be the temporary inconveniences of construction. Scott called for questions. Trustee Collins asked if the IEPA had found the estimated costs to be reasonable, and Scott answered in the affirmative. Jim Schneider asked why the District was planning to ask for loans of the total amount of the project instead of using capital funds on hand. Scott Trotter said that while the District has not yet made a determination of how much it would seek to borrow, he would recommend that if economic stimulus funds are available to the District for this project they accept that funding and retain capital funds to apply to future expenditures that would otherwise have to be borrowed at higher interest rates. Mr. Schneider remained concerned about planning large expenditures. Trustee Zar restated that the proposed project is based on the District's need to replace worn-out equipment and will not increase plant capacity. Janice Tripp described the potentially catastrophic environmental result of not rehabilitating the tertiary filter. She also noted that the Country Club Lift Station improvements were needed and scheduled some years ago, but have been delayed because of the need to rehab the Lion's Park Lift Station which was determined to be a higher priority need. Trustee Collins told Mr. Schneider how much the Board appreciates his involvement in the public hearing process. He said that although the Board hears Mr. Schneider's concerns about spending money in the current economic downturn, there is a need to move forward to complete needed repairs and replacements. In response to Mr. Schneider's comment on the user rate increase in January 2009, Trustee Struthers pointed out that the District's user rates still compare favorably to those of surrounding communities. When there were no further questions put forward, Trustee Collins declared the public hearing closed.
Richard Stokke, District Treasurer gave the Treasurer’s Report. Because of Mr. Stokke's stated wish to retire soon, the Board reviewed information to be distributed to seek applicants for the Treasurer's position.
The Board reviewed the tentative budget for Fiscal Year 2009-2010. Trustee Zar requested that the narrative about reasons for each line item, verbally supplied by District Manager Mike Zima and Assistant Manager Administration Janice Tripp, be put into writing. Trustee Collins moved and Trustee Zar seconded acceptance of the tentative budget contingent upon specified adjustments being made. Motion carried. The public has been informed by newspaper advertisement published April 15, 2009 of the opportunity for review, and a public hearing on the Budget and Appropriation Ordinance will be held at 1 P.M., on the 20th day of May, 2009, at the office of the Sanitary District, and final action on the ordinance will be taken by the Board of Trustees at that time.
There have been no requests for annexations this month.
Trustee Collins moved and Trustee Struthers seconded approval of the wages for Fiscal Year 2009-2010. Motion carried.
Trustee Struthers moved and Trustee Collins seconded appointment of Keith Foster of The Foster Buick Group as the District's legal counsel for the Fiscal Year 2009-2010. Motion carried.
A motion was made by Trustee Struthers, seconded by Trustee Zar to appoint the engineering firm Trotter & Associates of St. Charles, as District Engineer for the Fiscal Year 2009-2010. Motion carried.
Treasurer Stokke has agreed to remain in the position until a replacement can be found. Trustee Collins made a motion to appoint Richard Stokke as Treasurer for the Fiscal Year 2009-2010. Trustee Zar seconded the motion. Motion carried.
A motion was made by Trustee Struthers, seconded by Trustee Zar to approve the firm of Sikich LLP to conduct the Fiscal Year 2008-2009 Audit. Motion carried.
Trustee Collins moved to set the monthly District Meetings for Fiscal Year 2009-2010 on the third Wednesday of each month at noon at the District office. Trustee Struthers seconded. Motion carried.
Treasurer Stokke presented a review of the current financial depositories. Trustee Struthers moved and Trustee Collins seconded the following policy as to depositories and depository limits:
- Set a limit of $2,150,000.00 for total deposits at Resource Bank. This includes the amount insured under FDIC, $700,000.00 insured deposits and $1,200,000.00 to be collateralized at 100%.
- Set a limit of $2,150,000.00 for total deposits at The Northern Trust, Castle Bank, National Bank and Trust Company of Sycamore and American National Bank. Any amount deposited over the amount which is insured under FDIC is to be collateralized at 100%.
- Set a limit of $1,150,000.00 for total deposits at Old Second Bank. Any amount deposited over the amount which is insured under FDIC is to be collateralized at 100%.
- Set a limit of $500,000.00 for total deposits at Fifth Third Bank. Any amount deposited over the amount which is insured under FDIC is to be collateralized at 100%.
- Set a limit of $250,000 plus interest for total deposits (held without collateral) at any FDIC insured institution until such time as the amount insured under FDIC expires or is changed, with the limit to revert to the FDIC-insured limit at that time.
- Authorization to invest in individual certificates of deposit of an amount up to but not exceeding the FDIC-insured limit each, not to exceed a total of $1,000,000.00 to be purchased through Northern Trust and to be held in safe keeping at Northern Trust. No more than the FDIC-insured limit is to be invested at any one bank.
Collateralization of investments shall be with Treasury bills, notes or bonds or Agencies of the Federal government. Collateral is to be held by a third party bank.
The Board stated that the above amounts are deposit limits, and on occasion interest will be added to an investment causing it to go over the authorized bank limit. This would be allowed until the investment matured. The limits set are to be adhered to except in special circumstances. It was noted by Trustee Collins that he is a director of Resource Bank. It was noted by Trustee Struthers that he is President and Director of Castle Bank. Motion carried.
A motion was made by Trustee Collins and seconded by Trustee Struthers that two signatures be required on all checks. Authorized signers of checks during the Fiscal Year from May 1, 2009 through April 30, 2010 are Trustee Dennis J. Collins, Trustee Timothy A. Struthers, and Trustee Carol B. Zar, along with Richard Stokke, Michael Zima, and Janice Tripp. Michael Zima and Janice Tripp were directed by the Board not to sign together unless in case of an emergency. Motion carried.
In the Engineer's Report, Scott Trotter announced that Mark Eddington, P.E. has accepted a position with another engineering firm. He introduced the Board to Mike Holland, P.E. who will be coming to Board meetings with Scott in the future and working on the District's projects. On behalf of the Board, Trustee Collins thanked Mark Eddington for all his efforts on behalf of the District and wished him well, as did Trustees Struthers and Zar.
In Plan Review, Mike Zima said that he is concerned that DeKalb School District 428 has not yet requested annexation to the DeKalb Sanitary District despite its architect and engineer having been informed of the need to do this and to have sewerage designs approved by the District before an IEPA sewer construction permit application will be signed by the District. In the interests of helping the community, the Board instructed Mike to write directly to the school district and inform them of the need for timeliness in completing these procedures. He agreed to do so.
Illegal Connections in the West Lincoln Highway TIF area were confirmed this month by dying the suspected problem lines. Mike said that the City of DeKalb has agreed to correct the problems. The Board asked him to submit the District's understanding of this commitment to the City of DeKalb in writing.
The DeKalb Sanitary District's Facility Plan acceptance by the Illinois Environmental Protection Agency is in the public hearing process, as noted earlier in the meeting.
The Biosolids Rehabilitation and Improvements project development has been 90% completed by Trotter & Associates. Because of the condition of the tertiary filters, their rehabilitation had to be added to the project. Work has already begun, and Trustee Struthers moved and Trustee Zar seconded Contract Addendum #1 to expand Trotter & Associates Engineering services to include that work. Motion carried, raising the billing limit on the expanded Biosolids Rehabilitation Project to $950,000.00.
The Country Club Lift Station Project Design has been completed to the public hearing stage , as noted earlier in the meeting.
Design phase of the West Lincoln Highway Sewer Replacement Project has been completed. Trustee Collins moved to approve an agreement with Trotter & Associates for bidding and construction engineering at a cost not to exceed $28,400.00. Trustee Zar seconded. Motion carried. Permission was given to advertise the project and receive bids for review at next month's meeting.
Trustee Collins moved and Trustee Struthers seconded issuing the Notice to Proceed and signed the contract for the 2009 Spot Repair Project to Elliott & Wood, Inc. Motion carried. A pre-construction meeting will be scheduled next week.
VisuSewer was the lowest of five bidders on the 2009 Lining Project and Trotter & Associates recommended awarding them the contract. Trustee Collins moved to approve the Notice of Award. Trustee Struthers seconded. Motion carried.
The District has identified service connections in need of grouting. Trustee Zar moved to contract with Trotter & Associates for engineering services for a 2009 Sewer Grouting Project at a cost not to exceed $24,800.00. Trustee Struthers seconded. Motion carried.
Discussion of the permanent flow monitoring project was deferred until item #22 on the agenda.
There was nothing new on the Private Lateral Infiltration and Inflow Reduction Plan.
The Pretreatment Program Update Project had been fully discussed earlier in the meeting.
Steve Olsen presented quotes he received on equipment to allow District staff to perform flow monitoring on the four main interceptor sewers entering the plant so as to obtain data on major basins that can be used to assess the effectiveness of collection system improvement efforts. He also recommended purchasing two more flow monitors to be used in monitoring sites out in the collection system. The Trustees approved the purchase from Gasvoda of this equipment. Trustee Struthers reminded District administrators to formalize a monitoring and reporting system for the Board's periodic review.
The City of DeKalb and DSD continue to discuss the trees whose roots have infiltrated both sewer mains and laterals causing basement backups on Moraine Terrace. City representatives have asked the District to consider flowable fill in lieu of the removal. The District's consultant stated flowable fill would be very costly and has not been proved to prevent root-caused backups. The Board asked Mike to formalize the District's concerns in a letter to the City.
Mike Zima, District Manager and Keith Foster, Attorney for the District will meet to clarify the District's position as to the Cortland service agreement and then arrange a meeting with representatives of the Town of Cortland.
Attorney Foster reports no communication from Eagle Homes about the judgment against them.
Trustee Collins moved to approve the Catastrophic Loss Relief requests of Wilmetta Morris of 929 Seaman Avenue who had a broken water fitting leaking water into the house which is currently empty and Bill Lovett of 1343 North 13th Street who used water due to a leaking toilet. Both requests did meet City/District Catastrophic Loss Relief Policy requirements. Trustee Struthers seconded. Motion carried.
In New Business, the Trustees reviewed the District's current employee search. Trustee Struthers said that the District's overarching theme should be working leaner and tighter. All the Trustees expressed a preference for registering open positions with the Illinois Work Net Center and advertising them in the newspaper instead of only interviewing those who have submitted walk-in applications.
Trustee Collins moved and Trustee Struthers seconded a motion to adjourn the meeting. Motion carried. Trustee Collins adjourned the meeting.
Dennis J. Collins, President