REGULAR MEETING, BOARD OF SANITARY DISTRICT COMMISSIONERS WEDNESDAY, FEBRUARY 22, :00 P.M E. EIGHTH STREET
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1 REGULAR MEETING, BOARD OF SANITARY DISTRICT COMMISSIONERS WEDNESDAY, FEBRUARY 22, :00 P.M E. EIGHTH STREET The meeting was called to order at 4:00 p.m. in the Board Room of the Administration Building, 1100 E. Eighth Street, by President, Garry L. Mitchell Sr. Commissioners present for the meeting were Garry L. Mitchell Sr., Charles G. Peller, Holt L. Edinger, Frank R. Harris and Tim Smith. Staff members present for the meeting were: Michael P. Kuss, General Manager Scott Kistler, Financial Manager Milorad Milatovic, Water Reclamation Superintendent Rachel McCline, Receptionist/Dispatcher Jim Micheals, Assistant Superintendent of Collections John Gorczyca, District Engineer James B. Meyer, Legal Counsel Also present for the meeting were: John Doyle, John A. Doyle & Associates Tim Haas, Haas & Associates Sandra Stine, Resident Charlie Keene, General Insurance Services Kevin Harmon, ALCO TV Minutes Mr. Mitchell entertained a motion on the matter of the minutes. Mr. Harris made a motion to approve the meeting minutes of the Regular Meeting of January 25, 2017 as submitted - seconded by Mr. Peller. There being no question or General Insurance Services Mr. Keene advised that Attorney Meyer and Mr. Kistler have reviewed the Property and Casualty Renewal. Mr. Keene reported that the 2017 renewal premium has increased 6.9%. Mr. Keene explained that the majority of the premium increase is a result of increased exposures including increased property limits, the addition of vehicles to the fleet, and an addition to the District's equipment. Mr. Keene mentioned that the Sanitary District's insurance coverage was first placed with Cincinnati in This was a result of an extensive marketing process. Cincinnati's premium and coverage was the most competitive. Prior to this renewal, General Insurance Services did market the Sanitary District to HCC Insurance Co. HCC Insurance Co. advised that they were not willing to offer a proposal because of the pending litigation the Sanitary District and the City of Michigan City has filed against them.
2 Page 2 of Property & Casualty Comparative Summary,nnual Premium Summan Description Expiring 2016 Renewal 2017 Annual Premium $195,054 $208,600 Percentage Different from Expiring Premium 6.94% Commercial Property Coverage Detail Description Expiring 2016 Renewal 2017 Blanket Building Limit $49,615,887 $49,715,887 Blanket Business Personal Limit $5,309,701 $5,319,701 Equipment Breakdown Included Included Deductible $10,000 $10,000 Valuation Replacement Cost Replacement Cost Property Cause of Loss Form Special Form Special Form Flood Coverage $1,000,000 $1,000,000 Earthquake Coverage $1,000,000 $1,000,000 Flood & Earthquake Deductible $50,000 $50,000 Inland Marine Coverage Detail Coverage Description Expiring 2016 Renewal 2017 Total Inland Marine Limit $1,449,656 $1,716,656 (District's Equipment) Deductible $1,000 $1,000 Inland Marine Coverage included the Districts' scheduled equipment (per schedule), miscellaneous property & equipment, and rented equipment. Mr. Kuss asked if the Sanitary Districts Boats & Outboard Motors are covered. Mr. Keene replied yes.
3 Page 3 of 9 Cyber Coverage Detail Description Expiring 2016 Renewal 2017 Privacy Liability $1,000,000 $1,000,000 Privacy Regulatory Claims Coverage $1,000,000 $1,000,000 Security Breach Response Coverage $1,000,000 $1,000,000 Security Liability $1,000,000 $1,000,000 Multimedia Liability $1,000,000 $1,000,000 Cyber Extortion $1,000,000 $1,000,000 Business Income & Digital Asset $1,000,000 $1,000,000 Restoration Deductible $2,500 $2,500 Mr. Keene advised that after some discussion with Attorney Meyer, there was some concern regarding if there was enough cyber coverage for the Sanitary District. Attorney Meyer expressed concern, stating that the Sanitary District provides all the Information Technology (I.T.) service for the entire City of Michigan City. Mr. Smith recommended that the Sanitary District increase its Cyber Coverage to $2,000, Mr. Harris asked if there are consultants available that could assist the Sanitary District with identifying any exposures that may pose a threat to the Cyber System. Mr. Smith advised that a Risk Manager could be hired to perform the mentioned task. Mr. Smith stated that if I.T. Director, Andy Matanic believes the Sanitary District is secure at this point, then there may not be a need. Mr. Keene advised that the premium he presented includes Terrorism Coverage, with the option to exclude it. Mr. Keene added that the premium is $1, annually. Attorney Meyer recommended that the Sanitary District exclude the Terrorist Coverage. Attorney Meyer explained that the Government will cover over 80% of any loss. Mr. Peller made a motion to approve the package with the standard information, including $2,000,000 coverage for cyber, and deleting the Terrorist Coverage - seconded by Mr. Edinger. There being no further question or comment on the matter, the motion carried 5-0 in favor. Mr. Peller made a motion to approve the General Insurance Services agreement, with recommendation that Mr. Kuss be allowed to sign the agreement - seconded by Mr.
4 Page 4 of 9 Harris. There being no question or comment on the matter, the motion carried 5-0 in favor. Public Comment Sandra Stine at 602 W. Garfield Street, Michigan City, Indiana stated that she continues to have water seeping into her basement. Ms. Stine advised that she would like to keep an open line of communication with the Sanitary District regarding the matter. Mr. Kuss advised that infiltration pipes were installed into the storm sewer on Garfield Street near Ms. Stine's property. Ms. Stine noted that the mentioned efforts were not helpful. Mr. Kuss noted that he spoke with Weaver Consultant, Steve Stanford in hopes to assemble a quote for a pump station that would pump down the high groundwater. Mr. Peller asked if the Sanitary District has any historic information regarding changes in the groundwater elevations throughout Michigan City. Attorney Meyer replied, stating that there is information regarding groundwater for the Lake Henry area. Mr. Doyle advised that the sanitary sewer that was originally on Garfield Street is several feet deeper than the current storm sewer. Mr. Doyle added that when the new sewer was built, all the joints were sealed to prevent any ground water from entering the sanitary sewer. Mr. Doyle recommended installing a filtration gallery that would allow the groundwater to be pumped into the storm sewer. Mr. Edinger asked if the Sanitary District could try using a temporary pumping station to see if it would have any affect in Ms. Stine's home. Attorney Meyer mentioned that a source of funding would need to be considered for the mentioned suggestion. Mr. Kuss advised that the Sanitary District could seek a proposal for studying the problem on Garfield Street, and seeking solution pending the funding. Mr. Kuss recommended that Ms. Stine consider sealing her basement, as an attempt to resolve the issue. The Board thanked Ms. Stine for her comment. Regarding the Northern Indiana Commuter Transport District (NICTD) Contract, Attorney Meyer reported that the agreement states that NICTD is going to license the Sanitary District to initially attach 2 of its fibers to 2 of theirs. Attorney Meyer noted that there will be an annual licensing fee for this service. Attorney Meyer added that the
5 Page 5 of 9 contract also indicates that the Sanitary District has the right to ask NICTD for additional fiber in the future for purchase. Attorney Meyer noted that the City's ultimate plan is to build a fiber ring to include all City Departments. Attorney Meyer explained that once the fiber is ran "throughout all the departments, it's possible that new businesses coming to the City of Michigan City may want to access the fiber. Attorney Meyer advised that any business that would like to access the fiber would have to obtain license with NICTD directly. Mr. Peller made a motion to approve the Master License Agreement between NICTD and the Sanitary District of Michigan City, and authorize Mr. Kuss to sign the agreement - seconded by Mr. Harris. There being no further question or comment on the matter, the motion carried 5-0 in favor. Environmental Systems Research Institute, Inc. (esri) No updates. Financial Report As of January 31,2017 Operating Fund: $1,216, Improvement Fund: $1,250, Vehicle Replacement Fund: $124, Equipment Replacement Fund: $1,085, Indian Springs Project Fund: $5, Whippoorwill Project Fund; $ SRF Debt Reserve Fund: $475, SRF Bond and Interest Fund: $283, SRF Depositary Fund: $359, Storm Water Fund: $530, Refuse Fund: $630, Special Revenue Fund: $15, Levy Excess Fund: $8, Rainy Day Fund: $81, Mr. Kistler recommended approval of the January 25,2017 Gender & Company Service Agreement to Perform and Provide Certain Professional Financial Consulting Services as submitted. Mr. Harris made such a motion - seconded by Mr. Edinger. There being no question or
6 Page 6 of 9 Mr. Kistler advised that the City Council had a first reading of a new software for the City of Michigan City. Mr. Kistler noted that the City decided to purchase New World Systems Software by Tyler Technologies. Mr. Kistler advised that the new software will be helpful regarding communications with employees. Mr. Kistler added that the software will be Cloud-based, to include disaster recovery and more security. Attorney Meyer added that there will be different levels of security for different types of information. The Board thanked Mr. Kistler for his report. Mr. Kuss reported that the Wastewater Treatment Facility continues to produce quality effluent. Mr. Kuss reported that the Sanitary District submitted a Grant Application February 21, 2017 for the Cheney Run Wetland Treatment Facility. Attorney Meyer added that the Great Lake Restoration Initiative (GLRI) Grant Application was also submitted. Mr. Kuss advised that the Sanitary District's Laboratory is now accredited. Regarding the Energy Systems Group (ESG) Audit, Mr. Kuss advised that a meeting is scheduled for next week to review and discuss the design work for the project. Mr. Kuss noted that ESG, DLZ Engineering and Haas & Associates officials will be attending the meeting. Mr. Kuss reported that the Sanitary District would like to purchase six (6) pickup trucks for the Refuse Department, Foreman of Collections, Chief Mechanic, and the new District Engineer. Mr. Kuss added that the Sanitary District would like to trade in two (2) of its vehicles. Mr. Kuss advised that the Sanitary District would like to send out a request for bids/quotes for the vehicles and recommended approval of the same. Mr. Peller made such a motion - seconded by Mr. Edinger. There being no question or Mr. Kuss noted that the Sanitary District may Lease/Purchase the vehicles. Mr. Kuss advised that the Sanitary District is in the process of preparing a Request for Quotes for the Seneca Property Demolition, to include recycling/recovering of any metal on the property. Mr. Kuss reported that the Sanitary District will need to test the Seneca Property for asbestos. Mr. Kuss added that he and Weaver Consultant, Steve Stanford plan to perform a short report regarding any barrels in the buildings to be included in the request for quotes.
7 Page 7 of 9 Mr. Kuss noted that the cost for demolition will determine how much the Sanitary District would like to offer for the property. Mr. Kuss advised that the Sanitary District received two (2) appraisals for the Seneca Property, with an estimated average of $126, as is. Mr. Kuss requested that the Board approve and allow the Sanitary District to issue a Request for Quotes for the recycling and demolition of the Seneca Property. Mr. Harris made such a motion - seconded by Mr. Peller. There being no question or Mr. Kuss advised that Pekron Consulting will be performing the asbestos inspection on the Seneca Property. Mr. Kuss reported that the next Health & Safety Committee meeting will be held on March 7,2017. Mr. Kuss advised that the Mayor appointed him to be the Chairman for the Committee on Lead (Pb). Mr. Kuss added that the City of Michigan City is required to test its drinking water every 3 years for lead and copper. Mr. Kuss explained that Michigan City is in full compliance with the rules and regulations. Mr. Peller asked about the method of testing. Mr. Kuss explained that the Michigan City Department of Water Works goes to 30 locations to test. Mr. Kuss mentioned that the major source of the problem is Lead (Pb) base paint. Mr. Kuss reported that if a home older than 1978 is purchased/rented, there is a Federal Law that requires the home owner to hand out information regarding the hazards of Lead (Pb) to the buyer/renter. Mr. Kuss added that anyone who receives Medicaid are required to have their blood tested. Mr. Kuss noted that the testing can be done for free at the La Porte County Health Department. Mr. Smith mentioned that there have been some studies on educating the home owner about encapsulating the Lead (Pb) to help solve the problem. Mr. Kuss advised that the Sanitary District is interested in purchasing property at 122 Hobart Street. Mr. Kuss explained that the property consists of 3 lots with a garage on it. Mr. Kuss reported that the property owner is asking $19, for the property. Mr. Kuss noted that Attorney Meyer gave the Sanitary District permission to make an offer for the mentioned price, pending Board approval and appraisal. Mr. Kuss then asked the Board to approve the purchase of the property, subject to the appraisal.
8 February 22,2017 Page 8 of 9 Mr. Peller made such a motion - seconded by Mr. Harris. There being no question or Regarding 101 Hobart Street, Attorney Meyer advised that the County gave the property to the City of Michigan City, and the City gave the property to the Sanitary District because it did not sale at a Tax Sale. Mr. Kuss recommended that the Board approve the Sanitary District to seek a Request for Quotes for a new roof on the building at 101 Hobart Street. Mr. Kuss advised that there is an occupant in the home, and they were given until April 30, 2017 to vacate the property. Mr. Kuss reported that the Smith Valley Lift Station Project has begun, with a deadline of May 25, Mr. Kuss advised that the Sanitary District plans to install a new generator at the Krueger Lift Station. Mr. Kuss noted that Quotes will be ready to go out for Bids soon. Mr. Kuss reported that the Lakeland Triangle Lift Station will need to be relocated to property owned by Friendship Gardens in Pottawattamie Park, pending the Town of Pottawattamie Park's approval. Regarding Education/Outreach, Mr. Kuss advised that the Sanitary District is an official member of the Partners for Clean Air, with a Gold Level Membership. Mr. Kuss explained that a Gold Level Membership is a $2,000 commitment to the organization. Mr. Kuss reported that the annual luncheon meeting is April 28, 2017 at the Hammond Marina. Mr. Kuss mentioned that the 4th annual Conference on the Environment and the W.G. Jackson Boat Tour is approaching. Mr. Kuss announced that Trail Creek Week is scheduled for September 25-29, Mr. Kuss added that the Sanitary District is requesting that the Board approve and allow for a $2, contribution to supplement the $10, that is needed for the Trail Creek Water Shed Group. Mr. Harris made such a motion - seconded by Mr. Edinger. There being no question or Mr. Harris made a motion to approve and allow Revenue & Tax Levy Claims for payment - seconded by Mr. Peller. There being no question or comment on the matter, the motion carried 5-0 in favor. \
9 Page 9 of 9 Old Business None New Business Regarding the Forrest Lawn Landfill Waste Hauling, Mr. Kuss advised that the Sanitary District has a 2 year Contract with the ability for the Sanitary District to extend the Contract for 3 more years. Mr. Kuss noted that the current Contract ends July, Attorney Meyer reported that the Landfill is closed, but another site will be provided to the Sanitary District to utilize. Attorney Meyer added that Forrest Lawn will also cover any increased expenses due to the change in location. Mr. Peller asked if the price will remain the same. Mr. Kuss replied stating that the price won't remain the same, but the price that was negotiated for the year will remain the same. Mr. Harris made a motion to adjourn the meeting - seconded by Mr. Mitehell. There being no question or Next Regular Meeting of the - Wednesday, March 22, :00 P.M. at 1100 E. Eighth Street. Holt L. Edinge'
Commissioners present for the meeting were Garry L. Mitchell Sr. and Holt L. Edinger. Charles G. Peller, Tim Smith and Frank R. Harris were absent.
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