3.5.24 SPECIAL BOARD MEETING
VILLAGE OF ORFORDVILLE
Special Board Meeting
Tuesday, March 5, 2024 6:00 P.M.
Orfordville Village Hall
Main Board Room
CALL TO ORDER
President Dennis Burtness called the meeting to order at 6:00 p.m. Present were President Burtness, Nick Howard, Beth Schmidt, Nikki Tuffree, and Terry Gerber. Also present were Chris & Jaime Thompson, DPW Director Nick Todd, Chief Jeremiah Burdick, and Clerk Sherri Waege. Absent were Cami Myers-Alstat and Jason Knox.
AGENDA VERIFICATION
Clerk Waege verified that on February 28, 2024 copies of the agenda were emailed to the President and Trustees; and posted at the Library, Village Hall, and Orfordville Post Office. There were no additions made to the agenda.
WATER FULL RATE INCREASE
President Burtness provided a handout and explained the reason for the increase. President Burtness explained that the water utility has been running as a deficit the last few years, which has resulted in having to rely on the savings accounts. President Burtness explained that the Village has the option of doing simple rate increases annually, and would like to do that moving forward so the increases are not as drastic in the future.
Clerk Waege explained that she spoke with Melanie Lendosky from Johnson Block last Wednesday about the application. Lendosky explained that she made two changes to the application which lowered the potential increase from 64% to 47.86%. Clerk Waege authorized Lendosky to submit the application to the PSC that day, with changes to be accepted later, as the PSC was expecting many increases for September including ours. Lendosky was concerned that the rate increase would not be approved before the closing on the Safe Drinking Water Loan in September, which could jeopardize our funding with the DNR or require the Village to do interim financing which would be an additional cost to the Village.
DPW Director Todd explained that the Village has had numerous water main breaks, particularly in the area of N. Mowe, Pine, and Rime Street. DPW Director Todd would like to see the accounts built back up over the next five years and agrees with the small annual increases.
DPW Director Todd further explained that the DNR is requiring the inside of the tower to be painted and will not approve a low interest Safe Drinking Water Loan if a rate increase is not done. President Burtness explained that the tower was built in 1977, and only spot repairs have been done inside the tower since then. President Burtness added that the outside of the tower has been painted.
Clerk Waege explained that currently the Village has $208,000.00 in savings at the Local Government Investment Pool (LGIP) Account at the State. The $208,000.00 is roughly seven months of the annual operating expenses. Generally, you should have one year of operating expenses saved up, the PSC prefers a minimum of four months of expenses set aside. Clerk Waege further explained that there is another LGIP account that has $53,000.00 in it which was set up for infrastructure repairs, money is drawn down from this account for water main repairs.
Chris Thompson of 407 Comfortcove Street was present. Thompson asked why the Village has not done the small increases over the years. Clerk Waege explained that the Village rates went up significantly back when the treatment plant was built, which put the Village rates for the sewer utility as one of the highest in the area. Clerk Waege explained that water and sewer bills are billed together, and the board strived to keep the bills low due to the sewer rates being higher. Thompson explained that he would prefer the Village do the annual small percentage increases moving forward so they don’t have to deal with another larger increase in the future.
Jaime Thompson of 407 Comfortcove Street was present. Jaime Thompson asked why the DNR did an inspection which determined the interior painting of the tower. DPW Director Todd explained that the Village has to do a sanitary survey with the DNR every three years. DPW Todd further explained that the Village is required to have the tower inspected annually. DPW Director Todd also explained that the Village is required to do five-year inspections on the tower where a diver comes in and inspects the tower while there is water in it, five years later we are required to drain the tower so an inspection can be done while it is empty.
Discussion was held on the additional $110,000.00 that was included in the borrowing package for items for the water utility. Clerk Waege explained that the $110,000.00 was requested for the following: $5,000.00 new safety harnesses for the water tower, $10,000.00 for electrical upgrades to the tower, $5,000.00 for a new sump pump to be installed at the tower, and $90,000.00 for a Vac Trailer. DPW Director Todd explained that the sump pump can be done in house to eliminate the $5,000.00 for the sump pump. DPW Director Todd provided bids for the electric upgrades from Speich Enterprises for $3,150.00, the bid for the harnesses is $2,500.00, and the Vac Trailer is $38,250.00. President Burtness explained that he spoke with DPW Director Todd and feels that the Village should not purchase the Vac Trailer at this time. With the bids and the elimination of the expenses for the Vac Trailer and the Sump Pump, the actual extra money needed is $5,650.00 instead of the $110,000.00 requested. This will result in the rate increase request for funding being reduced by $104,350.00. This will help reduce the 47.86% potential rate increase.
Motion by Gerber, seconded by Howard to proceed with the Full Water Rate Increase and to adjust the Safe Drinking Water Loan by $104,350.00. Roll Call Vote-Howard, Schmidt, Tuffree, Gerber, and President Burtness all YES. Motion carried.
Submitted by,
Sherri Waege
Village Clerk