The Combined Lake Delhi Recreational Facility and Water Quality District
Board of Trustees Meeting
Thursday, April 17, 2014 – 6:30 p.m.
Maquoketa Valley Middle School Conference Room
Delhi, IA
The meeting of the Combined Lake Delhi Recreational Facility and Water Quality District Board of Trustees was called to order by President Steve Leonard at 6:34 PM at the Maquoketa Valley Middle School Conference Room.
Trustees present: Leonard, Kramer, Davidson, Schneider, Burger, Gifford, Kray
Trustees absent: n/a
Visitors: Jim Locke, Ed Schmidt, Dave Larson, Debra Sweet, Randy Sweet, Larry Aschbrenner, Ben Paskeer, Sara Morehouse and Pat Colgan by Skype and Gary Grant by phone
Agenda reviewed by Leonard Motion made by Gifford to approve agenda, Burger second, all ayes, motion passed.
Kray requested approval of minutes for the 3/20/2014 meeting. Burger made motion to approve, Schneider second, all ayes, motion passed.
Kramer detailed payments for the General Fund. Alliant – $24.40; Delaware County Auditor – $38.00; L&L Consulting – $2,000.00; Simmons Perrine Moyer Bergman – $746.25; Three Rivers – $310.80 (previously approved by email to take advantage of early payment discount). Payments for the Bond Fund are Des Moines Register – $30.13; Simmons Perrine Moyer Bergman – $5,904.45. Motion to approve payments by Schneider, second by Burger.
Davidson voiced concern that there is no accounting or correspondence regarding what projects the Lobbyist are working on. Gifford stated we need to try to determine our return on investment and how to invest in these resources that we have on retainer. A possibility may be to pay by season, or project, etc. His suggestion is to split off a small group and analyze this expenditure and come back with thoughts and suggestions for the future use if any. Kray said she didn’t think any of us would question the value we have received from the Lobbyists. Davidson suggested a committee of 3 (Schneider, Davidson and Gifford) sit down with the Lobbyists and see what kind of hours they spend, the work they do, etc. and come back to the board with suggestions. Leonard gave his thoughts that the lobbyists can help for a much bigger package of expanding benefits to the lake and developing further public benefits to the area. A vote was called on approving the payments above, all ayes, motion passed.
Gary Grant (Lobbyist) called in and gave an update on Legislative items. The Ag & Resources budget passed the Senate and has passed already in the House and it contains the amendment to fix the tax issue with the lake. The budget will now go back to the House and most likely go to a conference committee. The job now is to keep the amendment in the budget so it comes out intact from the conference committee. Our amendment is not the controversial part of this budget. The amendment exempts a 357E from the obligation of property taxes and clarifies in the Iowa code that the taxing district isn’t required to pay sales tax either. Burger asked if retroactive to July 1 on sales tax. Leonard indicated from communications the Department of Revenue that they already ruled that we were sales tax exempt and a sales tax exemption form has already been given to the contractor based on help from Bob Hatala, the district’s attorney. This bill just makes it clear so there won’t be any question on sales tax in the future.
Kramer reviewed the financial summaries for the month end of March 2014. The general fund had a beginning balance of $98,325.31 and after revenues and expenses ended with a balance of $148,635.67. The fund for the bond payment started with a balance of $176,179.89 and after revenues ended with a balance of $327,215.43. The general bond fund started with a balance of $5,629,764.71 and after interest and expenses ended with a balance of $5,346,302.06. Davidson moved to file the financial reports, Gifford second, all ayes, motion passed.
Kramer introduced Resolution 4.17.14 to approve payment for the upcoming debt service payment for the general obligation bonds. Kray made motion to approve resolution to pay debt service in the amount of $349,306.25, Burger second. Individual roll call requested, all ayes, motion passed.
Resolution 4.17.14a for the authorization for Delaware County to conduct our upcoming election on July 22nd was introduced by Kramer. Leonard, Schneider and Kramer are up for re-election. Kramer made motion to approve the resolution, Schneider second, all ayes, motion passed.
Larry Burger advised we received only 1 bid for Builder’s Risk Insurance because we will be doing work in a flood zone. Hiscox, Inc. that works with Lloyds of London provided a bid for both the dam repair and spillway construction. Burger’s recommendation is the $50,000 deductible policy. Our amount of protection is $11,221,000 but this will be adjusted based on the spillway proposals. The premium is $71,072.99 for a $50,000 deductible policy. Terrorist insurance is an additional $1500. Burger would recommend the terrorism risk insurance because we don’t have to worry about a difference between terrorist or vandalism definitions. There is an additional $2500 that can be paid to get product to the dam quicker, in case of an insurance claim, so we wouldn’t hold up the project waiting for insurance issues. Burger made a motion to approve the bid from Hiscox Inc with Lloyds of London as the underwriter with a premium not to exceed $80,000, Davidson second. All ayes, motion passed.
Stanley agreement #23 for construction and administrative services not to exceed $232,000 was introduced by Leonard. Colgan said this is task 9 from old original document from Stanley Engineering. We will be paying for a full time, experienced and knowledgeable contact during construction. He will verify what the contractor has done, make sure the quantities are correct, quality is there, etc. If he agrees monthly on the work done, then he will make a recommendation that the contractor should be paid. He is our eyes and ears in the field for Stanley Engineering and Colgan. This engineer has 30 years of experience and will keep all records, keep track of what happens in the field and change drawings if necessary. Schneider made motion to approve Stanley Supplemental Agreement #23 with addition of Phase II in the wording, Gifford second. Individual roll call requested, all ayes, motion passed.
Burger brought the Insurance issue back to the table as he wanted to confirm the terrorist insurance was included in the Builders Risk insurance. He restated his motion to approve the proposal from Hiscox Inc and to include the terrorist insurance for $1500 and expedite insurance for $2500, second by Davidson. Individual roll call requested, all ayes, motion passed.
The Lunda contract was presented and motion was made by Burger to approve, Davidson second. Colgan advised he read and recommends the contract. Individual roll call requested, all ayes, motion passed.
Resolution 4.17.14b to allow emergency change orders to be approved in advance of a regularly scheduled Trustee meeting was read by Leonard. The intention is to move quickly in some cases where same day, quick decisions are necessary. Colgan said because of the way the contract is written (majority of lump sum pricing) there will be very few change orders required. Colgan plans on a Contractor meeting every 2 weeks and that is when he would be notified that a change order may be needed. He would have to agree there is a potential change order, the contractor and Stanley would write up the change with costs and present the change order to the Trustees for approval. The vast majority of the change orders will be handled at a regular Trustee meeting. This resolution would only be needed if a quick decision needed to be made, for example, bad rains and you need to make adjustments. In the construction world this is called a “cardinal change” (a change that is required because of a serious situation). This would be a rare occurrence but it can happen. The Contractor doesn’t care – this is about how the Trustees are going to handle change orders. Gifford asked does this resolution handle hard emergencies where minutes and hours can make a difference? Kramer made a motion to approve the resolution and Burger second. Burger said these would be change orders that come up unexpectedly. Colgan said he sees this would be used on the spot and we wouldn’t have a written recommendation because we have mechanisms in place to approve normal change orders. Leonard said this would be to support Colgan if we need to make a quick decision. Burger said we have given Colgan the authority to manage the project and we just passed a contract that gives the Stanley Enginneer authority so why wouldn’t we give them authorization. Burger said he is not sure we can give 3 Trustees the ability to approve monies. He would rather give to Colgan and the Engineer and if it is 24 hours or more, notify the entire board. Leonard said Colgan is a volunteer and we put him at risk and it is not his role to make monetary decisions. Gifford said removing a layer may be a good idea. Gifford said we need to lay out the process and Kray recommended a work session. Burger made motion to table, Kramer second, all ayes, motion passed. All parties checked their calendars and it was decided to have a work session on May 1.
Committee Updates
Finance – Burger has been working on the Builders Risk Insurance
Dam Construction/Timeline – Thursday April 24th is the ground breaking ceremony. TV Stations and local newspapers will participate. An email will go out tomorrow.
The DNR received approximately 200 comments for the Phase II permit public hearing and most were supportive. The DNR will be addressing the public who had questions or concerns. We anticipate the Phase II permit by mid to late May.
Davidson said meeting with the contractor went very well. There were good discussions and they spent an hour down by the dam.
Leonard has asked Holman and Colgan to be prepared for Phase II bid release. Colgan said it is 99% complete already.
Kramer asked if we could move our regularly scheduled meeting on May 15th to May 22nd as her reports wouldn’t be ready by that time. A majority of Trustees had issues with that date so it was agreed the May Trustee meeting will be Wednesday, May 21st.
Kray discussed her conversation with Dennis Lyons on septic and gave details. The DNR and Lyons would like to come to the next meeting and have an open house so the public can ask questions of them regarding septic tanks in the District. All agreed that would be a good idea.
Jim Locke said that the well for the dam building and the house is in the basement of the house and you have to crall into a small space to reach the shut off. They did drain the house and opened the nuckle and water flowed out of the pipe that goes across to the building. There are no shut offs in the office building.
Public comment – Locke said down in the office are water flow documents and is there any reason we need to keep them. Colgan said he would like to see them. He will know what is important and can advise what we can discard if anything.
Aschbrenner said he would like to see those up for re-election in July to run again. He believes they have done a good job.
Dave Larson volunteered to look at the plumbing in the house and office building as he is a retired plumber. The board thanked him for offering and will use his services.
Davidson moved to adjourn the meeting and second by Schneider, all ayes, motion passed. Meeting adjourned at 8:29 pm.