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Meeting Minutes 3-13-2017

MINUTES OF REGULAR MEETING

OF BOARD OF TRUSTEES

HOLIDAY SHORES SANITARY DISTRICT

Monday, March 13, 2017

 

The Board of Trustees of the Holiday Shores Sanitary District met on the above date in regular session pursuant to laws and rules of said Board of Trustees and in accordance with the terms of the notice of regular meeting.

Richard Hayes, President called the meeting to order. Trustees, Jeff Sedlacek and Dennis Van Sandt were present.  Also present were Carla Lankster, District Clerk and Ken Dulle of Du-Con.  Also in attendance were Joe Devary of Country Financial, John Everett of Dimond Bros. Insurance and Denise Beavers and Chris R. of Insurance Partners.

OPEN FORUM

Three insurance companies were in attendance to bid on the Property, Umbrella, Auto and Workers’ Compensation insurance policies. Mr. Joe Devary of Country Financial is the current carrier and was the first presentation.  There were some changes made since the evaluation of the properties.   A few valuations changed and Employee Benefits Liability of $2,000,000 and Employment Practices liability were added.  Errors and Omissions for $500,000 is something that is already in the policy.  Computer coverage for the Itrons and MC Lite for meter reading is for $20,000 with a $250 deductible.  Property has a $1,000 deductible.  Each piece of property is covered separately, not on a blanket, and includes earthquake coverage.  Two fences were added to the policy that were not previously covered.  The Umbrella is $2,000,000 limit above the work comp policy.  Workers’ Comp is based on the current payroll.  The total Premium is $33,191.00 annually.  If the deductible is changed to $2,500 the total premium would be lowered to $30,042.00.

John Everett of Dimond Bros. Insurance was the next to present a bid, with two different options. Cincinnati Insurance is one of the largest insurance companies for utilities and water and sewer districts in Illinois and A+ rated.  There is an option of “Legal Shield” for legal counseling involving sub-contractors and other contracts.  The bid includes Cyber Liability endorsement, when clients have the option to pay on line or automatic withdrawals, a cyber breech could put them at risk.  It provides sufficient limits for data and ID recovery.  The property would be covered under a blanket policy, which avoids a co-insurance penalty, and you know you have sufficient limits at any one location.  The policy also includes, up to $100,000 in the event that The District would have to rent a space for a couple of months to continue normal business if there was a total loss of the Office.  The Earthquake coverage has a 15% deductible, and flood has a $25,000 deductible.  The Umbrella is $3,000,000.  The Inland marine only lists the Backhoe, so it will be $250.00 added to the policy to add the Vacuum Excavator.  The property deductible is $1,000.  This bid is for $28,594.00 plus the $250 to add the Vacuum Excavator.

The second bid from John Everett, of Dimond Bros. was from Bliss-McKnight does not provide an Umbrella and they do not provide Cyber Liability, but other limits will cover that. This bid includes a $2,500 deductible on property.  They show 100% full valuation, not on a blanket.  However it covers the full limit at each location, avoiding a co-insurance penalty.  There are full limits on earthquake, with a 5-10% deductible.  This bid is $30,726.00 annually.

Denise Beavers and Chris R. of Insurance Partners presented a bid from Travelers Insurance. Chris is the Director of Sales and is familiar with Municipalities.  Travelers is the No. 1 insurance company in the country for insuring Municipalities. Workers’ Comp is through Illinois Public Risk Fund.  The Errors and Omissions is $1,000,000, and Employment Practices liability is $100,000, General Liability is $1,000,000 per occurrence/$2,000,000 aggregate.  Property is a blanket across the board so you don’t have to worry about being under insured, and they will send someone out to check all of the values.  Umbrella of $2,000,000, which goes over any of the liability except Work Comp, because it is with a different carrier.  Workers’ Comp, with Illinois Public Risk offers $3,000,000 aggregate.  With the Blanket coverage on the Property, Co-insurance is waived, but you must meet a 90% value, so you want a current valuation to be done on all of the property.  There is a 72 hours waiting period on a major claim, like a tornado.  There is $25,000 pollution clean-up coverage and Inland Marine has a $1,000 deductible for the two large items, covered for $50,000.  The Workers’ Comp is based on payroll, so if there is any major change during the year, HSSD needs to let them know, so it gets adjusted in a timely manner.  The total premium bid for Travelers and Illinois Public Risk is $34,063.00.

The Trustees discussed the bids. Mr. Hayes stated that the insurance bids were presented in very different ways and it is difficult to compare.  Mr. Sedlacek said he thinks we should choose the lowest bid, because they all have similar coverage, just stated differently.  The Work Comp for Illinois Public Risk, is a separate company so they cover $3,000,000, because the Umbrella cannot be applied to a separate company.  Both Country and Cincinnati have lower work comp coverage, but the Umbrella can cover anything over that coverage, if necessary.  Bliss McKnight was ruled out right away, because the Cincinnati bid was better coverage for a lower bid.  Jeff feels that unless something is really in conflict, we should go with the cheapest, because it is over $4,000.00 less.  Mr. Sedlacek made a motion to go with the cheapest bid.  Mr. Van Sandt seconded the motion, and all Trustees voted “Aye”.  So Cincinnati Insurance is the approved Bid, at $28,844.00.

APPROVAL OF MINUTES

The minutes of February 13, 2017 regular meeting were submitted for approval. Mr. Sedlacek made a motion to approve the minutes for the February 13, 2017 regular meeting.  Mr. Van Sandt seconded the motion and all Trustees voted “Aye”.

FINANCIAL

The Summary of Accounts was reviewed for the month of February, 2017.

DISBURSEMENTS

After reviewing the disbursements for the month of February, 2017, Mr. Sedlacek made a motion to approve the February 2017 disbursements. Mr. Van Sandt seconded the motion and all Trustees voted “Aye”.

Du-Con submitted Invoice No. 3-05, dated March 8, 2017, for the month of February, 2017 for managing and operating water and wastewater treatment. Mr. Van Sandt made a motion to approve Du-Con invoice No. 3-05, dated March 8, 2017.  Mr. Sedlacek seconded the motion and all Trustees voted “Aye”.

APPROVAL OF APPLICATIONS

The water and sewer applications for February, 2017 were reviewed, and included 6 customer transfers, one new hook-up in Holiday Shores and one new Sewer hook-up to an existing house in Moro. Mr. Van Sandt made a motion to approve the February, 2017 applications.  Mr. Sedlacek seconded the motion and all the Trustees voted “Aye”.

OTHER

UNFINISHED BUSINESS

No Unfinished Business.

NEW BUSINESS

There has been an adjustment to the May, 2012 contract with Utility Service. The original contract was set up to start paying the higher rate to paint the Possum Hill Water Tower.  Ken Dulle feels that it only needs to be cleaned right now, so Mr. Dulle and Utility Service came to an agreement to push back the higher payments by two years.  To paint the Water Tower, the payments would have changed to $10,770 per quarter starting May, 2016, but that has been moved to a start date of May, 2018.  So the quarterly payments from May, 2016 through February 2018 will be $375.00.  So the Fiscal Year 2018 will be three quarterly payments of $375.00 and the first payment of $10,770.00 for a total of $11,895.00.  The Trustees said that Ken Dulle can sign the adjusted document.  Mr. Dulle signed the original contract.

OPERATIONS

No other discussions for Operations.

ADJOURNMENT OF THE REGULAR MEETING

Mr. Sedlacek made a motion to adjourn the regular meeting. Mr. Van Sandt seconded the motion, and all Trustees voted “Aye”.

Respectfully submitted,

Carla Lankster, District Clerk