SIDNEY VILLAGE BOARD OF TRUSTEES PUBLIC MEETING FEBRUARY 9, 2019

            The Sidney Village Board held a public meeting on February 9, 2019, at the Sidney Fire Department for the purpose of explaining the possible sale of the municipal water system.  Present were Supervisor Bennett, Attorney Miller, Engineer Friend, Clerk Moore, President Finn, and Trustees Arrasmith, Catron, McCloud, and Schluter.
 
            Attorney Miller opened the meeting with a presentation about the water system, and handouts were passed out to the 21 residents in attendance.
 
            The water system was created in the 1940s, which includes the water tower, the stations, and many of the mains.  The water system is breaking even, covering costs of water, repairs, salaries, and engineering costs.  To make major upgrades the Village will either have to borrow money or sell the system.  In 2017 engineers recommended work in four areas:  wter tower, vaults, water mains, and a new meter reading system.  It will cost $1,000.000 to fix all areas.  Another consultant hired to assess the situation came to the same conclusion. 
 
            The State of Illinois passed a statute to help out small water systems by awarding water companies that buy small town water systems in trouble.  A large company can spread its costs out over all its customers it serves.  The Village Board has put out a Request for Proposals for the sale of the water system, and those proposals are due the end of February.  The Village can the negotiate the details of the contract, such as requiring that something be fixed by a date.  The Board voted to do this at an open meeting.
 
            One of the questions frequently asked is:  what will this do to my water bill?  Pricing from last fall for 4,200 gallons of usage:  Sidney, $69.40; Aqua, $56.54; Illinois American, $49.07.                         
           
            There followed a time for questions.
 

1. Why wouldn't we do this?  Sound good.

            A:  You give up local control, at mercy of Illinois Commerce Commission
 

1. Family member is gone.  Why is the charge $32.

            A.  $32 is the basic charge, even if you don't use any water, but up to 2,000 gallons.
 

1. We have to sell:  I recognize that.  Who decides the routes for the loops?

A.  Have to pay for easements, can't just go across property.  The company then has use of the easement land.  The company would prioritize the areas to be changed, based on things like breaks.  The engineers would recommend the water mains to be replaced based on size and breaks.  All the reports on the the Village web site for the public to read. 
 

1. Who would handle emergency situations?

            A.  It could be a Village employee.  Philo has an employee who works for the village halftime                        and the water company the other half.  Other villages do not have a village employee and the             problems are handled quickly.  There have been no complaints.
 

1. If we sold the system, where would the proceeds go?

A.  Goes to the Village and is retained for municipal purposes.  What exactly has not been discussed.
 

1. What advantage is a sale to the company?

A.  They profit from selling the water.  They also get an 8% credit for expenditures because the cost of doing business is a loss for them.
 

1. Would the sale help the Village to get a sewer system?  Could we sell the plans we already have?  Won't we have to have a sewer system some time?

A.  The requirements for a wastewater system have really gone up.  The  Champaign County Health Department is in charge of private systems.  The standards are stringent and the cost is high.  There are challenges all around, but right now the Village does not have to have a system.
 

1. Are there any concerns about selling?

A.  The ICC will regulate everything.
 

1. Is the vault in Urbana included in this?  (the meter vault)

            A.  It is included.  It was installed in 1991.  It is now rusted clear through at the bottom and has    to be replaced.  The water tower had all its wood removed in 1967 for $16,000, but it has the
            legs as it had in 1940.  The report explains this.  Everything that was built in 1940 need to be             replaced.  There needs to be an orderly water main replacement.  There have been two major        leaks repaired since the report.  The meter reading system has been replaced.  Meters have a life            of 10 years.  When meters get old, they read less, never more; that is built into the meters.
 

1. What are the engineering costs of Farnsworth?

            A.  They are within the cost estimate.
 

1. Is there a chance to move the tower?

A.  Possible, but not probable.  Included in the cost are new legs for the tower, take away any debris, clean up.
 

1. Are there any companies interested in buying?

A.  Yes, the RFPs are out.
 

1. Who will read the meters?

A.  Probably be read from the company by radio
 

1. Will Earl have a job?

A.  That is talk for the contract.  We can put in as much or as little for employees to do. Companies will reimburse the Village and the companies will pay the retirement costs.
 

1. What is the time frame?

A.  For the sale, about 5 months.  To take care of all the problems, 5 years
 

1. Is the system pretty bad?

A.  It is definitely time to fix the tower, vaults, and mains, but all small towns are having problems because their systems are all about the same age.
 

1. How much water does the Village use per month?

A.  2,700,000 gallons a month average
 

1. How many small towns still own their water systems?

A.  Within a 50-mile radius, four
 

1. Does the Village have any debt?

A.  No
 

1. What is our loss?

A.  $10,000 month loss.  The audit that is on the web site shows all costs and revenues of the water system.
 

1. Do we have liability insurance?

A.  The company carries tremendous liability insurance.  The village has liability insurance but has more protection from lawsuits as a municipality than a company does.