The Sidney Village Board held a public meeting on February 13, 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, Schluter, Roberts, and Bickers.
 
            Attorney Miller opened the meeting with a presentation about the water system, and handouts were passed out to the 17 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:  water 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 Village had a major increase in the water rates in the fall to have money to start these improvements.  To be able to make all these improvements, the Village will have to borrow money, but they are in a good position to so so because they do not owe any money now, and the interest rate would be in the 3% range.
 
            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.  Also, it is able to buy in bulk so that a fire hydrant that costs the village $2,500-3,000 can be bought by a big company for $700.  The same with piping.  They buy in bulk and then store the material in warehouses until needed. 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.  The Village is testing the waters by RFPs to see if a sale would be advantageous to us.
 
            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. If the Village borrowed money, would this affect our rates?

A.  No, the raise last fall would take care of the payments.  The study is on the Village web site, and it tells how the Village will service the debt.  Rates will probably go up 3% a year for inflation no matter who owns the system.
 

1. If it is sold, will we share other towns' expenditures for upgrades?  Champaign is getting new subdivisions all the time.

A.  Yes, but the systems the companies own are in good shape so they will not require the upgrades that the ones being bought will have to have.  Also, companies have routine replacement and maintenance.  They have more resources and do not have to delay maintenance.  To raise their rates, they have to go to the Illinois Commerce Commission for approval and the Commission will compare their costs with their income.
 

1. In Champaign-Urbana, the developer pays for the water and sewer costs for the development.

 

1. Is the Village breaking even or not on the water?  It looks as if we will pay a 3% increase no matter if we sell or don't.

A.  The Village was subsidizing the system for many years.  Recent increases got the system up to breaking even and, with the latest increase, accumulating some but not enough to maintain without borrowing. There will be ongoing rate increases either way.    The water tower was built in 1940.  The wood was replaced with metal in 1967, but the legs are the same ones installed in 1940.  This is all in the report.
 

1. After paying off the loan in 20 years, what will be next, more expenses?

A.  The system will be in pretty good shape except that the water tower will have to be repainted about every 25 years and that is very expensive. The last bid to do this was $400,000.  The Village would probably have to take out another loan.
 

1. What about the vaults?

A.  The meter vault outside Urbana was installed in 1991 and it is now rusted clear through the bottom and has to be replaced.
 

1. This sounds like a unique opportunity.  How many towns are selling?

A.  The State act puts towns wanting or needing to sell their systems in a beneficial position.  The companies are guaranteed an 8% return.
 

1. If we didn't sell now, would we have an opportunity to do in the future?

A.  Hard to predict.  The financial incentives to buy bad systems are right now.
 

1. We are band-aiding the system now.  What happens in a catastrophic situation?

A.  Let's say the tower was damaged.  You would have to bring in tanks and pay prime dollars to contractors to install.  This would be a gigantic expense.  The Village could provide water but its use would probably be restricted.  You can wait too long to fix a system or a component.  The water tower has to have something done.
 

1. How much water does the Village use?

A.  2.7 million gallons a month
 

1. The rate for out-of-town, will that change?  Will the water tower be moved?  How often would we be billed? 

A.  The company that buys the system will decided the rates.  It is possible to move the water tower but not probable.  The company will be buying the property where the tower sits.  Probably still be billed once a month
 

1. If we sold, how would that affect having a sewer system?

A.  We have a turn-key plan.  We asked if we could sell those plans but the ICC doesn't recognize those plans.  A sewer system is completely separate from the water system.
 

1. Will the company take care of the needed projects.

A.  Absolutely.  All that is put into the contract., and they would be obligated to do so.  In turn, the company will do its own in-house assessment.  All projects will be done by contractors, not in-house.
 

1. Looking into the process, what do you think will happen?

A.  It all depends on the bids.  If we do not sell, we will continue to borrow to fix the system on our own.
 

1. What will the Village do with the money from the sale?

A.  There are different options:  new community building, upgrading the parks, streets, etc. Fisher used its sale money to pay off its debt (Sidney has none) and is still studying what to do with the rest.  Sadorus made $240,00 on its sale and hasn't spent the money yet.  All small towns are taking their time with spending the money.
 

1. Is there a certain amount of time that a repair would be made, for example, a major water leak?

A.  No guarantees.  The ICC formula rewards companies for fixing problems on a timely basis.  Also, the company is losing money when water is being used that they don't make money on.
 

1. The water mains are in front of the downtown businesses.  If they have to fix a main, how would the company repair the street?  How about private homes?

A. Sidney's ordinance states that the driveway is replaced with rock.  The companies' policy is that they replace what they took out.  As far as moving the downtown mains, the company will assess whether to move them or not.
 

1. How will the salaries of the employees who do water work now be paid?

A.  If the company wants to or if we put that in the contract, the company would pay to the Village, a percentage of the salary that is dedicated to water work.
 

1. Is the audit report on the web page complete?

A.  Yes
 

1. What would a sewer system cost?

A.  $10,000,000 when we did the study.  There are more regulations now.  The map will never need updating except for new construction or changes like that.  The other half of the study was for a treatment plant, and the new regulations (nutrient control) mean it would need to be updated. 

I.  Presentation about Water System
 
          II.  Questions and Answers

            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.

            The Sidney Village Board met on the above date for the regular monthly meeting.  The meeting was opened  at 7:00 p.m. with the Pledge of Allegiance. The following trustees were present:  Arrasmith, McCloud, Bickers, Schluter, and Finn.  Supervisor of Operations Bennett,  Treasurer Reinhart, Attorney Miller, and Clerk Moore were also present.  Trustee Roberts was absent.
            Clerk Moore administered the Oath of Office to John Finn, who was elected to fill out the remainder of  President White's term at the January 23 special meeting.  President Finn then called the meeting to order.
            Trustee Arrasmith moved that the minutes of the January 7, 2019, regular meeting,   the closed session of January 7, 2019, and the special meeting of January 23, 2019, of the Board of Trustees be approved.  Trustee McCloud seconded the motion; the motion carried with all ayes on a roll call vote. 
           
            PUBLIC COMMENTS:
 
            Resident and Reporter Ann Rhoton thanked President Finn for accepting the office of President.
 
            PRESIDENT WHITE'S COMMENTS
 
            President Finn then appointed Mark Catron to the unexpired term of Trustee Finn.  Trustee Schluter moved to approve the appointment of Mark Catron.  Trustee Bickers seconded the motion; the motion carried with all ayes on a roll call vote.
            President Finn said he had not had time to familiarize himself with the county zoning issue so had no report at this time.  Supervisor Bennett asked  Attorney Miller if he had sent a letter to the owners of the abandoned property.  He had not but will do so before the next meeting.
            The hiring of new employees was moved to the end of the meeting.
           
             ATTORNEY MILLER'S COMMENTS:
 
            Attorney Miller reported that the RFPs had been sent to the two water companies.  He will be at the February 9 public informational meeting but not at the February 13 meeting unless it is critical that he be there. Engineer Friend said that he would have handouts at both meetings.  Trustee Schluter said that he had been asked if people could see the financials for the last ten years.  Engineer Friend that that information is in the report that is on the Village web site.  Another question asked is will the water rates go up or down?  Engineer Friend said that information will be on the fact sheet handout.  Attorney Miller said that in his experience people have two questions:  what will the rates be and how will capital improvements impact the rate.
           
           
             EARL BENNETT'S REPORT
 
            Supervisor Bennett reported that he will receive the new truck the first of March.  He will have some quotes on the cost of a new snow plow at the March meeting.
            There had been a leak at the corner of Main and Harrison that has been repaired.
            The bridge by the Lion Park on Main Street had been damaged by a truck.  The County had been notified.
           
            FINANCE REPORT
 
            The financial reports were read by Trustee McCloud.  Trustee McCloud moved that the bills be paid with the addition of $175.00 to IMCO and $7,464.00 to Farnsworth Group. Trustee Arrasmith seconded the motion.  The motion carried with all ayes on a roll call vote.
            Trustee McCloud had talked to Longview State Bank for information on financing a new community building.  For a 30-year loan at % down at 4 ½ %, the monthly payment would be $5,77.55 for $1,160,000 borrowed.  The interest rate would be adjusted every five years.  25% down is usually required for a commercial loan.  Built into the loan amount is a $90,000 contingency fee.  Trustee McCloud will have more information at the March meeting.
           
            STREETS AND ALLEY
 
            New Trustee Catron will be in charge of this category.  Supervisor Bennett and Engineer Cummins will be meeting soon about MFT work.  There was some discussion about the truck route. The truck route match grant is not for purchase of property, just for surfacing.
           
            WATER/SEWER/UTILITY
 
            Supervisor read the reports in the absence of Trustee Roberts. 2,632,891 gallons of water were pumped in January with a daily average of 84,831 gallons.
            $28,673.33 was received in January.  109 penalty bills were sent. $32,284.26 was billed in February to 539 customers.
           
            PUBLIC PROPERTY
 
            Nothing to report
           
            PARKS AND RECREATION
 
            Trustee Bickers reported that he had set up ball signups for two Wednesdays, February 6 and 13 from 6-8 p.m. and on Saturday, February 16, from 9-11 a.m.  at the Community Building.  Philo will be taking the lead on a fundraiser, which will be dinner and a raffle. Trustee Bickers is the commissioner but he has a board.  Supervisor Bennett said that he wanted one contact, and Trustee Bickers will be that contact for now.
 
            COMMUNITY DEVELOPMENT
 
            Trustee Schluter reported that President Finn and Trustee Catron have their web mail sites set up.  They are posted on the Village web site and Clerk Moore will post them on the Community Building bulletin board. Also posted on the web site are the public meetings scheduled on the water system, all the agendas and minutes, the water study, and the 2018 audit.  He will post the ball schedules when he receives them.  He has posted the job openings but had to take down the Peace Meal to do so because the web site is full at five pages.  Trustee McCloud asked what the cost of upping the pages.  Trustee Schluter said that he could find out.  There was discussion about having a Facebook page instead of upping the pages.  Trustee Schluter will look into that also.
 
            NEW BUSINESS
 
            Clerk Moore asked that Supervisor Bennett, Trustee Bickers, and Treasurer Reinhart go to the Longview State Bank to sign new account cards.
            Clerk Moore also reported that she had applied for a Village fuel Casey's charge card.
 
            Trustee Catron moved that the Board enter into Executive Session for the limited purposes of discussing the employment, performance, discipline, and /or compensation of one or more Village employees pursuant to 5 ILCS 120/2 (c) (1). Trustee Schluter seconded the motion; the motion carried with all ayes on a roll call vote.
 
            The Board came out of the closed session at 8:25 p.m.
 
            Trustee McCloud moved that the Board of Trustees offer the position of Village Clerk to Ashley Reinhart.  Trustee Schluter seconded the motion; the motion carried with all ayes on a roll call vote.  Treasurer Reinhart accepted the position.  Trustee McCloud moved that the Village post the Treasurer's job.  Trustee Arrasmith seconded the motion; the motion carried with all ayes on a roll call vote.
 
            Trustee Arrasmith moved that the meeting be adjourned.  Trustee McCloud seconded the motion; motion carried with all ayes on a roll call vote. Meeting was adjourned at 8:30 p.m.

SWEARING IN OF NEW PRESIDENT
 
PLEDGE
 
APPROVE MINUTES                                   January 7 and 23, 2019
                                                                        Closed Meeting January 7, 2019
                                                                       
PUBLIC COMMENTS                                                         
                                                                                                           
PRESIDENT FINN'S COMMENTS             County Zoning
                                                                        Truck Route Match Program
                                                                        Abandoned Property
                                                                        Village Trustees Election
                                                                        Solar Farms
                                                                        New Hires
                                                                        Appointment to Fill Trustee Vacancy
                                                                       
ATTORNEY'S COMMENTS                        Update on Sale of Water System
                                                                       
REPORTS:                                                                                                                                                                            
Earl Bennett’s Comments                               *Truck Replacement                          
                                                                       
Finance                                                            *Approval of Monthly bills
                                                                        *Report of Financing New Building
                                                                       
Street and Alley                                              *Sidney Village Hall Study:
                                                                              Mike Friend and Scott Burge
                                                                                                                                   
Water and Drainage                                        *Monthly Report
                                                                       
Public Property                                               *ESDA
                                                                        *Permits
                                                                        *Cars
                                                                       
Parks and Recreation                                      *Ball Sign-up Meetings
                                                                                                                       
Community Development                                                                                         
                       
New & Old Business                                                 
 
Adjourn