Sangamon Sun

Village of Chatham Utility Oversight Subcommittee met April 12.

Here is the minutes provided by the Subcommittee:

A. Call to Order - The meeting was called to order at 6:00 PM by Chairman Brett Gerger.

1. Roll Call - Attending the meeting were: Trustee Ryan Mann, Mark Clayton, Paul Pachlhofer, Trustee Paul Scherschel, and Chairman Brett Gerger. Also the Deputy Clerk.

2. Public Comments Agenda Topics - After approval of the minutes from two previous meetings, the agenda item of Public comments was open to the public.

The first presenter from the public was Keith Osburn, an engineer with a M.S. in Business. He spoke for over 15 minutes. He said he was at the last SSWC meeting and he gave an overview of what he thinks needs addressed regarding the water plant.

1. He doesn't like the water quality.

2. He thinks Lee Bloome needs to be addressing the issues as hand. Namely, the rising costs for the water provided to Chatham which Mr. Osburn thinks will continue to keep climbing in order to pay off loans and to keep buying water filtration supplies, for improvements, etc. Example: $9.12 per thousand gallons of water presented at the last Board meeting and $9.50 protected rate.

3. Item of business from SSWC meeting - taking out.75 million dollars loan to pay for pumps.

4. SSWC is behind on debt payments

5. SSWC approved buying new membranes which as supposed to last 10 years, but 2/3 wil probably need replaced in the next 2 years.

6. In 2017 there were some losses regarding pump capacity - 32% pumping capacity lost. Pumps and motors burn up because of chemicals, such as maganese in the water supply. Also may need 6 - 7 more wells in order to get enough water in the next few years.

7. In the first year of testing the water, the surface water has not been tested yet.

The water supply used in the last year was 397 million gallons (pumped). And New Berlin hasn't been getting any water since December due to the broken water main.

Crawford, Murphy, and Tilly could be a good resource if Chatham wants a cost/benefit analysis. The figures could be used to estimate what the water costs to the citizens might be in 5 years, 10 years, or 20 years so that appropriate budgets and taxes could be adjusted for. There are also a couple representatives on the Planning Commission in Chatham that might be able to help do this analysis.

Chairman Gerger announced that he will ask Lee Bloome to attend the next Utility Oversight Committee meeting and consider asking him to attend every other meeting. Lee Bloome is now the Chairman of the SSWC meetings. Dan Held is taking another position outside the SSWC. Chairman Gerger would like Lee Bloome to break down what the.75 million dollar loan is going to be spent on (? debt or new equipment, etc.) The.75 million dollar loan will have to paid back and Chatham has no say in that detail.

The five member board is a positive move for the Village of Chatham. The three member board for the Utility Oversight Committee was just not effective enough to get things done. More information can be obtained, more decisions can be made, and better communication with the SSWC can be achieved. The only thing that cannot be changed is the State laws that pertain to the utility governing bodies such as the SSWC. Changes can only be made by lobbying against them, and Mr. Pachlhofer stated any lobbying during an election year would not accomplish anything.

Chairman Gerger requested that Mark Clayton check into past financial records and documents that are made available to the Village from the SSWC and some that the Village already has in order to establish where the costs are coming from for the Village to pay, such as: loans, debts, cost from building the plant, new supply costs, water costs, etc. The costs need to be broken down into current costs, previous costs, interest, and what future costs will be, etc. This will help to establish where the Village stands in relation to the Village's portion of the costs vs New Berlin.

Keith Osburn stated that Lee Bloome attended the last meeting of the SSWC, however, the financial secretary did not attend. Chatham does not know if she is required to attend the meetings or not. The meeting is not posted very conveniently for others to see.

The phosphate problem may take $1.4 million to clean up.

Trustee Mann stated that the Village has to accept the situation as it is now and find a way to navigate through the situation in a way that makes sense and accomplishes the goals we have set.

Chairman Gerger stated that the SSWC capacity for water is good for another 3/4 of a year. Improvements may need to be done when New Berlin comes back to the group.

The $9.12 cost increase rate will go into effect June 1, 2018 for those inside the Village of Chatham, and July 1, 2018 for those outside of the Village of Chatham.

RE: the Fund for Bond Holders - Investors don't want money borrowed from this fund.

RE: Capital Fund Depreciation Fund - 10% is kept for debt payment

Mark Clayton suggested that in the future an independent counsel may be needed (legal advice).

B. Old Business

1. Approve the Minutes from the January 8, 2018 Meeting and approve the Minutes from the October 16, 2017 Meeting.

Trustee Scherschel motioned to accept the minutes from January 8, 2018 and the minutes from October 16, 2017 as written. Trustee Mann seconded the motion to accept the minutes. All others voiced approval. Motion approved.

C. New Business

1. Public Comments Village Business - No public comments about new business.

D. Closing

The next Utility Oversight Committee meeting is scheduled for May 7, 2018 at 6:00 PM and hopefully some records will be provided for discussion. (from Lee Bloome)

Adjournment - Trustee Paul Scherschel motioned to adjourn the meeting at 8:48 PM and Paul Pachlhofer seconded the motion. Meeting adjourned.

https://www.boarddocs.com/il/chatham/Board.nsf/Public