Highlights:
- FCID has $137,080.22 in cash as of June 30.
- Clarification and review of POE treatment quotes from The Water Guy (Cranbrook) and AquaClean (Trail) is ongoing.
- Funds collected under Capital Expenditure Charges Bylaw #2 were deemed eligible for the POE project.
- Service connection requirements and directors’ and liability insurance were discussed.
Minutes July 23, 2015 – 6:30 pm
McLaren’s Residence – 4761 Highway 31
Trustees present: Gillian Froese, Laurie Hartland, Lance McLaren, Ron McKilligan
Secretary Treasurer: Tammy Horick
- Meeting called to order at 6:35 pm.
- Approval of agenda
- Approval of last Trustee minutes (June)
a) MOTION to approve June meeting minutes. Moved by Lance McLaren, seconded by Ron McKilligan. All in favour. Passed.
4. Approval of Financial Report (Tammy Horick)
a) As of June 30, 2015, FCID has
– 37,080.22 in Cash plus $8,793.76 still expected in 2015 tax revenues as some tax cheques weren’t deposited until early July.
– $237,430.74 in Total Liabilities and Equity, which includes capital assets.
b) Income Statement to June 30, 2015. Expenses incurred in June:
– Plumber repaired leaky stand pipe ($288.77 + GST = $302.90)
– PO box rental ($156 + GST = $163.80) + miscellaneous postage costs
c) Balance Statement to June 30, 2015
– About $146K in Cash assets once all 2015 taxes are received.
– Expenses of about $5K and negligible revenues remaining in 2015 budget.
– Note that Accounts Payable on the statement is low by $121.34 (should be $302.90, not $181.56) because of a Sage problem dating from 2014. Tammy’s working on how to correct it, thinks it’s because of how American cheques for taxes were recorded.
– Discussed and agreed that the 2016 Taxation bylaw will stipulate that taxes are payable in Canadian funds only.
– MOTION to accept June financials as circulated. Moved by Laurie Hartland, seconded by Lance McLaren. All in favour. Passed.
d) Tangerine account closure
– $57,303.47 getting 0.75% interest in Tangerine account (formerly ING, but recently bought by ScotiaBank and renamed). Account opened many years ago because of attractive interest rates.
– The Tangerine account is to be closed and the money transferred to KSCU to a Kootenay Saver Term Deposit (1.2%, redeemable after 90 days).
– Initiated because Tangerine required that, to keep the account open, FCID must open ANOTHER account with them by June 30, complete the paperwork for new clients, and then have both FCID and the Secretary Treasurer make a $1 deposit to it. The original account would then be transferred to the new one and closed. When Tammy expressed concerns to Tangerine customer service, they immediately suggested transferring the funds to another institution and closing the account.
– The trustees agreed to the closure over email in late June since Tangerine interest rates were no longer exceptional.
e) Online payment for member taxes
– Taxes are currently either paid by cheque or by online transfer but only if the member has a KSCU account.
– Central One will add FCID as a bill payee for free but this only works for credit unions and Western Canadian Bank. Other banks must be registered with separately, and have fees.
– It would cost at least $1,000 per year to support online bill payment from each of the major banks (BMO, CIBC, ScotiaBank, RBC, TD) because of initial setup and monthly and/or transaction fees.
– Agreed that making FCID a bill payee for online payment will not be pursued.
5. Maintenance Report (Ron McKilligan)
a) Water is crystal clear.
b) Brass cap added to standpipe so pliers are necessary to turn it on (prevent vandalism).
OLD BUSINESS
6. Action items from last Trustee minutes
a) Ron posted Interior Health decal on intake building.
b) Discussion of $19,806.59 in the Capital Expenditure Charges (CEC) account accumulated under Bylaw 2 (passed in 1980) which specifies that the funds are:
– “to augment system capacity to ensure an adequate water supply”, and
– “shall be disbursed only by a Resolution of the Trustees of the District which has been given the written approval of the Inspector or Deputy Inspector of Municipalities “.
Since an “adequate water supply” should be potable as well as sufficient, and the FCID water system’s capacity to provide this is currently nil, it was agreed that CEC funds can be used for the POE implementation. Furthermore, Local Government has made CEC disbursement bylaws exempt from registration since 2009 so the disbursement will not need written approval.
c) Regarding new service connections, the pertinent bylaws (6, 7, 36, 37) specify only that plans must be approved by FCID, how charges are to be applied and that FCID will provide connection requirements in writing. The Service Connections Report by D.H. Evers Consulting Engineer (July 15, 1981) states:
– the service stop location and size,
– the connection must be made with 160 psi rated polyethylene service tubing buried to a depth of 5 feet minimum,
– the connection must be made using a formed stainless steel insert, and
– the residence end of this service line shall be uninterrupted (e.g. go to the house first and from there to a second connection for irrigation).
ACTION: Laurie to create soft copies of Bylaw 6, 7, 36, and 37.
d) Welcome Package still being reviewed by Laurie and Tammy.
ACTION: Laurie and Tammy to complete Welcome Package update.
e) Robert still doing turbidity testing and passing results to Graham.
ACTION: Lance to ask Graham to forward turbidity testing results to fletchercreekwater@gmail.com for our records, and Tammy to forward to Lance.
f) CBT water restrictions information was added to the water conservation page on the FCID website.
g) Gillian drafted a cautious letter of support for Hagensborg Waterworks District regarding their appeal to give Improvement Districts access to capital funding, but is still concerned about getting too involved in a potential quagmire.
ACTION: Gillian to prepare final letter on FCID letterhead for Hagensborg Waterworks District.
ACTION: Tammy to provide Gillian with FCID letterhead.
h) POE action items discussed in item 8 below.
i) Tammy has started a POE file of quotes and other correspondence.
7. Website maintenance costs
a) Pennywise website hosting and weekly classified ad is $90 + GST for 3 months.
ACTION: Tammy to find out how often the Boil Water Advisory notice must run.
b) Pennywise charges $40/hour for some changes that Pat can’t make. It was preferred that Tammy would work with Pat to keep the knowledge in-house and limit costs. It was agreed not to provide a cash allowance for web maintenance at this time.
8. POE/POU treatment plan
a) Quote update
– Travel costs and bulk discounts are included in both quotes.
– AquaClean has provided a reference project and client contact info that included an application approved by Interior Health; still waiting to hear from The Water Guy.
– Both quotes are so different in presentation and content that comparison is difficult; discussed strategies for normalizing the information.
– Busy time for both vendors so they’re a bit slow to respond right now.
– Discussion of extensive 2011 POE report by Twin Bays community near Creston.
ACTION: Lance to ask references about their experience with the vendor: general satisfaction, on time, on budget, areas for improvement, how good was customer service.
ACTION: Lance to ask The Water Guy for:
– approved Interior Health applications they have submitted,
– confirmed cost of seeing our Interior Health application to completion (in case it needs to be resubmitted),
– manufacturer brands,
– client references,
– warranty info.
ACTION: Lance to ask AquaClean if they provide surge protection.
ACTION: Gillian to ask Bob Froese if we can get away with a 10 inch pre-filter. Would there be any benefit to a 20 inch since the GPM is the same?
ACTION: Tammy to scan and email Twin Bay Community report to Board.
b) Response to members
– 4 members submitted comments in June.
– Not much to report at this time, still firming up quotes, comparing parts.
ACTION: Tammy to forward the 4 comments to Lance as a reminder.
ACTION: Tammy to email an update to members who submitted comments.
c) What’s next?
– Interior Health requires 100% member compliance in order to remove the Boil Water Advisory.
– Will the FCID owned equipment be on title? How does FCID ensure this is part of a transfer of ownership? How does FCID make it equitable for people who already have a system in place?
– A POE package was sent to FCID members in 2011 when this water treatment option was proposed then. It included a comprehensive information letter and an approval letter that was signed by 27 of 51 members. The letter addressed many of the same concerns raised now.
ACTION: Tammy to email 2011 POE package to all trustees, including list of signed/not signed. Trustees to review information letter and decide if it can be updated and sent out again.
ACTION: Tammy to determine water license requirements for POE implementation timeline.
NEW BUSINESS
9. Insurance review
a) Discussion initiated because of an email from Sustainable Infrastructure Society about their insurance program.
b) Directors insurance
– Trustees and former trustees are protected by the Local Government Act Section 287:
“for anything said or done or omitted to be said or done by that person in the performance or intended performance of the person’s duty or the exercise of the person’s power, or
for any alleged neglect or default in the performance of intended performance of that person’s duty or exercise of that person’s power.”
– However, the Improvement District Manual (2006) recommends that even though the legislation does not make it mandatory to do so:
“an insurance policy of at least $2,000,000 should be obtained in case of a claim for personal injury, death, property damage or third party liability”.
c) Liability insurance
– Purchased for a premium of less than $600 per year until October 2002.
– Beginning in October 2002, FCID liability insurance applications were either refused or offered with premiums ranging from $3,150 to $25,000. No specific reasons were given for the change. After deciding not to purchase liability insurance, FCID was given legal advice to have members complete a waiver acknowledging the risks associated with a Boil Water Advisory.
– Since 2003, members have been required to read and sign a Release of Claims, Undertaking, and Agreement to Indemnify waiver. This document and regular advertising of the Boil Water Advisory on the notice board, website and local Pennywise paper shows due diligence by FCID in making members aware of the risks inherent in the current water system.
ACTION: Tammy to add explanation of why the waiver exists to the Welcome Package and upcoming (e)mail out of AGM minutes and financials to members.
d) Insurance to be reviewed again after the Boil Water Advisory is lifted.
10. Correspondence
a) Land Title for 4762 Twin Bays Rd transferred.
ACTION: Tammy to send new members the revised Welcome Package when complete.
11. Announcements
Next meeting is Thursday, August 20 at 6:30 pm at Ron McKilligan’s 4705 Highway 31
12. Adjournment at 9:15 pm
FINANCIALS: