Jo-Carroll Depot LRA Board of Directors

Jo-Carroll Depot LRA Board of Directors

3:00 p.m., Wednesday, December 4, 2013

I. Call to Order: The meeting was called to order at 3:05 p.m. by Chairman Steve Keeffer on Wednesday, December 4, 2013 at the Jo-Carroll Depot LRA Conference Room, 18933 A Street, Savanna, Illinois.

II. Roll Call was answered as follows: Present – 5 Paul Hartman, Steve Keeffer, Bill Robinson, Ron Smith and Bill Wright., Absent – 3 Bill McCormick, Bill McFadden (via phone) and Don Crawford. LRA staff present: Mara Roche and Angie VanKampen. Guests present: Amiee Martelle (RVPR), Ole Pace (Kopac), Bill Hooten (IITC) Sharon Peppin (Community Funding and Planning Services), Tim Schoenig (Water & Sewer Operator) and Phil Jensen (LRA Attorney).

III. Pledge of Allegiance was recited.

IV. Agenda Additions None.

V. Consent Agenda

A. Minutes of November 6, 2013 Board Meeting

A motion to approve the consent agenda was made by Bill Wright, seconded by Paul Hartman. The motion passed by voice vote.

VI. Executive Session-None.

VII. Old Business

A. Review of Capital Improvement Plan-Sharon Peppin Community Funding & Planning Services

Sharon Peppin presented the updates to the 2009-2013Capital Improvements Program. She will have the final draft back to the LRA for the January 2014 Board Meeting.

VIII. New Business

A. Motions from Executive Session, if any - None.

B. Bills over $2,500 - None.

C. Employee Reviews- Bill Wright will be setting up and conducting Employee Reviews before the next Board Meeting in January.

D. Board of Directors Election of Officers-

A motion to nominate Steve Keeffer as Chairman for 2014 was made by Bill Wright, seconded by Bill Robinson. A motion to close nominations and cast a unanimous vote for Steve Keeffer was made by Bill Robinson, seconded by Paul Hartman. The motion carried by voice vote.

A motion to nominate Don Crawford as Vice Chairman was made by Paul Hartman, seconded by Ron Smith. A motion to close nominations and cast a unanimous vote for Don Crawford was made by Bill Robinson, seconded by Bill Wright. The motion carried by voice vote.

E. Water and Sewer Rates – Rate comparisons were reviewed which included Savanna, Hanover, Thomson, Mt. Carroll and Galena

A motion to increase the Water and Sewer rates by 5% was made by Paul Hartman, seconded by Bill Wright. The motion passed by voice vote.

F. Staff Reports

1. Executive Director

a. Report/issues update-RFP/ESCA-On November 15, 2013 Burns & McDonnell and Weston Solutions were interviewed by staff and board members. An addendum to Phase I in the RFP needs to be published. After responses to the addendum have been reviewed, a recommendation will be made to the LRA Board.

A portion of the RAB minutes were reviewed (see below)

b. Correspondence – RE: Water Tower; Riverport has indicated they would not be interested in continuing with the annual maintenance program thru Utility Service once the utility is transferred. Therefore the LRA will not move forward with that option. The LRA will pull the specs and bidding packet received in 2011. Get bids or statement of interest to move forward.

Rick Stickle has requested that the LRA remove all materials from Building 402 due to his need for space to store oat hulls. The LRA will have to move all water/sewer inventory into a building agreeable to the operator and also find space to store salt.

A motion to remove all materials from Building 402 was made by Bill Wright, seconded by Paul Hartman. The motion passed by voice vote.

c. Property transfers - No property was transferred in November 2013. To date, 1,080 acres has been transferred from the Army.

d. Employment report – No change in employee numbers for November, 70. Up from 68 in November of 2012.

2. Bookkeeper

a. Bank account balances - As of 12/2/13, our current balance is $1,342,660.47.

b. CD - CD #405257 Matures on 11-22-13. This was a 12 month CD at The National Bank in Savanna and matured on 11/22/13 for $132,546.45. This CD was put in the Apple River State Bank in Hanover on 11/22/13 in a 6 month CD @ 0.30% APY, it will mature on 5/22/14. CD# 998000004413 will mature on 1/2/14 in the amount of 90,000.00 from

the Galena State Bank. This is a 12 month CD with 0.30% APY.

c. Cash flow - Income for the month of November was $5,740.58; expenses were $15,203.34 for a monthly loss of -$9,462.76.

d. Budget update - Twelve months into the FY income was $137,417.16 with $227,268 budgeted and expenses were $224,587.87 with $700,098 budgeted. Yearly loss to date is -$87,170.71

and a budgeted loss of -$475,510.26.

e. Water/Sewer-review expenses - Water and

Sewer related expenses for the month of November were $3,006.32 and income was $1,136.88. Total expenses to date are $59,672.54. Total

income to date is $19,001.64 for a deficit of -$40,670.90 twelve months into the FY.

f. Outstanding Invoices- Speer Enterprises have 3 outstanding invoices; #2464-$1,030.00, #2476-$720.00, #2481-$222.82=$1,972.82 plus other remaining past due balances from other invoices for a total of $2,951.68.

If invoice #2481 (water / sewer fees for bldg 200) is not paid by December 15th, the service will be turned off for non-payment.

E. Board of Directors Reports

1. Foreign Trade Zone #271-None

2. Jo-Carroll Enterprise Zone-None

3. Other directors’ reports-Ron Smith reported on the Mayor’s meeting that he had recently attending in regards to the expansion and development of US Route 20.

Guest Ole Pace left @ 4:15 p.m.

LRA Board Member Bill McFadden left @ 4:27 p.m.

Guest Sharon Peppin left @ 4:45 p.m.

F. Attorney’s Report-

Mara Roche sent notice to Speer Enterprises on November 7, 2013 informing them they were in default of their lease according to section 10.1 of their lease agreement. A request to Cottingham & Butler for an updated certificate (original certificate indicated coverage through 10/12/13) revealed their policy was cancelled 1/23/13 with no notice to the LRA. They were given 10 days to provide proof of insurance. On November 18, 2013 Attorney Jensen sent notice to Speer Enterprises advising that they were in default of their lease agreement due to their failure to have insurance in place as required in section 10.1 of their lease agreement. They were given 10 days to cure the default, November 28, 2013. As of December 4, 2013 the LRA has not been provided proof of insurance.

A motion to instruct the LRA Board Attorney to move forward with action against Speer Enterprises for possession of buildings 146/147 and judgment for $2,951.68; overdue invoices and late fees in respect to Building 146 & 147 Lease Purchase Agreement and overdue water / sewer fees for building 200 was made by Paul Hartman, seconded by Ron Smith. The motion passed by voice vote.

G. Other new business-None

IX. Reports to the Board

A. Site Manager / BRAC Environmental Coordinator Report-None

B. Tenants-None

C. UMRI Port District-Bill Hooten has offered office space for the UMRI Port District.

D. USFWS-None

E. Guests-None

X. Public Comments-None

XI. Adjournment- A motion to adjourn the meeting was made by Paul Hartman, seconded by Bill Robinson. The motion carried by voice vote. The meeting was adjourned at 5:10 p.m.

______

Angie VanKampen, LRA Board Secretary

Portion of minutes from November 2013 RAB meeting:

FY 2014 FUNDING: Cathy reported to the RAB that the FY14 money had been requested. Savanna has requested approx 13.9M to continue work on several projects. There has not been an approved budget yet this FY and we are working under a continuing resolution at this point. We have heard that there is a good possibility that there will be BRAC funds available this year because the Legacy BRAC program and the BRAC 2005 programs have been combined. So we are hopeful to receive a good portion of the requested monies. We have also been told to expect very little funding in the upcoming FY15 thru FY19 years. So we are working to try and get several projects under contract this year. Cathy stated that some of the projects are already running behind schedule and may not get executed this year. Ed Juracek asked if there were other things holding up the projects besides funding?

To which Tom Barounis answered yes. The Army and EPA are currently working through a disagreement about MD (munitions debris) on property. The EPA’s position is that MD will require a CERCLA remedy that will involve Institution Controls on the property. The Army does not disagree in general with needing the warning about the possibility of MD on the property but does not agree that is should be a CERCLA remedy. The disagreement will be decided at the headquarters level of both agencies but until then it does hold up projects at Savanna.

Charlene Falco went on to say that the other disagreement that is currently being worked on is a GW (ground water) issue. The Army believes that risk is the driver for GW issues and the EPA and state both disagree and believe that GW standards are what need to be followed. In the state of IL that standard says all GW must meet drinking water standards whether it is used for the purpose or not. This issue is also going on at other Army sites and is in official dispute status at Longhorn Army Ammo Plant. Tom stated that the issue is currently at EPA HQs in Washington and waiting for a decision. He believes that decision should be reached by year end. The timeframe for it was also impacted by the furlough.

Terry Ingram asked about what GW plumes there were at Savanna. Charlene responded not nearly as many of you would expect and part of that is because of the sandy nature of the soil at Savanna. She said there is a small one in the lower post shop area by Site 76, a small one at Site 20, one in the north end by Site 1, and a small one located at Site 99 in the plant area. These sites are all currently being held up from further progress waiting on the decision from HQs.

PROJECT UPDATE: Cathy reported on the proposed upcoming projects that will be done in 2014 pending funding. Site76CS removal project which will be a dig and haul project that will include lifting the railroad tracks and cleaning in the area surrounding them and replacing the tracks. This project is located in the lower post by the original round house and shop area. Site 126 project located by Bldg 502 will include excavation and disposal of soils around the USTs. This will bring the site to residential standards and require no land use controls or associated monitoring costs in the future. Site 225 is the site number given to the various old septic systems we are removing. This year’s planned removal is for the septic system out by bldg 941.

Sites MMRP 004-R-01, MMRP 007-R-01, and MMRP 008-R-01; these are the 3 mustard sites located in the north end of the property. We have requested additional funds to do an intrusive RI at the sites. To date we have done geophysical and soil gas surveys of these sites and they have indicated further investigation is needed. Because these sites are on FWS designated property there is a good chance these funds will not be sent our way this year.

Cathy also reported to the RAB updates on current site work. Site 111 groundwater treatment to remove TNT from the soil had one area that remained high at the beginning of the season. The system was restarted at that one area for further flushing and the system was shut down for the season on Oct 23rd. Sampling results are due yet this month to tell us if the additional flushing removed the remaining TNT and if the site if ready for closeout. This site will have LUCs to restrict residential use.

Sites 32, the old firing range located in FWS Parcel 9A, has once again had the decision changed and an interim removal of the spent bullets is planned for sometime in late Nov or early Dec. The soil and bullets will be excavated and disposed of offsite. This will be followed by a No Further Action ROD and the site will be closed out.

Site 85, the new firing range in the lower post behind the Fire Station, is currently on hold as we work thru some issues between Army and the EPAs. We don’t know at this point if the site will be NFA as the Army contends or if we will end up doing a removal for Best Management Practices at this site as well.

Site 224 Cosmoline pits. This area was excavated and followed up with confirmatory sampling. The Public meeting on the Proposed Plan was held on 25 Sep 2013 and indicated NFA. The ROD is currently in draft form and will be completed and followed by closeout of this site.

Site 225 Beaty House Septic System. This septic was removed in Aug 2013 and the closeout report was final this month.

Site 226, the J-609 Open Detonation pits. Although John’s initial thoughts after the discovery of this site were that it could have ended up being a huge site, the RI work at the site has come back with a recommendation of no further action at the site. The site is currently in the comment resolution stage between Army and the EPA’s and we don’t know at this time what the final outcome will be. There is a possibility when the RI is final this site will have a presentation made to the RAB.

Ed Juracek asked about Site 111 and what the samples had shown. Charlene said the samples were not back yet and we expected them before the end of November.

MISCELLANEOUS: Ed Juracek asked what happens if the LRA goes broke before we have all the property cleaned up and transferred to them? Cathy replied the she had raised that question to BRAC HQ’s and it is a very real possibility. She was told it has never happened before and they didn’t have any further answer on it.

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