Sewer District Examines Insurance Policies
CROMWELL — With updated facilities and services come updated expenses, at least when it comes to insuring those new and updated assets, Turkey Creek Regional Sewer District focused on changing costs during its regular monthly meeting Monday evening, Nov. 21.
Insurance representative Stanford Rice of Lupke Rice kicked off the meeting by updating the district on new insurance policies. Currently, the district uses Arch Capital Group for insurance but examined rates offered by another company, Selective Insurance Company, after Selective claimed they would take an aggressive approach to gaining the district’s business.
Rice compared plans and coverage offered by both companies, but ultimately recommended staying with the current provider. Because of the ongoing S.W.A.P project wrapping around the Syracuse area lakes, the district had to add coverage that didn’t exist previously and increase some that were already in place. Although the yearly premium is anticipated to increase by approximately $10,000, TCRSD Superintendent Timothy Woodward and representative Rice felt confident it is the right amount of coverage for the district.
In the new plan, Woodward and Rice set up replacement value coverage for each lift station and additional assets. This ensures a building or tank or pump could be repaired through insurance at the cost to replace it today, regardless of the age of the asset in question.
The district also heard updates on the final stages of the S.W.A.P. construction from Woodward and Jones and Henry engineer Brian Houghton. During these updates, Houghton noted his contract as engineer had already been extended once but was again coming to a close without completion abreast. NIBLOCK is still on site working on some restoration, paving and punch list items. The cost to retain Houghton to see completion is an estimated $18,000. He suggested the district prepare a letter for NIBLOCK giving them three weeks to finish these items, and anything after that time would result in a fee of $1,000 per day to NIBLOCK.
The district board members did acknowledge NIBLOCK drilled all the lateral lines for the customers, saving time and money for both the customer and district. Doing this took extra time, possibly contributing to the current delay.
The board also discussed pay increases for employees of the district. Woodward explained to the board members he was anticipating a heavier workload for 2017 without planning to hire any additional employees. Raises were submitted for 3 and 5 percent dependent on the employee.
The board finally received some answers on the rate study of Syracuse billing. Currently, the district is paying more than $4 per 1,000 gallons of flow. According to the study completed by Jon Julian, TCRSD should be paying a maximum rate of $2.02. The district received a bill for the month of October, which the board agreed to pay, but only at the new rate of $2.02. It is anticipated there will be additional discussion on this issue, as attorney Dick Green is in the process of preparing a letter to the town of Syracuse.
The next meeting is scheduled to take place at 7 p.m. Monday, Dec. 19, at the Cromwell TCRSD office.