Clean audit reported; consultant liability language stalls sewer project while district applies for recreation grant

Board members were told the district received a clean audit with no findings or recommendations. A staff member introduced the audit summary and reported fund‑balance and reserve figures, including capital reserve, maintenance reserve and regular surplus; $90,000 was noted for excess surplus and capital reserve was used for a recent roof project.

The staff member also reported an upcoming February 7 meeting on a local sewer project that will include mayors, municipal and utility representatives and engineers. He said the consultant (Kleinfelder) recently submitted terms and conditions that limited consultant liability to $50,000. "They were limiting their liability to $50,000 which would quickly get wiped out," the presenter said, and the district’s insurance broker and attorney raised concerns. The language was under negotiation and staff expected to try to resolve it within days.

Separately, the district plans to apply for a Local Recreation Improvement Grant (LRIG) from the Department of Community Affairs for $70,000 to regrade the baseball and softball fields to address drainage problems (the softball field near a shed receives roof runoff). The presenter noted the district previously received $70,000 for backstops and benches and said award amounts typically fall in the $70,000–$75,000 range unless significant matching funds are offered.

A resolution to approve the audit was on the agenda for board action. No final decision on the Kleinfelder contract language was recorded at the meeting; staff indicated further review was ongoing.