PUBLIC WATER DISTRICT #13
Minutes of the January 19, 2007
Special Session of the Board of Trustees

The Board of Directors of Public Water District #13, Jefferson County Missouri met in special session at 10:13 p.m. on January 19, 2007 at the Lake Tishomingo Community Center, Hillsboro, Missouri.
Roll Call of Directors:
The following Directors being present or absent as indicated:
	Name	Present/Absent
	Lou Harting	Present
	Rich Hirsch	Present
	Larry Kimmel	Present
	Henry Brym	Present
	Marilyn Meyer	Present

Also present were Donna Martin (USDA Rural Development, Area Specialist), Bill Brunjes (District #13 engineer), and Ann Scott (Brunjes associate). 

Motion was made by Lou Harting and seconded by Marilyn Meyer to accept the Agenda. On voice vote, all Directors were in favor of accepting the Agenda.

Treasurer’s Report:
There was no treasurer’s report.

Old Business:
There was no old business.

New Business:	
Grant funding

These are the possible grants available to the District as listed in the preliminary engineering report (PER):

1) CDBG Grant			$500,000
2) MO DNR 40% Grant		$1,000,000
3) MO DNR Rural Sewer Grant	$450,000
4) USDA-RD Grant		$1,100,000
5) [USDA-RD Loan Amount	$1,300,000]

Donna Martin summarized what she thought were the possibilities of obtaining each of the grants listed in the PER:
1) CDBG Grant, $500,000
Donna thought there would be a very low probability of obtaining a CDBG since Jefferson County is an entitlement county. Our only chance is to go to the individual who administers this money for the county. 
2) MO DNR 40% Grant, $1,000,000
Donna said that getting this grant is a possibility, although she did not know how much money would be available. The 40% in “DNR 40% Grant” refers to 40% of the project cost, but the DNR’s project cost does not necessarily equate with what we might consider the project cost. Deadline for applying for this grant in 2006 was Nov. 15. It may be different in 2007. Eng. Brunjes said that his office would apply for the MO DNR 40% grant for us.
3) MO DNR Rural Sewer Grant, $450,000
Donna said that this grant limits funds to $1400 per connection, so for 265 homes, the maximum grant would be $371,000.
4) USDA-RD Grant, $1,100,000
Donna was not able to give a grant dollar amount as the MHI survey is not complete. To get any grant funding the MHI survey would have to have a MHI of less than $39,043. Donna said she felt that the grant value listed in the PER was “a little high.” Grant amounts have decreased through the years independent of which political party was in power. Donna again stressed that completing the MHI survey was essential before any grant money could be offered.
5) [USDA-RD Loan Amount,	$1,300,000]
Donna said that the USDA-RD loan amount would be “any loan amount that you can reasonably expect to collect in rates to show repayment ability.” Donna said that USDA-RD would NOT loan us an amount that would require a charge of $120 per month user fee. An amount that high would be considered unreasonable.   

Donna said that she thought that realistically, in this area we were looking at a rate $60 to $70 per month to get this project done. She also said that in some very low income areas, rates had to be set at $45 to $50 per month. 

Donna said that one other source of grant money might be a direct allocation from the EPA. We should apply for this grant through our congressman. This money would be classified as earmarked funds.  

Easements will often delay sewer construction. The Board needs to work closely with the engineer and attorney to obtain needed easements. After all easements are obtained the District’s attorney will tell the USDA-RD that we have the right-of-way to construct the sewer as planned. We will have to obtain the easements before receiving any funding. Eng. Brunjes said that since the main lines will run down the middle of the road we will not need easements for running the main sewer lines. There will be ingress/egress easement needed for getting to the treatment plant, which will be located behind the dam. The Board felt that the easement situation within Lake Tishomingo subdivision should not be a problem, because our covenants were written assuming a community sewer would one day be installed. Donna cautioned there still may be a problem because the right-of-way would have to be conveyed from the homeowner’s association (LTPOA) to the sewer district (PWSD #13). Our attorney will have to look at this. Our attorney should also be made aware that an electrical connection is required at each house so the easement must allow for that. 

In terms of requiring homeowners to hook up to the sewer, Donna said that the USDA-RD will recommend that the Board pass an ordinance requiring anyone with a home within 200 feet of a sewer line to connect. 

Donna said that if a homeowner’s electrical service needed to be upgraded, that cost must be paid for by the homeowner. This is because USDA-RD grant dollars cannot be used to upgrade personal property.  

Next, Donna discussed the comments contained in the Missouri Water and Wastewater Review Committee (MWWRC) letter of 12/20/2006 (attached).
1)	The CDBG Grant of $500,000 is probably not available to us for reasons mentioned above.
2)	The deadline for filing for the “DNR 40%” is November 15.
3)	The maximum available from the “DNR Rural Sewer” grant is $371,000, not $450,000 
4)	Project funding relies too much on grants that are not available.
5)	The MWWRC needs a detailed map of the District. This map should include the district boundaries and houses that will be served as well as topographical information. They would like an aerial photo of the District also. The latest District map from Eng Brunjes is better than previous maps at showing the correct location of houses at Lake Tishomingo and Lake Bono-Del subdivision, but Tishomingo Forest subdivision houses are not shown. To get an aerial photo of the District, Donna suggested going to a Farm Service Agency (FSA) office. Eng Brunjes said he would try to provide these two maps. Donna indicated that she would like copies of anything that gets sent to the MWWRC.
6)	Is mandatory hookup part of the project? The Board agreed that it is, and it is required if the funding agency is USDA-RD. Since Jefferson County has Zoning and Planning rules, there is probably a county-wide requirement to hookup to an available sewer. Any future hookup ordinance that the Board passes should be at least as restrictive as the county rule.  
7)	Will both full-time and part-time residents be charged a flat rate? Yes, because there is no way of knowing when a house is occupied or when the sewer system is being used. 

The Board will answer the letter from the Review Committee. Two maps of the District will be provided by Eng. Brunjes.  

Engineer’s Report:
There was no engineer’s report. 

Attorney's Report:
The attorney’s report is attached -- memo F. T. Norrick from 12/27/2006.

Adjournment:
There being no other formal business to come before the Board, a motion to adjourn was made by Rich Hirsch  and seconded by Marilyn Meyer at 11:28 p.m., with all Directors in approval.

Respectfully Submitted,

Rich Hirsch
Recording Secretary

Approved this 20th day of February, 2007.

___________________________	_________________________________
Secretary	Chairman

February 20, 2007