PUBLIC WATER SUPPLY DISTRICT #13
Minutes of the June 9, 2010
Regular Session of the Board of Trustees

The Board of Directors of Public Water District #13, Jefferson County Missouri met in regular session at 7:00 p.m. on June 9, 2010 at the Lake Tishomingo Community Center, Hillsboro, Missouri.

Roll Call of Directors
The following Directors being present or absent as indicated:
	Name	Present/Absent
	Marilyn Meyer	Present
	Rich Hirsch	Present
	Rick Lippitt	Present
	John Hindrichs	Present
	Ken Jost	Present
Also in attendance was Janet Hirsch (JWH, LTPOA Board member).

Approval of Agenda
Motion was made by John Hindrichs and seconded by Rick Lippitt to accept the agenda. On voice vote, all Directors were in favor of accepting the agenda.

Approval of Minutes of Past Meetings
The executive session Minutes of the May 12, 2010 meeting were emailed to the Directors prior to the meeting. Motion was made by John Hindrichs to approve the executive session Minutes as written. Second was by Rick Lippitt. On voice vote, the executive session Minutes were approved. 

The regular session Minutes of the May 18, 2010 meeting were emailed to the Directors prior to the meeting. Motion was made by Rich Hirsch to approve the regular session Minutes as written. Second was by Rick Lippitt. On voice vote, the regular session Minutes were approved. 

The executive session Minutes of the May 18, 2010 meeting were emailed to the Directors prior to the meeting. Motion was made by Rick Lippitt to approve the executive session Minutes as written. Second was by John Hindrichs. On voice vote, the executive session Minutes were approved. 

Treasurer’s Report
MM reported that an updated bill from Taylor Engineering was received.
MM: Our attorney Bob Sweeney sent us an 8 page itemized bill. By his estimate we owe him $17,868.80 as of May 27, 2010.
RH: What did Bob estimate his bill would be at contract signing?
JWH: Bob estimated we would owe him $8,000 at contract signing. I estimated we'd owe him $15,000. 
RH looked at the bill and noted that there were many conferences with C. Telle about the access road.
RH: The first charge is from 1/2009.
MM: So he's been with us one year and five months.
JH: Basically that's about $1000 per month.
MM: In the short time we had Norrick as our attorney we got a bill for $7800. We received much better service from Bob.
RL: We got a lot more bang for our buck from Bob.

Old Business
USDA-RD/MDNR/Taylor Eng. document review 
 JWH reported that Donna Martin called with two pieces of information:
1) Our interim construction loan will be through Missouri Rural Water Association and it is expected to be at 2.7% instead of the USDA-RD rate of 4.125%. This loan will be only during construction -- at the end of construction this interim loan is paid off and the USDA-RD loan takes effect. 
JWH: We do not get any money from Donna until construction is completed. In the meantime, money to pay bills will come from an Interim construction loan. The bottom line is that this helps our bottom line! -- It could represent a difference of up to $32,000 in the first year of interest. This is good.

2) Donna says that projects always run smoother when the owner (the District) has someone watching the contractor and making sure everything is being done properly. The District should pay attention to what is going on. She suggests someone who is a retired resident and interested in the project. 
JH: Originally the plans called for laying pipe in a trench. And the pipe specifications were set for that service. If they do directional boring, will the same specs still apply?
MM: I received a letter from Donna dated June 2 that authorized the award of $2,984405.50 to low bidder TGB Contracting. Before pre-construction conference can be scheduled, RD must receive copy of owner's final title policy for treatment plant site or attorney's final title opinion, collateral pledge for funds, more…

Contingency funds discussion
RH: Near the end of our last meeting on Tuesday, May18, the question posed by Tim was either to proceed with the project having less than 5% contingency funds, or to borrow an amount from USDA-RD to raise our contingency funds to 5% of construction costs.
RH: At that May 18 meeting the Board decided to postpone that decision, since we did not have Traci's (MO DNR) final numbers as to the District's grant amount and therefore we could not calculate the amount we would need to borrow and how it would affect the user fee.
RH: At this time the Board needs to decide if we should proceed with our current level of contingency funds, or if they should be increased to 5% by borrowing.
RH: Since the May 18 meeting Traci has given us final numbers and Janet and Tim have been working on the resulting budget. Our total funding is firmly set at $3,922,574.
RH: Both Janet and Tim calculate the contingency amount without borrowing to be 3.6%. If we borrow to bring the contingency funds up to 5% of construction costs, we will have to increase the monthly user fee, even if the contingency funds are not used. This was confirmed by Donna.
RH: Therefore, I believe we should proceed with the contingency funds we now have. If we need more money later, we'll ask for it then. 
JH: I move that we keep the contingency amount at the 3.6% level, rather than borrow more money to raise the level to 5%. Motion seconded by RL. Motion passed unanimously.

Homeowner mailing: Homeowner electrical requirements
JWH prepared a mock-up, which she described to the Board.
A discussion of when the mailing should be made followed. JH suggested waiting to mail the homeowner electrical requirements at least until after the Lake Tishomingo elections. 
MM: Another complication is that Lake Tish assessments will be sent out July 1. 

Previous lawyer's funds inquiry 
MM: We got another letter from our previous attorney, Mr. Norrick, requesting payment. He states that if he does not receive payment or an explanation, he will begin start adding interest to his bill. 
RH: I'll send him a letter. Janet emailed Tim and he said that funds should be available for Mr. Norrick at the end of July or in August. Also, we need to tell him bonds have not been issued.

New Business
Retired RD employee Ed Reed came to the lake to count houses on June 7. Although Ed's first total was 234 houses, on rechecking, his final count was 236, the same as ours. Since this is two houses less than the number the previous budget was based on, we will, once again need to redo the budget. Fortunately, the budget is on a spreadsheet and can easily be changed to accommodate 236 houses.

JWH presented the Board with a new budget based on 236 connections. RL moved to accept the new budget. Motion was seconded by KJ. Motion passed unanimously. 
President MM and secretary RH signed the approved budget. JWH will send the new budget to Donna.
 
Attorney’s Report
Bob's report: "I have reviewed the packet and have attached, with comments, the only two documents that I had comments about."
	"Second, I believe I have the Preliminary Title Opinion pretty much ready to go. I had one question: the application requests the address of the property. Does the property have an address? Did the District request one from 911?  If so, please let me know so that I can add the address to the opinion. If there is no address, please let me know and I will simply indicate so on the form." -- Bob
JWH: I will contact the 911 commission to obtain an address for the treatment plant

Engineer’s Report
Tim's report: "Here is my best guess and my timing comes from Donna's letter of June 2. I just got an email from TGB and it looks like they will be overnighting their documents to me today. I will then make 5 specification books that contain all the required documents. While I am doing that I will forward a copy of the surety bonds and insurance certificates to Bob. When the books are complete we will forward them to you guys for signature if Bob ok's the bonds and insurance. Once you guys sign the agreement, you will need to forward all 5 copies for one final review from Bob and then he has to sign the Certificate of Owner's Attorney in each book. Once that is complete, Bob will need to send all 5 sets to Donna for her review and approval. Once she approves, a date will be set for the pre-construction conference, which according to her letter will be 2 to 3 weeks later (I would hope sooner).  Anyway, here we go:
June 10 - Taylor in receipt of Insurance, Bonds, and Agreement from Contractor
June 11 - Taylor forward copy of Insurance and Bonds to Attorney for review.
June 12 - Taylor forward 5 copies of all documents to Jefferson #13 for review and signatures; Attorney approves Insurance and Bonds
June 14 - Jefferson #13 in receipt of documents, sign documents, and forward to Attorney 
June 15 - Attorney in receipt of 5 copies of the documents
June 16 - Attorney completes review, signs certification, and forwards to Donna for her review.
June 17 - Donna in receipt of Documents
June 18 - Donna reviews and approves Documents, sets meeting for Pre-Con (probably aggressive)
Week of June 28 - Pre-Construction Meeting, all documents signed, dated, Notice to Proceed dated
Week of July 12 - (educated guess)  Funds should be available.-- Tim Robbs

Adjournment
There being no other formal business to come before the Board, a motion to adjourn was made by Rick Lippitt and seconded by Ken Jost. Motion passed with all Directors in approval. Meeting ended at 8:05 p.m.

Respectfully Submitted,

Rich Hirsch
Recording Secretary

Approved this 14th day of July 2010.

___________________________	_________________________________
Secretary	Chairman
July 14, 2010