PUBLIC WATER SUPPLY DISTRICT #13
Minutes of the July 14, 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 7:25 p.m. on July 14, 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 Rich Hirsch and seconded by John Hindrichs to accept the agenda. On voice vote, all Directors were in favor of accepting the agenda.

Approval of Minutes of Past Meetings
The regular session Minutes of the June 9, 2010 meeting were distributed to the Directors at the meeting. After the Directors had read the minutes, motion was made by Rick Lippitt to approve the regular session Minutes as written. Second was by John Hindrichs. On voice vote, the regular session Minutes were approved. 

Treasurer’s Report
MM reported:
•	An additional bank account has been opened specifically for construction as Donna Martin had requested.
•	An updated bill from our attorney Bob Sweeney for $20,860.60 was received. [Bob's bill from May 27, 2010 was $17,868.80.]
•	An updated bill from Taylor Engineering was received.
MM also received a packet from Traci Newberry (MO DNR) that made it clear that we need another bank account, a third, and that it has to be an escrow account.

Old Business
Homeowner electrical requirements mailing
The mailing was sent out on July 8. There was a problem with MM's and RL's email addresses listed in the packet. They were old out-of-date addresses.
	Handling Homeowner's questions
The Board agreed that only the engineer can approve a change to the routing of the lateral line or STEP tank placement.
JWH: We should have the homeowner put their problem in writing and then turn over the list of problems to the engineer.
RH: We should respond to the homeowner that we received their mail, but that the engineer will respond in time.
RH: We received one question from a homeowner that asked "are we required to pull a permit from Jefferson County?" The homeowner passed a county test and has the ability to install the electrical circuit needed to power the STEP tank. 
JH: Technically homeowners should have a licensed contractor install the circuit and the homeowner should get a permit from Jefferson County.
RH: Will a licensed contractor get a permit from the county?
JH: Some will and some won't.
JWH: Perhaps the way to answer that question is to say that the District does not require a homeowner to get a permit from the county, but that the work should be up to code and meet our technical specifications.
RH: So we'll leave the permit question up to the homeowner. 

New Business
MM: One problem we have is getting water at the Sales Office for installing a toilet. Perhaps we can talk to the contractor about boring and running water from the Community House. 
JH: Jefferson County may not allow it, since it will be a shared well.
MM: Both properties are owned by the Lake, so that may make a difference.
RH: I heard that there is a pump at the old Pump House across the street. Is that correct? We need water in the maintenance yard also.
JWH: I think an addition to the Sales Office would be nice to house the toilet.
MM: We should get a bid to make these improvements on the Sales Office. The addition could be made to the west side of the building.

Discussion of materials needed for preliminary closing/pre-construction conference on Aug.3.   
	Status of final owner's title policy and additional materials needed for closing/conference
MM read a letter from USDA-RD State Director Anita J. Dunning describing our loan commitment including:
1.	Loan closing will be by or on August 3, 2010. 
2.	$2,243,000 of insured funds at 4.0% interest rate has been obligated for this project.
3.	A single bond will be issued subject to the multiple advance procedures.
4.	Final loan closing, with bond delivery, is scheduled for November 2011. The annual payment due date will be November 1.
5.	Principal will be deferred for two years, with the first two annual payments being interest only. Thirty-three amortized payments of $123,612 will follow.
6.	The Bond Reserve Fund will have a Debt Service Reserve Requirement (DSRR) established at $123,720. The Debt Service Reserve Requirement will accumulate at the rate of at least $1031 per month until the DSRR is reached. 
7.	The Replacement and Extension Fund Account will accumulate at the rate of at least $1031 per month for life of the indebtedness, beginning after the DSRR has been accumulated in the Bond Reserve Fund.
8.	The bond will be a Sewerage System Revenue Bond to be held by USDA, Rural Development.    
9.	Officers and employees of the association handling the funds and accounts of the system shall each be bonded in each fiscal year in an amount not less than the total amount of principal and interest becoming due on all obligations of the association during the fiscal year. Language similar to this should be incorporated in the Bond Resolution/Ordinance.
10.	The district has requested the lower of the Rural Development interest rates in effect at the time of obligation or loan closing (date the MO 1942-2 is entered into). The 4.0% interest rate represents the lower of the two rates if preliminary loan closing is held in August, 2010.
11.	A copy of this letter is advising the project attorney, to pay particular attention to Bond Counsel's instruction regarding persons that need to be present at bond closing. It is the responsibility of the project attorney to notify those persons and insure that the applicant's seal is available for sealing the necessary documents.
12.	If necessary, the resolutions or ordinances authorizing the outstanding issues may be amended to provide for specific deposits each month to the sinking fund and the bond reserve fund for each prior issue and to the replacement and extension fund. 
13.	The Bond Resolution/Ordinance shall contain language requiring mandatory hook-ups to the sewerage system.

Attorney’s Report
Although the Board has not received record of it, apparently Bob has obtained the final owner's title insurance policy and sent it to Donna.

Engineer’s Report
There was no engineer's report

Public Q&A
Adjournment
There being no other formal business to come before the Board, a motion to adjourn was made by John Hindrichs and seconded by Rick Lippitt. Motion passed with all Directors in approval. Meeting ended at 8:39 p.m.

Respectfully Submitted,

Rich Hirsch
Recording Secretary

Approved this 11th day of August 2010.

___________________________	_________________________________
Secretary	Chairman
August 9, 2010