Meeting Minutes of April 13, 1992

The meeting was called to order at 7:00 pm by Chairman Douglas Mayer. The roll was called. Present were Trustees Mr. Maurice Betts, Mr. Richard Jumps, Ms. Cathie Hutcheson, Mr. Douglas Mayer, Mr. Arthur Vincent, and Mrs. Frances Youngblood. Mr. Richard Parrish was absent. Employees present were Mrs. Becky Roberts and Mr. Walter Butler.

People Attending: Lets Get Rid Of Walter Members: Mr. and Mrs. Danny Williams, Mr. Herbert Stearns, and Mr. Jerry Burton. Other customers present were Mr. Gerald Gaffney, Mr. Stanley Hollister, Mrs. Billie Jacobini, and Mr. Robert Eaton.

Minutes of the March 9, 1992 meeting were submitted for approval. The minutes were approved as submitted.

Mr. Mayer addressed all customers with requests stating that each customer is entitled to an executive session allowing the customer to discuss their request without any other people present other than the Board members and the Board Employees.

Customer Requests: Mr. Geral Gaffney waived the right to an executive session. He stated that his average usage is around 7,000 gallons per month, but that he does have a swimming pool that he drains every 4 years. In July, Mr. Gaffney stated that his water bill went from $50 or $60 a month. He then read his water bill totals for the next several months. He said that no leaks were ever found. The meter readings were rechecked and they were found to be accurate. Mr. Gaffney had requested that a new meter be installed. After the new meter was installed, he stated that his water usage dropped considerably. The meter was tested by Carbondale and it was tested accurate at 99.90%. The excess water usage formula was discussed, and this does not meet requirements because no actual leak was found by the Water Supply Operator. Ms. Hutcheson suggested that 1990 water usage be compared to 1991 usage and then decide on how much difference there is. Mr. Betts also stated to go back one year and then possibly apply the excess water usage leak formula. Mr. Mayer asked that Mrs. Roberts send each Trustee the usage for the last 2 years so that this could be reviewed before the next meeting and then a decision could be made.

Customer Request: Mr. Robert Eaton, from Asaturian and Eaton Associates Engineering and Mrs. Billie Jacobini was present to discuss her proposed line extension. Mr. Eaton stated that he had sent the proposed plans, easement forms, and the EPA application permit to Mr. Mayer for review. Mr. Mayer stated that everything looked in order to him. He stated that the Board needed to discuss a cost recovery on the line extension for Mrs. Jacobini and whether or not 2 Engineers were to be required to be on this project. As in the past, a second engineer was required to examine the construction after it is in the ground and before it is covered, and to look over the plan submitted.

Last month, Mr. Betts stated that it was no longer legal to have a cost recovery on line extensions. BPWD Attorney was asked to research this and she did not find this to have changed. In order for her to be more specific, she would need more details on when this was passed. Mr. Betts stated that he will give her more information on this. Mr. Mayer stated that until proven different, a cost recovery would be acceptable. Mr. Betts asked what kind of cost recovery was being asked for. A proposal from Mrs. Jacobini has not been received.

The question of having one or two engineers were discussed. The policy at present is that the customer would pay for their engineer and pay for BPWD engineers to oversee the project. Asaturian and Eaton Associates and JT Blankenship Engineers are both approved to do engineering work for BPWD. The cost for a second engineer was discussed at length. Mr. Eaton asked how much a second engineer might cost. He stated that their firm is liable for each project for many years after it is constructed and if something would go wrong on the construction of this project they would be liable. Mr. Betts stated that the second engineer is for the Water District’s protection. Mrs. Youngblood asked if a second engineer was required, why doesn’t the water district pay for it. Mr. Mayer stated that other customer should not have to pay line extension costs. Mr. Eaton stated that in working with other water districts, when they require 2 engineers, that the water district that they represent pays the costs for the second engineer. Mr. Vincent said that it is just like an inspector and that it is what is needed. Mr. Eaton stated that they will be overseeing the construction and they could provide the Board with an inspection report, but it was of his opinion that is was not necessary to have a second engineer at Mrs. Jacobini’s expense.

Mr. Betts asked what needed to be decided tonight on this project? Mr. Eaton said that he needed Mr. Mayer’s signature on the EPA Permit because it does take time to get approval. Mr. Betts made a motion to have the Chairman sign the permit application for EPA so it can be sent off, and Mr. Jumps seconded the motion. A roll call vote was taken: Ms. Hutcheson – yes, Mrs. Youngblood – yes, Mr. Jumps – yes, Mr. Betts – yes, Mr. Vincent – yes, Mr. Mayer – yes. There being 6 yes and 0 no votes, the motion passes.

Mr. Betts recommended that if BPWD decided to require only one engineer, that the engineer would need to provide a copy of insurance certificate. He also recommended that the Board have final approval on the contractor and would require a copy of the contractors insurance and bond. Mr. Betts made a motion to only require one engineer for the Jacobini line extension, being Asaturian Eaton and Associates and Mr. Vincent seconded the motion. A roll call vote was taken: Ms. Hutcheson – yes, Mrs. Youngblood – yes, Mr. Betts – yes, Mr. Vincent – yes, Mr. Mayer – no. There being 5 yes votes, and 1 no votes, the motion passes.

The Secertary/Treasurer Report was read and accepted.

The financial report was read and accepted. The Certificate of Deposits was discussed along with the current low interest rates. Mr. Betts made a motion to put Depreciation Account #2 Certificate that will mature on 4/24/92, and the Reserve Account #2 Certificate that will mature on 4/24/92, into 3 month certificates until the interest rates go up again, and Mr. Jumps seconded the motion. A roll call vote was taken: Ms. Hutcheson – yes, Mrs. Youngblood – yes, Mr. Jumps – yes, Mr. Betts – yes, Mr. Vincent – yes, Mr. Mayer – yes. There being 6 yes vote and 0 no votes, the motion passes.

Audit: Mr. Mayer stated that he and Mrs. Roberts met with Mr. Schmidt, with Kemper CPA Group, and reviewed the points brought out in their letter that was submitted the audit. Mr. Jumps stated that he has filed a statement of economics. Mr. Betts asked about the collateral question. Mr. Schmidt explained that any amount of money over $100,000 was not insured. Since the audit, some of the certificates have moved out of Home Federal, so there is not $100,000 in the bank at the present. Mr. Betts stated that he would have to review the audit before he could approve the payment.

Payment of Bills: The bills were presented in the amount of $8,546.70. Mr. Betts asked about Check #3110 to BPWD Attorney for SHWD Arbitration for $135.00. This was for correspondence and phone calls with SHWD Attorney. BPWD is in receipt of material from SHWD and needs someone to review this material and plug in the formula. Mr. Betts stated that he does not have a copy of the formula. Mrs. Roberts will send Mr. Betts a copy of the Arbitration formula. Mr. Betts also asked about Check #3109 from BPWD Attorney for Burton v BPWD. This was for correspondence and phone call from Mr. Lockwood. Mr. Betts made a motion to pay all the bills with the exception of Check #3109 (Eugena Hunter for Burton v BPWD) and Check #3111 (Kemper CPA Group for 1991 Audit) and Mr. Vincent seconded the motion. Roll call vote was taken: Ms. Hutcheson – no, Mrs. Youngblood – yes Mr. Jumps – no, Mr. Betts – no, Mr. Vincent – no, Mr. Mayer – yes. There being 3 yes votes, and 3 no votes, the vote was tied. The bill from Eugenia Hunter (Check #3109) was discussed further. Mr. William stated that Mr. Hunters retainer for the year and it looks like she is billing twice. Mrs. Roberts stated that Ms. Hunter retainer fee covers the first 10 hours on any subject and that the Burton v BPWD has gone well over the 10 hour mark. Mr. Mayer stated that the argument to pay Ms. Hunter or Mr. Lockwood is misdirected because it is Mr. Burton who is generating all of these expenses. Mr. Burton that it was the Chairman’s fault for not giving the records to him. Mrs. Youngblood made a motion to pay the bills with the exception of Check #3109 (Eugenia Hunter for Burton v BPWD) and Check #3111 (Kemper CPA Group for 1991 Audit) and Mr. Jumps seconded the motion. A roll call vote was taken: Ms. Hutcheson – no, Mrs. Youngblood – yes, Mr. Jumps – yes, Mr. Betts – no, Mr. Vincent – yes, Mr. Mayer – yes. There being 4 yes and 2 no votes, the motion passes.

Water Supply Operator Report: Mr. Butler reported that everything is normal.

Report of meeting with Mr. David Biggs, JT Blankenship Engineering firm concerning meter installation for leak and theft detection: Mr. Mayer and Mr. Vincent met with Mr. Biggs and Mr. Mayer reported that Mr. Biggs has said that in most cases, the existing valves can be used to install these meters. Mr. Vincent had no further input. Mr. Butler will call Mr. Biggs to find out what is involved and he will then submit proposals for each installation individually. It was also pointed out that they would not all have to be put in at the same time.

Payment of Treasurer Bond: Last month the check to Cherry Insurance for payment of Treasurer bond was held until BPWD Attorney had time to review Mr. Betts question on whether the District was pay this or Mrs. Roberts was to pay it, due to changes in the law. Ms. Hunter did not find any changes in this. Mr. Vincent made a motion to pay the Treasurer’s Bond and Mr. Jumps seconded the motion. A roll call vote was taken: Ms. Hutcheson – yes, Mrs. Youngblood – yes, Mr. Jumps – yes, Mr. Betts – no, Mr. Vincent – yes, Mayer – yes. There being 5 yes votes, and 1 no vote, motion passes.

Lets GROW request for copies of all financial records status: A status hearing was held today, April 13, 1992, but there has not been time to receive any information on this.

Statement of Economics: These are due by April 30, 1992, to be sent to the Jackson County Clerk by each Trustee. Mrs. Roberts will see that all Trustees have one.

Mr. Vincent made a motion to have next months meeting agenda include the communications for the month and have them read, and Mr. Betts seconded the motion. A voice vote was taken with an all in favor vote.

The monthly meeting adjourned by motion of Ms. Hutcheson and seconded by Mrs. Youngblood. Voice vote – all yes. Meeting adjourned at 8:35 pm.