Phelps County PWDS #4

Board Meeting Minutes

June 7, 2010  

Call to Order
Board members in attendance were John Staples, Bob Laney, Ken Matthew and Jack Lansberry. Also present were Jodie Branson from MRPC; Dusty Densmore and Larry Densmore of Triple D Construction and Tom Zadrozny. The President of the Board, John Staples, called the meeting to order at 6:04.

The Board discussed the opening on the Board. John Staples reported that Ruth Jones was willing to serve and was supposed to attend this meeting.

Approval of Agenda and Minutes
The Board reviewed the agenda. Bob Laney made a motion to accept the agenda as presented and Ken Matthews seconded the motion. The motion carried. The minutes of the May 3, 2010 meeting were reviewed. Ken Matthews made a motion to accept the minutes as presented. Jack Lansberry seconded the motion. The motion carried.

Recognition of Visitors
Tom Zadrozny reported that this is the 4 th or 5 th time his grinder pump has gone out. Triple D was there within a half hour; he feels that Triple D’s service is “excellent”. Mr. Zadrozny stated that “the board and the people taking care of this (the system), have come up to standard.” Mr. Zadrozny requested that the district purchase a container that would allow Triple D to pump off the waste so that the homeowner can continue to use water while waiting for repairs to be completed. John Staples requested Triple D research the cost of purchasing the container. Larry Densmore reported Flo-Systems said the stator plate was out on Zadrozny’s pump. Flo-Systems replaced the pump and took the broken one to be re-built. Triple D reported that they went through the system at Zadrozny’s to be sure that there wasn’t an electrical problem causing the repeated pump replacement. Mr. Zadrozny reported that his water softener is flushing 50-80 gallons of water nightly. Triple D doesn’t believe that the water softener is the problem. They believe that Flo-Systems is fixing the current problem with the pumps, instead of totally rebuilding the pumps that are being recycled.

Maintenance and Operations Report
Dusty Densmore reported the maintenance activities for May and presented a bill for service call:

Bob Laney made a motion to approve $120 payment to Triple D for services calls in May. Jack Lansberry seconded the motion. The motion carried.

MRPC reported that Tom Caraker, Jr. from Flo-Systems, would like to attend a board meeting to present a new odor control product. John Staples suggested that if Flo-Systems could attend a meeting, several issues could be addressed regarding the grinder pumps. MRPC will issue an invitation to Flo-Systems for the August meeting. Triple D reported that the Flo-System technicians ask each time they are out, what the district is going to do when the “contract” is up.

Bob Laney reported speaking to Mid-State. They are still seeking an offer. Laney suggested that the district didn’t have any money to make an offer and Mid-State wanted to know if they were going to receive the remaining balance of the agreed to payments. MRPC reported that the balance of the agreement is $3,439.84 including the check from this month. Bob Laney made a motion that he continue to negotiate with Jim Zumwalt at Mid-State to get the generator, fusion machine and fusion couplers. Jack Lansberry seconded the motion. The motion carried unanimously. The board instructed MRPC to hold the monthly payment to Mid-State until arrangements are made to pick up the generator, fusion machine and fusion couplers.

John Staples asked that Triple D look into becoming certified with E-One, in order to get a price break on parts, once warranty work is over. The board also asked that Triple D source necessary piping for emergency repairs.

Triple D representatives left the meeting. Tom Zadrozny also left the meeting after expressing his appreciation for Triple D’s response to his service call.

Financial Statements
Jodie Branson presented the financials for the period ending April 30, 2010. Revenue over expenses for April is $76,777. Billed fees were $10,501 for the month and monthly late fees totaled $20,952. Ms. Branson stated that the booked late fee revenue exceeds the budget because we expected several of the ongoing problem accounts to be resolved early in the year. Available cash is $2,591. The outstanding USDA loan balance is $737,710. Jodie Branson distributed the cash flow statement through May 2010. An aged accounts receivable report was available for the board to review.

The board discussed the cash flow statement and Bob Laney felt that the City of St James would benefit from running the system because they would be able to reduce expenses in administration and operation costs because the services are already in place. Jack Lansberry expressed doubt in ever collecting the large outstanding receivables and he further doubts that the assessed late fees would hold up in court. John Staples pointed out that the pump warranties are running out soon which will increase our repair expenses. Ken Matthews stated that more people will quit paying if the monthly rate is increased. Bob Laney proposed the possibility of a one time assessment. Bob Laney asked about the audit. Jodie Branson stated that it is on hold; but is required.

Ken Matthews made a motion to accept the financials as presented. Jack Lansberry seconded the motion and the motion carried unanimously.

Old Business
Jodie Branson brought up the bylaws requirement to reorganize the board each year in May. Because of the vacancy, the reorganization has been delayed. Jodie Branson stated the present board needs to elect a president and a vice president. Bob Laney asked for nominations. Jack Lansberry nominated John Staples for president, and Bob Laney for Vice President. MRPC should continue as the Secretary/Treasurer. Ken Matthews seconded the motion. The motion passed. Jodie Branson distributed the oath of office for the board members to complete. John Staples will contact Ruth Jones to see if she will attend the next meeting.

The board tabled the audit discussion for a later meeting.

MRPC reported that there is no progress on the past due balance from RJ Wright. Jodie advised the board that the landlord, Russell Falkenrath had been advised and we requested that Falkenrath make payment.

MRPC updated the board on Fleshman’s past due account. The payment was due on June 5 th and we have not received it. Jodie Branson notified the attorney that the payment had not been received. MRPC has made contact with Brandi Auxier and is working out a repayment agreement. Bob Laney suggested that Auxier is another account where we should reduce the late penalty rate. Jodie Branson asked if that wasn’t preferential treatment for non-paying customers; others have paid the late penalty at the current rate. Bob Laney stated that we have forgiven penalties for everyone who has come in and made an effort to pay the monthly fees. The board wants to discuss the legality of the late penalty fees with the attorney.

MRPC contacted Chris Mueller at CenturyLink regarding the autodialers. CenturyLink did not return the call.

Jodie Branson stated the cost of a new pump & assembly from Flo-Systems as $3,800 through August 1, 2010. Using the $5,000 connection fee adopted by the board, this leaves $1,200 in labor to install a pump and make a connection. Jodie stated that the board needs to check with Triple D to see if $1,200 would cover the cost.

New Business
The board granted permission by letter to Kennedy, Kennedy, Robbins & Yarbro, LC to list the district as a customer on their website.

Jodie Branson reported sending a letter to Scott Adams on March 1 st, requiring him to make connection to the public sewer within 60 days. Scott Adams has not responded. Jack Lansberry wanted to know how the board enforces the bylaws. The board agreed that this was a topic for the attorney. John Staples agreed to visit with Scott Adams.

Jodie Branson stated that the Operations & Maintenance contract with Triple D expires on August 1, 2010. Triple D has requested an increase in their monthly rate by $300 ($1,500 to $1,800); and an increase to the hourly rate of $15 ($20 to $35). Jodie Branson reported that Dusty Densmore has said that the required insurance and the fact that he underbid the hours to complete the scheduled maintenance, are making it difficult to break even. Jodie Branson distributed the Triple D rate proposal along with a bid list from July 2009 when the contract was awarded to Triple D. MRPC recommended renewing the contract with the increase. The board expressed that even with the rate increase, Triple D is still the best bid; and has performed beyond expectations. Jack Lansberry made a motion to renew the Operations & Maintenance contract with Triple D Construction for the term of one year at the rates proposed by Triple D. Ken Matthews seconded the motion. The motion passed unanimously.

Jack Lansberry asked the status of the easement for Lift Station #3. John Staples stated that Mike Hoffstetter is willing to change the deed, but is unable to find the time to make the change.

Next Meeting
Monday, August 2, 2010.

Adjournment
Ken Matthews made a motion to adjourn the meeting at 8:05. Jack Lansberry seconded the motion. The motion passed unanimously.

 

I, John Staples, the duly elected President of Public Water Supply District #4 of Phelps County, do herby certify that the foregoing is a true and correct copy of the minutes of the regular board meeting of the Board of Directors held at Meramec Regional Planning Commission in St. James, Missouri on June 7, 2010.

_______________________________
President: John Staples