Meeting Summary:
LMSC Vice
President, Diana Miller opened the meeting with a review of the meeting rules.
There were no questions or comments from the membership.
Financials:
Michael Smith reported that all financials are up to date, and reported
that total income thus far is $53,962. The board reviewed the profit and loss
statement update for June. Michael Distributed a financial report detailing the
income and expenditure thus far for 2006, and comparing the data to last year’s
numbers. The Board discussed the current income trend noting that LMSC is on
track to meet budget expectations. The Board suggested we run a report
comparing 2006 billing cycle versus last year’s to assess the affect of the rate
increase on revenue. It was also noted that legal costs were higher this year
than last. Discussion on the topic of legal fees and expenditure yielded the
explanation that much of the costs can be traced to deferred projects, analysis,
and exploration of new water source options, and legal response to inquiries and
development pressure.
When reviewing the Budget vs. Expenditures spreadsheet, Michael noted LMSC will
need to allocate $3000.00/month in the future to cover the cost of the loan once
construction begins on the waste water treatment project. Tim suggested the
revenue amount from utility service billing should be shown as a separate item
on the spreadsheet. Diana seconded the comment and noted that RUS loan will
require the separation when listing revenue.
Waste Water Treatment Project:
LMSC is awaiting the written agreement from the County that grants the 40 year
lease agreement and describes the location of (easement) for the pipeline
route. This document is required by the title company, and is a key component
to the release of the loan dollars needed to begin construction. Diana has
contacted the Rural Utility Service to discuss the factors contributing to our
delay in activating the loan. RUS replied that the agreement remains in place
and the money is still available. Though the completed paperwork for the
railroad crossing permit was sent several months ago, no formal response has
been received by LMSC.
TST has addressed all the questions and omissions as identified by Robert Scarpa
(RUS), and has submitted the revised construction plans for final review. No
further delay in construction plan approval is expected. Once the construction
drawings are approved LMSC can put the project out for bid, this could happen as
soon as the end of August.
HUD Loan:
HUD will process all of Douglas County's loans in one batch; an exact date for
available funds is not available at this time. There are still unresolved
issues pertaining to the method of disbursement of the loan dollars.
System Update:
Items identified by Tim for future maintenance include: Well pump house
replacement, improvements in the electrical service to the pump and well house,
a means to increase the volume for chlorine storage reservoir. Diana or Tim
will put together some numbers for a cost estimate for pump house replacement,
so that LMSC can apply for a grant from DuPont or others. It was suggested that
the structure on the concrete slab could be a community project - however it
must be engineered to be approved by the State. It was also suggested that Bob
Dye, our system operator, should have a ‘report type’ form to complete and make
available to the LMSC Board for review, so the members can have up to date
information on the condition of the system. A report format would provide key
information to the board without the need for Bob to attend the meetings, as
well as provide a historic record for LMSC, and provide a vehicle for Bob to
document maintenance items he feels are needed on the system. It was noted that
Bob's contract may need to be modified to include the additional responsibility
of completing a monthly report. Diana noted the need to replace some gravel
material underneath the tank to improve support for one of the tanks. Tim said
he would follow-up.
