Valley Rural Utility Company
Board of Directors Meeting Minutes
April 13, 2010 @6:00 PM
UNAPPROVED

Board Members Present:                       Robert Sypniewski, President
                                                            Phil Harmeyer, Vice-President
                                                            Dana Hensley, Secretary
                                                            Ron Lask, Treasurer
                                                            Chuck Nichols, Member @ Large
                                                            Bob Ziegler, Member @ Large
                                                           
Board Members Absent:                        Danny Armbrecht, Member @ Large- Excused
           
Staff Present:                                        Floyd Ogden, General Manager
                                                            Bill Blantz, Accounting Manager
                                                            Bonnie Starks, Office Administrator
                                                            Theresa Dold, Billing Clerk
                                                                                                                                   
Guests Present:                                     John Watson                 812 623-4661
                                                            Kendall Bales                812 537-4700
                                                            Bob Hrezo                    812 537-4700
                                                            Jane Graham                 Lot #    2038
                                                            Jim Tobias                    Lot #    2038
                                                            Donna Lask                  Lot #   118
                                                            Jim Froelicher               Lot #    1422
                                                            Julia Barber from Sherman, Barber & Mullikin

           
The Board of Directors meeting was called to order by Robert Sypniewski, President.  He called for the Pledge of Allegiance and then asked that all cell phones be turned off or put on vibrate.

The Minutes from the last meeting were reviewed and a motion was made by Dana Hensley and seconded by Ron Lask to approve as written.  The motion was unanimously approved.

Bob Sypniewski commented on his article in the Echoes last month.  He stated that the person(s) who have been complaining to IDEM instead of coming to the Board or Floyd have cost the company just last month $2,700 for Floyd to go to IDEM and our lawyer’s charge.  He said to PLEASE come to VRUC first if you have any complaint or inquiry.

Bob Sypniewski also commented on Jane Graham’s letter to the Board asking for VRUC’s long and short term goals on how we intend to spend the money from the USDA.  We have a general plan but we do not have any USDA loan money as yet.  We have a task related plan but a lot of it will be determined by what our engineering firm finds after televising all of the sewer lines.  We cannot tell you at this time how long it will take because we don’t know the scope of the project.  It could take us anywhere from one, two, years up to five years to complete the project.  Assuming we acquire USDA funding, we will start making the repairs we already know about.  This will reduce our I&I. 

Jane Graham asked about meeting the IDEM Agreed Order if it will take three years or more to fix the system.  Floyd Ogden responded that the Agreed Order does not encompass the entire community.  He said he is confident that we will be in compliance with the Order in the year and a half that remains.  He said we are up to date with the Agreed Order.  The last item is to obtain funding and this USDA funding is the only funding we can acquire because we don’t qualify for any grants or stimulus money.  The Agreed Order states that we have to stop our over-flows.  As long as we don’t have any over-flows, IDEM will be happy.  Chuck Nichols stated that the system when we took it over from the developer was in poor shape.  He said there was testimony at that time from residents who saw that the pipes were installed and back filled with the dirt and rocks that they removed instead of sand and gravel which was the proper installation. Bob Ziegler asked if we could produce an Excel spread sheet that would be published in the Echoes showing the progress being made.  Phil Harmeyer stated that at this point in time he thought it was very premature due to the fact that only half of the Valley has been televised to date.  Floyd stated that the project has been laid out in phases through USDA on how we are going to proceed.  Ron Lask said we have to wait until the televising is complete plus we need to get confirmation and the particulars from the USDA.  Julia Barber stated that once USDA takes the next step they will have a very specific time table.  Kendall Bales from Hrezo Engineering said there will be a phase in after we are approved by the USDA. 

 

USDA UPDATE:
Bob Sypniewski stated that VRUC published a notice of Intent and Public Meeting in the Dearborn County Register: “Valley Rural Utility Company has filed an application with the USDA Rural Development for financial assistance to develop a Sewer System Improvements Project.  A public meeting will be held at 6:00 pm on April 13, 2010 at 19435 Alpine Dr. to announce the proposed project”.  We posted this on March 18, 2010.  Bob asked Kendall Bales to give an explanation of where we are at.  Kendall said the application has been filed along with the preliminary engineering report and the environmental report.  Kendall stated that it is in the process of being reviewed. The State Engineer has approved the document and forwarded it to the national office for approval which should be within the next week or so.  He said it is all looking positive.  Floyd Ogden mentioned that they gave Kendall 31 items to address which was done.  A letter was sent from the State with the comment, “As such, I offer no further objection toward obligation of funds toward this project.”

 

Bob asked if there were any questions.  Chuck Nichols asked if some of the pipes would have liners.  Kendall said for the most part it would be replacements.  Some of the pipes are 50 years old.  Julia Barber said that at present it is a reasonable interest rate from USDA.  She said there would be a loan closing when we have more information on the cost of the project.  There will be draws drawn as the project moves along.  Bob Sypniewski said the way he understands it on the day they approve us we are not in debt for the total amount and we will have a line of credit.  Julia responded that he was correct.  The rate report that was submitted to the USDA did have a phase in based on rates that corresponds to rates that the engineers thought was a projected construction costs into the phases. 

 

AUDIT REPORT:
Julia Barber went through the letters from Sherman, Barber & Mullikin, CPAs, addressed to the Board of Directors.  Julia stated that the audit was for all three divisions: water, sewer, and gas.  She then addressed the Audited Financial Statements page by page.  A copy of these Statements dated December 31, 2009 and 2008 are at the office.  Any resident may stop by to view the materials if desired.  Julia stated that questions pertaining to the audit should be directed to the VRUC staff. 

 

 

MONTHLY REPORTS:

         Bill Blantz :
(1)     Approval of Accrued and Cash Budget for 2010:
         Bill presented the supporting documentation for the Tentative Budget.  He stated that at present this represents the Budget; however, if we get funding, etc. then it is subject to change.  The Statements are attached. Ron Lask made the motion to approve the Budget for 2010 and Dana Hensley seconded.  The motion passed unanimously.
        
(2)     Bill then reviewed the Monthly Financial Statements.  A motion to approve these Financial Statements as presented for the quarter ending 3/31/10 was made by Ron Lask and seconded by Phil Harmeyer.  The motion was unanimously approved. 

          

FLOYD OGDEN :

(1)     Tap Report:  There were no taps.

(2)     Water & Sewer Operations: Floyd reported that we purchased approximately 11,500,000 gallons of water in January; February was 8,400,000 gallons; March was 10,000,000 gallons.  We pumped approximately 16,000,000 gallons of sewage in January; February was 15,000,000; March was 20,000,000.  We had one E.Q. Basin overflow in January which was reported. There have not been any overflows since then. 

(3)     I&I Report:  The televising is still going on.   Kendall is making maps and updating them.  He is making reports and has just finished sections 9, 11, and 14. 

         Floyd stated that there is something that is not on the Agenda which he would like to address.  He wants to purchase another pump for the lift station and not  pump the lagoon to the lift station but leave it as is which is pumping to Greendale.  This pump costs $26,125.  Bob Ziegler asked about shipping costs and made the motion to approve the purchase with the costs not to exceed $26,500 shipping included.  Phil Harmeyer seconded the motion and it passed unanimously.  

         Jane Graham asked how many home inspections are done.  Floyd said that more than half were done and we found very few sump pump violations.  It would cost us another $20,000 to finish the inspections with Dwyer Co.  Therefore, we have decided to take over the remainder of inspections ourselves and fit them in our schedule. 
        
         Jane Graham then asked about the water pipes.  She has had 3 to 4 breaks by her house this past 6 months.  Floyd replied that our water pipes are in good shape. He said those breaks were because of a faulty pressure reducer valve that went out.  We searched everywhere and couldn’t find the identical reducer valve.  I  finally found one that was slightly different and we installed it. 

         Jane Graham stated that we had so much rain on March 25 and 26 that the creek was four times its size.  There was no report on that.  Floyd stated that was water overflow which comes from the lake through a huge pipe that goes under the road.  It was not a lagoon overflow.  Floyd said we only had one lagoon overflow in January.  Ron Lask said if you see any overflow after hours, call the emergency phone number and we will come in and check.  When this monitoring system is complete, that won’t even be a concern.

 

OLD BUSINESS:

 (1)    Wireless Towers:
Floyd said that Jeff Bittner has five which are completely hooked up.  A wind storm knocked out one of the signals and he will be in tomorrow to fix it. 

 

NEW BUSINESS:

(1)     Robert Sypniewski asked James Froelicher to speak.  Mr. Froelicher said he always has a minimum bill.  He states that the readings 3 or 4 times a year are either less or more days than usual.  He objects to having an estimated bill which happens in the winter, maybe once a year, or less.  Bob Sypniewski said he had the same problem and the Board has investigated it and found that the computer system takes the average of the whole year when estimating.  We had it adjusted to read only the last two months now.  As for the variances in the days between readings, if the crew has a pipe break or something of that nature which takes priority, then that has to come first before reading the meters.  Chuck Nichols asked if we could get an average billing for 3 or 4 months.  Theresa Dold said she would check into it.

 

(2)     Adjournment:  The motion to adjourn was made by Ron Lask and seconded by Dana Hensley. The motion passed unanimously.

 

Respectfully Submitted by Bonnie Starks, Recording Secretary

 

 

WATER AND SEWER SERVICES AND BILLING INQUIRIES

812-539-3330 INDIANA

513-564-1500 OHIO

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WATER AND SEWER EMERGENCY

812-290-7254

812-539-7625

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NATURAL GAS SERVICES AND BILLING INQUIRIES

888-863-0032

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NATURAL GAS EMERGENCY

1-877-351-0486

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VALLEY RURAL UTILITY CO.

SEPARATE WATER METERS

The Valley Rural Utility Company Board of Directors has approved the use of separate water meters, for outside watering (lawns, landscaping, power washing of decks, washing cars and etc), during the late spring and summer months.

This program will begin May 15, 2007 and end October 15, 2007. The separate water meters will be sold to homeowners for $90.00. If you are interested in this program or have any question call the office, 812-539-3330 or 513-564-1500

VALLEY RURAL UTILITY COMPANY

19435 ALPINE DRIVE

LAWRENCEBURG, IN 47025

PHONE 812-539-3330

513-564-1500

FAX 812-539-3332