The meeting was called to order by Mike Deck at 4:03 PM. Those in attendance were the board members (Mike Deck, Rick Moeller, Mark Johns, Bob Farmer and Bob Champ). Frank Hauke and Dick Winters (Water System Operators) were present. Also present was Mary Wagner (bookkeeper). No members of the public were present. Terry Kenyon (Engineer) arrived later in the meeting. Gary Grenzke and Charles Hix of Hix Insurance Associates, Inc. were present to talk about an insurance proposal for the district.

Mr. Grenske gave a short presentation elucidating the history of the company and Mr. Hix then reviewed the handout, which was given to the board members. The premium for the insurance policy was quoted at $1251.00. This may be a substantial saving over our SDA liability pool insurance. Workman’s Comp was not included in the policy and it is with the SDA. The board decided to consider changing our carrier after we receive the quote from the SDA liability pool. Insurance coverage period runs yearly. This matter will be discussed further under new business at the November meeting.

Secretary’s Report:

The minutes of the 16 September 2002 meeting were discussed. It was decided that a new pit at Anderson’s was not necessary but a new meter can be installed in the existing pit. The cost of this will be time and material. Rick Moeller made the motion that we approve the minutes of the meeting. Mark Johns seconded the motion, which was approved unanimously.

Finance Report:

The balance sheet, profit and loss by fund, profit and loss ytd comparisons, P&L budget vs. actual (Operating and Debt Service) and profit and loss by fund were handed out by Mary Wagner and discussed. The balance sheet now agrees with the audit. The final payment to CPL will be made ($42238). A bill of $1700 was paid for engineering associated with the gen set. Bob Farmer noted that the invoice received could note the work received from Engineering in more detail. It was also noted that we would provide service to Yanus beginning next month. It was also noted that there was no feedback on the rate schedule and that one user was over the limit at 30K gallons/month.

Frank reviewed the operator’s report, which was e-mailed to the board. They spent 8.5 hours monitoring the system and 3.25 hours maintaining the system. Chlorine level was measured at 0.21 mg/l, which passed.

Lead and copper samples were collected and taken to the laboratory for testing.

Meters will be read once a month through the winter. If severe weather occurs we may use the previous months usage as an estimate.

Dick Winters will take the Water Distribution Test given by the State to get a license.

Well permits have been issued by the State for four lots in Panorama Park.

Bob Farmer made a motion that we approve the purchase of various tools and equipment to be used by the operators. Mark Johns seconded the motion. Mike Deck offered a friendly amendment to the motion which stipulated that the cost be less than $200.00. Mark Johns accepted the amendment and the motion passed unanimously.

Terry Kenyon had the completed documentation on the pumphouse and will make copies for the operators.

The landscaping restoration and paving is done. CPL will be issued the final payment and the warranty period will begin.

The Thompson/Linder driveway is done.

Gen Set

Mike is in contact with Ron Swinson (Xcel) and waiting for a response on the digging of the trench for the gas line. At this point, it is our intent to contract out the digging of the trench, which may be about 2 feet deep and 1 to 2 feet wide. Mike is trying to get more information from Mr. Swinson with respect to the ditch.

Mark Johns took the drawing for the gen set construction and will get the building permit from the county. We have not gotten any bids on the concrete pad yet. Our major concern is that this process may need a location and extent review, which would complicate the process.

Water Storage

Mike noted that the 100K gallon water storage tank is not in the plan until 6/2004. The location of the tank is still in question. Location of the tank on the pumphouse lot is problematic in that an easement must be purchased for the increased area. Mike noted that another location may be across Spring Drive, provided the tank could be gravity fed by the Lafayette inflow pipe. Terry will spend about 5-10 hours Engineering time investigating the new location and give us costs and engineering involved with the two locations.

2003 Budget First Reading:

Rick Moeller (Budget Officer) reviewed the preliminary budget for 2003. This budget was discussed in detail. It was noticed that our major source of revenue comes from water ($70K). Beginning balance is on the order of $215K and ending balance is about $120K. The water storage tank construction (120K) is the major expense for capital. Some discussion ensued on whether or not we should carry forward such a high ending fund balance. The long term capital plan shows the ending reserve remaining in three digits through 2017. Lowering of the water rates was discussed and Mike will investigate this option and find out the impact on the budget.

The Debt Service Fund was also discussed. Based on the assessed valuation of the district the mill levy will have to be 21.510 next year (up from 19.985 in 2002) in order to meet the debt service expenditures of $159,732.

The long-term capital plan was discussed in some detail. It was noted that we have three capital expenditures in the plan, totaling $130K. The accuracy of these estimates was discussed. It was also noted that no monies have been allotted for replacing the Benchmark pipeline or obtaining a fireflow pump.

Mike will look into the impact of lowering water rates and e-mail the board what he finds. The budget will be adopted at the regular November meeting.

A motion was made to adjourn by Bob Farmer, seconded by Rick Moeller and unanimously approved. The meeting was adjourned at 7:05 PM.

The above is respectfully submitted by the secretary…Bob Champ, October 22, 2002.