MINUTES OF REGULAR COMMISSION MEETING
June 15, 2005

1. The meeting was held at the District Building at 5:00 PM on June 15, 2005. Present were:
COMMISSIONERS: Floyd Ford, Sandra Hatcher, Glen Senter, Lonnie Houck, Jim Moody,
and Danny Everett. TCW&SD STAFF: John Gentry, Sandra Bolton, Jim Gooding, David Morgan, and Shirley Shinholser. Chairman Ford declared that a quorum was present.

2. Chairman Ford welcomed Joan Douglas from SE Rural Community Assistance. There were no other guests present.

3. The minutes of our meeting on May 18, 2005 were presented. Motion to approve the minutes was made by Danny Everett and seconded by Sandra Hatcher. Minutes were adopted unanimously.

4. Jim Moody, Lonnie A. Houck, and Shirley Shinholser were asked to form a committee to review the bid(s) received for legal services and present a recommendation to the Board at the July meeting.

5. Staff and Committee Reports
· Sewer Project Update - John Gentry
Grinder Pumps are now being installed. Together with Fritz, we reviewed several customer issues and prepared notes regarding possible changes. We are planning to meet on June 28th to survey the entire area and address changes. We will generate a master list of requested/needed changes and attempt to determine which expenses will be billed to Quality "Plus" Services, Inc. due to error and which ones will be billed to the customer because of personal preferences. TCW&SD will not be responsible for any charges by QPS to the customer for conforming to their personal preferences. At our last Construction meeting, we were given a target date of November 15, 2005 for completion of the project. QPS has been advised of the $30,000 liquidated damages for the delay. At least two (2) grinder pumps have been installed in error to customers not on the list. The customers (Parker, Woods) have agreed to purchase the pumps so QPS was advised to just leave them in the ground. The estimated cost of the grinder pump installation to customers not under the grant program is $4,500. Per the Grant Income/Expense spreadsheet and the Cash Account Register, we currently have $169,050.61 in our Construction Account, the bulk of which consists of EPA funds.

· Financial Reports - Sandra Bolton/Shirley Shinholser
Sandra Bolton reviewed the Directors Report dated 5/27/2005 (total receivables $9,553.19) and notified the Board of five (5) late accounts (DeVane, Michelle, Toni Brown, Pepper, Crowder). After discussion, the Board agreed to send a certified letter to the late accounts advising them that their water will be cut-off if the balance due is not paid in full within 10 days of receipt of the certified letter. A second issue of concern is the request of departing customers to "turn off their water." The Board agreed that we should abide by their request. If they ask for the water to be turned off, turn it off and require the new owner to pay the $100 re-connect fee. If not requested, the account will simply be transferred at date of closing.

Shirley Shinholser reviewed the May Balance Sheet noting that the only accounts still needing to be adjusted involve the OTTED funding. Diane Scholz from the Governor's Office is working with us to reconcile these accounts. The Income Statement ending June 7, 2005 reveals an increase in revenue and expenses with approximately $18,000 over budget to date.

· Management Issues - John Gentry
There are a few exceptions we're working on. We are requesting (2) sewer easements from customers near the Aibejeris RV park (Padgett & Hicks); (7) water easements from customers in the Aibejeris RV park (Aibejeris,Beach, Bowden, Ray, Padgett, Millinor, Hicks); and water easements from (2) customers bordering H.C. Corbitt's property on Marina (Calhoun and United Welding). Dale Rowell can come in for the surveys as needed.

· Operational Issues - Jim Gooding
After compiling data, it seems the cost factor for the 42 line-cuts by QPS results in $6,700. A report will be prepared for presentation to Mary Gavin. We've noted that our gallons pumped are less indicating that people are conserving water.

· Phase II Funding - Floyd Ford
We have documents/letters prepared to send to Rural Development. We've been informed by Congressman Boyd's office that there may be an $800,000 line item available. We will know in November or December.

· Reports from standing committees
CPA Recommendation
Glenn Senter presented a spreadsheet illustrating the information from each of the four bids received. After reviewing and noting experience and rates, the Board opted to secure a contract with Powell and Jones, CPA of Lake City. A motion was made by Jim Moody and seconded by Lonnie A. Houck, Jr. to allow Glenn Senter to negotiate a contract for one year with options to renew. Approved. A letter of appreciation for bidding will be sent to the remaining subjects.

Budget for 2005-2006
Glenn Senter shared with the Board the proposed budget. He will adjust some numbers per new information and loan closing/bond issues and present a final document for approval at the July meeting.

6. Old Business

· Update Taylor County contact on installation of Fire Hydrants - John Gentry
Buddy Humphries is working to get this into the budget.

· Update of proposed District O&M Building - John Gentry
We are still pursuing the possibility of purchasing the office complex from QPS. They are estimating a sale price of $15,000 - $20,000 and are trying to prepare a firm proposal.

· Sludge Hauling - John Gentry
City of Perry has not yet returned our call.

· Sign - Glenn Senter
The sign is ready to install. We are awaiting permits from the Building & Planning Department.

7. New Business

· Office Manager
An ad was placed in the local paper allowing résumés to be submitted through June 30. John Gentry, Sandra Bolton, Sandra Hatcher, and Lonnie A. Houck will form a committee to review all résumés received so that a recommendation may be made to the Board at the July meeting.

· Form Committee to determine connection charges for 181 platted lots
John Gentry, Glenn Senter and Sandra Hatcher will consult with QPS and consider charges based on varying circumstances (with and without septic tanks) and present suggestions to the Board in July.

· Drop Box
Lonnie Houck informed the Board that he had been approached by a customer requesting that we install a "drop box" for payments. The Board is in favor of doing so. Jim Gooding will order and install.

· Keys for Taylor Coastal Community Association
The officers of TCCA have requested a key to be used for entrance into the building for their monthly meetings on the second Tuesday of each month. We will prepare some type of agreement to hold harmless and provide one (1) key to a designated officer with instructions that it is not to change hands or be duplicated.

· Revised Rules & Regulations
A copy of the Rules & Regulations adopted November 20, 2002 was revised changing the name from Taylor Coastal Utilities, Inc. to Taylor Coastal Water and Sewer District. The Board adopted the revised copy as an interim document until new Rules and Regulations are developed to include the sewer system. We will add the words "for water service" to the revised interim document. Motion by Glenn Senter. Second by Sandra Hatcher. Approved.

Commissioners were given informational documents relative to our Bond Closing set for June 21 and reminded to complete and submit their Financial Disclosure Statements to Molly Lilliott prior to June 30th.

Our guest, Joan Douglas, from SE Rural Community Assistance Program presented a discussion of the rate structures available for water and sewer. She will prepare further reports based on EDUs and flow rates so that a decision can be made at our July meeting.

The next meeting is scheduled for Wednesday, July 20th, at 5 o'clock.

8. Motion to adjourn was made by Sandra Hatcher; second by Glenn Senter. Meeting adjourned.

Board Actions: 1. Approved negotiation of a contract with Powell & Jones, CPA of Lake City, FL.
2. Approved revised copy of Rules & Regulations changing name from TCU,Inc. to TCW&SD.

Action Items:

1. Continue discussions with Taylor County on funding fire hydrants.
2. Pursue quote from QPS for construction trailer.
3. Pursue response from City of Perry regarding Sludge hauling.
4. Obtain permit for TCW&SD sign installation.

John K. Gentry, P.E.
General Manager