MINUTES OF REGULAR COMMISSION MEETING
May 17, 2006

1. The meeting was held at the District Building at 5:00 PM on May 17, 2006. Present were:
COMMISSIONERS: Glenn Senter, Travis Beach, Danny Everett, Lynn Aibejeris, Lonnie A. Houck, and Tommy Mauldin
TCW&SD STAFF: John Gentry, David Morgan, Diane Carlton and Shirley Shinholser.
Chairman Senter called the meeting to order and declared a quorum present.

2. Chairman Senter, the Board, and the Staff all bid farewell to former Commissioner, Sandra Hatcher, whose term expired on May 3, 2006. Sandra and her family are establishing a new residence in Madison County. A token of appreciation was presented for her years of dedicated service.

3. At the May 16, 2006 meeting of the TCBCC, three (3) expiring terms of TCW&SD Commissioners were addressed. Commissioners Glenn Senter and Travis Beach were reappointed and Tommy Mauldin was appointed to fill the third vacancy created by Commissioner Hatcher's departure. The term for these three (3) Commissioners will be May 3, 2006 - May 3, 2010. Commissioners Senter and Beach, along with our new Commissioner, Tommy Mauldin, were warmly welcomed by all present.

4. Guests present included former Commissioner, Sandra Hatcher, and George Stamos who were welcomed by the Board. There were no questions/comments.

5. The minutes of our meeting on April 19, 2006 were presented. A motion was made by Travis Beach and seconded by Lynn Aibejeris to approve the minutes as read. Minutes were adopted unanimously.

6. Staff and Committee Reports
· Sewer Project Update - John Gentry
Per an Email from Fritz today, QPS says they have completed the project. They desire that we negotiate on a settlement versus assessing liquidated damages which we estimate to be about $25,000. Fritz of JEA, Roger of QPS, and I will meet to discuss final completion and perform a field examination on a future date yet to be determined. We will verify that all vendor liens have been satisfied prior to final payment.

Rural Development will not release funds for our new WWTP office/lab building until closure of the contract, although we've assured them that funds will be available.

During this last month, it was brought to our attention that there have been sewer problems at the Taylor County Boat Ramp. We are of the opinion that the simplex pump installed there is not sufficient. We will include a duplex unit on our "end of contract parts list" to be installed at the Boat Ramp and place the simplex unit in our inventory.

The plant is operating well and we are receiving excellent lab reports for our DEP/DMR submittals.

We are preparing for an EPA audit/inspection on July 12, 2006.

· Financial Reports
Diane Carlton- Director's Report
Our sales have increased and our past dues are good. We added two (2) new connections during April - one at Cedar Island and one at Dark Island. Our adjustments total is actually only $27.14 due to a $1,000 data input error. We've had a few concerns relative to high water usage/high billing which we are addressing to see if any adjustments are in order for May. We request clarification in the Rules and Regulations concerning delinquent accounts and water turn-off. We might also want to reconsider the 18% late penalty previously established. A motion was made by Travis Beach to amend our Rules and Regulations to
(1) reduce the late penalty from 18% to 10%, and (2) note that if the account is not paid by the 20th, a late notice will be sent and the customer will have ten (10) days to pay the bill in full or the water will be turned off. A second was received from Danny Everett and the motion passed unanimously.

Shirley Shinholser-Financial Reports
We show elevated expenses in field supplies and outside labor due to the purchase and installation of the four (4) fire hydrants. An invoice has been submitted to Taylor County for reimbursement in the amount of $10,700 --- the estimated cost that Jim had prepared and submitted. The actual calculated expenses total $10,751.46. Finances are looking good. All bills are paid, including the two (2) audits. Monies in our Membership Account will be reallocated in May (25% Capital Improvements; 50% Loan at Citizen's Bank; 25% Cash Reserve Savings) and the balance of the loan at Citizen's bank will be paid in full before the due date of June 17, 2006.

· Management Issues - John Gentry
In an effort to comply with DEP, we are preparing an O&M Manual for our water department and have
requested the assistance of JEA in updating our water maps.

We need to consider expanding our WTP by adding an office, a work area, and a restroom. For the time
being, we can install a lift station to send the septic from the WTP to our tank at the District office. We
will investigate our options and present costs at the next meeting.

· Operational Issues - Jim Gooding
None to report.

· Phase II Funding - John Gentry
Requested documentation has been submitted to RD and we are awaiting a decision.

7. OLD BUSINESS
· Consider Second Meter for Non-potable Water Service Only
Due to the complex nature of this item, it was decided to approach SERCAP to seek advice about how to offer relief to our customers without jeopardizing our funding and grant compliance. In the meantime, we will try to determine a realistic cost of installation.

· Update on impact that planned development off Sand Dollar Road may have on our water supply - Glenn Senter (Paul Miller, Jr., Owner and Terry Turner, Developer)
The County Extension Agent is of the opinion that septic tanks for a development of this size will affect our water. I will approach Mr. Turner to address our concern and discuss possible solutions. Regarding the water supply, we can use the service fees of $2,000 per lot to install larger lines, a well, and/or a tower.

8. NEW BUSINESS

· SRWMD is hosting a workshop in Daytona on June 8th & 9th regarding State Revolving Funds for water
supply infrastructure. A motion was made by Travis Beach that TCW&SD pay the expenses for Chairman Senter to attend. The motion was seconded by Tommy Mauldin and approved unanimously.

· Secretary for TCW&SD
Shirley Shinholser was nominated by Chairman Senter to serve as Recording Secretary for the TCW&SD Board of Commissioners. A second to the nomination was received from Travis Beach and the appointment of Shirley as Secretary was approved.

· Pledge/Prayer
Under government charter, most Boards start their meetings with prayer and the Pledge of Allegiance. In consensus, the Board decided that a flag will be obtained and we will begin our future meetings with prayer and the Pledge of Allegiance.

FOR INFORMATION:

1) As a District Board, everything is recorded and open to the public. Political changes will increase the awareness of the public. It is important that all Commissioners and Staff share their opinions and participate in discussions.

2) Commissioner Beach will be absent from the June meeting due to a trip to Alaska for his 70th birthday.

A motion to adjourn was made, seconded and the meeting was adjourned.

(The next meeting is scheduled for Wednesday, June 21, 2006 at 5:00)

Board Actions:

1. Approve Minutes of April 19, 2006
2. Approve amendment to Rules and Regulations regarding late payments
3. Approve payment of expenses for Chairman Senter to attend the SRWMD Conference in Daytona
4. Appoint Shirley Shinholser to serve as Recording Secretary for the Board
5. Approve opening future meetings with prayer and the Pledge of Allegiance

Action Items:

1. Investigate options and costs involved for WTP expansion
2. Investigate possibilities of installing a second meter for non-potable water only and determine a realistic cost of installation
3. Address concern/discuss solutions regarding possible water contamination from proposed development off Sand Dollar Road

Shirley Shinholser, Secretary
TAYLOR COASTAL WATER & SEWER DISTRICT