Water Committee Meeting
December 18, 2003

1. Monty reported that they started work in Starkville at pump 1.  They pulled the pump and are preparing the site to install the cistern.  In so doing, they found a leak in the piping below the pump, as well as a phone line the locator service had missed. In addition, they found a second line of 4" PVC pipe by ours.  It appears that it may have been broken during the original installation and just discarded in the trench.  They will have to order "reject" to properly bed and set the cistern, as the material taken out during excavation will not work.  Pressure testing off pump 1 will resume when installation is completed. Bill Buhr, the new pump man, has leak detection equipment he feels will be effective on the Starkville line.  Tank 1 is still over 3/4 full.  They want to start checking the rest of the lines off tank 1 as soon as possible to make way for road basing and graveling needy roads in that area.
    
2. There was discussion of pressure variances detected at the City meter.  Bill Buhr has brought up adding a pump in that vault to provide consistency.  It will be considered later.
    
3. Jim Davis reported he had given Grimshaw & Harring the go-ahead on sending the letter to International Bank.
    
4. There was discussion and review of the response our attorney sent to the bankruptcy court, answering and requesting denial of OPEC's motion to dismiss our claim against their bankruptcy estate.  We all agreed that it was clear and to the point and hope we get a favorable ruling, setting the way to bring them actively back into the litigation.
    
5. There was discussion of the agenda and proposed resolutions for the Metro District Board meeting on December 22nd. Postings of the meeting will be up tomorrow, the 19th, on the Ranch as well as the website.
    
6. Dennis Scott reported that he had contacted and resolved all but one of the people who had sent in partial payments on the completion loan.  He also reported that over 25% of the properties had chosen the lump-sum payment to date.
    
7. As a result of our recent mailing, some new and old property owners who have not yet improved their properties, but are now making plans, are inquiring about moving the location of their water tap placements.  The three who have made specific requests have been told we will do so, at their expense, when the meter pits are ready to be done, as it will be most cost efficient for them.
    
8. Dennis Scott reported that he had received, through Quigley's office, the complete text of our Metro District's renewed liability policy.  He noted that while we paid an annual premium of $1750.00 when the policy was bound, the facing page of the policy actually issued shows an annual premium of $1500.00.  Jim Davis will contact the carrier for an explanation and possible adjustment.
    
9. A question was asked about the use of the monies collected from the lump-sum payments.  It was explained that in May, when our first payment to the Bank is due, it is for interest only on what we have taken down of the $550,000 loan.  Thus, we will use the $225 annual payments received to date to cover that interest.  We will then use whatever necessary, if necessary, from the lump-sum payments to cover any shortfall.  We will then reduce the amount of the $550,000 loan by whatever amount in lump-sum payments left.  This will reduce our borrowing and associated costs.
    
10. Next committee meeting will be Tuesday, December 30th at the Holiday Inn at 8:30 am.