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Laketon Area RSD

Board Members

Stan Bagley President

Bill Parker Vice President

Dave Hawkins Secretary

Cheri Slee Treasurer

Mike Wallis Board Member

Minutes of the 8-15-2013. Meeting was attended by four Board members, Stan Bagley, Bill Parker, Claude Markstahler and Dave Hawkins. Also attending were Steve Downs, legal representative, Chirag Patel, project manager from JPR, Mike Novac, RCAP, Jeff Rowe, from Umbaugh and two guests, Annalee Benedict and Randy Van Vickle.

The meeting was opened by Stan Bagley at 6:30 pm. Bill made a motion to accept the minutes as written. Motion was seconded by Claude, vote taken and motion carried 4-0. Treasurers report was then passed out to board members. Dave made a motion to accept treasurers report as written. Motion was seconded by Bill, motion passed 4-0.

Stan then told us Jeff Rowe wanted to discuss the bond ordinance. Jeff then read the ordinance and explained it to us. Claude asked if the bond money could be paid back with borrowed money. Jeff said it would probably be paid back with Rural Development money. Claude asked about hook-ups for homeowners. Chirag stated after the project is completed the home owners should have 90 days to hook up. Jeff stated we will have to bill one half the full amount after getting USDA funds while the project is being installed so we can pay interest on the loan. Steve Downs then stated that Ice Miller LLP of Indianapolis had prepared a bond ordinance for consideration by the board in the matter of financing of the construction of the sewage works collection system of the District. Mr. Downs then stated that it would now be in order for the board to consider the ordinance. Stan then introduced the bond ordinance entitled “an ordinance concerning the construction by the Laketon Area Regional Sewer District of a sewage works collection system, the issuance of revenue bonds to apply on the cost thereof, the collection, segregation and distribution of the revenues of said works, the safeguarding of the interests of the owners of said revenue bonds, other matters connected therewith, including the issuance of notes in anticipation of bonds, and repealing ordinances inconsistent herewith.”

Claude made a motion that said ordinance be numbered and placed on first reading and the same be read by title at this time. Motion was seconded by Bill, motion carried 4-0. The ordinance was then numbered 2013-1.

Dave then made a motion to suspend the rules, seconded by Bill. A vote was taken and the motion carried 4-0.

Claude then made a motion that the ordinance be read a second time by title and opportunity be given for the offering of amendments. Motion was seconded by Bill and motion was carried 4-0. Ordinance 2013-1 was then read a second time by title and no amendments were offered. Claude then made a motion to adopt the ordinance as read. Motion was seconded by Bill and the motion carried 4-0. Stan then announced that Ordinance No. 2013-1 had been duly passed and adopted.

Jeff Rowe then said he would have proposals from banks on the Ban by the next meeting.

Stan then told us he has started a web site for our sewer district. He also mentioned that he had toured the Mexico sewer system the same month that the mandatory hook up was to be completed.

Steve Downs then told us he had North Manchester sign the agreement for treating our waste and said we need to do so also. Claude made a motion to accept the agreement and have Stan sign the contract on our behalf. Dave seconded the motion and the motion carried 4-0.

Chirag said he will be ready for permitting in a couple of months. He stated that we need to pick the type of pump we prefer to use. He recommended the progressive cavity pumps over centrifugal to prevent having to install a lift station. After touring other facilities both Stan and Dave agreed that they also felt the progressive cavity pumps would be best for our situation. Dave made a motion to use progressive cavity pumps. Bill seconded the motion and the motion carried 4-0. Chirag then said that they had found a cheaper way to tie into North Manchester by changing the location of the hook up. He said going one block north to the next street would save them from having two state highways under construction at the same time. He then told us he needed us to accept the USDA guide 5 report so it can be sent in.

Dave made a motion to accept the USDA Guide 5 report as written. Motion was seconded by Bill, motion carried 4-0.

Meeting was then adjourned at 7:40 PM.

Laketon Area Regional Sewer District Minutes of September 19, 2013 Meeting

Attending the meeting were Board Members Stan Bagley, Bill Parker, Claude Markstahler and Cheri Slee. Board member Dave Hawkins was absent. Also attending were Steve Downs, Legal Representative; Chirag Patel, JRP; and Jeff Rowe and Tom Blake, Umbaugh. Others present were Randy Van Vickle and Kenneth Kreider.

Mr. Bagley opened the meeting at 6:41 P.M. (Meeting was delayed due to waiting on members to arrive to fulfill the quorum requirement). Minutes of the August 15, 2013 meeting were reviewed by Board members. Bill moved to approve the minutes as written, seconded by Claude. Motion carried 3-0. Cheri abstained from voting being that she did not attend the August meeting. Treasurer’s report was presented to the Board members. Claude moved to accept the report as presented, Bill seconded the motion. Carried 4-0.

Stan reported that the rental for the district’s post office box had expired and he opted for a larger box, which will change the District’s P.O. Box number to 207 North Manchester, IN. Stan also reported that he has created a website for the district that contains general information about the district. He asked for suggestions or remarks for the website. He also noted that Chirag had suggested adding the meeting minutes and the district’s restrictions and requirements. Stan asked for the Board’s approval to add the suggested information to the website. The Board was in agreement. Stan presented the website address as

Steve Downs had presented papers for Board members Stan Bagley, Dave Hawkins (Mr. Hawkins signed prior to the meeting) and Cheri Slee to sign for the Bond. He reported that bond closing is on the September 25th and that the papers signed go back to Bond Council and U S Bank. He believes that everything is in order and no further action is need from the Board for the bond.

Jeff Rowe of Umbaugh reported that the BANs were sold on August 11, 2013 to City Securities Corporation and no other bids were received. He noted that it is a decent bid and will have an interest rate of 2% for $375,000 for one year. If it is outstanding for the full year the interest payment will be $7,500. There was an upfront discount fee of $3,649 which is allowed within the bond ordinance. City Securities will then wire the remaining balance of $371,351 to the District’s bank account on the 25th. He also stated that the funds should be deposited within a construction account at the bank. Mr. Rowe informed the Board that City Securities is located in Indianapolis and they are a buyer of municipal bonds in the State of Indiana. For information on the Bond, Mr. Rowe referred to Umbaugh’s letter to the Board dated September 17, 2013. Discussion followed concerning the bidding process for the bond and Umbaugh’s thoughts as to why there was not a larger interest (repayment of the BAN is not through a revenue source, but through commitment from Rural Development). Mr. Rowe explained that the Bond Council will check everything and if in order, the money will be transferred electronically on the 25th and then an email will be sent out that it is officially closed.

Stan reported that he had an email and form to send to the school for the right of way easement. Chirag stated that it was a draft for everyone to review, there still needs to be some research completed. After the draft is approved by the Board he will prepare the final package and mail to Stan. Chirag noted that it would be a blanket easement on the property.

Mr. Rowe stated that it is his understanding, in accordance with the statue as currently written, that there is a requirement to have a signed contract with each customer indicating that they are going to be part of the project. Chirag explained that in working with USDA, they are going to do it the opposite by sending every homeowner in the district a notice (form letter) explaining that they have x number of days to file an exemption with the district. He stated that it is up to the homeowner to file with the district, it is not the district’s responsibility to pursue. Chirag explained that another district they have worked with had legal counsel draft a letter explaining the project, the homeowner’s rights and applicable code to pursue for the exemption. The Board then hand delivered the letters to the district homeowners, signed an affidavit for the addresses that they delivered to, which was the count for USDA. It is then up to the homeowner to file for an exemption if they qualify within the state code. Chirag stated that this process is usually done during down time while the permits are being reviewed and he is planning on possibly discussing this with the Laketon Board at the next meeting. Mr. Bagley stated that Jennifer Scott, environmentalist from the Wabash County Health Dept., believes that there are only two residents that will qualify for an exemption. Chirag reminded the Board that even with the exemption some districts make the homeowner pay the debt service because when their exemption runs out they will need to connect to the system.

Chirag asked the Board how they wanted JPR to purse the easement through the Rusty and Susan Hayden property. Stan stated Mr. Hayden is supportive and agreeable to the easement for the district, but he is interested in purchasing the 3 acre farmland parcel next to his property that is owned by the School. Stan added that Mr. Hayden has requested that he (Stan) discuss with the school board the possibility of selling the 3 acres to him (Mr. Hayden). Mr. Downs responded that due to the possible value of the property he was sure the school would have to follow the open bidding process. Mr. Downs agreed to check into the process and possibilities. Stan also discussed the possibility of negotiating and offer with the Haydens for signing the easement agreement.

Chirag reported that they are making good progress with the project plans and will start bringing the preliminary plans to the meetings to answer homeowner’s questions, show the proposed grinder locations, talk to the landowners and gather information about the properties. He stated that in 3 to 4 weeks they will be ready for permitting and would like the District Board to give approval for JPR to submit the required permits when completed. He noted that there are four permits in total; County Highway, INDOT, Town of North Manchester and IDEM. He informed the Board that the one permit that cannot be submitted at this time is the IDEM construction permit, which does require the Board’s signature. Bill Parker moved to allow Chirag to proceed with the permitting as requested. Claude Markstahler seconded the motion to proceed with the permits except for the IDEM construction permit. Motion carried 4-0. Chirag gave the Board a heads-up that INDOT will require a bond and JPR has anticipated and budgeted approximately $12,000 for it; and because of the length of the project there could possibly be a couple of bond renewals.

Chirag reported that they have met with Duke Energy and the electric connection that they want to do is favorable. The meters will be grouped with 4 – 10 connections on one meter and the District will receive one invoice for all of the meters. Through the project the meter base will be installed and the wires will be run and bundled for them to connect.

Chirag asked the Board if they needed more time to make a decision on the grinder station selection process in terms of pre-selecting or bidding through the construction contract. He explained to the Board the positives and negatives to each process and referred to the email that he had sent to each board member prior to the meeting explaining both selection options. Discussion followed. Bill Parker stated that being the first time around, he thought Laketon should go through the bid process. Chirag stated that the specifications for the pumps are written in a way to control the quality, because JPR wants to make sure that the best pump is installed, but they do not want to restrict it so there is not competition. Bill Parker moved to allow the pumps to be selected through the construction contract bidding process. Cheri Slee gave a second to the motion. Motion carried 4-0..

Being no further business, Bill Parker moved to adjourn the meeting. Cheri Slee seconded; carried.

Meeting adjourned at 7:40 P.M.

Minutes of the Laketon Area Regional Sewer District


Attending the meeting was all five board members, Stan Bagley, Bill Parker, Cheri Slee, Dave Hawkins and Claude Markstalher along with Mike Novac, RCAP and Chirag Patel from JPR.

The meeting was opened by President Stan Bagley at 5:30 PM. He asked if there were any changes to the minutes of the last meeting. None were mentioned so Bill Parker made a motion to accept the minutes as written. Claude seconded the motion and the motion carried 5-0. Cheri then handed out the treasurers report. She then mentioned that she still had not yet been bonded. She had quotes from different sources but the most reasonable was through Beauchamp and McSpadden at a cost of $700.00. Everyone else was in the thousands to bond her. Bill made the motion to go ahead and have her bonded through Beauchamp and McSpadden. Motion was seconded by Claude, motion carried 5-0. Cheri then mentioned the four claims that she has now received. Two from Stan Bagley, one for P.O. box and keys for $81.00 and the second claim was $120.55 for a 2yr plan for WEB support for the districts WEB page. There was also a claim from JPR for engineering costs of $164,926.63 and a claim from Ice Miller LLP for $10,339.92 for bonding services. Dave made a motion to pay the four claims that we have received. Motion was seconded by Bill, motion carried 5-0. Mike Novac suggested we need to number our claims. Cheri said she would go back and number the claims and get that information to us. Dave then made the motion to accept the treasurers report as written. Motion was seconded by Bill, motion carried 5-0.

Chirag then told us that the contract for the easement through the school property needs signed by the committee and Steve Downs before it is presented to the school. He also told us the permit to North Manchester has been signed and completed. There are still three more permits that need signed, one for the county highway, one for INDOT, and one for IDEM. Once these are all signed they will sent to IDEM in a packet along with other additional information. He said he just wanted us to know things are progressing along at a good rate of speed.

Claude then asked if any unused money should be turned back in or should it be kept for future use. Chirag told us this should be decided by the Board after the project is completed. However if the funds are kept they have to be used for project related items. He gave several examples of things other districts used the extra funds for however he said RCAP will negotiate with us after the project bids are in. Mike Novac then told us he will have discussions with us on this and other items like billing and service as the project continues.

Chirag then told us he was meeting with the county council on Monday to discuss them granting us a variance. With out this variance we will have to post a bond to the county before being allowed to use their right of way. He said we will have to post a bond for INDOT.

Stan then mentioned that there is a conference coming up Oct. 28th in Carmel IN. It’s a combined water alliance and state board of sewer districts conference. The cost is $50.00 per person, is set up to help sewer districts and they will be having a lot of different classes going on. Stan said he planned on going and if anyone else could make it to let him know by the following Monday. He also said that he and Cheri had already attended a class and found it to be very helpful and recommended anyone attend that could.

Cheri then asked when we should start an annual report since we have been a district for more than a year. Mike said we should work on this after the project is completed. He said we will talk a lot more about this and other things as the project proceeds.

Having no further business Dave made a motion to adjourn. Motion was seconded by Bill, motion carried 5-0 and the meeting adjourned at 6:25 PM. 10-17-2013

Laketon Area RSD was formed to correct environmental Issues in the Laketon Area. There is raw sewage being directly into the Eel River, Long Lake and Round Lake.

We have Failed and inadequate Septic Systems. and not enough room to install proper and legal systems.

A steering committee was formed to address the drain issues with the co health officer. RCAP

(rural community assistance program) got involved to guide us in forming a Regional Sewer District and guiding us along. and establishing the boundaries of the district. We then went to The County Commissioners for their support and matching funding to get grants for engineering cost they were very supportive. We received our grant and Hired Wrightman Petrie engineering to do the PER (Preliminary Engineering Report). We then formed a Official Board.

1 member appointed by the Twp. Trustee 2 appointed by the commissioners and 2 appointed by the council.

A public meeting was held Lynn Newlon IDEM to explain the creation of Regional Sewer District.

The engineers gave the Board several options on collection systems and treatment systems. We met with the refinery owners and tried to negotiate a purchase of the waste treatment facility that they know longer used. after much back and forth discussion and environmental issues it was decided to proceed with the option to use the North Manchester option. we met with North Manchester officials and reached an agreement with them. 

Then we were contacted by the EPA. That the Storm Drain down Main St. in Laketon was dumping raw sewage directly into the Eel river. later we found that when the the storm drain was installed that the resident along Main St were allowed to connect for a fee. The County was Cited and reached a agreed order due to the district was working to correct the problem.

Then the issue of funding came up. RCAP advised that we proceed with USDA funding and that we would need a complete income survey of the property owners/residents of district be completed. RCAP stated that they would administrate the survey at no cost if we would do the leg work, A mailing was done and the data was sent to RCAP and they sent back a report of the residents that had not responded and we contacted them to get a complete survey. When it was done we qualified for up to 75% funding.

We applied for funding from USDA we were award a grant of 2.6 million and a 2 million low cost loan.

We are now in the design engineering phase and will soon go for construction bids and will hope to start construction in the spring of 2014.

Another Public meeting will be held to explain other functions of the District.