ALP 6

Board eeting Minutes
August 16, 2012
Page 2
Chair — Doug Monger stated that he had no separate report.
Report of Treasurer — Greg Fisher stated that the proposed 2013 budget would be discussed later in the
meetin and that he had no separate report. Mike Brod extended his appreciation to Duane Dohrer (who
was ou ill) for his persistence in obtaining a real estate property tax refund of approximately $42,000 for
the Au hority. Mr. Brod also spoke briefly of the repetitious reporting requirements imposed by EPA. A
motion was made to approve the checks written for August and September 2012 and to accept the
Treasu er's report.
Motion Greg Fisher
211d: Ty Wattenberg
Vote: Motion carried
Report of Executive Director — Mike Brod stated that his written report was included in the Board
Members' materials. Mr. Brod reported that Jeremy Wendt had terminated his employment with the
Author ty and introduced Cheryl Gantner, new Records Systems Clerk. Mr. Brod also stated that Ryan
Shiple had been promoted to Sr. Financial Analyst. The Authority's new website was now operational
and the Board requested a small demonstration at the close of the Board meeting. Mr. Brod called the
Board' attention to the new logo design, and thanked Mr. Shipley for his efforts in leading the
develo ment of both the website and logo.
Report �fLegal Counsel — Mary Hammond had no separate report.
ARRA f7unding Update — Keith McLaughlin reported that 98% of the DWRF ARRA funds were
expended and only three ARRA projects remained open. Mr. McLaughlin reported that the City of
Manitok Springs anticipated completing construction by November 5 "'; Hi -Land Acres Water and
Sanitati n District had submitted its final requisition and the Authority was waiting for a closeout letter
from t Department of Labor; the City of Brighton was finalizing its last requisition; and the City of
Lamar was required to also expend its base loan funds prior to the ARRA project being closed. He was
very hopeful that all projects would be closed by December 2012. All administrative funds had been
drawn. In response to questions by the Board, Mr. McLaughlin stated that during the recent EPA All
States meeting, he had heard other states reporting similar issues with the last few ARRA projects.
Loan A plications — Town. of Stratton, Resolution No. 12 -30
Ross K hn introduced Richard Mann, Mayor of the Town of Stratton. Mr. Kuhn reviewed the request
from the Town of Stratton for a DWRF Disadvantaged Communities loan in the amount of $1,307;000 to
replace ailing distribution piping, loop key areas of the system, and replace associated appurtenances.
The Board had tabled the project at its August 2012 meeting due to the Town's failure to comply with the
Authori 's O &M reserve covenant for the Town's 2007 and 2008 DWRF loans and to allow additional
time to determine the 0% green reserve interest rate. Additionally, it was requested the Town provide
assuran e it can .take on the additional debt and undertake specific actions in order to meet its existing
O &M r serve covenant additional bonds test and future loan covenants. The Project Finance Committee
had fo arded the project with no recommendation. Mr. Kuhn stated that the Town was scheduled to pay
off its OLA loan in 2013 and discussed other plans to rectify the O &M reserves issue. Mayor Mann
stated tat the Town was not delinquent in its payments and has approved an additional rate increase of
$20, to e implemented January 1, 2013. Mayor- Mann was confident that the Town could meet all the
debt sei vice and rate covenants, plus the additional O &M reserves covenant. He also stated that the
project was desperately needed to stop the estimated 34% water loss. The Board and Mayor Mann
discussed both past and current compliance issues and the Town's anticipated EIAF funding in detail.
Upon d tenmining that loan closing would likely be delayed until Spring 2013 to determine the outcome