The Board of Directors of the Knapp Lake Area Conservancy District met at Washington Township Community Center on the 18th day of July 2012, at the hour of 6PM in regular meeting pursuant to call in accordance with the rules of the Board of Directors.

The meeting was called to order at 6:05 PM by Vice President Nick Stanger, who presided. On call of the roll the members of the Board of Directors were shown to be present or absent as follows: Dee Densel-Secretary, Cindy Kennedy-Treasurer, John Clugston, District II Director. (Three board members present which represents a quorum.) Mike Novac-RCAP, Mark Jesse-GAI, Attorney Matt Shipman, Bloom, Gates & Whitleather, LLP ; Jack Chronister-Noble Co. Septic Sanitarian (ABSENT), Dean Bickel, President (ABSENT),

Guests: No guests were present

Minutes of June 13th meeting were electronically sent to all board members, motion to accepted by Cindy Kennedy and seconded by Nick Stanger all in favor – Ayes carried.

New Business:

• Resolution to allow the following individuals to make draws against the Bond Anticipation Note held with Star Financial Bank was introduced. This will allow Cindy Kennedy, Dee Densel and Dean Bickel to make the draw against the BAN into the checking account in order to pay bills.
• This Resolution 001-2012 motion to accept was made by Dee and Seconded by Nick – all in favor – ayes carried.
• Matt will take the signed Resolution to Kevin Snell at Star in the morning so that we can make this draw as bills so far are over the amount of $45,000 which was our first draw.
• Matt Shipman has been in contact with Jack Birch, Attorney for the town of North Webster in order to draw up a basic agreement with North Webster to accept the wastewater from Knapp Lake. North Webster to review the agreement and get back to Matt. Agreement will be for 40 years. Mark has their rate ordinance, we also need the NW sewer ordinance and then the agreement can be finalized.

• Mark Jesse (GAI) Engineering has started the preliminary design and survey crews were in the area this week. Steve Henschen will be the project engineer. Mark brought up that last year we had discussed holding a District informational meeting during the Association’s Annual meeting Labor Day weekend. They (GAI engineering) will discuss how the project in moving forward, what is happening with the construction, what is going to happen with the construction and how it is going to happen! Property owners will be given a one page survey to sketch where their dwelling falls on their lot and where on the lot the septic is located and where the well is located. This information is needed for location of grinder pumps, etc. Engineers will explain the sewer construction process.
• Mark discussed low pressure sewer projects. Grinder pumps will be go through the bid or quote process that way we will have a guaranteed price up front and prices cannot go up.
• E-1 Environmental is one of the companies that can furnish the pumps, but the purchase will be quoted to others in order to get the best price.
• Once we award the contract to purchase, we will have the awarded contractor set up a grinder pump at the Association site by the beach for a ‘dog and pony’ show awarded contractor and engineer will be available for demonstrations, questions and answers.
• Whoever gets the maintenance contract for the sewer lines will be trained by the grinder pump vendor to do any repairs that are needed. 95% of repairs are total exchange. This cost is part of the maintenance cost built into the monthly cost and will not be a burden on the homeowner. There will be a grinder pump for each house or if septic tanks for two houses are close together, one pump can be shared.
• This will all be explained at the meeting!
• Cindy Kennedy (treasurer) has been in contact with State Board of Accounts and to policies and procedures pertaining to the Conservancy Districts. One recommendation made was to allow a petty cash fund to be created containing no more than $200. This fund would allow for necessary operating transactions i.e. postage stamps, office supplies, etc. Nick Stanger made a motion to adopt a resolution to allow a petty cash fund, JC seconded the motion, vote was made and carried, ayes carried.
• Matt Shipman will create 002-2012 Resolution for Petty Cash fund to be signed at the August meeting.
• Cindy and Dee met with Jeff Rowe from Umbaugh (CPA’s) concerning billings, payments, claims etc.
• State Board of Accounts requires all claim forms be pre-approved by the board prior to payment. However, there are exemptions that exist for certain types of invoices that allow them to be paid prior to approval. The District is required to adopt a resolution authorizing the payment of theses invoices prior to approval.
• Statue IC 13-26-5-9 addresses this. (IN.GOV)
• Matt will also create Resolution 003-2012 in accordance with IC 13-26-5-9 (d) allowing the Board to make claim payments in advance of board allowance for the following kinds of expenses if the board has adopted an ordinance under subsection (b): (1) Property or services purchased.
• Nick Stanger made this motion and JC Clugston seconded motion. Motion voted and carried. Ayes have it!
• Cindy then discussed that we are in need of a second draw of BAN money. Our outstanding bills total more than the original $45,000 in the first draw. Paying engineering fees dating back to 2009 and legal fees dating back more than equal that amount.
• Cindy explained that Star Financial would charge $25 for the electronic transfer of funds to Lake City Bank and then Lake City Bank will charge $15 to except that electronic transfer….. It was decided that we would open a checking account with Star Financial Bank to deposit the BAN funds into, then write a counter check (they are free) to Lake City Bank since we already have the checks printed from Lake City and that is the bank that is listed on our GRANT paperwork. After our checks are used from Lake City – we may decide to have checks printed from Star – depending on which bank gives us the better deal!!! This eliminates the $40 charge for the electronic draw on the $900,000 bond. We don’t pay interest on this money until we draw it so we want to only draw the amount that we need each month.
• Nick Stanger made motion that we open checking account with Star and write checks to Lake City, seconded by JC Clugston. Motion was voted and carried, Ayes
• Discussion took place concerning the purchase of a computer for the treasurer of the district, Cindy Kennedy, for accounting procedures, check writing, claims, etc. Look at a laptop w/Microsoft Office 2010, Microsoft operating system 7 or 8, and QuickBooks. No internet connection capabilities are needed as this will be a standalone computer for accounting purposes only.
• Cindy will check with Office Depot and Best Buy, Dee to get price from Microbyte Technology in North Webster, Michael Williams.
• The following claim forms were signed:
o GAI Consultants $29,762.27
o Bloom, Gates & Whiteleather $ 8,497.48
• Motion was made to pay the following claims when second draw is made, motion by Nick Stanger, seconded by JC Clugston, voted, carried, ayes.
• The following claims were signed:
o GAI Consultants $13,450.00
o ICE MILLER (Bond Council) $12,762.27
o Umbaugh & Associates (Accounting) $15,885.39
o Boyce Forms (SBA required forms) $ 79.86

Dee made motion to pay these claims, seconded by Cindy, voted, carried, ayes

Dee to open a checking account with Star Financial tomorrow, July 19th, signatures will be needed, same as Lake City, Dean and Cindy to go after work and sign account. We are Not For Profit.

We do not have a Taxpayers Identification # for Tax Exempt as yet

Mike will meet with Dee & Cindy on August 8th at 3PM (before meeting) to set up the books and go over the approved accounting policies and procedures.



Motion to adjourn was made at 7:05 by Cindy Kennedy and seconded by Nick Stanger. Meeting Adjourned

Next Meeting is August 8, 2012