MOPR'S 12/20/04 VP LEVEE CMSN MTG MINS

 

Notes:  Met 5:10 - 5:47 pm. 

 

Present:   RW,  TB,  JW,  DS,  BW,  EM,  JZ,  KT (arrived 5:20), JKB.  Also present, Jim Mitas of Cgsm Akin's office;  & Vivian Blackman, VP Resident & Biz Owner.

 


 

12/20/04 LEV - Section  1 of  12

 

(With DC absent, EM is taking roll)  EM:  John Brust is here.  Better write this name down.  _ _ _ _ - JW:  _ Rick's house after this mtg.  EM:  We're goin' to Rick's house?  JKB?:  Are u sure? (JW laughs) JW:  Goin' to your house.  EM:  Oh, my house!  JW:  We just came from your house.  (they laugh)  BW:  Nobody home there (chuckle).  EM:  TB.  My daughter's home.  Hey!  JW:  Uh-oh!  (they laugh heartily)  BW:  Now he wakes up!  ?:  Yeah.  ?:  If u want to, exclude those _ - EM:  Jeffery J.  _ - JW:  He checked the pictures & said, 'oh, no more worries about it now'.  RW?:  Make sure u save that.  BW:  There is a person with hearings - RW?:  cut down on expense down there. I think that _ _ - EM:  Jim Mitas.  ?:  What are we saving?  JW:  Costs _ - DS:  We gotta cut expenses here.  ?:  Oh, I'm sold out - DS:  Boys put 'em back, use 'em again for another _ _ -

 

EM:  Ok!  Uh, who's gonna move to approve the agenda?!  Somebody is.  BW:  Do we have enough for a quorum?  JW:  We got enough for a quorum?  EM:  We do!  RW:  I'll make a motion.  EM:  Rick made the motion, 2nd'd by - JKB:  I'll 2nd it.  EM:  JKB!  All in favor (ayes heard).  Carried unanimously!  No mins because (pause & a few people chuckle) I'm lacquered today;  uhh I left 'em at my office.  ?: _ _ - EM:  Uhhhhhhh, 1st item on the agenda isssss - ?:  roll call _ _  - RW:  Somebody better know about - BW?:  _ _ - RW:  as u do (chuckle).  EM:  Don't know!  I don't have an agenda (chuckle)!  RW:  Here.  Pledge Allegiance.  EM:  Oh!  Pledge Allegiance!  I'm sorry.  (some laugh)  (Pledge)

 

12/20/04 LEV - Section  2 of  12

 

DS?:  Pass that down _ _.  BW:  Now u know what u're doin'.  EM: _ _ all I do.  BW:  Well, I don't even know about that (chuckle).  EM:  Uhhhhhhh - JZ:  Good sign.  EM:  Item 4B Update!  Mmmmister Zerega!  JZ:  Ok!  U skipped uh, additions or deletions to the agenda.  EM:  Oh!  Does somebody want to uh add or delete it?  JZ:  Yeah, I do.  EM:  U wanna delete the agenda?  (BW laughs)  Start over.  Ok. 

 

JZ:  No, I wanna have, I wanna add an Item 1, A1 in about Simpson Lake Det Area.  EM:  Ok.  A - 1.  S i m p s o n   -   BW:  Are we callin' it a lake?  JZ:  Welllll, it feeds into Simpson Lake.  BW:  Oh, ok.  JZ: That's why we call it that.  BW:  Are u trying to embarrass _ (chuckle).  JZ:  No, I'lll, I'll tell ya in just a - BW:  Ok (chuckle).  EM:  Go ahead! 

 

12/20/04 LEV - Section  3 of  12 

 

JZ:  Ok.  Uh last time we met - uh this is regarding Item 4B - I, I'd mentioned that in Oct, we paid ESI $950K, principal & int (interest) with uh early money for the FY.  I guess the news item is that in Nov, in late Nov we paid uh ESI another 3M, basically around $3M, to pay off all the contractor's earnings in FY 04 & all the int that's assoc'd with that, ok.  BW: _ _ - JZ:  All the earnings thru FY 04, that means thru Sept 04 were paid, plus the int that's assoc'd with that, ok

 

Now I was gonna - at the last mtg, Charles Ford was here from the VP School Bd & he asked a lot of ques's about int.  So I prepared a chart about int.  (See Docs Page - 12/20/04 (COE/ESI) Progress Payment History)  Eric, Would u mind giving one of those to uh Charles?  EM:  Be happy to - JZ:  We've got - EM: (quietly) least he's talking to me.  JZ:  Does everybody have a copy?  (Everybody gets one.) 

 

There's 3 pages here & I, I know u don't wanna spend a whole lotta time on it, but I'm gonna hit the main points.  Uh the 1st page, it's page #1 - if u look over in the left-hand corner, it says "FY 04", ok.  So this shows the history of the earnings for each month in FY 04 - where is says approved earnings, that column;  & then umm, in the column about a third of the way across, it says "earnings paid", that shows how those earnings were paid in various incremnts, ok.  Grand total down at the bottom of that column is $7,433K of earnings were paid - that were earned during FY04. 

 

& then about mid-page, there's a column called "int paid" & that shows the int that is paid with each - that went along with each paymt that we made to ESI for these FY04 earnings.  & then at the bottom of the page, bottom of the column, it says $48,105;  so that's, that's the amt of int that, that was uh earned by ESI during FY - well - BW:  That doesn't sound like a whole lot.  JZ:  for his earnings during FY04.  Some of these bills weren't paid until 11/22, so earnings were accruing all the way up until 11/22 when the bill was paid.  So that's, that's to give u the picture, ok, of uh - & it's -

 

uno one of the stipulations in the contract is the contractor could, could uh pull off the job if he isn't paid-up as of the end of the FY.  For all his earnings during FY04, if he's not paid before 12/1, he could, he could walk away from the job without a whole lot of repercussions & so we - it was one of the feelings of mgmt is let's pay - they wanted to pay him anyway but that was another reason to pay the contractor - uh so that he would be uno, held on the job a little bit more (acromlick?) so to speak.  So that's, that's what the main info is on this 1st page, ok.

 

2nd page deals with uh FY 05 info so that's over on the left top of the table is FY05, ok.  In paymt est # 11, which was what he earned in Oct which is this fiscal, uno the 1st month of the FY uno he earned $1M154K, ok.  & then over to the right a little bit more, it says "earnings paid" - we paid $120K & we used the sponsor money to do that, Eric.  That's that 120, one of those checks we'd asked for from the city & there was a little bit of int that went with that which we paid from the sponsor money, $255. 

 

So the remainder, uno 1M154 minus 120 is what we still owe the contractor & int keeps accruing on that, ok.  & what u see looking down the column called "approved earnings" for each month for Nov, Dec, Jan, Feb, Mar, Apr, May, Jun, is a projection of what the contractor is going to earn each mo, okbased on, based on a - we actually have 3 projections for each month, uno high & low & medium & we took a medium, & that's what's in this table.  & it's just an est, uno how things go with the weather & all that, uh but it's better than uh than not having an est that's for sure. 

 

So the approved earnings down at the column at the bottom says uh the total is $6M778K.  So that's, that's the FY05 est'd earnings & I've got that hand-written down there, will be higher, in parentheses, because there'll be contract mods & there will be, uno this did not count int, ok.  So it gives u an idea & if u add what was earned in FY04 which was 7M433K on the previous page, then u come up with $14M212K.  Again, that does not count some mods, does not count int, so my little hand-written note at the very bottom, hand-written, says that uh the est'd total cost of the contract including int &, & forthcoming mods is still 14.8 that we've been - has been our est for, for probably a yr now;  so for a long timeWell that's, that's what on that page.

 

Now the last page, uh deals with what kind of int would accrue if u had those kind of earnings in FY05.  So um if u look at the 2nd column over, it says "paymt est #11",  go down to the 2nd to the bottom #, it says "amt unpaid" uno - what was unpaid;  well, there's aM034 cause we had paid 120K of that.  So the unpaid amt is that & if u look above, that column above where it says "total int", I've got it kind of marked in yellow on my copy, uh that contract, that, that one paymt for Oct's work, uno if it goes all yr long, will earn int each month into Sept & it'll earn $39,800 worth of int, ok

 

Uh & so that's the same kind of logic for each other est'd paymt - uno the paymt for uh Nov & for Dec & so forth. The paymt est for Nov, if u look again that 2nd # from the bottom, that he's expected to earn 755K, in fact he's already given us a bill for $755K for Nov, okThen where u see 500K is what's expected for Dec;  a Million 2 for Jan;  a Million 4 for Feb;  so on as u go across the page, $56K in June.

 

& this is showing the contractor still expects to complete the job even tho we've got some bad weather & things have been slow because of wet weather.  He still expects to complete the job in June;  desires to complete the job in June.  Of course it's gonna take the right kind of weather & that kind of thing for him to actually accomplish what he wants to accomplish. 

 

12/20/04 LEV - Section  4 of  12 

 

BW:  So, the, the, what's down here, the, the, the estimates, is doled out so that if we meet this Jan or June 05 completion, uh & so up, up until then, all those & they're past from - now past, weather has been taken into consideration of what - JZ:  Yeah - BW:  work - JZ:  everything - BW:  _ not gettin' - JZ:  all the bills up until Nov are actual uno actual progess thru, thru Nov & so for Dec - BW:  So we're still looking at a  - JZ:  we're just - it's an est, a projection, of what we think & what he thinks he's gonna earn.  We again, we had 3 different projections, hi, med & low & we -

 

EM:  I think what he's saying, Bob, as a matter of fact, I know what he's saying, is we don't expect any more money in for, for - It would be nice - JZ:  Oh, u're askin' - ok - EM:  but we don't.  JZ:  I have made an assumption here in this int table that we aren't gonna u (use?) - get any more money to make paymts, ok.  Now as a matter of fact, we are gonna get, we know we're gonna get something from the sponsor that we'd asked for uh - what was it 180 - EM:  I thought it was 3 - 360 or 270;  I don't know, whatever it is.  JZ:  Well - ?: _ _ _ - EM: (some of it?).  DS: _ -

 

BW:  Were - I, I'm - it's probably not your departmt but this uh - JZ:  I just - lemme finish the main point.  I think it was 186K, Eric.  RW?: _ _ - JZ:  Uh the assumption is when we did this is that we, we're not gonna get any more fed dollars or - JW?: _ _ - JZ:  or uno that's about the last of the sponsor money we can ask for.  & it's, & again, it's just to see what the int - I mean part of it is just to see what the int is uno.  If we get some dollars that's great, we'll make a paymt & we'll have less int but I think it's uh uno, it's a safe assumption that - DS: _ _ - JZ:  we won't get more money until uh - BW: Now this, this - JZ:  until Sept.

 

BW:  This int in the grand totals down here, that is int for the duration of this contract?   Uno what is already been paid & what is expected that, that we're gonna have to pay?  This 185 _ - JZ:  Well this, this, this page here, is really only, umm it only reflects paymt estimates #11 thru 19.  BW:  Oh, ok, so 11 thru 19 is - JZ:  Yeah - BW:  just _ - JZ:  so the history - BW: _ - JZ:  uno the old - paymt estimates 1 thru 10 which is on the 1st page of, of this hand-out, that shows - EM: We paid 48 _ - JZ:  We've already paid 48K of int - BW:  Ok.  JZ: & that's actually paid. 

 

The rest here is a projection of the remaining pay estimates.  & in fact, I don't wanna get into the details, but uno we already made one little paymt of $120K so that's int we've actually paid of $255 - that, plus what u see on this last page would be the grand total of int paid.

 

BW:  But this, this 185 is just for what's projected out from now.  JZ:  Right.  BW: Ok  JZ:  For unpaid earnings, yes.  BW:  & from the looks of this, then he's still, the contractor's still projecting a completion by June I would assume that - JZ:  Umhum.  BW:  it would be. (chuckle)  That's gonna be the last of the money anyways. 

 

12/20/04 LEV - Section  5 of  12 

 

JZ:  There's a couple more things here just to, to understand.  Umm, this, this table assumes 4.5% int & int might go up in Jan, ok.  It might go up to 5% but we don't know yet, so we're just goin' ahead & assume the 4.5% for now. 

 

Ok, the other thing is that there are contract, er contract mods that haven't been finalized yet. They're not included in this.  So again, uno there'll be several hundred thousand dollars MORE that will, will get paid to the contractor & then we'll pay him int on that. 

 

BW: _ _ - JZ:  So it - BW: _ _ - JZ:  but it gives u some idea;  it's just not - can't be perfect at this point in time but it's - gives u some idea of what kind of int we'll - & as a matter of fact, I mean we don't know if we're gonna get money in Sept or Oct of next yr.  So uno if int keeps building up, obviously it'll be higher - it'll be a higher total.

 

TB:  Is it a possibility that if we don't keep gettin' any money in, that the prin - the int is gonna run higher than the principal by the time - JZ:  Well, I don't think so.  U get - I mean it, it'd be a long time.  U can see even - uno last yr was - ?: _ - JZ:  was a kind of a bad yr because we couldn't pay the contractor from April on & we were - we did make some paymts & we finally got the contractor paid off for his 04 earnings, but it was only $48K worth of int paid & we paid the man $7M400K. 

 

TB:  So basically we should owe - well, we got some of it paid off but what of the 14.8M will we owe in June 5th or June, whenever they uh thinks he's gonna be done with_ _ - JZ:  Let's, let's just say, I mean we don't know if there's any - there's no source of money coming in June anyway that we're aware of.  So uno Sept, we'll get the next FY coming right around the corner, Oct.  Maybe u'll get money in FY06.  Maybe u'll get some transfers in like we did this yr in Sept.  But in general, uno this is a pretty good est - EM?:  point 6_ _ - ?: _ _ -

 

JZ:  We'll pay - ?: _ - JZ: 185K this FY of int or maybe more - probably more than that;  uno 200K, 210 or whatever the # turns out to be but it's not gonna be uno on the order of how much we have to pay the contractor in principal.  It just - at 4.5% -

 

TB:  But 6/5 or in June of this yr if not, we should owe 6M843K?  RW:  That's an est.  TB:  I mean that est tho - JZ:  As far as the - TB:  Say 7M.  JZ:  Yes.  RW:  'cause the int is gonna accrue - JZ:  Yeah - RW:  past June if we don't _ - JZ:  That's correct.  We'll owe that much of earnings we think, yes. 

 

12/20/04 LEV - Section  6 of  12 

 

TB:  & do u have any projections of what we might be gettin' from the fed gov't?  JZ:  Uh, well, we at this point - TB?: _ - JZ:  the law has been passed, the aprops - I didn't mention that yet but the aprop bill for FY05 has, has passed.  They haven't made the distribution of funds yet.  The money - the law was just passed in Dec & we're not uno - we're only gonna get uh - the law calls for $2M60K to be aprop'd but then before they give us the money, they subtract Savings & Slippage & Rescision & we're expecting to get about aM700&uh - JW:  Would that - JW:  Uno - JW: be just for - JZ:  _ _ - JW:  this project?  JZ:  _750K$. 

 

JW:  Or are u talkin' they're givin' it to u nationwide?  JZ:  No, for this project.  (JW laughs)  Well we're getting a lot less than we need.  We need about $aM750K.  So we're gonna - uno, just, just - BW: _ 6 or 7 _ - JZ:  We've already paid out a lot more than that to our contractor so we're gonna have to transfer in money from - I'm not sure where - from our dist & other districts perhaps in order just to make our bill er make our paymts come out right. 

 

EM:  Sure &, & the way they do it, they don't - they get a M6 or a M7;  they'll take what they need out 1st.  See, the COE charges - ?: Oh yeah.  BW?:  Yeah.  EM:  internally for overhead &, & uh supervision, contract supervision - what, what about 10% or so - JZ:  Yeah.  EM:  of total contract, so - JZ:  That's with costs typically.  EM:  the 1st 6, $700K, u guys'll keep internally, I guessss. 

 

JZ:  Yeah, we, we have a, a w, a w, work p, plan laid out where we keep the money we need to do const mgmt & all the eng'g & testing during const for our, for our own labor.  Bottom line is we're not getting enough money in the aprop to, to pay our contractor uno even tho we've already paid him &, & pay ourselves to manage his work.  We're gonna be short & we're gonna have to have a lot of money transferred in from other projects.

 

12/20/04 LEV - Section  7 of  12

 

BW:  That was this little, this 1M somethin', that was in this last uh bill that everybody was on TV.  They were complaining about there's a stacks of papers that tall of all the - JZ:  It may've been;  I didn't see the TV show but uh - EM:  It was;  it was an omnibus bill that they passed uh - BW:  Yeah, & nobody knew what was in it or that - EM:  Very true.  JW:  I don't think that levee _ - JZ:  It became public very quickly - EM:  Somebody knew what was -

 

JMitas:  It was the Intel Bill that they talked about uh some stuff went thru & _ _ _ - ?:  _ _ the Intel Bill.  BW:  I saw McCain on, McCain on TV.  Boy, he was rantin' & ravin' about how nobody knew what was in that bill & he was citing different things that he'd picked out of there that sounded kinda crazy.  I was hopin' he wouldn't pull out VP levee (he laughs & KT chuckles)

 

JZ:  That's really all I have as far as uno the picture & clumbing (?) & so forth for, for Item 4B.   BW:  Is the contractor aware of this?  JZ:  Umm - RW: _ _ a month _ - JZ:  Yeah, I think - I mean I haven't talked to him personally but I mean he, he knows he's been paid uno for all his earnings thru uh thru the FY04.  Uh - JMitas?:  Well, Jim, didn't the COE try to _- ?: _ _ - ?: _ _ - JMitas?:  Or is that a COE (issue?)?  JZ:  Well, uno they're - they kind of work on 'em together.  I, I, I'm not absolutely sure.  ?: _ _ - JZ:  Uh there's a high, low & medium & how it - JW?: _ _ - JZ:  I know the contractor's involved & then the COE's involved - ?: _ _ - JZ:  but I don't know if he prepares all 3 estimates & we prepare all 3 estimates or just how we do that.  ?:  But it's your job. 

 

BW:  No, I mean _ _ - is the contractor aware of the uh - KT: I guess we'll get _ _ - BW:  amt of money that will be available for the next 6 months _ - KT: _ _ - JZ:  Uh, I - BW: _ _ - JZ:  I don't know - KT: _ _ - JZ:  I don't know for sure but I would think he is cause they, they talk quite frequently - ?: _ _ - JZ: between our const guys & - ?: _ - KT:  Huh?_ - JW:  _ sign up yet?  ?: _ _ -

 

JZ:  I would think - KT:  He oughta.  JZ:  no one's promised him any more money than what he already has been paid uno.  He, he knows by - after going thru this past FY, I think he would probably know - BW:  Yeah, it looked pretty bleak - JZ:  things come along toward the end of the yr - ?: _ _ - JZ:  & not before typically, before his transfer, more transfer is concerned.  JMitas:  It's still _ _ - KT: He'll wait - JMitas:  _ _  - KT:  till the last min I think.  BW:  Oh!  Very definitely.  KT: _ _  - BW: Very definitely uno, yeah.  JW:  I told u who it's gonna be.

 

EM:  I guess the COE doesn't know - KT: _ - EM:  anything about a possible - JW: _ _ - EM: supplemental aprop & Mr Mitas might well address that if uh - do uno anything about it?   JW: _ _ - KT: Mike (Freidens?) - EM:  Nobody knows anything about it.  Some, sometimes they do do add'l aprops - JW: _ - KT:  Oh, Mike.  EM:  _ budget process - KT:  Mike wants me to file so that he _ _ _ -

 

MM:  Jim, u said save, Savings & Slippage;  I've heard that before but u said another word, rescision or something?  JZ:  There's a rescision, there's um some kind of an across-the-board reduction of something like .8%, uno less than 1% is - uno all agencies have to - BW:  _ cross cut - JZ:  aprop.  So that's all I have if u wanna move on the agenda.  I've got a few more things to talk about but they're further down the agenda.

 

12/20/04 LEV - Section  8 of  12 

 

EM:  Any cost share of the project & TPC?  JZ:  Lemme, lemme say 1A (chuckle) A1, Simpson Lake Det Area -  We talked about a contract last month that we had P&S that we distributed & I will say that we uh awarded the contract to the low bidder uh for $53,288.90.  & it was to a company from Pennsylvania called Road Valley Farm, Rhodes Valley Farm & they have uh - someone they're working with in the, in the area who is uno coordinating with, with the COE but this is, this is the contract to uh do the small amt of grading in Simpson Lake Det Area & plant trees & create a wooded wetland, ok

 

& uh uno we were hoping that the weather would be perfect or the - I guess the hope was the weather would be perfect & the guy could plant the trees in Dec but it looks to me like - BW: _ _ - JZ:  he's not gonna plant the trees - BW:  _ _ (he laughs) - JZ:  until, till March;  so when, in the next tree planting uh period comes along.  That's what I think is gonna happen.  That has to be worked out between us & our, our Contracting people & our new contractor.  JW:  (quietly) Middle of July. 

 

JZ:  But, but it - there've been coordination with the other agencies about this, uno the Fish & Wildlife Svc, uh MO Conservation;  the MDNR rep came out & looked at the wooded weland area with our people, with our biologist & stuff like that.  

 

Uh another point I wanna make is that, that we are using sponsor funds to pay for this contract.  Eric, I think we had 1st withdrawn $65K from the escrow acct uh & thought about spending it on the ESI Contract but when, when we - at the aprop - & there's uno there's so much, so, so such a shortage of funds uh we decided we'd better - sponsor money should be used for this uh env'l mit contract also;  & uh use the rest of your money to pay ESI (less audible) over, over the commission. When we're finished paying the uh env'l mit contractor, if there's a little bit left over, uno we'll certainly spend it on the ESI Contract. 

 

So that's, that's my news on uh the uh det area - JW:  Was that price - JZ:  wooded wetland.  JW:  does not include the trees, was it?  JZ:  Yeah!  JW:  Oh it was!  JZ:  Uno & there were - the 3 low bids - & there were quite a few bids.  I don't remember how many but, but there was 3 bids that were in the mid 50's.  So it wasn't the fluke or anything like that.  JW:  Yeah, it just sounds - JZ:  There were 3, 3 bidders that bid about the same thing which was - KT:  Hmm - 

 

JW:  Must be plantin' sticks.  JZ: Which was another - no, they have to plant according to the specs & the, the specs called for um a nice quality - what's called a root, root-pruned tree which is a special tree where they worked on the roots & pruned these roots over time so they've got a really large uh root wad - KT:  Wow.  JZ:  & when they plant - JW:  It's what's called seeds - they're not plantin' seeds _ - JZ:  No - JW: _ _ - JZ:  when they plant these, there's a really high success rate.  So our biologists are really -

 

KT:  3 or 4" trunks?  ?: _ _ - DS: _ - ?: _ - JZ: I don't - ?: _ - JZ:  _ _ but they're, they're a good size, decent size tree.  DS:  _ - JZ: One that has a - DS:  _ wetlands along the river.  JZ:  high probability of - JW:  That could be - JZ:  surviving.  JW:  signal for emergency (homes?), 6 or 7 _ - JZ:  That's what we planted when we did the uh - KT: & is that the one that u said - JZ:  work at GG Creek when we did some mit work up there & we - JW: _ _ - JZ:  printed, planted root-pruned - they're not that, they're not really big but they did survive. 

 

?: _ _ - KT:  Is that the one u said could - ?: _ - KT:  goes from Pennsylvania?  JZ:  Well, the firm is from PA;  the trees are gonna be - KT:  the firm is from PA.  ?: _ _ - JZ:  be from MO.  - ?: _ ?: _ - (BW laughs)  KT: _ I hope they'll be from here.  ?: _ - ?: _ - JZ:  Ok.

 

12/20/04 LEV - Section  9 of  12 

 

EM:  Ok, city cost share of the project.  DS: _ - EM:  Um where we're at is that - DS: _ _ - EM:  back in 02 when we went to the school bd & asked for a new bond issue & raised the ceiling, the, the projected costs of this levee project were $42M & the local share obligation was $12M.  AS we are here today, uh as of 2/04, our projected local share is $14.something Million.  Am I off or is it 10, 10 & 12?  Maybe it was 10M & now it's 12.  But WHATEVER, we, we're obligated to pay just a little shy under $2M less;  I mean NOW, MORE than we were in 02 in local share. 

 

AS a result!, what we did when we did the School Dist Agreeemt, we had a clause that said once we get down below a half $aM in our Project Acct, we have to get permission from the School Dist to um expend any further money.  So I wrote a letter notifying the School Dist that we were under a half $aM &, & it actually, it wasn't a half $aM, it was below the School Dist Promissory Note.  Uh we executed $aM Promissory Note, called for paymts for 10 yrs _ _ _.  We, we've accelerated paymt on their note so we're now at half $aM on that.

 

So we've worked out an agreemt with the School Dist where they are shifting the half $M restriction from the Project Acct over to the Surplus Sub Accts & it's gonna work.  Umm, but the reason is is that this levee costs more than what we projected back in 02.  So we're going to start, not this draw, but probably the next draw uh with the COE, going into our Surplus Sub Accts for this - all of which is ok.  We've got about $860K in Surplus uh money over & above uh the $100K obligation annually.  We, we run a surplus of about $289K each yr.

 

JW:  Eric, Didn't we tell School Dist if we ran out of money we couldn't pay & - EM:  &, & they know that.  JW:  that was it?  EM:  Yeah & there's, there's no security on the Promissory Note at all.  It's just a Promissory - JW:  Is that the reason why - EM: _ _ - JW:  we paid ahead up to the half $aM?  EM:   Uh we paid ahead just because they asked & the city said fine.  KT:  Yeah, yeah, yeah.  EM:  We, we paid $300K in 03 I believe.  All, all of which - KT:  We, we screwed up.  EM:  No we didn't!  No we didn't.   It's, it's ok!  Plenty of bucks there um &, & their intent is to be _ _ _ _.  We, we - DS: _ _ -

 

EM:  We get right at a Million...(exchange tapes, during which I noted - RW:  Can we have any of that surplus back?  EM...RW:...screwed.)...EM: ...pay it off & then that'll be year 5 from now & then once the bond issue is paid off, I think under the indentures, we have to return any surplus, as it starts - ?:  That's - EM: accrounting (!) back from - KT:  Well - EM:  (twenty?)_ _ _ - KT:  Well -

 

EM:  No, no, no, no, no, that, that uh s, surplus gets computed on an annual basis & we, we've got $500K owing to the School Dist;  we've got $800K currently in surplus & u've gotta forecast what u're next yr's P&I (not mopr abbrev) & then u shift that to surplus.  So it's an accrued kind of thing &, & the School Dist's & the Levee Project costs under the indentures have a right of, of first dibs.  So, but once the levee PROJECT is paid off - in other words, once the city has paid off its costs, anything over & above the P&I & School Dist capital-cost notes IS redistributed pro-rata among all the, the taxing distrcits. 

 

BW:  Back to the School Dist - KT: But, but  - BW: & the Fire Dist - EM:  Yeah.  BW:  & all the -  EM:  The School Dist ends up just because of the way it is;  giving half back, the Fire Dist gets - God, it's not much.  It's - KT:  But won't - EM:  8, 9% of it, but - KT:  won't the int that we owe on this money eat that up?  EM:  Int on this has nothing to do with that.  KT:  Ok.  EM:  This is - that, the COE's maintaining that the int is a cost-shared feature of the project &, & I don't know;  we'll, we'll get to that some other time.

 

JZ:  I mean it does add to the TPC, that's for sure.  EM:  But, but it's - KT:  Well it does - EM:  But it's not out of the city.  Even if it is a cost-shared cost, it's not 100% the city's.  It's a, a shared cost - RW:  It's still 25%.  EM:  _ _ _ _ -  KT:  Right, but it's - yeah.  EM:  Yeah.  KT:  I don't think we'll ever, we'll ever have a - surplus money (chuckle)

 

EM:  Well, ummmm & the city's er - KT: Especially with -  EM:  fed sponsor funding.  KT: director.  EM:  Uh, Jim Mitas, u wanna address - DS:  No point talkin' about him.  EM:  anything with that, that, that - u don't know of anything coming up on the hopper & money's tight uno.

 

 12/20/04 LEV - Section  10 of  12 

 

JMitas:  _ _ we have _ all the aprops or as uh Jim _ _ _ _ _ _ _ _ _ _ here, & uh we have not begun the aprops cycle for - uno turning in what our aprops are for uh, uh FY06 so I'm not sure I'm (someone coughs) & uh we won't know till about (now?) August-time if there's gonna be any - August to early Sept - whether there'll be other funds transferred in as there were this yr.  So right now, we're just _ _ _ _ _ time.  & I haven't uh discussed it with uh Sen Bond's folks, the possibility of a supplemental aprops bill uh for this yr.  _ don't know if that'll apply or not. 

 

EM:  Just, just on the upside, guys, we got 3M bucks in that nobody expected!  Yeah, right at the end of Nov - JZ:  Yeah.  EM:  which was - I mean that's pretty amazing!  KT: Yeah _ _ - EM:  We, we - KT: _ - EM:  we (chuckle) really thought that we were gonna - BW:  But that was transferred money, wasn't it? 

 

EM:  It, it, it was FOUND MONEY.  JZ:  Transferred money er reprogrammed - BW: _ - JZ:  reprogrammed, but yeah, it, it was a big - KT:  Whatever - it saved us.  JZ:   a big boost to the contractor to be paid for, for his work thru the end of the FY;  helps the picture quite a bit obviously.  BW:  Yeah.  JW:  Keeps him interested.  BW:  Yeah. KT:  Umhum.  EM:  Anything else?

 

12/20/04 LEV - Section  11 of  12

 

TB:  Why do they - _ _ _ _ _ uno where they got there in (AL) Arnold's Grove, there's like a, a piece that's not completed up thru - is that just for traveling back down River Rd?  BW:  Part of the levee, it isn't all the way up to - ?: _ - ?: _ - JZ:  There's a piece um - TB:  I'm just curious as to why that's not all the way over.  JZ:  Um there's, there's a fairly complicated thing that has to go in there.  There's a, there's a storm sewer that comes along the hwy & we have to put a, a gravity drain - TB:  Oh, flap value or somethin' on it? 

 

JZ:  Well, right now it, it just empties out into the river! uno into the Meramec River & uh uno since there was no flood protection, the water could just right - back right in again, but - TB:  Right. 

 

JZ:  But with the, with the levee there, we need to have a - what's called a gravity drain which we have a big concrete column & this water from the pipe comes into this column.  We have a sluice gate that shuts off so when the, the river's high, water won't back up into the cmty. 

 

& so there's uh there was, there's a design already which puts this close to the hwy embankmt.  In fact uno some, some shoring's required in the hwy embankmt &, & I know that the contractor has proposed moving that over to the uh just slightly to the, to the west to make - so there's less shoring involved.   & I, I know that's something that's being considered or discussed among our engs, uh his proposal.  So I - so basically there's a gap in that job to allow that to be con - uno decision to be made, then that facility const'd & then it'll be closed off. 

 

TB:  I was just curious why - it looked like it'd be a simple task which nothing's simple _ - JZ:  Well it might be or maybe they may also want it open just because so they can move thru there for all - I mean really, the contractors have their own reasons for doing things in the order that they do them uno.  So that might be part of it too, access.  JW:  (quietly) _ truck drivers _ _ -  

 

12/20/04 LEV - Section  12 of  12

 

EM:  Well, next mtg will be 1/17/05.  Uh I, I did forget just, just one other thing, a note.

 

The, the city's - has to put in a new manhole uhh in RR ROW & so we are, we found a 1964 Permit & we're trying to work with uh the RR to see if they'll honor their 1964 Permit.  (some laugh)  We're optimistic on this uh & at least - ?: _ - ?: _ yrs ago (more laughter) - EM:  at least WE found it;  maybe they'll find it too but uh - JW:  Can we use it? 

 

EM:  Uh yeah, well & I mean we should be able to use it because what, what happened was is that things didn't line up correctly with the old manhole according to the as-builts & uh - JZ:  Oh, u were telling me.  EM:  Yeah, uh we have a, a line that goes underneath the RR tracks & it uno it's obviously supposed to dead-end to a manhole or come into a manhole & it misses the manhole unfortunately by uh a good 20' I believe.  So we're gonna have to - ?: _ close.  EM:  sink-in a new manhole & - JW: _ _ - EM:  & reroute it thru. 

 

So - BW:  _ _ - DS?: _ motion_ _ - RW?:  I mean we made it close.  DS?: Where u gonna do that _ _?  EM:  Almost, yeah.  JW:  That's over there over at the contractor's - EM:  It - JW: _ _ - EM:  it was hard - JW: _ _ _- EM:  from what I - I guess!  It was hard to find because there'd been so much fill in there that uh nobody knew where the manholes were.  But it's kind of hard to figure out how they managed to do that one frankly!

 

MM:  Where is that?  EM:  Uh in the, the RR ROW uh down - right across - right - I guess if u'd look at the back of the bank &, & stand on the south side of the tracks & sort of drew a straight line, the board's right around there uh underneath in the manholes, in that area but it's on the uh, uh west side of the uh tracks. 

 

?:  _ _ _ _ - RW?:  _ _ the old ones _ _ _  - EM:  Uh no!  The, they'll keep the, the new one.  ?: _ _ _  - EM:  & just sort of shunt one pipe from the other so u got 2 manholes, one entrance road.  KT:  Hmmm.  EM:  But it's also part of the drain feature from Marshall Rd _ _. 

 

Motion to adjourn by DS?  DS:  So be it.  BW:  2nd.  EM:  & 2nd by BW!  Carried unanimously?  JW:  _ _ _ - ?: _ _ - KT:  Aye.  ?:  _ _.  (mtg ends)