KMUD board to keep two bank accounts
After much discussion, the KMUD board approved the action until further notice during its meeting Monday at district headquarters, 100 Ingram St.
Also, the board voted to retain a checking account for day-to-day operations with Prosperity Bank, even though “rumors on the street” indicate the bank may soon close its Kingsland branch.
“None of us knows exactly what is going to happen,” KMUD President Mary Ann Hefner said. “That is the bottom line.”
The board accepted a recommendation from Vice President Larry Denny to review the progress of both accounts by next May.
Currently, First State Bank offers an interest rate of 1.163 percent, while Prosperity offers 2.23 percent.
KMUD will hold up to $250,000 at both First State and Prosperity, officials said.
The district had deposited some of its funds at Franklin Bank earlier this year.
After several lawsuits were filed and a Security Exchange Commission investigation was launched against Franklin, the KMUD board transferred part of the district’s funds to First State Bank last July.
Recently, after Franklin Bank failed, the Federal Deposit Insurance Corp. appointed Prosperity to assume control of the closed bank, including assets valued at about $5.1 billion and deposits at approximately $3.7 billion.
In other business, the board:
Approved a bid of $13,933 from Llano Ford Mercury for a new vehicle to replace the district’s Unit 40 truck.
Approved the purchase of compaction equipment for $3,300 from RSC Equipment Rental.
Approved a request by Oskar Kitzbichler for sewer services to Lot 35A, 35B and 35C of the River Hills subdivision in Llano County pending annexation.
Authorized the execution of a real estate purchase agreement for the purchase of 0.46 acres (currently leased to KMUD) and 0.24 acres near the district’s future wastewater treatment site, as well as payment of $37,000 for warranty deeds and “all such reasonable and necessary title insurance and survey costs” related to the purchase.
Reviewed a status report which indicated the KMUD staff and safety committee is working on an integrated emergency response plan built on guidelines established by the Association of Water Board Directors.
“Overall plant performance has been very good,” according to the monthly written report by Acting General Manager Paul D. O’Brian.
Also according to the report:
Contractors completed and staff inspected and approved a hydrostatic pressure test on sewer lines at the Catharine Cove subdivision last month.
The staff is reviewing the availability of sewer service on Pansy Street near Elkhorn.
Legends Golf Course owner Donald Strain has asked KMUD to de-annex more than 9 acres of the course from district boundaries. The board may consider de-annexation upon receipt of a petition and a survey with metes and bounds for the property.
Phase One sewer installation is complete and available for service at the Clearwater Landing subdivision.
More than 20 percent of total plant capacity has been reserved for Clearwater, Packsaddle Golf Course and Lookout Mountain West subdivision.
Pending the outcome of a required pressure test, easement and conveyance documents will be required for KMUD lines within Lookout Mountain.
KMUD responded to 78 service calls, rebuilt five pumps and installed three new residential grinder services last month.
Total income fell 3 percent below budget — about $6,618 less than expected while total expenses were down 21 percent at 37,925 last month.
The brush recycling center next to headquarters will change its hours of operation on Dec. 17 from 8 a.m.-noon Wednesday through Friday to 8 a.m.-noon Monday, Wednesday and Friday.
raymond@thepicayune.com