YELLOW SHEET Office of the State Auditor of Missouri Claire McCaskill

The district has recently completed Phase I of sewer construction.  The district received numerous complaints from landowners of inadequate clean-up work performed on various construction sites.  The district did not require the contractor to videotape each construction site during Phase I, as required in the bid specifications and construction contract.  Video taping could have helped resolve some of the complaints regarding the clean-up work.  The district should monitor the clean-up work and ensure all work is completed before the contractor's performance bond is released.

The district has not adopted formal written procedures for obtaining easements from landowners for sewer construction across private property.  The district informally established guidelines for negotiating amounts paid for easements not donated; however, the district did not always follow these guidelines resulting in more money being paid for easements than required.  

The board did not formally document approval of various changes to the original construction plan, including:

·        An additional sewer line was constructed at a total cost of approximately $16,000 to property owned by a trust in which a board member and his brother are trustees.

·        An additional sewer line was constructed across the property of a former sewer board member.  This line did not serve any customers during Phase I of the sewer construction.

·        An annexation vote was approved in April 2001. The annexed area was subsequently added to Phase I but the  board did not document approval of the specific landowners who were added to Phase I.

·        An apartment complex was hooked up to district sewer in January 2001 that was originally located outside district boundaries and was not annexed into the district until April 2001.  In addition, a business currently not within district boundaries was hooked up in June 2001.  Board approval to provide services to these entities could not be located.

The original site of the sewage lagoon which was in the planning stage for about two years, was abandoned in November 1998 because of controversies regarding its location.  In December 1998, the district entered into an option to purchase a different site for the lagoon.  This option was exercised in November 1999 to purchase 25 acres of land for $100,000.  The board did not obtain an appraisal of this land prior to entering into the purchase option.  The district later obtained an appraisal in September 2000 which valued the land at $51,900.  In addition, because the lagoon was located on a wetland site, the district was required to purchase a similar amount of wetlands to be preserved by the federal government, which cost the district an additional $4,800.  District officials indicated other sites were considered after abandoning the original site, but the district did not document which sites were considered or reasons for selecting the current site.

The district does not have a formal policy regarding public access to district records.  The district's policies for charging residents for copies of district records may not comply with the Sunshine Law, and in at least one instance, the district charged an excessive amount to provide copies of records to an individual.  In November 2001, a district resident requested certain district information, was provided eight pages of information, and was billed and paid $549 to the district.  The bill included $225 for the CPA's services, $175 for legal fees, $134 for district personnel services, and $15 for photocopy fees.  The fee of $549 for providing eight pages of information appears very excessive.

The sewer board has not enforced its shut-off procedures for customers that have not paid their sewer bill.  As of August 3, 2002, the water district reported that approximately $11,950 was due from sewer customers, including delinquent penalties.  Much of this amount is due from approximately 12 customers who have never paid any sewer fees since being hooked up to the sewer system.

The audit also includes some matters related to board members' duties, board meetings and minutes, budgets, bank accounts, and billing procedures, upon which the district should consider and take appropriate corrective action.

Complete Audit Report