Residents object to fee increase; board considers proposing property tax
Forest View Acres Water District, April 27
By John Heiser, Our Community News, May 4, 2006
At its regular monthly meeting April 27, the Forest View Acres Water District (FVAWD) board of directors heard from residents objecting to the $25 administrative fee approved by the board in December and ratified by the board in January.
Board President Barbara Reed-Polatty noted that many other utility districts rely on a property-tax mill levy as well as user fees. Adoption of a mill levy would require a vote of district residents. A work session to discuss that and other topics is scheduled for May 12, 9 a.m., at SDMS, 141 Union Blvd., Suite 150, in Lakewood.
Dan LaFontaine of Independent Water Services, the district’s contract water operations manager, reported that two leaks totaling an estimated 65 gallons per minute were repaired in early March. The district has been suffering large water losses since January.
The board consists of President Barbara Reed-Polatty, Brian Cross, Ketch Nowacki, and Eckehart Zimmermann. The vacancy created when John Anderson resigned in January has not been filled. All board members were present. Reed-Polatty presided.
Administrative, bookkeeping, and accounting services for the district are provided by Special District Management Services, Inc. (SDMS). Lisa Johnson, SDMS district manager, served as facilitator and secretary at the board meeting. Deborah McCoy, president of SDMS, was also present. District residents who have operational or management questions or comments are to contact SDMS at (800) 741-3254 or 488-2110.
Attorney Paul Rufien provided legal advice.
LaFontaine is responsible for maintaining the equipment and infrastructure and for managing all aspects of water delivery.
Background
In December 2004, the board uncovered the apparent theft of funds from the district’s bank accounts. In February 2005, a warrant was issued for the arrest of former contract office manager Patricia Unger on charges of embezzling more than $212,000 in district funds. That amount was later increased to $315,000. Unger surrendered to authorities Feb. 16, 2005, and was released on $50,000 bond to await a preliminary hearing. Unger rejected a negotiated mediation agreement and waived a preliminary hearing on the charges. The criminal trial has been rescheduled to begin June 27. The felony charges Unger faces carry a potential sentence of four to 12 years.
The district has filed a civil suit against Unger and her husband, Dennis, to recover the missing funds and associated costs. The civil trial is scheduled to begin July 18 but, according to Rufien, it will likely be delayed. The district’s attorneys hired Sheri Betzer, a forensic auditor. According to information released by the board, Betzer estimated the total financial loss to the district at not less than $625,000.
Comments on the $25 per month administrative fee increase
In a letter to the board, Ruth Meinking said, “I strongly request that this additional charge be reconsidered and management determine other ways to pay this debt besides demanding more of the consumer.”
Ronald Warden’s letter to the board said, “I simply refuse to pay the new additional charge. I see absolutely no reason why the customers of FVAWD should be made to pay for the mismanagement of the previous board members which resulted in alleged theft of FVAWD monies.”
Resident Colette Feher-Laning expressed dismay at her $80 monthly water bill for very little water. She added, “What we are paying for is the embezzlement.”
Nowacki agreed, saying, “We are paying for [Unger’s] alleged theft and the cost to rebuild. Twenty-five dollars is a drop in the bucket.” He added that the district is preparing a capital improvement plan and associated financing plan.
Resident Richard Crocker, who will join the board at the May meeting, noted that most utility district boards budget 10 percent per year for infrastructure maintenance and improvement.
Reed-Polatty added that these costs are an investment in the value of the residents’ properties.
Cross thanked residents for coming to the meeting and getting involved.
Resident Susan Gates replied, “It is nice to have a board you can talk to.”
Financial matters
Johnson presented a list of claims paid through April 27 totaling $11,024 that included $4,487 for LaFontaine’s services and $2,421 for electricity.
The net cash balance for all funds as of March 31 was $36,136.
The total for accounts payable as of April 11 was $132,363. That consisted of $59,969 due attorneys Petrock and Fendel, $59,448 due SDMS, and $12,946 due Rufien.
Cross noted that the accumulating charges for SDMS are about $7,500 for the latest month and $5,821 for the prior month. He added that these figures are considerably more than what was budgeted.
McCoy and Johnson replied that some of the factors in the SDMS fees in recent months are preparations for the annual audit, support for the monthly work sessions being held in addition to the monthly meetings, and correspondence with residents regarding the fee increase.
Wilde billing dispute
District resident Lee Wilde contends that due to an agreement with the Nevins family when he purchased his property, he has a right to free water service for up to 15,000 gallons per month.
Rufien’s position is that the agreement was with the Nevins family and does not apply to Wilde. A letter to that effect has been sent to Wilde.
As of April 19, the outstanding balance for water to the Wilde property from January 2005 was $953.
McCoy reported that SDMS is following the district’s procedure, which could result in disconnecting service if the bill is not paid.
Leaks repaired
LaFontaine reported that significant leaks were detected and repaired March 6 and March 9. He estimated the two leaks totaled perhaps 65 gallons per minute.
During March, the district’s surface plant produced 2.09 million gallons, averaging 46.8 gallons per minute over 31 days. The district’s well in the Arapahoe aquifer produced 361,700 gallons, averaging 107.8 gallons per minute over 2.3 days. The net monthly production was 2.32 million gallons.
Water sales for February totaled 1.09 million gallons.
LaFontaine calculated the net loss from the system during March was 1.23 million gallons or 112 percent of sales.
He added that since the leaks were repaired, the Arapahoe well has not been needed to meet the district’s needs.
Executive session held on legal matters
Rufien requested an executive session to advise the board on legal matters.
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The next meeting will be held May 25, 5:30 p.m., at Tri-Lakes district Station 1, 18650 Highway 105 (near the bowling alley). Board meetings are usually held on the fourth Thursday of each month. Those wishing to attend should check the date, time, and location by calling the SDMS at (800) 741-3254 or 488-2110.
A work session is scheduled for May 12, 9 a.m., at SDMS, 141 Union Blvd., Suite 150, in Lakewood.
