Special district names new president, board rebuilds
By: Nicole Osborn, Tri-Lakes Tribune
10/11/2005
Barbara Reed-Polatty co-conducted her first Forest View Acres Water District board meeting as president of the board on Oct. 5.
It was the first board meeting of the water district since the hiring of Special District Management Services, Inc. The Lakewood company brought to the meeting three SDMS personnel including president Deborah D. McCoy, who assisted Reed-Polatty.
McCoy, along with District Manager Kammy K. Tinney and C.P.A. and Finance Manager Susan Clyne, are working pro bono, for the time being, to help the water district get back to where it was before the allegations that Patricia Unger embezzled as much as $625,000 from the district.
Unger acted as an independently contracted employee of the district for more than a decade.
McCoy said her company would work for free for approximately six months, adding that SDMS has already spent $6,000-$7,000 or more assisting the water district.
"To have a district in trouble is bad for all of us," McCoy said.
Tinney took over as the water district's secretary. Title 32 of the Colorado Revised Status states that this position may be filled by someone from outside the district. The same title states, as long as the board has a president, it does not need a vice president, said Reed-Polatty.
"We have things that are severely broken within the district," she said. Reed-Polatty added that electing a vice president is not a priority for the board right now.
The board did appoint Ketch Nowacki to fill the vacancy created by former vice president Kevin Lonergan. Lonergan resigned from his post in August of this year.
"I just want to make sure the district gets on track with finances and operations," Nowacki said. His background is in finances.
At the Oct. 5 meeting, McCoy recommended that Paul C. Rufien, PC take over the water district's civil case against Unger, July 2006. The board accepted Rufien as their attorney.
"That's what I do," Rufien said, "I represent districts." He has been representing districts exclusively since he began practicing law 15 years ago.
Rufien is also working pro bono. He said he would be getting paid $225 per hour plus travel expenses one way (he works out of the Denver Tech Center) if he were billing the district.
"If there's ever a time when we're (the district is) really healthy, he will get paid," McCoy said.
SDMS is also looking for an engineer to work with the water district.
"We understand (the residents) need to know what's going on," McCoy said. She told residents, from this point on, financial records will all be "put on the table."
Water district financial statements for 2005 up to September were handed out and discussed at the meeting.
McCoy also addressed citizens' concerns regarding indebtedness and decisions that were made in executive sessions of the board, such as a decision to restrict public comment to five minutes and the September appointment of new board member Eckehart Zimmermann.
"(Board members) ran the water district like a club and not a public business," said former treasurer Jeff Dull.
Dull added he is optimistic that the management company will help the board. At the meeting, McCoy announced Clyne will handle water billing, create financial statements and revenue and expense reports.
SDMS will also create a 2004 actual financial report, an estimated 2005 budget and the 2006 budget, all to be discussed at the next meeting, Nov. 2. This will enable the district to see where they are going, McCoy said.
"The past is slowly getting behind us and the future is in front of us," Nowacki said.
Forest View Acres Water District is a special district that provides water to the unincorporated Forest View Acres housing development, located on the west side of Highway 105 south of Palmer Lake and north of Monument.
Red Rocks Ranch, Clovenhoof Villas, Sundance Estates and Shiloh Pines are all within the district.
The district services approximately 280 homes.
The FVAWD board is made up of six people including Tinney from SDMS.
©Colorado Community Newspapers 2005
