Our Community News, July 1, 2006
Forest View Acres Water District, June 22: Unger pleads guilty, gives back $300,000
Below: Patricia Unger confers with her attorney Tim Bussey in court June 22 prior to entering a plea of guilty on the charge of embezzling funds from the Forest View Acres Water District. Unger paid the water district $300,000 as partial restitution. Sentencing is set for September 7. If the judge accepts the plea bargain agreement, Unger’s sentence will include six months of work release incarceration and 6 years of probation. Photo by Fred Malmstrom
Below (L to R): Attorney Paul Rufien, SDMS President Debbie McCoy, SDMS Manager Lisa Johnson, board members Ketch Nowacki, Barbara Reed-Polatty, Rich Crocker, Jeff Walker, Ekhardt Zimmermann, and Operations Manager Don LaFontaine. Photo by John Heiser
By John Heiser
On June 22, at the regular monthly meeting of the Forest View Acres Water District (FVAWD) board of directors, it was announced that as part of a plea agreement to settle the criminal and civil suits against the district’s former contract office manager, Patricia Unger, she had pleaded guilty that day to theft of checks, a class 3 felony. Two other felony charges were dropped. As part of the agreement, Unger immediately gave the district two cashier’s checks totaling $300,000. The sentence recommended to the judge under the terms of the agreement is six months with work release during the day, six years probation, and restitution of an additional $15,000 at $250 per month over six years. Any violation by Unger of the conditions would carry an immediate eight-year prison sentence. Unger’s sentencing is scheduled for Sept. 7.
Contract water manager resigns
In an unrelated action, it was announced that Dan LaFontaine of Independent Water Services, the district’s contract water operations manager, had submitted his resignation effective Sept. 15. LaFontaine has been the district’s water operations manager for the past seven years. LaFontaine is responsible for maintaining the equipment and infrastructure and for managing all aspects of water delivery.
LaFontaine said that a recent letter from the district regarding his alleged non-compliance with requirements of his contract was "the straw that broke the camel’s back." LaFontaine said, "I put my heart and soul into this district. I feel I deserved more consideration." He cited the protracted negotiations on the new contract and a lack of response from the board to concerns he raised. Noting the district’s use of management company Special District Management Services, Inc. (SDMS) for administrative, bookkeeping, billing, and accounting services, he added, "I’m too small a company. The district is going places I can’t follow." In response to a question, he said, "I’m getting out of operations." He concluded his remarks by expressing appreciation to the residents and the board for his time as the district’s operations manager.
Background
The board consists of Rich Crocker, Ketch Nowacki, Barbara Reed-Polatty, Jeff Walker, and Eckehart Zimmermann.
Lisa Johnson, SDMS district manager, serves as facilitator and secretary at the board meeting. Deborah McCoy, President of SDMS, was also present.
Attorney Paul Rufien provided legal advice.
Appointment of officers
The following appointments were unanimously approved: Reed-Polatty, president, Johnson, secretary, and Zimmermann, treasurer. The other board members were appointed assistant secretaries.
Financial matters
Johnson presented a list of claims paid through June 22 totaling $7,753 that included $4,515 for LaFontaine’s services and $1,088 for supplies and chemicals.
The net cash balance for all funds as of May 31 was $46,449.
Johnson said the total for accounts payable is $155,111 consisting of $59,969 due attorneys Petrock and Fendel, $79,316 due SDMS, and $15,826 due Rufien. Johnson added that the district’s total debt is $741,532.
Johnson reported that the district had received the $150,000 negotiated tap fee for the Red Rock Reserve Subdivision, formerly known as Raspberry Ridge and located north of Pixie Peak Road and west of Red Rock Ranch. The project involves 23 single-family lots on 67 acres.
Operations report
LaFontaine said a leak was reported on May 7 and repaired May 19. He noted that during the excavation to repair the leak an unexpected water line was found and two lines were found to be not where they were shown on the district’s maps.
During May, the district’s surface plant produced 2.68 million gallons, averaging 60 gallons per minute over 31 days. The district’s well in the Arapahoe aquifer produced 259,200 gallons, averaging 108.4 gallons per minute over 1.7 days. The net monthly production was 2.91 million gallons.
Water sales for May totaled 2.07 million gallons.
LaFontaine calculated the net loss from the system during May was 837,148 gallons or 28.8 percent of total system use.
Disposition of the $300,000 restitution
Nowacki said that in addition to addressing the accounts payable, the $88,000 reserve account for the state loan should be restored.
McCoy agreed and suggested that one year’s interest on the loan be set aside as well.
The board unanimously approved McCoy’s suggestion that the district deposit excess funds in a ColoTrust account. She said the account is like a money market account for governmental entities, earns about 5 percent, and the assets can be transferred to any of the district’s other accounts within about 24 hours.
The board decided to postpone further discussion on the disposition of the $300,000 and continued the meeting to June 26 at SDMS.
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The next meeting will be held July 27, 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 SDMS at (800) 741-3254 or 488-2110.
A work session is scheduled for Friday, July 14, 9 a.m., at SDMS, 141 Union Blvd., Suite 150, in Lakewood.
