Our Community News, January 7, 2006

District increases fee, approves 2006 budget

By John Heiser

At its regular monthly meeting Dec. 7, the Forest View Acres Water District (FVAWD) board of directors ap­proved a $25 per account monthly administrative fee increase and conditionally approved the budget for 2006. Grace Best Elementary School was locked, so the meet­ing was moved to Arby’s restaurant. Two district resi­dents other than board members were in attendance.

The five-person board consists of President Bar­bara Reed-Polatty, John Anderson, Brian Cross, Ketch Nowacki, and Eckehart Zimmermann. Reed-Polatty was absent. Cross presided.

Administrative, bookkeeping, and accounting ser­vices for the district are provided by Special District Management Services, Inc. (SDMS). Kammy Tinney, SDMS District Manager, served as facilitator and secre­tary at the board meeting. Attorney Paul Rufien provided legal advice.

The district has a contract water operations manager, Dan LaFontaine of Independent Water Services, who 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, 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 is scheduled to begin March 7, 2006. The felony charges Unger faces carry a potential sentence of 4 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. 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.

May election

Cross, Nowacki, and Zimmermann must run for election in May 2006. The terms of Reed-Polatty and Anderson expire in May 2008.

The board unanimously appointed Tinney to serve as the district’s election official for the May 2006 elec­tion.

Self-nominations for the three vacant board seats may be submitted to Tinney between Feb. 1 and Feb. 27. If the district receives no more than three self-nomina­tions, the May election will be called off on Feb. 28 and the candidates declared the winners.

District residents interested in running for the board or who have operational or management questions or comments are asked to contact SDMS at 488-2110 or (800) 741-3254.

Higgins inclusion approved

Doug Higgins has submitted a petition for inclusion in the district. Higgins’ property is about 39 acres of undeveloped land. He has agreed not to subdivide the property and has agreed to pay legal fees (estimated at $2,500), the cost of running pipe to his property, the cost to the district for performing an engineering review of his plans (estimated at $1,000), and to transfer to the district the water rights associated with his property. La­Fontaine said Higgins already has rights to one tap, so no tap fee is required.

Higgins asked for a waiver of the district’s inclusion fee, which is estimated at about $117,000 for the property. Rufien noted that the inclusion fee was waived as part of last month’s approval of the inclusion of Leroy Schmidt’s similar 40-acre parcel.

Higgins noted that, unlike Schmidt, he does not need temporary service since he does not plan to connect to the system for one to two years. LaFontaine suggested Higgins plan on connecting to the planned line to be run to the Red Rock Reserve project. Red Rock Reserve was formerly known as Raspberry Ridge.

Following a public hearing during which no one spoke in favor or opposed, the board unanimously ap­proved the application and directed Rufien to prepare the documents.

Financial report

Tinney requested that the board approve payment of claims for November totaling $13,600, which in­cluded $4,416 for LaFontaine’s services, $2,500 as partial payment to Henkle Drilling, $2,393 for elec­tric service, $2,336 for delayed billing from Palmer Lake Sanitation covering several months, and $1,000 as partial payment to Betzer.

As of Nov. 30, the district’s debt stands at $659,857 comprised of $545,000 in bonds and $114,857 in accounts payable. The accounts payable is comprised of $58,899 owed to attorneys Petrock and Fendel, $34,242 owed to SDMS, $14,299 owed to Henkle Drilling, $4,740 owed to Betzer, and $2,678 owed to Rufien.

The balance in the enterprise fund declined from $21,377 on Jan. 1 to a debit of $4,823 on Nov. 30.

The balance in the debt service fund declined $7,606 from $2,552 on Jan. 1 to a debit of $5,054 on Nov. 30. The debt service funds pay off an $880,000 bond issued in 1995 and a $45,000 loan ob­tained in 2004.

The capital projects fund received $25,000 in tap fees and the proceeds of a Department of Local Affairs (DOLA) loan of $172,498 and a state health de­partment loan of $10,000. On Nov. 30, after infrastructure expenses totaling $181,777, that fund balance stood at $26,821.

The net cash balance for all funds as of Nov. 30 was $17,366. Accounts receiv­able from customers stood at $422.

Tinney noted that the $17,700 debt service payment due on Dec. 1 was paid.

The financial report was unanimous­ly accepted.

2005 budget amended

The board unanimously approved an amendment to the 2005 budget setting the following amounts:

General Fund: $205,000

Debt Service Fund: $90,260

Capital Improvement Fund: $200,000

Enterprise Fund: $175,000

2006 budget approved;

$25 administrative fee increase approved

Tinney presented the proposed budget and said it needed final adjustments based on additional information to be provided by LaFontaine regarding capi­tal improvements needed during 2006. Tinney noted that the final 2006 budget must be approved by Dec. 31 and filed with DOLA by Jan. 31. The proposed 2006 budget included the following to­tals:

General Fund: $109,500

Debt Service Fund: $90,741

Capital Improvement Fund: $53,000

Enterprise Fund: $270,900

Revenue from the Red Rock Reserve development was not included in the proposed budget.

Cross said the capital improvement fund as budgeted would result in about an $80,000 shortfall compared to pro­jected expenses. He calculated that since the district serves 280 accounts, the shortfall would be about $24 per account per month.

He added that if a property tax mill levy were used to increase revenues, a ballot measure must be passed.

Tinney noted that even if the ballot measure were approved, the property tax revenue would not be received until 2007.

Rufien added that an advantage to an administrative fee increase would be that the board could adjust the fee as needed, whereas “a mill levy should be consid­ered permanent.”

Nowacki said the shortfall is due to administrative problems, so the an­swer should be an administrative fee increase.

Anderson said that some in the district would see it as a “smack in the face.”

Nowacki replied, “Everybody knows we had this nasty event occur to us.”

Nowacki’s motion to increase the administrative fee by $25 to $43 per month, seconded by Zimmermann, was unanimously approved. Tinney said a notice would be sent in January, with the fee increase to be applied with the Febru­ary billing.

The board then unanimously ap­proved the proposed 2006 budget subject to final adjustments.

Tinney noted that a phone poll would be used to obtain the final approval of the 2006 budget with adjustments for the ad­ministrative fee increase and estimated capital improvement expenses.

Billing for availability of service (AOS) to resume

The board unanimously approved retro­active billing for AOS fees due in 2004 and 2005. They decided to forgo billing for earlier years.

A request for waiver of AOS fees was denied. Rufien said he strongly en­couraged the board to have a “no waiver” policy on AOS fees.

Hotshots camp inclusion tabled

LaFontaine reported that initial discus­sions had been held regarding inclusion of the Hotshots firefighter camp in Pike National Forest. He noted that no petition for inclusion had been submitted.

The board tabled the matter until more information is available.

LaFontaine’s contract extended

The board unanimously approved La­Fontaine continuing to work on a month-to-month basis under the terms and con­ditions of the current contract until both sides approve his new one-year contract.

Agreement with fire authority approved

The board unanimously approved an in­tergovernmental agreement with the Tri-Lakes-Monument Fire Rescue Authority for fire hydrant maintenance, testing, and operations. LaFontaine said the agree­ment imposed no additional costs on the FVAWD.

Operations report

LaFontaine reported that the district’s surface plant produced 1,601,200 gallons in November, averaging 37.1 gallons per minute over 30.0 days. The district’s well produced 620,000 gallons during 4.1 days of operation, averaging 105.8 gal­lons per minute.

He added that there have been no problems with freezing of the surface plant. He said the plant is obtaining water from under the ice.

LaFontaine said he completed 74 cross-connection and curb stop inspec­tions, finding one cross-connection violation that was corrected. All bacteri­ological sampling and reporting require­ments of the state health department were satisfactorily completed.

Meeting day changed to fourth Thursday

The board unanimously approved changing the meeting day and time to the fourth Thursday of each month at 5:30 p.m.

No executive session needed

Rufien noted that there was nothing new on the Unger and Wells Fargo situations, so no executive session to discuss legal issues was needed.

**********

The next meeting will be held Jan. 26, 5:30 p.m. Board meetings are usually held on the fourth Thursday of each month. The location varies from month to month. Those wishing to attend should check the date, time, and location by calling the district at 488-2110.

Our Community News, February 4, 2006

Forest View Acres Water District, January 26: Board accepts resignation, ponders mysterious water loss

Click here or on the photo to zoom in

Web Site Exclusive Below: US Forest Service representatives District Ranger Brent Botts and Civil Engineer Marc Staley address the Forest View Acres board seeking water service for the firefighter training camp in Pike National Forest. At the left in front is attorney Paul Rufien. Board members are (L to R) Eckehart Zimmermann, President Barbara Reed-Polatty, and Ketch Nowacki. Brian Cross was absent due to a family emergency. Photo by John Heiser

By John Heiser

At its regular monthly meeting Jan. 26, the Forest View Acres Water District (FVAWD) board of directors held preliminary discussions on providing water service to the U.S. Forest Service fire crew training facility, accepted the resignation of board member John Anderson, ratified a $25 per account monthly administrative fee increase, and pondered a mysterious 100,000 gallon water loss.

The board consists of President Barbara Reed-Polatty, Brian Cross, Ketch Nowacki, Eckehart Zimmermann, and the vacant seat formerly held by Anderson. Cross was absent due to a family emergency. Reed-Polatty presided.

Administrative, bookkeeping, and accounting services for the district are provided by Special District Management Services, Inc. (SDMS). Kammy Tinney, SDMS District Manager, served as facilitator and secretary at the board meeting. Attorney Paul Rufien provided legal advice.

The district has a contract water operations manager, Dan LaFontaine of Independent Water Services, who 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, 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 is scheduled to begin March 7, 2006. The felony charges Unger faces carry a potential sentence of 4 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, 2006. 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.

May election

Cross, Nowacki, Zimmermann, and whoever is appointed to fill Anderson’s position must run for election in May, 2006. Reed-Polatty’s term expires in May, 2008.

Self-nominations for the four board seats up for election may be submitted to Tinney between Feb. 1 and Feb. 27. If the district receives no more than four self-nominations, the May election will be called off on Feb. 28 and the candidates declared the winners.

District residents interested in running for the board or who have operational or management questions or comments can contact SDMS at (800) 741-3254 or 488-2110.

Water service to the firefighter training camp tabled

District Ranger Brent Botts and Civil Engineer Marc Staley of the U.S. Forest Service told the board the Forest Service wishes to obtain water service from the district for the firefighter training camp in Pike National Forest. They estimated that 10 to 15 people reside there year round with a peak of about 50 people during the summer. Their present well’s production has declined. They said that if the district cannot supply service then they would re-drill their present well. Staley added that connecting to the water district would mean they could add fire hydrants in the camp.

LaFontaine noted that if the parcel were included in the district, then typically the water rights associated with the property would be transferred to the district.

Noting the property is owned by the federal government, Nowacki said, "I don’t think you have authority to transfer water rights."

LaFontaine added that if the parcel were serviced under an out-of-district service agreement that problem would be avoided and service could be discontinued in the event the district found itself without sufficient water to provide the service.

District resident Richard Crocker suggested the Forest Service prepare a proposal including required water flow rates and quantities and submit it to the board.

Rufien noted that the board could enter into a contract to provide out of district service at negotiated terms.

Botts said the Forest Service must complete an agreement with the district by May.

LaFontaine offered to supply the Forest Service with any information they need to prepare a proposal.

The board tabled the matter until the Forest Service submits their proposal.

Anderson resigns

The board unanimously voted to accept Anderson’s resignation from the board. In 2004, Anderson was elected to the board to serve a four-year term. In his resignation message, Anderson noted that due to schedule conflicts he is unable to attend upcoming board meetings. He commended Reed-Polatty and Cross saying, "The two of you have worked diligently to make good things happen, and Barb, you have done an incredible amount of work pulling us up from a very difficult situation."

Rufien noted that the board has 60 days to appoint someone to fill the vacancy. He added that the position would be up for election in May.

The board unanimously approved sending a newsletter that includes a notice about the vacancy and information on the May election.

Board approves settlement with Henkle Drilling

Reed-Polatty reported that Henkle Drilling has agreed to accept approximately $4,700 as payment in full on the outstanding balance due them of $9,615 provided the district can make payment by the end of February. The board unanimously approved the proposed settlement.

Financial report

Tinney presented a list of claims paid during December totaling $25,633 that included $7,433 for insurance through the Special District Association, $8,607 for two months of LaFontaine’s services, $2,500 as partial payment to Henkle Drilling, $1,825 for electricity, $1,731 for water testing, and $1,000 as partial payment to Betzer.

As of Dec. 31, the district’s debt stood at $706,413 comprised of $585,000 in bonds and loans and $121,413 in accounts payable. The accounts payable is comprised of $59,516 owed to attorneys Petrock and Fendel, $41,145 owed to SDMS, $9,615 owed to Henkle Drilling, $3,804 owed to Betzer, and $7,333 owed to Rufien.

The net cash balance for all funds as of Dec. 31 was $25,748. Accounts receivable from customers stood at $1,833 for water service and $6,660 for availability of service fees.

Zimmermann noted that the amounts assigned to gas bills in the financial statements were excessive. After some discussion, it was concluded that some electric bills had been improperly coded as gas bills and vice versa.

The financial report was unanimously accepted.

Wilde billing dispute referred to attorney

District resident Leigh Wilde contends that due to an agreement with the Nevins family when he purchased his property he has a right to free water service.

The district contends that the agreement was with the Nevins family and terminated when the property changed hands.

Rufien was directed to research the matter and advise the board.

$25 administrative fee increase ratified

Reed-Polatty asked how the $25 figure was derived.

Tinney replied that it came from the estimated $80,000 budget shortfall for 2006.

After further discussion, the board unanimously ratified increasing the monthly administrative fee $25 from $18 per month to $43 per month.

LaFontaine’s contract extended

The board unanimously approved LaFontaine continuing to work on a month-to-month basis under the terms and conditions of the current contract until both sides approve the new contract.

County hearing on Red Rock Reserve final plat continued to Feb. 14

Reed-Polatty reported that the request for Red Rock Reserve final plat approval by the El Paso County Planning Commission was continued by the developer to the planning commission’s Feb. 14 meeting. She said she would inquire as to the reason for the delay.

Operations report

LaFontaine reported that the district’s surface plant produced 1.7 million gallons in December, averaging 38.5 gallons per minute over 30.7 days. The district’s well produced 209,100 gallons during 1.4 days of operation, averaging 107.1 gallons per minute. The net monthly production was 1.87 million gallons.

The total production during 2005 was 27.9 million gallons or 85.6 acre-feet.

Water sales for December totaled 1.35 million gallons.

LaFontaine calculated the net loss from the system during December was 519,090 gallons or 38.4 percent of production. This is substantially higher than in past months.

District suffers mysterious water losses

LaFontaine reported that within about seven to eight hours between Jan. 1 and Jan. 2, the water in the district’s tank dropped 10 feet. The tank is 26 feet tall. He said the drop represents about 100,000 gallons. He noted that the highest elevations in the system "ran out of water." He said that despite searching the system, no leak was found that could account for the water loss.

He said the water loss stopped so abruptly, it appeared as if "someone had turned a valve."

LaFontaine added that there are pipes in the system whose function is unknown.

Penny Nevins offered to provide maps showing the piping. Nevins added that some of the associated easements have not been filed with the county but should be.

Executive session held on legal matters

Rufien requested an executive session to advise the board on legal matters related to the Unger and Wells Fargo situations.

**********

The next meeting will be held Feb. 23, 5:30 p.m. at Tri-Lakes district firehouse 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.

Forest View Acres Water District, February 23

2.18 million gallons lost in January

Our Community News, March 4, 2006

By John Heiser

At its regular monthly meeting Feb. 23, the Forest View Acres Water District (FVAWD) board of directors pondered a mysterious 2.18 million gallon water loss during January; held further discussions on providing water service to the U.S. Forest Service fire crew training facility; learned that Kammy Tinney, Special District Management Services, Inc. (SDMS) district manager had resigned due to personal health issues; and tabled appointment of someone to fill the board vacancy created by the resignation last month of board member John Anderson.

            The board consisted of President Barbara Reed-Polatty, Brian Cross, Ketch Nowacki, and Eckehart Zimmermann, who was absent.

            Administrative, bookkeeping, and accounting services

for the district are provided by Special District Management Services, Inc. (SDMS). Deborah McCoy, president of SDMS, served as facilitator and secretary at the board meeting. 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.

            The district has a contract water operations manager, Dan LaFontaine of Independent Water Services, who 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, 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 is now scheduled to begin April 18, 2006. The felony charges Unger faces carry a potential sentence of 4 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, 2006. 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.

Financial report

McCoy presented a list of claims paid through Feb. 23 totaling $12,963 that included $4,700 as a settlement payment to Henkle Drilling, $4,350 for LaFontaine’s services, $1,000 as partial payment to Betzer, and $982 paid to the Palmer Lake Sanitation District. The net cash balance for all funds as of Jan. 31 was $18,180.

Water service to the firefighter training camp

District Ranger Brent Botts and Civil Engineer Marc Staley of the U.S. Forest Service answered questions regarding the proposal Botts submitted Feb. 1 to obtain water service for the firefighter training camp in Pike National Forest. Botts and Staley estimated 5 to 15 people reside there year-round, with a peak of about 50 people during the summer. They estimated water usage would be about 15,000 gallons per month during the winter and 35,000 during the sum­mer.

LaFontaine said those figures repre­sent two to five times typical residential usage. He added that they are requesting a 6-inch tap.

In the proposal, it was reported that the camp’s present well is “producing large amounts of sediment and must be replaced or eliminated.”

Fire hydrants would be added in the camp, if there were adequate pressure and flow.

Botts said that to secure funding for the project, the Forest Service must have a commitment from the district to supply service and identification of applicable fees, including the tap fee, by March 10, with design requirements to be provided by March 24.

Reed-Polatty noted that the district’s residential tap fee is $12,600. If the 6-inch tap was treated as five or six resi­dential taps, the total tap fee would be considerably more than the $10,000 tap fee estimated in Botts’ proposal.

Staley said a high tap fee would lead the Forest Service to scrap the project.

Rufien noted, “It is OK to treat com­mercial like residential.”

LaFontaine added that there is more inspection and maintenance time required for a 6-inch tap than for a resi­dential tap.

Reed-Polatty suggested the addi­tional inspection and maintenance time could be billed at $75 per hour to cover LaFontaine’s services.

McCoy noted that the monthly debt service fee does not apply since the Forest Service would not be in the dis­trict. She added that the district could charge an out-of-district service fee. She suggested the district look at the fees charged by other districts to determine what fees to charge.

She said that providing water service to the camp would be a general benefit to the community.

The Forest Service representatives suggested the district could use meeting facilities at the camp.

Nowacki asked LaFontaine if the district has the water needed to supply the camp.

LaFontaine replied that the district does have sufficient water but has a his­tory of breakdowns.

District resident Richard Crocker noted that if the district approves this proposal, it might have large implica­tions for future infrastructure needs such as additional storage capacity.

The board agreed to determine the applicable fees.

LaFontaine was asked to estimate the cost of inspections.

District suffers “startling” water loss

LaFontaine reported that starting about Jan. 5, the district started to use signifi­cantly more water than usual.

During January, the district’s sur­face plant produced 2.58 million gallons, averaging 58.1 gallons per minute over 30.8 days. The district’s well produced 1.31 million gallons during 8.5 days of operation, averaging 107.8 gallons per minute. The net monthly production was 3.6 million gallons.

Water sales for January totaled 1.34 million gallons.

LaFontaine calculated the net loss from the system during January was a “startling” 2.18 million gallons, or 163 percent of sales. He noted that a leak was found and fixed in Sandstone Drive but that leak would not, by itself, account for the entire water loss. He said additional leaks had not yet been found despite re­peated inspection of the locations of the district’s water mains.

LaFontaine’s contract extended

The board unanimously approved La­Fontaine continuing to work on a month-to-month basis under the terms and con­ditions of the current contract until both sides approve the new contract.

Red Rock Reserve status

Reed-Polatty reported that the El Paso County Planning Commission recom­mended approval of the Red Rock Re­serve final plat at its Feb. 14 meeting. Rufien said the El Paso County Board of County Commissioners must hold a hearing on the final plat within 30 days.

Executive session

Rufien requested an executive session to advise the board on legal matters.

May election canceled Feb. 28

OCN has learned that the May election for board members was canceled on Feb. 28 because the district received four applicants for the four open board positions. The new board of directors consists of Crocker, Nowacki, Reed-Po­latty, Zimmermann, and Jeff Walker.

**********

The next meeting will be held March 23, 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.