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.
