Our Community News, February 4, 2006
Forest View Acres Water District, January 26: Board accepts resignation, ponders mysterious water loss
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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.
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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.
