KEN-CARYL RANCH WATER AND SANITATION DISTRICT MINUTES
January 15, 2010:

THE REGULAR MEETING OF THE BOARD OF DIRECTORS was held on January 15, 2010 at 6:30 a.m. in the Conference Room of the Ken-Caryl Ranch Water & Sanitation District, 10698 Centennial Road, Jefferson County, Littleton, Colorado 80127 (mailing address), pursuant to notice given to each Director and posting of notice as required by law.  The Directors in attendance were Steven D. Gustafson, Philip G. Varley, Sandra L. Rinow, Jan E. Rousselot, and Amy S. Turney.  Also present were District Manager Timothy R. Anderson, Assistant Secretary Lindsey C. Gibbons, and Attorney Jim Borgel.

Chairman Gustafson brought the meeting to order at 6:30 a.m.

1. Disclosure of Potential Conflicts.  No new or potential conflicts, or changes in previously reported conflicts were reported.
   
   
2. Minutes-December 18, 2009 Regular Meeting.  Mr. Borgel, Director Rinow, and Chairman Gustafson proposed minor corrections to page 4 of the draft minutes.  Upon further review, Director Rousselot moved that the minutes be approved as amended.  Upon a second by Director Rinow, the motion was unanimously passed.
   
   
3. Accounts Payable/Paid.  Mr. Anderson reviewed the Accounts Payable list for December 2009, specifically describing the basis for several checks that are not commonly seen.
   
   Mr. Anderson stated that check 3873 was paid to Kois Brothers Equipment for hoist and electrical work done on a field vehicle; check 3908 was paid to Ralph Goble for the replacement of a switch gear at the Wood Brothers lift station; check 3910 was paid to C & L Water Solutions for a nut on a valve that broke during normal valve exercising; check 3924 was paid to the City of Littleton for sewer service to two condominiums in the Trailmark subdivision that had not been billed for a number of years due to a record-keeping error.  
   
   Mr. Anderson explained that the City of Littleton only charged the District for three years of sewer service for the two units, instead of going back to the date when sewer service originally commenced on the units and he had verified that the two units existed.
   
   Mr. Anderson stated that a hole in the power steering hose on a field vehicle could not be repaired by and Staff, and the truck was taken to Burt on Arapahoe for repairs.  Mr. Anderson stated that account delinquencies were on the rise and Chairman Gustafson asked that a line item for such delinquencies be added to page 3 of the Accounts Payable (Paid) list in all future Board packets.
   
   Vice-Chairman Varley moved to approve the Accounts Payable (Paid) list as presented.  Upon a second by Director Rousselot, the motion was unanimously passed.
   
   
4. December 2009 Financial Statements.  Mr. Anderson passed out a revised asset and liabilities worksheet to the Board and stated that revisions were made to reflect the Board’s decision at the December meeting to restrict $6 million of the District’s investments assets for future capital obligations.
   
    Mr. Anderson stated that he spoke with Chairman Gustafson and the District auditor on a conference call to decide where the restricted amount should be shown in the Financial Statements.  Mr. Anderson stated the investment sheet included in the Financial Statements had a complete breakdown of each of the District’s investments, and the information could be found on page 9.
   
   Mr. Anderson stated that water sales were down 23% in 2009 and the rate increase for the November and December billing was complete, which included the 5% water rate increase and the 9% sewer rate increase.  Mr. Anderson also addressed the request from Director Rousselot at the December meeting to quantify the District’s total savings created by switching its fuel purchases from Conoco over to Jefferson County.  Mr. Anderson stated that it was difficult to compare the two entities because gas prices fluctuate on a daily basis and Jefferson County fuel rates were also variable, depending on what fuel rate they locked in with their supplier.  Mr. Anderson stated that a rough calculation of the annual savings realized by the District was approximately $5,700.
   
   Director Turney asked why O & M supplies were down for the year and Mr. Anderson stated that the District did not have a meter replacement project in 2009.  Mr. Anderson stated that power expenses were up for the month of December due to the testing of valves at the water pumping station project which required that the District’s high voltage pumps be repeatedly turned on and off.
   
   Mr. Anderson stated that insurance was over budget for 2009 because the 2010 SDA workers compensation dues were paid in December 2009.  Mr. Anderson noted that he would notify the auditor of the pre-paid insurance expense.
   The Board reviewed available interest rates for allowable investments, and directed Staff to roll the January 21 and February 4 maturing T-Bills for 180 days at Wells Fargo.  Vice-Chairman Varley stated that the Accounts Receivable balance did not match data on page 1 of the Financial Statement.  Mr. Anderson stated that he would investigate the discrepancy and report his findings back to the Board.
   Following discussion, Director Rousselot moved to accept the December Financial Statements.  Upon a second by Director Rinow, the motion was unanimously passed.
   
   
5. District Manager’s Report.  Mr. Anderson reviewed the Monthly Manager’s report for December 2009 with the Board.  Mr. Anderson passed out a breakdown of severely delinquent customers, totaling around $9,000, and noted that a delinquent account at 15 Golden Eagle Lane in the North Ranch had not been shut off because the stop box was covered by landscaping.  Mr. Anderson stated that the residence was vacant and for sale.  Mr. Anderson asked the Board if Staff should install a new stop box in the street to shut off the water, and then collect the past due service charges and the cost of replacing the stop box from the new owner at the closing.  The Board directed Mr. Anderson to go ahead with the project.
   
   Mr. Anderson stated that there was a water main break that had been repaired.  Mr. Anderson reminded the Board that he wrote an article in a past District Newsletter informing customers that they should call the District office if they think they have a sewer back-up.  Mr. Anderson noted that the District had been able to help several District customers avoid a sewer line replacement recommended by a private contractor by reviewing the videotapes of their sewer lines and advising the customer if the sewer service line required replacement.
   
   Mr. Anderson reminded the Board that no water shutoffs for unpaid accounts were completed in November or December.  January shutoffs are scheduled to occur on Monday, January 18.  Mr. Anderson explained that the District previously gave the customer a shutoff warning tag several days before the scheduled shutoff day, but this practice was discontinued because the expense and time spent preparing the warning tags was burdensome and provided very few results.  The Board asked Staff to provide them with Denver Water’s payment plan policy for delinquent customers for review.  The Board will consider devising a more detailed payment plan policy in the future if delinquencies continue to rise.
   
   Mr. Anderson stated that Denver Water had not responded to the letter he sent after the December Board meeting regarding the Gore Range meters, but he had spoken with a Denver Water employee who advised him that the letter would be discussed at the Denver Water Board’s next meeting on Wednesday, January 20.
   
   
6. Public Comment.  There was no one present to comment.
   
   
7. Capital Projects.  Mr. Anderson handed out the 2010 Capital Project schedule and stated that surveying had begun for the World Headquarters Lift Station project and he would provide the Board with pictures prior to construction.  Mr. Anderson explained the Flow Control Valves project and stated that the valves would be connected to the SCADA system already in place at the District’s office.
   
   Mr. Anderson stated that the Sanitary Sewer Replacement project was 99% complete and will end up approximately $150,000 under budget.  Mr. Anderson stated that the Water Pumping Station Improvement project was complete and the Massy Draw Channel Restoration project was progressing.  Mr. Anderson explained that the new piping for the Massey Draw project has been installed and the contractor would be installing the casing around the pipe today.  The Board asked if Staff could take pictures of this project and Mr. Anderson responded “yes.”
   
   
8. Designation of Public Posting Place.  Mr. Borgel suggested that the proposed Resolution to Designate Public Posting Place be revised to more clearly identify all three public posting locations within the District.  After discussion, Director Rousselot moved to accept the Resolution to Designate Public Posting Place as amended.  Upon a second by Director Rinow, the motion was unanimously passed.
   
   
9. District Election 2010.  Mr. Anderson stated that three seats will be available on the District’s Board of Directors in May 2010.  Mr. Anderson stated that Staff looked into the cost of hiring a company to run the District’s 2010 election and found the cost to be over $20,000.  
   
   Mr. Anderson stated that Staff would run the election and stated that around 400 residents voted at the District’s office in the last election held in May 2008.  
   
   Vice-Chairman Varley moved to appoint Mr. Anderson as the Designated Election Official and to authorize the Designated Election Official to cancel the election if so allowed under the Colorado election laws.  Upon a second by Director Rousselot, the motion was unanimously passed.
   
   
10. Open Items.  Mr. Anderson stated that the next distributor’s monthly meeting will be held on Tuesday, January 19 and the Denver Water conservation committee meeting was held and rebates were discussed.  Mr. Anderson stated that Denver Water and the conservation group would like a copy of the 2009 irrigation water rate reduction agreement between the District and the Ken-Caryl Ranch Metro District.  Mr. Borgel noted that the agreement was a public document, and the Board directed Mr. Anderson to provide a copy of the Agreement to the conservation group.  Mr. Anderson stated that the City of Littleton monthly meetings will resume February 1.
11. Other Matters.  Mr. Anderson passed out a rate increase response letter obtained from Denver Water.  Mr. Anderson stated that Chairman Gustafson had asked that Staff obtain a response letter template so the Board could respond to customers that were upset with water and sewer rate increases.  Mr. Anderson stated that two customers had contacted the District office regarding the increase in rates and one had written a letter.  Director Rousselot stated that she had received two phone calls regarding the 2010 rate increase.
    
    Mr. Anderson stated that the rate increase notification letter was sent to “A cycle” customers after the November/December Statement was sent out.  Mr. Anderson stated that “B cycle” customers will receive the 2010 rate increase notification letter with their
    
    The Board directed Mr. Anderson to draft a response letter to be sent to the customer who had written the Board regarding the increase in water and sewer rates.
    
    Vice-Chairman Varley asked Mr. Anderson a question about 2001 District water consumption.
    

There being no further business the meeting adjourned at 7:55 a.m.

Secretary

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