KEN-CARYL RANCH WATER AND SANITATION DISTRICT MINUTES
February 19, 2010:

THE REGULAR MEETING OF THE BOARD OF DIRECTORS was held on February 19, 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, Jan E. Rousselot, and Amy S. Turney. Also present were District Manager Timothy R. Anderson, Assistant Secretary Lindsey C. Gibbons, and Attorney Jim Borgel. Director Rinow attended the Board meeting via telephone. District resident, Derek Bristol, also attended the meeting.

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-January 15, 2010 Regular Meeting. Following review, Director Rousselot moved that the Minutes be approved. Upon a second by Director Turney, the motion was unanimously passed.
3. Accounts Payable/Paid. Mr. Anderson reviewed the Accounts Payable list for January 2010, specifically describing the basis for several checks that are not commonly seen. Mr. Anderson stated that check 3948 was paid to CSK Auto Inc., formerly Checker Auto Parts, for field vehicle parts; check 3956 was paid to Essential Safety Products for the calibration of confined space air monitors used in manholes. Mr. Anderson noted that the confined space air monitors must be calibrated every six months. Director Rousselot asked if the checks paid to Vivienne Cutrell were for reimbursement of withdrawals from the petty cash drawer, and Mr. Anderson stated that Staff returned cash to the petty cash drawer that was used for miscellaneous office purchases.
   • Mr. Anderson stated that two field vehicle truck mirrors were purchased online for much less than they cost at the local parts store. Mr. Anderson stated that the check to Split Rail Fence was to repair damage to one of the District’s fences caused by a resident, and the resident’s insurance company had reimbursed the District for the cost of the repair.
   • Mr. Anderson stated that the Board had requested an Accounts Receivable comparison in the packet during last month’s Board meeting. Mr. Anderson stated that the January 2010 and January 2009 Accounts Receivable balances were listed in the packet and noted that the 2010 numbers were higher than 2009 numbers.
   • Mr. Anderson stated that Staff investigated why there was a discrepancy with Accounts Receivable in the December 2009 Financial Statements and found that the reason for the discrepancy was the amount of credit card payments received from customers. Mr. Anderson noted that the totaled approximately $9,000.00 last month.
   • Mr. Anderson stated that he would bring a new payment program plan for delinquent accounts to a future Board meeting. Mr. Anderson stated that the auditors from Haynie & Company would be in the office the week of March 8th to perform the District’s 2009 audit.
   • 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. Financial Statements. Mr. Anderson stated that the current Operating account balance was $336,000.00 and he was waiting for an updated pay request from Nelson Pipeline. Mr. Anderson noted that Nelson Pipeline had sent in an incorrect pay request and he is working with Nelson to correct it. Once the final pay request is received, excess funds in the Operating account will be transferred to the District’s investment accounts. Mr. Anderson stated the two pumps were run for extended testing periods prior to the expiration of their warranties, which caused an unusual increase in power expenses last month. Despite this, he anticipated that the overall 2010 power expenses would be under budget.
   • Mr. Anderson stated that two T-Bills and one CD will mature prior to the next Board meeting. After discussion, the Board authorized Staff to roll the two T-Bills for 180 days and to reinvest the CD at Guaranty Bank for one year.
   • Following discussion, Director Rousselot moved to accept the January Financial Statements. Upon a second by Vice-Chairman Varley, the motion was unanimously passed.
5. District Manager’s Report. Mr. Anderson reviewed the Monthly Manager’s report for January 2010 with the Board. Mr. Anderson stated that an old, damaged snowplow owned by the District was sold for $500.00. Mr. Anderson noted that the plow had been fully depreciated and was not shown on the District’s books, and he wanted to report the income to the Board.
   • Director Rousselot asked how many water shut-offs were completed in January and Mr. Anderson responded that there were 30 shut-offs in January and 34 in February. Mr. Anderson reminded the Board that shut-offs were postponed in November and December. Mr. Anderson stated that the District enlisted the help of Denver Water to shut-off water on a past due sewer account in Trailmark. Mr. Anderson noted that the property was for sale and vacant. Mr. Anderson stated that the past due sewer account would have an additional $200 in fees added to the $150 delinquent balance on account.
   • Mr. Anderson stated that he included an email from a customer that suggested some changes in the District’s rate structure, and a note received from an upset sewer customer in Trailmark. Director Rousselot suggested sending customers a response letter specific to water rate complaints and a separate response letter for sewer charge complaints. The Board suggested writing a fact sheet to be posted on the website that describes the responsibility of the Board of Directors, and discusses the water and sewer rate charges in further detail. The Board directed Staff to draft a response letter to the upset Trailmark customer explaining why the sewer rate was increased in 2010 and to invite the resident to come to a future Board meeting.
   • Mr. Anderson stated that there were tree roots in a manhole that were causing some problems but he thought that the manhole could be repaired for approximately $1,500. Director Turney asked if the problem trees were planted in an easement area and Mr. Anderson confirmed that the trees could be removed because they were planted in the District’s easement.
6. Public Comment. Mr. Anderson went over the Multi-Family Non-Emergency Shut-off Procedure that was mailed to all homeowner’s associations in the District. Mr. Anderson stated that the current procedure had been in place for one year and that the procedure was not a formal District policy. Mr. Anderson stated that this procedure was similar to Denver Water’s policy. Mr. Anderson stated that the District did not have enough Staff in the field for multi-family non-emergency water shut-offs, but would be available in emergency situations. Mr. Anderson stated that the District bills the homeowner’s association directly on multi-family dwellings. The Board supported the District’s current procedure for Multi-Family Non-Emergency Shut-offs. Kathy Christiansen from KC & Associates had planned to attend the meeting to discuss this procedure, but was not present for public comment. The Board directed Mr. Anderson to send a letter to Ms. Christiansen regarding the Board’s support for the District’s current Multi-Family Non-Emergency Shut-off procedure.
   • Derek Bristol, District resident, stated that he was not happy with the District’s rate structure. Mr. Bristol stated that he had reduced his average bi-monthly water usage from 12,000 to 4,000 gallons by installing new water conserving fixtures. Mr. Bristol suggested that the District adopt a rate structure that bills customers for sewer based upon their water usage and that the District’s rate structure which charges a single base rate for up to 12,000 gallons of water usage be abandoned. Mr. Bristol stated that he would prefer a rate structure in place that promoted conservation because the region is in a water crisis.
   • Mr. Anderson stated that the District is billed for sewer treatment at a flat rate for residential properties by the City of Littleton and that the District’s rates for sewer are consistent with that procedure. Chairman Gustafson stated that the District’s rate structure must be fair to all customers. Chairman Gustafson stated that conservation was important, but equality to all customers was important as well.
7. Capital Projects. Mr. Anderson presented photographs showing the current condition of the World Headquarters lift station which will be replaced this summer. Mr. Anderson stated that the lift station was built in 1975 and had endured several fires and other problems over the years. Mr. Anderson stated that he would provide the Board with photographs of a newer lift station for comparison at the next Board meeting. Mr. Anderson stated that the World Headquarters lift station pumps sewage to South Valley Parkway and it then flows by gravity to the Englewood-Littleton Wastewater Treatment Plant.
   • Next, Mr. Anderson presented photographs of the Massey Draw Channel Restoration project noting that the project was 98% done and seeding still needed to occur. Mr. Anderson stated that a change order had been required to install an air vacuum manhole to prevent air pockets within the replaced water line.
   • Director Turney left the meeting at 7:15 a.m.
   • Mr. Anderson stated that he would publish the final pay request for the 2009 sanitary sewer replacement project in the Columbine Courier.
8. Gore Range Master Meters. Mr. Anderson stated that Black & Veatch, the District’s engineering firm found that the magnetic gore range meters did not significantly benefit water flows. After discussion, the Board directed Mr. Anderson to respond to Denver Water’s letter stating that the District would agree to the proposed $19,090.56 settlement for the overcharges on the Gore Range meters. In addition, the Board would allow the testing and calibration of the meters every four months until the contract between Denver Water and W. W. Wheeler & Associates was completed in October 2011. Finally, the Board will condition the settlement on Denver Water’s agreement to pay for the replacement of the two Gore Range meters with two new 10 inch turbo meters after the contract between Denver Water and W. W. Wheeler & Associates was complete.
9. District’s Second Notice Letter. The Board discussed the District’s Second Notice letter related to past due service charges and compared it to three other districts’ delinquent letters. Mr. Anderson reviewed the time frame in which customers have to pay before receiving a Second Notice letter and when water disconnection occurs. The Board directed Staff to revise the letter to identify it as a “Final Notice,” and to extend the time allowed for receipt of the payment following the notice from 10 to 15 days. Mr. Anderson noted that District Rules and Regulations Section 5.5.1 titled “Disconnection” will need to be amended to reflect this change and Staff will need to revise the notice language on the form.
10. Open Items. Mr. Anderson stated that he attended the distributor’s monthly meeting, where the status of the Western Slope Water Rights and the Gross Reservoir project were reviewed. Mr. Anderson stated that the Denver Water conservation committee did not meet and that he attended the City of Littleton monthly meeting. Mr. Anderson stated that Charlie Blosten and the Englewood Wastewater Treatment Plant Operator attended the City of Littleton meeting and discussed grease trap and sand-oil trap inspections.
11. Other Matters. Chairman Gustafson stated that he would like to see a cost of service study performed in 2010. The Board discussed the matter further and then directed Staff and Mr. Borgel to create an RFP for a cost of service study.
    • Mr. Anderson stated that Vice-Chairman Varley had requested at the last Board meeting that he research the costs to install fuel storage at the District pump stations. Mr. Anderson stated that he was told by Duggan Petroleum that a 1,000 gallon fuel storage tank would cost around $30,000.
    • Mr. Anderson stated that the District has 250 gallon fuel tanks at all of the sewer lift stations and 1,600 gallon storage tank at the water pumping station.

There being no further business the meeting adjourned at 8:12 a.m.

Secretary

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