Water Committee
System Update
August 31, 2002

In June, the attorney representing the Santa Fe Trail Ranch Metro District notified the company bonding the Water System/Telephone contracts that the Metro District had selected a contractor to complete the work that OPEC Corporation refused to complete, under the contracts.  We had anticipated that work would start immediately, but it was held up due to a prior commitment on work to complete infrastructure to Trinidad's new elementary school.  Prior to our engagement, Schrepfer Industries was hired by the General Contractor on the school to correct errrors and complete the infrastructural work on the accesses to the school.  This took three full weeks and intermittent days thereafter, as the deadline for school opening here was imminent.  By mid-July that was done and they have been concentrating on our work.

First, the line from the City to the 1st pump station was tested.  There is a small leak there somewhere and will be fixed as we go forward.  From Pump 1 to the 1st storage tank, there is another small leak that will be dealt with in the same way.  Storage tank 1 was clean and holds its water fine.  They are now testing all the lines that feed off of tank 1.  They are proceeding cul-de-sac by cul-de-sac.  We have been advised by our attorney not to be "specific" about what has been found, but I can tell you that every single leak has been the result of poor workmanship and/or outright nonconformance to the specifications in the contract.

In the testing process, our contractor has come up with a system which will not only result in each section meeting AWWA (American Water Works Assoc.) allowable leak rates, but sanitization standards as well.  We have attempted to test and pass enough sections, where we can project how much this will cost to complete the whole Ranch and how long it will take.  As we will have to recover the cost in litigation with OPEC and the bonding company, it will be necessary to finance the completion in the most cost efficient manner possible.

We have formed a committee of fellow property owners who are investigating our options in this regard.  We believe that a combination of grants and short term borrowing are possible and will get the system working.  In light of the experiences of this year's drought and the tremendous insecurity of not having our water service contract with the City working, it is all the more important that we get this finshed now.  Our attorney is filling suit against those responsible as soon as the documents are completed.

We should be in a position to share our projected cost, logical choices for financing completion, and schedule for completion prior to month end (September).  The procedure going forward has proven successful, as the areas completed thus far, though yet a small percentage , have passed their leak tests.

On behalf of the Water Committee and Metro District Board, I thank you for your continued faith, support and volunteer assistance, where and when possible.

Jim Davis