Since the installation phase of the water and telephone system ended in the
spring of 2000, our contractor, OPEC, has used every opportunity to avoid
completion. This process culminated in their notification to the water committee
that they were filing an arbitration request to avoid fulfilling their contract.
To our knowledge, they have yet to file for arbitration. After separate
consultations with independent engineers, an experienced water system
contractor, contract attorneys and litigation attorneys over the past two weeks,
the Santa Fe Trail Ranch Water Committee makes the following recommendation to
the Santa Fe Trail Ranch Metropolitan District Board, and so advises the Santa
Fe Trail Ranch POA and its membership.
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Immediately commence an independent engineering evaluation of what is
necessary to complete the water system, as is, and bring it to the point of
operation (final leak testing, sanitization and State Health Department
approval). It is recommended that Clyde Young and Associates be engaged for
this evaluation, based on their current knowledge of the system, their bid
previously received and the recommendation of the Colorado Rural Water
Association.
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Based on the evaluation, recommendation and
specifications of the engineering company, obtain bids from qualified
contractors to complete the work required and render the system operational.
The resulting completion plan will be based on the factual findings of the
third party experts we consult and hire.
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Make a determination of the total cost to complete and test the system.
Simultaneously research all possible sources of funding for both the
completion work and subsequent litigation, should it be warranted.
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Develop a time table specific as to when work shall be commenced and
completion achieved with the engineer and contractor chosen.
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Notify the bonding company, OPEC and its parent company of our findings
and intention to proceed with completion of the project and to give them a
final opportunity to agree to perform the balance of their responsibilities
under the existing contracts and bonds by the same specific date.
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Upon determination of whether or not the bonding company and/or OPEC
intend to fulfill their respective responsibilities, either initiate a
completion agreement with them as an addendum to the original contract or
execute a new contract with the chosen bidder to proceed. It is our
recommendation, if the original parties do not perform, that the Metropolitan
District initiate law suits against OPEC, its parent company, the bonding
company and any contributing entities to protect the financial investment of
the property owners and recover the costs incurred to complete.
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If a new contract is required, submit a recommendation to the
Metropolitan District of a plan of financing for the completion of the
project. The Metropolitan District will submit a proposal to the POA Board,
along with a request for a vote of the membership, if required, for approval
of the plan.
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If the bonding company and/or OPEC decide to carry out their
responsibilities, the completion agreement will commit them to the terms of
the original contracts and bonds and require completion by a specified
date.