| Members Present Jim Davis Rick Johnson Will Potter Mike Shelton Harriet Vaugeois John Woods |
Committee members reported on progress toward accomplishing the System Completion Action Plan:
| Action Plan | Current Status |
|---|---|
| A. 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…. | At its meeting on Sat., Nov. 10, the Metro District Board passed a resolution to hire Clyde Young for the water system assessment if OPEC and its bonding company fail to respond to the notification letter of the Board’s intention to complete the system. |
| B. 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.… | Bids for Time and Materials have been received from the following contractors. If OPEC and its bonding company fail to respond, the Metro Board will sign a contract with the best bid for completing the system. Spaccamonti Excavating Inc. of Pueblo K.R. Swerdfeger Construction, Inc. of Denver West, Pueblo, and Albuquerque Pate Construction Co., specialists in underground systems, of Pueblo West. |
| C. 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. | No concrete information available until Young completes his assessment and leak testing has occurred, but will use a ballpark figure of $200,000 to research sources of additional funds. John Woods reported on his research into appropriate grants for special district water systems. He is working with grant writer Carrie Gabrielson and meeting with TSJC Grant Writer instructor Mimi Zapanti. After Mr. Young’s hydraulic study and leak testing has been completed, a more accurate budget can be reported to the POA. |
| D. Develop a time table specific as to when work shall be commenced and completion achieved with the engineer and contractor chosen. |
At its recent meeting, the Metro Board officially approved all aspects of this Action Plan. Nov. 14. – Attorney Bob Winter will mail a letter of intention to OPEC and its bonding company with a 7-day from date of receipt response deadline. Approx. Nov. 22 – Start final negotiations with OPEC or sign contract with Clyde Young. Approx. Nov. 22 – Dec. 21 - Young performs assessment Jan. 1 - Leak testing begins. Jan 21 - Estimate of add’l repairs possible. |
| E. 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. | See above timetable. Letter sent by registered mail Nov. 14. |
| F. 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. … 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. | Decision available by approximately Nov. 22. |
| G. If a new contract is required, submit a recommendation to the Metro. District of a plan of financing for completing the project. The Metro 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. | No action at this time. |
| H. 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. | Decision available soon after Nov. 22. |
Other business:
Jim Davis reported that he has received the transcript from
the Oct. 19 POA Town Hall Meeting. He and Water Committee members are
proofreading the 84-page transcript that will be available for all property
owners via the SFTR Website.
The procedure for addressing property owners who are 6 months in arrears of paying their monthly bond payments will follow current practice, which is to place a lien on property and then call for foreclosure if payments are not made current. If the problem continues, the Metro Board will turn the outstanding amounts over to the county to be added to owner Property Tax bills.
Engineer Vern Jaschke is currently completing all State forms for registration of the SFTR Metro Water System. Jaschke continues to affirm his willingness to spend whatever time is needed to assist a supplemental engineer and a new contractor if used to complete the system.
We now have credentials from two law firms to help the choice of counsel for a potential lawsuit against OPEC and its bonding company.
The next water committee meeting is set for Mon., Nov. 26, 4 pm at Jim Davis’.