Water Committee
Meeting Minutes
August 10, 2001

Present: Rick Johnson Will Potter Mike Shelton Harriet Vaugeois John Woods

Also Present: Don Cannella Michael Hughes Dave Olson

Absent: Jim Davis

This joint meeting between the Water Committee and OPEC was held with the goal to discuss the draft “Completion Agreement”. This document was originally proposed and drafted by Michael Hughes on OPEC’s behalf and was designed to address the steps to be taken for the completion of the water system, to establish certain facts not specifically addressed in the original contract, and to outline the protocol and responsibilities of each party in carrying out the steps in the completion of the system.

Rick Johnson began the meeting with a request of OPEC to respond to the most recent draft of this agreement and to inform the Committee of the issues the group needs to resolve in order to keep the momentum going towards completion of the system. Don Cannella stated that he saw major problems with the most recent agreement draft and feels that the only solution for OPEC at this point is to go to arbitration as called for under the contract.

Rick Johnson asked where the problems are in the proposed completion agreement. Don Cannella responded by stating that there are two major problems: one is the leakage rate, and the second is the sanitization.

Don Cannella stated that the 1200 gallons per day leakage rate cannot be obtained. He also stated that 8000 gallons per day is obtainable, but not much less. He reiterated that the problem have been caused by the system sitting so long with no water pressure. Harriet Vaugeois restated that the proposed completion agreement sets the leakage rate at 1509 per day as a modified AWWA standard. She asked what leakage rate would be reasonable for OPEC. Mr. Cannella stated that he feels uncomfortable with establishing a specific rate.

Harriet Vaugeois read Article 13.5 of the contract about the sanitization of the system which reads that the contractor should pay for sanitization of the completed system and obtain certification from the Health Department. Don Cannella stated that this was correct 1-1/2 years ago, but because of inactivity he no longer has responsibility. John Woods remarked that the leaks were present at the time of initial installation and that we still have no certificate from the Health Department.

Michael Hughes noted that the contract was completed 1-1/2 years ago. The engineer was notified. The POA should have to pay for the certification. John Woods pointed out that the contract was not complete without a Health Department certification. Don Cannella stated that he never obtained the certificate from the Health Department and that the job was completed. “I will not talk about the contract anymore without an attorney.” Michael stated that OPEC had completed the sanitization according to the AWWA standard during initial construction.

Harriet Vaugeois read from AWWA Standard C651 that states that standards are set through final flushing, bacteriological testing, redisinfection, final connections to existing mains, and disinfection procedures when cutting into or repairing existing mains.

Rick Johnson stated that he wanted to see the problems resolved and asked if there was any way to continue with the project while we continue to negotiate these two issues. Don Cannella stated what he was willing to do at this point, which is to have Mike Hughes fix the system and get it running but that’s all; not be held to any leakage rate or any sanitization standard.

Michael Hughes stated that a leakage rate would be discovered over time. The saddle taps are temporary connections, and that is where the leaks will take place. Mike Shelton asked Don Cannella what he would consider to be an acceptable leakage rate. Don Cannella would not answer the question. Michael Hughes stated that one of the problems is that the contractor did everything that was supposed to be done and the problems are really the POA’s.

At this point Don Cannella presented a prepared letter stating OPEC’s decision to notify the Santa Fe Trail Ranch POA of a demand for arbitration by OPEC Corporation in accordance with Article 16 of the General Conditions to the Agreement between Owner and Contractor.

The meeting was then adjourned.