Water Committee
Meeting Minutes
December 27, 2001

Present:
Jim Davis
Will Potter
Mike Shelton
Harriet Vaugeois
John Woods

  1. Mike Shelton reviewed the balance payable to San Isabel Electric on the power poles installed to bring power to the water pump stations. This information had been researched for the last POA Board meeting, where assignment of the power account was discussed and approved.
  2. Jim Davis reviewed an update from Clyde Young Company on the engineering study currently underway and reported that Young was awaiting arrival of some information from Vern Jaschke necessary to move forward. Jim reported that he had talked to Vern about that information and that it had been sent priority mail by Vern to Young on December 26. Clyde Young said he hopes to have the report done soon after receipt, but offered no specific date.
  3. Jim Davis reported that in his conversation with Vern Jaschke, Vern stated that the engineering aspect of the application to register our water system was complete and that he will attach Clyde Young's report, together with his system drawings and "as builts". The Metro District will then add the financial data and submit it to the State for approval.
  4. The committee reviewed the document submitted to the bonding company by OPEC's attorney. In summary, it contends that OPEC had no responsibility to deliver a water system in compliance with American Water Works Association leakage guidelines, nor a sanitized system capable of delivering potable water through the system. It further contends that this was the responsibility of the Metro District, acting as "general contractor". Additionally, it suggests that the system was engineered incorrectly by Vern Jaschke and that the system, as it stands today, will not work. With the assistance of all those who have worked on the project that are able and willing to help, and along with the industry professionals we have had and are now working with, the Metro District will prepare its presentation to the bonding company. However, merely reading the contract signed by OPEC refutes their contentions. We believe the balance of their position reflects speculations born of the fact that they had little "corporate" involvement in the field and are grasping at straws and opinions to make a case.
  5. Jim Davis reported that our attorney, Bob Winter had called to request additional documentation of billing, payment, purchasing and problem reports. John Woods will obtain the accounting data from the files at Bill Quigley's office and progress notes from weekly meetings will provide the balance of information. OPEC has, naturally, neglected to provide the bonding company with any of the volumes of information on their construction, installation and procedural flaws.
  6. The committee discussed the approved transfer of power account funds to the Metro District and how that would take place. Jim Davis stated that the Metro District will have an "assignment" document prepared for execution by the POA and Metro District, as was done originally with the water and telephone acccounts. It will then be recorded with the County Clerk and Recorder's office as the others were. Funds will then be transferred from the POA to the Metro District's construction escrow account for use in this completion process.

The next meeting of the water committee was set for Monday, January 7, at 4pm at Jim Davis' home.