Water Committee
Meeting Minutes
January 7, 2002

Present: Jim Davis Rick Johnson Will Potter Mike Shelton John Woods

1. CLYDE YOUNG COMPANY REPORT: Clyde Young anticipates having his engineering report completed by Friday, January 11, 2002. He will forward a copy to the Metro District Board and to the District's legal counsel. Preliminary indication is that the report will confirm the Metro District's position stated at the Annual Town Meeting, with some recommendations concerning a few valves and pump operation.
2. VERN JASCHKE: Vern is awaiting the Clyde Young Company report to include with his as-built drawings for inclusion with his engineering segment of the water system registration application to the State. The Metro District must ad the required financial information and the application will be submitted.
3. LEGAL COUNSEL: Attorney Robert Winter is notifying the bonding company of the pending completion of the engineering study, together with our final statement of position. A meeting will be held with our attorney prior to the end of the month to get that position letter composed and out to the bonding company. They will be given appropriate time to review and respond. We are prepared in sign a contract with another contractor and begin completion construction in February.
4. METRO DISTRICT DEBT COUPON BOOKS: Colorado Community First Bank is ordering the new coupon books to be sent out to property owners. They will contain the next three years of coupons on the Metro District bond issue payments. The Metro District Board will prepare a cover letter to accompany the books which will summarize the bond issue and the use of the coupon books. In addition, it will explain the timing, amount and interest savings available to property owners who decide to prepay the balance of principal at our first opportunity to do so in September of 2004.
5. DELIQUENT PROPERTY OWNER ACOUNTS: Property owners who are more than six months deliquent on their payments to the Metro District debt will most likely see that amount added to their property tax bill from Las Animas County this spring. If not paid, the County will pursue collection through property sale for deliquent taxes.
6. MOBILE STORAGE UNIT FOR EXCESS PARTS: The original information that a portion of the lease payments we have made on the mobile storage unit used to store excess materials ordered by OPEC was in error. It was originally felt that purchase of that unit would be feasible under that scenario. Since the material being stored was material ordered in excess of specs and need by OPEC, the Committee recommends to the Metro District Board to add that expense to the receivable due from OPEC.
7. STATEMENT OF POSITION TO BONDING COMPANY: All those who have been asked to contribute their information and support documents and data for the "statement of position" should forward the material either directly to attorney Robert Winter or to Mike Shelton for forwarding to Mr. Winter as soon as possible. We would like Mr. Winter to be able to "absorb" it prior to our summit meeting later this month.
8. ASSIGNMENT OF POWER ACCOUNT FUNDS: Attorney John Mitchell, who authored the original assignments of the water and telephone account funds from the POA to the Metro District has been asked to draft an identical assignment agreement for the power fund account. As soon as it is drawn up, it will be submitted to the POA for signature and the funds will transferred to the Metro District Construction Escrow Account at Community First Bank to fund the additional costs to completion. A commitment from the Metro District to the POA to return those funds, if they are recovered through litigation, will be added to that agreement.
9. NEXT COMMITTEE MEETING: Wednesday, January 23, 2002 at 4pm at Jim Davis house.