Louviers Mutual Service Company Meeting Summary

FINAL-APPROVED VIA BOARD QUORUM

Meeting Date: Thursday, February 10th, 2005

Time: 6:00-8:00 PM

Location: Village Club – Auditorium

Attendees from LMSC Board: Diana Miller, Mike Hammer, Michael Smith, Pete Holub, Kent Sarff

Other Attendees: Bob Dye, Tim Graf,  Neta Graf, Tom Stepleton, Marlene Rae, Scott Beauman, Doug from Hotline, Bob Snyder

The next Membership meeting is scheduled for: Thursday, March 10, at 6PM at the Village Club. We will be providing the Membership with information about the Waste Water Treatment Project, and the results of the cleaning and scoping of our collection system. Bill Goetz and Kate Baird our TST engineers and Bob Dye our system operator will be attending and looking forward to answering any questions that you have. 

Meeting Summary:

Kent facilitated the meeting and was the timekeeper.

Pete started the meeting with a review of the LMSC meeting rules.

The meeting began with a discussion on “Grandfathering” of zoning and operations at Hotline Auto. Doug, the owner of Hotline, provided background on his interface with Douglas County after being notified that his operations were not compliant with his zoning. After the notification Doug compiled photos and other documentation proving long term and ongoing auto salvage and sales operations. The County then provided a letter, grandfathering his operation. The discussion then addressed whether Louviers had a similar situation concerning our lagoon and the Wastewater Treatment Project (WWTP). Kent provided reasoning as to the difference between the County zoning situation at Hotline and our State regulatory situation concerning our lagoon operation and the WWTP. After further discussion it was decided that the situations were not comparable, we had no potential to invoke grandfathering of our lagoon operation and no further action was required. The Board thanked Doug for his time and information. 

Bob Dye, our LMSC Operator, was then given the floor to discuss operation of our LMSC water and sewer systems. Bob stated that our systems were operating normally and then queried those in attendance for input on chlorine levels and air in the water system. No one in attendance had any complaints concerning water or sewer system operation.

Pete reviewed status concerning the grant-writing contract with Diana. The Board had previously voted to extend the contract to Diana for effort in compiling LMSC and Louviers village information, writing the grant applications, and coordinating with the grant agency. Pete stated that Diana’s redlines to the standard LMSC Independent Contractor contract had been incorporated and the contract forwarded to our attorney for final review. The contract should be available within the week for signing.

Pete reviewed status on the tap fee situation with the 8114 Main Street Barenberg property. The house has been sold and the outstanding tap fee amount of $7500 plus a $300 penalty for illegal water connection was provided to the title company. A contract to build a fence around the water tanks in lieu of the outstanding amount had also been provided to Barenberg. Further discussions with Barenberg are expected to resolve the issue.

Diana provided an update on the Plum Creek United meeting in which the LMSC, Sedalia, and Thunderbird water and sanitation districts are forming an association. In the last meeting the group elected officers where Barry Gager from Thunderbird was elected President, Robert Estes from Sedalia, Vice-President, and Diana Miller, Secretary. Diana also provided potential association Bylaws using modified bylaws from the New Mexico Rural Water Association. Diana also mentioned that our new County Commissioner, Steve Boand had expressed interest and support for the association. 

Pete then led a discussion on whether vacant houses in Louviers should be billed. He felt that based on future use of the LMSC systems by those households it was appropriate that they continue to be billed for the existing system operation and improvement funds as well as the minimum water usage charge. After minimal discussion the Board concurred and decided no further action was required.

The open LMSC projects were reviewed and updates are as follows:

• Diana stated that a draft of the license agreement for the open space property needed for the WWTP was back with the County after input from our attorney and TST Engineering. 

• Diana stated that we have not been getting any response from our existing insurance agency for quotes to cover our WWTP. The agency that provides insurance for Sedalia had been contacted and has been responsive. In order for LMSC to change agents and find an insurance company that will cover our WWTP as well as our general liability, Diana needs to send a letter informing our existing and future agent of the change. The Board approved the change and authorized Diana to write and send the letter.

• Diana stated that we have received a draft copy of the WWTP Environmental report from TST and that we had responded with redlines.  TST had also been given the authority to proceed with the Utility Plan and the system design.

• Diana stated that Jason Ingenthron had coordinated an inspection by County personnel to determine what animals were burrowing around the lagoon. Voles and muskrats were identified. The County representative suggested that we fill the muskrat holes with dirt. A cattail removal plan is still required to also aid in discouraging the animals from burrowing.

• Michael stated that he had talked to an auditor to review our books in preparation of our loan application. A discussion was then held concerning the need for the audit based on the amount required. If we include an additional $250K for collection system replacement, the need for an audit is triggered because our total loan amount would be greater than $500K.

Pete then provided an overview of the rate study that he and Michael had initiated. Diana had provided a link to a free rate analysis software package. Pete and Michael had loaded usage data from the previous year and after recurring costs, fixed operating costs and future capital projects are loaded, different rate study scenarios can be reviewed and optimized. The objective is to set fixed rates that adequately cover our fixed operating costs and our capital projects coupled with fair sliding rates to correlate with water and sewer usage. The rate study then provides a good basis for development of the LMSC System Master plan.

Michael provided a brief review of LMSC financials. Expenditures are exceeding income because of the level of activity at TST but that is expected for this phase of the project. Michael has moved WWTP funds from savings to checking to cover the difference. 

Michael took an action item to validate that LMSC had paid property taxes in past years. He has since validated that this is the case.

Diana then led a review of action items. Visit the LMSC website at louvierscolorado.com for a list of the existing action items.

New business items included a discussion on a recent meeting with Jim Beck from DuPont concerning the potential for easement changes. The Board agreed that Pete could provide a letter for Board review concerning a list of LMSC needs for easement changes or additions.

The meeting was then adjourned.