Louviers Mutual Service Company Meeting Summary

Meeting Date: Thursday, November 17th, 2005

Time:  6:00-8:30 PM

Location:  Village Club  - Pool Room

Attendees From LMSC Board: Pete Holub, Diana Miller,  Michael Smith, Jason Ingenthron, Julie Sarff, Tim Lone

Other Attendees: Wayne Oblander

The next membership meeting is scheduled for:  Thursday, December 15th, 2005, at 6:00PM at the Village Club.

MEETING SUMMARY:

The LMSC Board continued the discussion of Standard Operating Procedures (S.O.P.s) needed by the Company for business operations and documenting process and procedure for accounting and other LMSC functions. 

LMSC will provide 1099-Misc forms to all its independent contractors in 2005.  Michael raised the need for LMSC to come up with an official contract.  Diana let Michael know that LMSC does have a standard Independent Contractor contract that was developed by Kent Sarff and approved by the LMSC attorney. The responsibilities of the contractor and the company need to be modified depending on the responsibilities of the independent contractor. 

Following up from last month's initiative to ensure all LMSC contractors are insured, Wayne reported that his home owners insurance representative indicated that his current policy would cover his activities related to his meter reading route around Louviers.  Diana will follow-up with the LMSC insurance contact to ensure that the coverage is sufficient to protect the Company from liability issues, and that the amount of coverage will be sufficient to meet any requirements from loan grantees or others.

The discussion about how and when to replace water meters was continued from the last meeting.  Michael agreed to compile a list of meters in need of repair and establish a priority list for review during the board meeting in December.

BUSINESS AND ACCOUNTING PROCEDURES:

Michael provided a summary of the Profit and Loss Statement.

The topic of check signing authority began a discussion of LMSC accounting and business procedures.  Currently, Board approval is required for checks over $2500.00.  Tim commented that there might be a benefit to having all checks signed at Board meetings.  The benefits would include: insight gained by individual Board members as to where funds are allocated, provide checks and balances on account draws, provide a format for discussing expenditures.  Diana suggested we could look at a check register  and gain the same benefit. .  Using a check register would allow for checks to be written on an as needed basis rather than paying vendors and contractors only once a month.  It was decided that some type of Board review be incorporated into the future business S.O.P.  Pete expressed his concern that reviewing checks during a Board meeting would take up an excessive amount of time.

Continuing with the subject of business and accounting procedures, it was noted that viewing the expenditures in a format that showed LMSC Budget vs. Expenditure (cost) would be extremely helpful.  Julie and Michael will compile data from last year's expenditures and produce a draft 2006 budget for review at the next meeting.   The suggestion was made that by adopting the procedures and practices used by "Special Districts" LMSC would be conducting business within a state sanctioned system of rules.  It was agreed that a separate working session  would be needed to evaluate the benefit of adopting the "Special District" business rules, and the options for methods of check approval. 

Diana provided the R.U.S. loan update.  Castle Rock Bank has been contacted to see if they may provide private party interim financing as required the R.U.S. application procedure.  If the private financing is not available, the interim monies will also be loaned to LMSC as part of the total loan package from the R.U.S..

Jason, do you have the verbiage related to the Board resolution about not allowing hook up to the system in a flood plain area?

WATER AND SEWER SYSTEM

Diana provided an update of recent water system tests.  Tim, after looking at the water system drawings, suggested that adding at least two mini-hydrants at dead end lines might allow for better system flushing and thus improvements in water quality.  In a similar vein, he will attempt to locate a complete copy of the Louviers Water and Sewer Plans in a Colorado State Archive.  Currently the set being used is incomplete and of poor quality as they have been copied may times. 

TST will have a monthly update meeting November 29th.  In addition to general project information, TST will also discuss the final design height of the berm surrounding the lagoon and whether additional work will need to be done to ensure the height is sufficient for flood plain safety.

Kristen Decker will meet with an LMSC representative and other Douglas County agencies to formalize legal agreements for easements on Douglas  County open space land that will be required for the completion of the sewage project.  Bill Gates and Kate Baird will provide to the R.U.S representative, documentation of LMSC ownership for the parcel where the new pump house will be located.

Tim will be the LMSC representative for construction management, and in the interim coordinate the filling of rodent holes in the existing berm.

GENERAL

The issue of utility easement management was raised and was opened for discussion.  Utility easements (the area surrounding the water and sewer lines to which LMSC has full access to for repairs) must be accessible to LMSC in case a repair is required., A process needs to adopted to resolves situations where someone has placed a structure (or other obstruction) in an area where a line requires maintenance or replacement.  The Board will research how other water utilities and governmental agencies approach the issue, and evaluate whether a process exists that would be applicable to the situation in Louviers. Tim has taken the lead on this.

Julie will meet next Tuesday with Jennifer Eby to discuss potential H.U.D. assistance for LMSC members that may quality to have a portion of their utility bill covered by federal dollars. This would require a financial survey of each resident in Louviers be completed.  Michael is continuing work on draft letters that will clearly define the LMSC member's responsibility for service payments, and in the case of rented homes it is still the LMSC member who is ultimately responsible; and another that will provide a standard termination of service function.

During next meeting the Board will review draft letters that will be incorporated into the SOPs for service shut off.  A draft letter will also be reviewed detailing the "Members" responsibility to LMSC including the requirement for timely payment.

Pete provided an overview of recent developments in the effort to create a County Water Conservation Authority, and outlined some of the benefits it may provide to LMSC in the future.

LMSC Board Resolutions adopted and added to the log book:

As required by R.U.S. Loan agency, the following restriction on new construction will be included in the LMSC Standard Operating Procedures, and was formally put forth for a vote as follows:

Resolution 11-18-05a:  LMSC will not provide service (hook-ups) to any new construction that falls within any designated floodplain.  Vote = unanimous