The meeting was called to order by Mike Deck at 4:04 PM. Those in attendance were the board members (Mike Deck, Rick Moeller, Mark Johns, Bob Farmer and Bob Champ). Frank Hauke and Dick Winters (Water System Operators) were present. Also present was Mary Wagner (bookkeeper). Naim Aweida and Mike McMynn from the public were present.

Mike had a number of handouts, which were given to the boardmembers. Included in the handouts was a letter from Naim Aweida asking for a hardship exemption to water new sod, which was installed just prior to the drought ordinance. Mike had talked to Doug Short (Lafayette) via e-mail regarding cases such as this. Doug noted that Lafayette allowed two weeks of water to alleviate the situation until other avenues could be brought on board. Two weeks of water would be 12,500 gallons.

Bob Champ made the motion that we would permit Mr. Aweida to use an additional 12,500 gallons over July and August and also be permitted to water on Wednesday. We will monitor usage and inform him accordingly. Bob Farmer seconded the motion, which passed unanimously.

Because Rick Moeller is in a similar situation he discussed his case. He stated that he would not need additional water but would like to be able to water on Wednesday as well as his regularly scheduled watering day.

Bob Farmer made the motion that we allow Rick Moeller to water Wednesdays, using no additional water. Mark Johns seconded the motion, which passed unanimously.

It was noted that these exemptions are only for those residences that planted or sodded just prior to the drought ordinance.

Secretary’s Report:

The minutes of the 17 June 2002 meeting were discussed. Rick Moeller made the motion that we approve the minutes of the meeting. Bob Farmer seconded the motion, which was approved (Mark Johns abstained).

The minutes of the 8 July 2002 special meeting were discussed. A motion was made by Bob Farmer that we approve the minutes of the meeting. The motion was seconded by Mark Johns and approved unanimously.

Mike noted that he would try and get a packet out, including the minutes, on the Friday before the meeting. He also noted that the minutes are posted on the web site. He also noted that he received a letter from Scott Rodwin (included in packet) which documented what he thought the district was going to do regarding the water tap situation. There were discrepancies between what Scott thought we were to do and what was in the minutes. Mike will write a letter to Scott clarifying the various points of concern.

Mike reviewed a letter, which was in the packet, which stipulates that the City of Lafayette is refusing any new tap requests. This letter can be included in a well permit application. PPMWA covenants were then discussed, as wells were not permitted under these covenants. Mike will get a copy of the covenants to Dick Lyons (legal) and get his input on the covenants for discussion at the next meeting. Mike also reviewed the letter to the lots, which have not yet purchased taps, informing them that the City of Lafayette will not issue any more taps to us.

Finance Report:

The balance sheet, profit and loss by fund, profit and loss ytd comparisons and P&L budget vs. actual were handed out by Mary Wagner and discussed. Also included in the handout was a table on usage comparisons between the customer’s meters and the Lafayette master meter. Two residences are late in paying and will be contacted. Penalties should be documented in the rules and regs. and Mike will send pertinent clauses to Mary.

Budget vs actual was also reviewed. Maintenance and office expense was flagged as being slightly over budget. Overall, we are pretty close to being on budget.

The water usage was discussed, especially in regard to the differences in water usage between the customer’s meters and the Lafayette master meter.

Frank reviewed the operator’s report. They spent 11.5 hours monitoring the system and 3.5 hours maintaining the system. We have two Chlorine tanks which we have to dispose of (about $500). Frank is looking into how we can get rid of these tanks, which can be a problem (chemical disposal). We will further discuss this matter at the next meeting.

Frank also reviewed the tests and noted the high water users in the district. Estimated July usage is 1.029M gallons, under the Lafayette limit. It was noted that the water has an odor (musty) at certain residences. Mike noted that he has noticed this odor. Frank will check chlorine at his house in the next couple of days.

A leak was noticed at the output flange of a meter (.05 gallons/min.) CPL has been contacted and an adjustment will be made to the customer’s bill.

Dick and Frank have offered to take over the meter reading for the district billing. This would replace Aqua source that has been problematic with respect to meter reading.

A motion was made by Rick Moeller authorizing Bob Farmer to terminate the Aquasource contract and negotiate with Dick Winters and Frank Hauke to read the meters for billing purposes. Mark Johns seconded the motion which passed unanimously (Bob Farmer abstained).

Unfinished Business

Rick searched the internet and could not find any history allowing the sale or transfer of water taps. There was much discussion on whether or not we should allow this to occur in our district. Mike noted that advice from counsel was that we would not be liable if someone sold their tap and then tried to hold us responsible in someway. Some of the boardmembers are skeptical with respect to allowing this process to occur, as it may be that Lafayette will never give out taps in the future.

Rick Moeller made the motion that we allow the sale of taps in our rules and regulations with specific conditions to be written by our legal counsel. Bob Champ seconded the motion. Mike offered a friendly amendment that no one could purchase a tap except those owners of untapped lots in the district. Rick accepted the amendment and the motion failed to pass by a 1 to 4 vote.

Discussion ensued on the topic of precedents in this matter. Rick will further investigate via internet search. Mike will investigate the wording of a motion at a future meeting, which will be more specific to what we are doing. .

Because of an inadvertent error in paying CPL we underpaid them about $6800 which was not included in the current district retainage.

Bob Farmer made the motion that we pay $6800 and change to CPL for work accomplished and not paid. Mark Johns seconded the motion, which passed unanimously.

We have an estimate from Green Pastures Tractor Service for grading and lining the driveway. We (the tractor service and Bob Champ) will meet with Joel and see if it is acceptable. If so, we will issue a letter noting what is to be done and work can commence.

Bob Farmer noted that the Burns ditch had been redone making it a problem to hydroseed. Mike will review the tape to see to what extent the area was redone. Mike also noted he would contact the county to see if they will come out and mow.

Engineering:

Gen set:

Frank has contacted Ron Swenson with respect to the gas line to the gen set. He should be coming out this week to look at it.

Billing Matters:

Because of an unnoticed leak we owe a customer for about 160,000 gallons of water. It was thought that we should rebate this money to clear the books of this matter.

Bob Farmer made a motion that we allow special leeway on unnoticed leaks. Rick Moeller seconded the motion. During discussion Mike pointed out that we can hear appeals on matters such as these and that the motion is redundant. Bob Farmer withdrew the motion. Rick Moeller concurred with the withdrawal.

The home with the .05 g/min. leak was discussed (about 1000 g/mo.). We believe it has been leaking since the beginning (10 mo.s).

Mark Johns made the motion that we reimburse this account for the 1000 g/mo. for the number of months noted by Frank and Dick. Rick Moelller seconded the motion, which passed unanimously.

Rick Moeller made the motion that we appoint Watkins and Schommer as auditors for 2002 not to exceed $2250. Bob Farmer seconded the motion, which passed unanimously.

Long Term Capital Plan:

Tabled to next meeting.

A motion was made to adjourn by Bob Farmer, seconded by Rick Moeller and unanimously approved. The meeting was adjourned at 6:56 PM.

The above is respectfully submitted by the secretary…Bob Champ, July 16, 2002.