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FOREST LAKES DOMESTIC WATER IMPROVEMENT DISTRICT
REGULAR BOARD MEETING
January 15, 2005
- 1. The Regular Meeting was called to order by Chairman Ben Purtyman at 8:00 AM at the Water District office. Present were Board Members Wayne Rothwell and Mary Hume. Staff members Don Wilson and Cheryl Kight. Also present were John McKnight and David A. Brown, Attorney.
- 2. New Board Member Oath of Office
- Mr. Purtymun asked Ms. Kight to swear in the new Board Member. After the swearing in Mr. McKnight
- signed the Oath of Office, and Ms. Kight as witness
- 3. Election of Officers for the Board
Mr. Purtymun called for the election of Officers. Ms. Hume nominated Mr. Purtymun for Chairman, Mr. McKnight for Vice-Chairman, Mr. Rothwell for Treasurer, and Mr. Beckett Sr. for Member at Large. Mr. McKnight seconded the nomination, and it carried unanimously. Mr. Rothwell nominated Ms. Hume for Secretary. Mr. Beckett Sr. seconded the nomination and it carried unanimously.
- 4. Reading of the Minutes for December 18, 2004
- Mr. Purtymun asked for the reading of the minutes. Mr. McKnight made a motion to accept the minutes and dispense with the reading of the minutes and make them available to the public. Mr. Rothwell seconded the motion and it carried.
- 5. Treasurer’s Report for December 2004
- Mr. Purtymun asked Mr. Rothwell to read the Financial Statement. Mr. Rothwell reported that our Budget has not changed, the total Budget is at $449,982.82. Mr. Rothwell went on to the second page and reported we are 50% through the year and we at 110% of revenues, we are ahead of schedule based on sales and revenues that have come in. Mr. Rothwell then reported from page three, Personnel Costs are at 96% and Operating Expenses are at 88%, so we are ahead in revenues and under in expenses. Mr. Rothwell said overall to the total budget for the year we are at a rate of 62.5%. Mr. Beckett Sr. made a motion to accept the financial report as read. Mr. McKnight seconded and the motion carried.
- 6. On-Site Manager’s Report
- Mr. Wilson reported that there is a problem with the Snow Well generator. During the last snow storm it decided not to work. We had a repairman out and it was a blown fuse in the control panel and when they fired it up there was a bad voltage regulator. Mr. Wilson said that the repairman will be back up with a new voltage regulator on Wednesday.
- Mr. Wilson reported that it had been brought to his attention that our Web page is out dated. He went on to explain that Mr. Froehlich used to handle that. Mr. Wilson asked if Mr. McKnight would take over that job. Mr. McKnight agreed.
- 7. New Business
- a. Discussion and Selection of SCADA Consultant
- Mr. Rothwell stated that last month he had turned in, as part of the SCADA program, a Sole Source Justification for Carlson Electric and Water Works for review by the Board. Mr. Rothwell then made a motion to approve the Sole Source Justification, not to exceed $65,000.00. Ms. Hume seconded it and the motion carried.
- Mr. Rothwell then stated he recommended that we go forward with the plan as devised in the work session yesterday, that we will go with the design and build. This will go to all three consultants, but we will not go out with an RFP. Mr. McKnight made a motion that we follow the SCADA System Action Plan developed in the work session on January 14, 2005. Which is as follows:
- SCADA System Action Plan
- February > Don Wilson and John Murphy get references, decide on functions, develop
- design/build
- > Ranges, Submit RFQ, design/build
March > Design results
- > Board Review and approval
- > Establish RFP for quotes
- April > Review/selection
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- May > Award
- June/Aug > Intall/acceptance
- September 1, 2005 Arsenic compliant
Mr. Rothwell seconded the motion and it carried.
- b. Discussion and Acceptance of Audit
- Mr. Rothwell stated that the Treasurer and the Board have all received a copy of the audit, and Financial Statement. He went on to say that the report states that our financial practices are sound and our business practices are good, and that we have made modifications. Mr. Rothwell stated that there would be a Management letter to follow shortly on observations and concerns, but that we are not out of sync with any regulatory requirements. Mr. Rothwell made a motion that based on reading of the final report, making it available to the public, we accept the audit. Mr. Beckett Sr. seconded the motion it carried.
- c. Changes to the Investment Portfoilo
- Mr. Rothwell reported that at yesterdays work session Mr. Kittner said that as far as our investments we are in a very conservative mode. Mr. Rothwell continued that we had Mr. Kittner take 50% or $30,000.00 and give us other choices as to what we are now invested in, using the basic rules of 3 to 5 days availability of funds. Mr. Rothwell recommends that we take the money we have allocated and put it into American Funds Balanced A, American Finds Cap Inc Builder A, and American Funds Inc Fund of American A. He continued that this has the most stable track record. Mr. Rothwell also said that the return is averaging from 9% to just under 12%.
- Mr. Wilson stated that to clarify this, we are cashing in the two funds we have now, Mr. Kittner although he didn’t present us with a paper, said the cost of transferring the funds on one account will be about $487.00. Ms. Hume asked “What are we were taking out?” Mr. Wilson replied that we are taking $15,199.80 from the Putnam Premier Income Trust, we have $23,698.03 in American US Government Securities Fund and that is the Fund we will be charged the $487.00. Mr. Wilson continued that will be a total of $40,263.83 minus the fee. Ms. Hume then asked “Are we putting the dividend back in? Mr. Rothwell replied that we are putting the dividends and earnings back in to the accounts, and we still have the 3 to 5 day capability of getting the funds. Ms. Hume made a motion that we invest the money from both our current accounts into American Funds Balanced A, American Funds Cap Inc Builder A, and American Funds Inc Fund of American A, and invest the dividends and interest back into the new funds. Mr. McKnight seconded the motion and it carried.
- 8. Old Business
- a. Discussion and Possible Motion to convene Executive Session
- Mr. McKnight made a motion to go into Executive Session. Mr. Beckett Sr. seconded the motion and it carried.
- The Executive session was a discussion with Mr. Brown the district’s attorney for the Little Colorado River Coalition on recent legislation.
- Mr. Rothwell made a motion to move out of the Executive Session. Mr. McKnight seconded the motion and it carried.
- None.
- 10. Manager to Board
- Mr. Wilson asked the Board for their signatures for the Edward Jones account now that we have two new members of the board. Ms. Kight passed the signature forms to the board. The board signed the forms.
- Mr. Wilson wished the board members that are attending the ASUA Technical Conference a good trip and enjoyable conference.
- Mr. Rothwell said that in the December Board Meeting minutes there is reference to the staff doing research on a possible lien on a property that is in the rears. Mr. Rothwell said that Mr. Wilson will have the staff check further. Mr. Rothwell recommended from a financial perspective that the staff check if there is another owner or delinquent on the taxes that we place a lien on Lot 765 Wildcat Road. Mr. Rothwell said that the amount past due is quite substantial, and if the property is ever sold the District would be out some bucks. Mr. Purtymun asked, “Has Mr. Wilson talked with the attorney?” Mr. Wilson replied “I can know.” The board approved the recommendation.
- Mr. Purtymun asked, “Is there anything else?” Mr. Beckett Sr. said he would like to bring up the Board meeting time and day. Mr. Beckett Sr. stated that he would like to see the meeting be moved to a weekday and at a later time such as 10:00 am. Mr. McKnight agreed that if it were moved to a weekday there might be more participation from the community. Ms. Hume agreed that it’s not fair for the staff, who have worked all week, to come in on a Saturday. Mr. Beckett Sr. requested that it be put on next months Work Session agenda for discussion. The Board agreed.
- Mr. Purtyman asked for a motion to adjourn. The motion was made by Mr. McKnight, seconded by Mr. Beckett Sr. and unanimously carried. The meeting was adjourned and 8:57 A. M.
Minutes by:
Cheryl Kight
Minutes Approved:
Ben Purtymun, Chairman
Mary Hume, Secretary
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