HomeMy Public PortalAboutJFOCM 2003-06-19RECORD OF PROCEEDINGS
JOINT FACILITIES OPERATING COMMITTEE MEETING
June 19, 2003
Attendees:
Winter Park West: Mike LaPorte, Jon Westerlund, Ingle Refvem(arrives late)
Grand County No. 1: Bob Wolf, Vince Turner, Randy Atwater(arrives late)
Fraser Sanitation District: Robin Wirsing, Steve Sumrall
Staff: Gary Cooper, Kirk Klancke, Joe Fuqua, John Walker
Others: Rob Anderson of McLaughlin Water Engineers, Kirt Guida
The meeting was called to order by Chairman Mike LaPorte at 6:05pm.
The first item on the agenda was the approval of the May 22, 2003 meeting minutes. Vince
Turner motioned and Bob Wolf seconded that the minutes of the Joint Facilities Operating
Committee meeting on May 22, 2003 be approved. The motion passed unanimously.
Chairman LaPorte noted a requested change in the agenda items to be covered. The change was
that old business entitled "The Update on Well Permit Process" would be handled under the
attorney's report rather than under old business. It was also noted that two new items would be
taken under consideration and to be considered new business. The two new items are EQR study
presentation presented by Robin Wirsing as well as a new agenda item entitled
"Attorney/Secretary Protocol".
Next item on the agenda was Partial Pay Application No. 13. MWE engineer, Rob Anderson,
recommended approval of Pay Application No. 13 in the amount of $323,220.32. Mike LaPorte
noted that the Change Order No. 7 was also referenced in this Partial Pay application and opened
up the floor for discussion on that issue. Mike LaPorte summarized that at the last meeting there
was some concern over the fact that this Change Order was listed on the Pay Application but not
properly approved by Fraser Sanitation District prior to the May JFOC meeting. It was noted
that Fraser Sanitation District has approved Change Order No. 7 at their most recent Board
meeting. Without any further discussion, Bob Wolf motioned and John Westerlund seconded
that the Partial Pay Application No. 13 be approved in the amount of $323,220.32. The motion
passed unanimously.
Next, Chairman Mike LaPorte opened the floor to McLaughlin Water Engineer representative
Rob Anderson for a status update on the construction progress at the Joint Facility. Rob reported
that things were progressing very well and summarized that the A -Basin is close to being
finished, the walkways are also close to being finished, and the clarifiers are close, as well. He
also summarized that the digester roof is being completed and the mixer had been installed in
one of the digesters. The question was raised by one of the Committee members regarding
Mountain Parks Electric's involvement in the setting of the transformer. Rob summarized that
the base is already in place and that Triangle Electric is preparing to run power to the transformer
within the next week. The next step would be to call Mountain Parks Electric to get the
transformer set. Rob summarized that the transformer has already been ordered and is in the
possession of Mountain Parks Electric at this time and that it would simply take a phone call to
set up an appointment to permanently place the transformer. Rob then reported that the whole
North side of the facility has been backfilled and that the final completion or power -up of the
joint facilities will be approximately the 22°d of September. Rob stated that the late October time
frame for getting the facility on line is still reasonable.
Next item on the agenda was Old Business:
(A) Deed of Convey: Under old business was the discussion on the Deed for
conveyance of the Joint Facilities to Grand County Water & Sanitation District
No. 1 and Winter Park West from Fraser Sanitation District. Mike LaPorte
reported that he had been doing some research in regards to the cost of the title
insurance policy for the property to be conveyed. He requested information from
the Title Company of the Rockies, Grand County Abstract Company, Moritz Title
Company Grand County, LLC, and Grand County Title and Escrow Company,
Inc. The request to the prospective title companies was based upon two basic
options. The first option was to secure a title insurance policy for coverage of $1
million in liability. The second option was based upon coverage in the amount of
$9.5 million. The results varied from the respective title companies, but the basic
cost of these two respective options was approximately $2,100 to $2,500 for
Option No. 1 and $14,400 to $16,200 for Option 2. Mike LaPorte then asked
Grand County Water & Sanitation District No. 1 to confirm that their District
would be willing to move forward with the Deed of Conveyance if (1) the Title
Insurance policy was issued on the respective property; (2) a Quit Claim Deed
was granted by Fraser Sanitation District; and (3) McLaughlin Water Engineers
drafted a letter to the respective Districts at completion of the initial construction
stating that the facility was in good operating condition and order. Bob Wolf
confirmed that the Grand County Water & Sanitation District No. 1 would be
willing to go forward with the conveyance as laid out by Mike LaPorte. There
was also much discussion in regards to what amounts to secure the initial Title
Insurance policy. The two options presented to the Committee were to (1) go
forward with the initial $1 million liability coverage and then upgrade that
coverage at a later time, or (2) go forward with the full $9.5 million worth of
coverage initially. After further discussion, Vince Turner made a motion,
seconded by Ingle Refvem, to pursue the Title Insurance policy for $9.5 million
coverage. In the discussion that followed, Gary Cooper requested information in
regards to the effect of the condemnation upon the Title Insurance policy. Randy
Atwater reported that although the condemnation proceeding is not a absolute
resolution of any possible issues that may arise prior to the condemnation, it was a
risk that the title insurance companies would be willing to take. Further
discussion was had in regards to whether to pursue holding the initial $1 million
coverage and then update it later after the joint facility was constructed and the
total construction price could be determined. After discussion, Vince Turner
withdrew his Motion. Vince Turner then made a Motion as follows:
The JFOC shall pursue Title Insurance coverage in the amount of $1
million. At the time of the completion of the plant and once the total value
of the joint facilities is determined, the JFOC shall pursue further coverage
up to the amount of the total value of the facilities. Prior to the next JFOC
meeting, a Quit Claim Deed from Fraser Sanitation District to the other
respective Districts shall be executed and ready for presentation. Grand
County Water & Sanitation District No. 1, upon receipt of the Quit Claim
Deed, shall make payment to the other Districts in the respective amounts
as contemplated in the Consolidation Agreement.
Ingle Refvem seconded the Motion. After some discussion, the Motion was
amended (by Vince Turner, seconded by Ingle Refvem) that the cost of the Title
Insurance Policy shall be taken out of the construction fund of the JFOC. The
Motion, as amended, was approved unanimously. The JFOC directed the Fraser
Sanitation District to draft the Quit Claim Deed.
(B) SBR Improvements: Rob Anderson reported that John T. Jones had reviewed the
design plans and come back with a figure of $122,739.00 for the SBR
improvements. Rob also noted that the only thing left out of this price was the
SBR control panels and pricing that needs to take place. He estimated that a total
price for the SBR improvements would be approximately $142,000, but suggested
that the JFOC include an $8,000 contingency to take care of any unexpected
expense. This equates to a total expense for the SBR improvements of
approximately $150,000. Mike LaPorte then requested information on pre -
approval from the State of the SBR improvements. Rob reported that he had
spoken with Tom Sheaffer at the State who has replaced Jim Chubrillo and that
pursuant to a phone message, Tom said that he did not have any problems with
the SBR improvements. Rob did additionally state, however, that Tom had called
and left a voice message on his cellular phone earlier today that said that Jim
Chubrillo wants to make sure that there are still not any concerns with the leakage
issues raised in his earlier correspondence to McLaughlin Water Engineers. Rob
was then asked whether there are any leakage issues, and he stated that in his
opinion, there were no leakage issues, but that he must work with the State in
order to clarify this issue. Mike LaPorte then directed that the protocol for any
kind of Change Order is to first take it to Fraser Sanitation District for their
approval and then present it to the JFOC Board at the next meeting. Rob
Anderson was directed to do so. In the interim, Rob requested the Board's
immediate approval for an amount not to exceed $15,000 to get the piping in
place. Kirt Guida of John T. Jones summarized that it was less expensive to put
the piping in place now while the area where the piping was to be placed was
already excavated. Joe Fuqua confirmed that the $15,000 cost for the initial inlay
of the piping was reasonable and suggested that the JFOC approve such initial
expense. Bob Wolf then made a Motion, seconded by John Westerlund, to
approve the initial expenditure of $15,000 to lay the piping necessary while the
area was already excavated. The Motion passed unanimously.
Joe then commented on the SBR improvements and the cutting of the weir located
therein. There was some discussion in regards to the weir cutting and the
congenial disagreement between Joe and Rob Anderson with regards to the
necessity of this. Ingle Refvem then commented to the Engineer that regardless
of which design is contemplated, he wanted to make sure that the Engineer was
giving them a good working plant at the end of the process. After some further
discussion, the Fraser Sanitation District was to give the issue thought prior to the
next JFOC meeting. It was a consensus between both the Engineer and Joe Fuqua
that the initial $15,000 expenditure would forestall any immediate decision
making for the immediate future. Also raised was the issue with the LemTech
cover. Joe raised the issue that the cover has not stayed tied down in the past and
would like to have that addressed in the SBR improvements. The Fraser
Sanitation District is to look into this issue further and make a determination
whether any further inquiry is necessary.
The next item on the agenda was New Business.
(A) EQR Schedule presentation by Robin Wirsing: Robin discussed generally that it
was the duty of the manager to periodically review the EQR schedule and suggest
amendments to the EQR schedule for the full JFOC committee to consider. Robin
suggested the EQR Schedule amendment was necessary so that all respective
Districts are on the same basis with regards to their EQR's and the actual flow
into the plant. Robin requested direction from the JFOC in regards to a time line
for EQR amendments. In the discussion that followed, Vince Turner felt that it
was appropriate to go forward with the review in an attempt to standardize the
respective Districts' flow requirements. Mike LaPorte interjected with some
history on the EQR negotiation and his opinion that the plant should be operated
prior to looking at amending the EQR schedule. Bob Wolf commented that it
might be appropriate to look at the EQR schedule now and attempt to establish
something that would work more appropriately from the very beginning. Vince
Turner also added that he felt that it was appropriate to go forward and do the leg
work at this point and commended Fraser Sanitation District for taking the
initiative. Vince also noted that it was within one of the Manager's duties to
amend the EQR schedule for JFOC approval. Robin Wirsing then re -clarified that
the direction FSD would like at this point would be to work on the possible
amendment and forward it to MWE for their review. The JFOC authorized
McLaughlin Water Engineers to review any amended EQR schedule presented by
the Manager.
(B) Attorney/Secretary Protocol: There was much discussion on this issue by the
respective Committee members. To summarize, the question has arisen in
regards to the use of the JFOC's attorney without authorization from the JFOC.
Several of the Committee members made it clear that the JFOC attorney worked
at the leisure of the Committee and should not take any direction from the
Manager or its staff unless pre -authorized to do so. Counsel for the JFOC raised
an issue with regards to periodic items that arise from time to time that need his
immediate attention prior to seeking authorization from the full JFOC Board.
Counsel also stated that he felt that the door needed to remain open between Joe
Fuqua and Alison so that he can be kept up to speed on day to day items. There
was also discussion in regards to allowing the Board Chairman to have the
authority to periodically authorize the JFOC attorney to seek authorization from
him in situations that arise in between the scheduled monthly JFOC meetings.
After other discussion, Randy Atwater motioned and Bob Wolf seconded that the
President had the authority to respond to requests by Counsel for conducting
JFOC legal work on behalf of JFOC, not previously authorized, between the
respective monthly meetings. After discussion, Randy Atwater withdrew the
motion. The JFOC then decided to table this issue for the next HOC meeting so
that the JFOC attorney could look into the Consolidation Agreement to determine
the powers of the JFOC Chairman.
Next on the agenda was the Manager's Report: The Manager reported that the construction
appeared to be going well, and on schedule. Mike LaPorte made a request of Fraser Sanitation
District to appoint Steve Sumrall as a spokesman for the Fraser Sanitation District in future
management reports. It was noted that Steve had attended all the construction meetings and was
very knowledgeable on the progress that was being made from month to month. Robin Wirsing
of the Fraser Sanitation District stated that she would bring this to the attention of the Board at
their next regular meeting.
Next on the agenda was the Attorney's Report: The attorney reported on the status of the
Augmentation Plan that will be filed in order to replace the groundwater removed by the plant
wells. Counsel stated that a draft Augmentation Plan had been submitted to MWE for their
review, and that he anticipates that there should not be any problem filing the application prior to
the end of the month. The JFOC attorney then turned the matter over to Rob Anderson to
discuss the water system and the possible Change Order for the construction thereof. Mike
LaPorte stated that the proper procedure would be for MWE to take any kind of Change Order to
Fraser Sanitation District first and then report back to the JFOC at the next regular meeting.
Therefore, no further discussion was had on the water system Change Order or the water system
in general. The JFOC attorney then stated that the Augmentation Plan was based upon the
system that was still awaiting approval by the JFOC. Counsel commented that in order to
preserve a June filing date, that he would file the Augmentation Plan on the assumption that the
water system's design would be subsequently approved, but that if it was not, then an
amendment to the Augmentation Plan may be necessary.
The attorney also asked for authorization from the Board to work with Joe and Rob to discuss
any issues with regards to the plant design and construction. The attorney felt that it was
necessary to address some of the issues such as leakage, weir cutting, and the SBR cover, to
name a few, that seemed to be in the repeated conversations between the JFOC and MWE. After
the discussions with Joe and Rob, the JFOC attorney asked authorization to write a letter on
behalf of the JFOC to MWE requesting answers to specific questions that arose during these
discussions. The authorization was granted by the JFOC to counsel. Vince Turner added that in
any kind of correspondence sent to MWE, he would like clarification on the water well issues.
The JFOC attorney stated that he would make sure to cover water well issues in any
correspondence.
Next on the agenda was Board Choice: Robin Wirsing of Fraser Sanitation District requested
that the JFOC give the Managers some latitude to ask the JFOC attorney questions with regards
to the interpretation of the Managers duties underneath the Consolidation Agreement. After
some discussion, the Committee decided that it was not appropriate at this time and that if
interpretation of the contract was necessary, that that matter should be brought to the Board first
and then, if directed by the Committee, to the JFOC attorney.
It was noted that the next meeting for the JFOC would be on July 17, 2003.
Being no further business before the JFOC, Ingle Refvem motioned and Jon Westerlund
seconded that the meeting be adjourned. The motion passed unanimously.
ATTEST:
cretary