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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