Board Minutes of March 21, 2007 Regular Meeting Of the Board of Directors of the St. Vrain Sanitation District

 

Attendance:

            Directors:      Brad Hagen, Wesley LaVanchy, Gary Cope - Present

                                    Reggie Golden and Brian Travis - Absent

Staff:              Eric Doering, Rob Fleck, Jon Peterson, Rick Hiatt,

                        Kim Castonguay, Dick Lyons – Attorney

Public:           Kevin Schultz, Ken Williamson, Dan Schommer, John Winslow,       Julie Cozael, Linda Swatman, Lauren Balsley, Jim Sidebottom, John Donnely, Mike DeDecker, Josh McGibbon

Call to Order:           The meeting was called to order at 9:07 A.M.

 

Consent Agenda – 9:15 A.M.

            Mr. Gary Cope requested an addition to the agenda to include Mr. Eric Doering’s Employment review to the information items.  Mr. Wes LaVanchy made a motion to accept the consent agenda.  Mr. Gary Cope seconded it.  Approved

 

Managers Report – 9:18 A.M.

            Mr. Eric Doering discussed with the Board that Jon Peterson, Kim Castonguay and he are currently working on the development of a Personnel Management System (PMS) for St. Vrain Sanitation District.  Currently they are working on the development of Employee Job Descriptions and a salary matrix that St. Vrain Sanitation District will use in the organization that will have a component for a performance measure for employees.  The plan is to develop the program and come to the Board in August for a presentation.  This would be included in the 2008 budget.  The idea is to have a comprehensive approach to Salary Management. We are using data from other Districts, Mountain States Employment Council, and CML. 

 

Presentation by John Winslow-Gill Capital Partners - Investment Report – 9:20 A.M.

            Mr. John Winslow came to update the Board on St. Vrain Sanitation District’s current investments.  Because of a flat yield curve in 2005 to 2006 St. Vrain Sanitation District was purchasing Bonds with a maturity of 6 to 12 months.  Beginning in October of 2006 St. Vrain Sanitation District began purchasing Bonds with a 1 to 1 ½ year maturity.  In 2007 Mr. John Winslow is projecting $1,102,461.85 in estimated annual income.  Mr. Winslow suggested to the Board that St. Vrain Sanitation District may want to begin to purchase bonds with a 2 to 3 year maturity with a call protection. Mr. John Winslow is speculating the Feds will lower the interest rates by the end of 2007, which will bring down the interest rate on bonds.  Mr. John Winslow recommends that St. Vrain Sanitation District keep a maximum of $500,000.00 in our 02 (construction) money market account.  Mr. Brad Hagen made a motion to accept the Investment report.  Mr. Wes LaVanchy seconded it.  Approved

 

 

Presentation by Dan Schommer – Watkins and Schommer – Audit Report – 9:35 A.M.

              Mr. Dan Schommer came to present the Audit to the Board for their approval.  The following recommendations were made to strengthen internal controls and operating efficiently. 

  1. Job descriptions for all employees.
  2. Suggested keeping a monthly backup in a location other than the fire proof safe.
  3. All voided checks should have the signature block torn out.
  4. Checks over six months old should be written off the outstanding check list and added back to cash.
  5. Bills should be paid on a timely basis to avoid future late fees.
  6. Deposit monies with PERA on a timely basis to avoid future late fees.
  7. Bills should be paid in a manner that allows the District to take advantage of discounts if made available by vendors.

Pages 9 & 10 of the report state that our current assets increased about 4.2 million dollars.  Most of that is in the area of cash and investments.  Receivables have increased a slight amount.  The book value of our capital assets has increased from 29 million dollars to 34 million dollars.  Total assets have increased from 48 million dollars to 57 million dollars.  Current liabilities are at 1.4 million dollars and the non current liability is at 1.6 million dollars.  That includes all outstanding bonds. The total equity to the district is a little over 54 million dollars as of December 31, 2006.  The operating revenues went up $450,000.00 while operating expenses went down from 2.6 million dollars to 2.4 million dollars.  One reason it decreased was due to a mistake in previous financial statements.  Accumulated depreciation had been overstated.  Accrued wages as of December 31, 2005 represented 2 complete pay periods and should never represent more then 1 pay period and sometimes only a portion of that.  Interest income went form $400,000.00 to $900,000.00 on earnings on St. Vrain Sanitation District investments.  The difference in the cash position of St. Vrain Sanitation District went from $726,000.00 to $384,000.00 due to increasing our long term investment $4,500,000.00.  As of December 31, 2006 the Capital assets are $34,350,000.00.  The only outstanding item of the District is debt of $2.1 million dollar General obligation bond.  In note 11 Mr. Dick Lyons would like a footnote that states St. Vrain Sanitation District is an Enterprise fund.  Mr. Gary Cope made a motion to approve the audit with the addition to note 11 that states St. Vrain Sanitation District is an Enterprise Fund.  Mr. Wes LaVanchy seconded it. 

Approved

            Mr. Gary Cope made a motion to write off outstanding checks after 6 months and to change the policy on Capital assets from $500.00 to $5000.00.  Mr. Wes LaVanchy seconded it.  Approved

 

Action Items – Mr. Brad Hagen opened the Public Hearing at 10:00 A.M.

Mr. Brad Hagen closed the Public Hearing at 10:10 A.M.

            Mr. Wes LaVanchy made a motion to approve the Waterfront Inclusion. Mr. Gary Cope seconded it.  Approved

           

 

 

 

 

            Mr. Brad Hagen made a motion to approve the Confidentiality Policy with the change to the first sentence to read: Residential customer financial information, payment history, flow data, as well as the names/addresses of customers are all deemed confidential and employees shall not disclose such information to any outside party except as provided by District policy or procedures.  Mr. Gary Cope seconded it.  Approved

            Mr. Brad Hagen made a motion to approve the purchase of defibrillators for the treatment plant and the administration building.  Mr. Wes LaVanchy seconded it.  Approved

            Mr. Brad Hagen made a motion to direct staff to proceed with the No Name Creek alignment as the primary focus for design and approve the design contract for CDS Engineering and get a proposal for design and pro-rate the cost to Tri Area from the plant to the no name connection.  Mr. Wes LaVanchy seconded it.  Approved

            Resolution 2007-05 Reimbursement for Lift Station

            Board directed staff to meet with TEC and discuss the maintenance and construction of future lift stations in the current rate study.  Mr. Wes LaVanchy does not believe in the TEC rate study that St. Vrain Sanitation District is collecting enough for capital improvements and reserves.  He also believes that it is common in large Districts for customers to pay for special infrastructure that is needed to serve their particular area.  Staff was directed to have TEC come to the April 18, 2007 Board Meeting.

 

Discussion Items – 11:40 A.M.

            Mr. Jim Sidebottom the Town Manager for Ft. Lupton would like to set their growth boundaries and their 208 boundary the same.  Currently there are four square miles (Sections 15, 22, 27, 34) of land that St. Vrain Sanitation District currently has in their 208 area that Ft. Lupton would like to include in their 208 area. They would consider having an overlapping area with St. Vrain Sanitation District with an IGA for this area.  Ft. Lupton would also like St. Vrain Sanitation District to relinquish and remove from our current 208 area (Sections 13, 14, 23, 24) so that the area can be served by Ft. Lupton.  The Board instructed staff to come up with a revised alignment that would best fit the District, then to use that alignment to determine which areas will be transferred to Ft. Lupton’s 208 area and the remaining area would be covered in an IGA which states when growth comes to the area in question an analysis will be done at that time to determine who will serve it based on economic sense.

 

Mr. Wes LaVanchy left at 12:15 P.M.

            St. Vrain Sanitation District does not have a quorum.

 

Meeting adjourned at 12:20 P.M.

 

_________________________                                  _________________________

      Recording Secretary                                                      Board Secretary

 

_________________________                                  _________________________

               Date                                                                              Date