RECORD OF PROCEEDINGS

MINUTES OF A REGULAR MEETING OT

THE BOARD OF DIRECTORS OF

GREEN MOUNTAIN WATER AND SANITATION DISTRICT

JEFFERSON COUNTY, COLORADO

June 12,2012

The meeting of the Board of Directors of the Green Mountain Water and SanitationDistrict was held on Tuesday, June 12, 2012, at the office of the District, 13919 WestUtah Avenue, Lakewood, Colorado 8022g.

BOARD MEMBERS IN ATTENDANCE:

David AndersonDouglas N. BeckKenneth KronebergerThomas R. MaloneCarl Mulay

BOARD MEMBERS ABSENT/EXCUSED:

None

ALSO IN ATTENDANCE WERE:

Melanie Asquith, Mclaughlin WaterDave Hartkopf, District ManagerEric Barnes, Barnes and Wagner, CpASharon Wallin, Executive Support Services

CALL TO ORDER:

President Douglas Beck, noting the presence of a quorum, called to order theregular meeting of the Board of Directors of Gieen Mountain Water andSanitation District at 6:00 p.M.

APPROVAL OF AGENDA:

Director Kroneberger moved to approve the agenda. Director Andersonseconded. After discussion, the Agenda was amended with the addition ofclarification of financials from May and the Education handout under BoardMember comments. The motion was unanimously approved.

Minutes of the Board of Directors ofThe Green Mountain Water and Sanitation DistrictIune 12,2012

APPROVAL OF MINUTES:

Director Anderson moved to approve the minutes of the May 15, 2012 RegularMeeting. Director Kroneberger seconded and after discussion, the minutes wereapproved unanimously.

COMMENTS FROM THE PUBLIC:

None

EXECUTIYE SESSION:

None

INFORMATION/ACTION ITEMS

A. ENGINEERINGICAPITAL PROJECTS

Melanie Asquith of Mclaughlin Water presented the following report and gavean overview of the District projects to the new board member.

l. St. Anthony's Hospital

Pink Zone Tank: Replacement of the trees has been completed and allwork is now complete.

Pink Zone Pump Station: Tree planting is scheduled to begin on Friday,June i5.

Addenbrooke Park/Garrison Street Sewer: The contractor is completingpunch list items. The sewer service to the church backed up and they werecalled in for repairs. It was determined the contractor had incorrectlygraded the service. while completing the repairs, Mclaughlin agreed toextend replacement of the service all the way to the building, replaiing theold, existing clay portion of the service. There is no Pay Application-thismonth.

St. Anthony Hospital: Dave Hartkopf and Terry Kenyon met withHospital representatives. A meeting on July 9,2012 will be held to closeout all financial issues, with an estimate for any contingencies.

2. Carma/Solterra

construction of the sewers to serve Sorterra Filings No. 10, and l1 iscompleted and work on Filing No. 12 is continuing.

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Minutes of the Board of Directors ofThe Green Mountain Water and Sanitation DistrictIlurl,e 12,2012

3. Denver Water,s Green Mountain pump Station

Dave Hartkopf and Terry Kenyon met with Denver Water to presentresults of the analysis of the costs/benefits of District participation in thepump station improvements. After review of the payback period whichwas determined to be greater than2} years to as long as 45 years, and thepotential future value in having the additional pumping capacity areasonatle compromise was reached. The District would participati lnincreasing the incoming electrical capacity and transfo.-", ,ir" to whereadditional pumping capacity could be added in the future. Denver Water,sestimated cost to provide this is $36,000.00.

4. Green Tree Metro District

Green Tree's engineer has contacted the District regarding the stepsnecessary to have the area included in the Metro Wastewater service arei.Metro Wastewater approval will be required for inclusion into the District.

5. 2012 Capital Improvements

Contract documents were presented for execution by Dave Har"tkopf.

6. Acquisition of Mclaughlin Water.

Melanie Asquith reported that Mclaughlin Water was purchased byMerrick & Co. effective 5/2912012. Operations pertaining io the Districtwill remain as they are atpresent.

B. MAINTENANCE OPERATIONS REPORT

Dave Hartkopf reviewed the Maintenance Operations Report prepared by LarryMoss.

1. One Water Main Break:

o 512812012 at 9500 w. cedar Avenue, consisting of a beam beak on a6" cast iron line.

2012: Total number of main hreaks to date: g

20ll: Same time period last year: 12 main breaks

20llz Total number of main breaks: 24

Minutes of the Board of Directors ofThe Green Mountain Water and Sanitation DistrictJane 12,2012

2. Valve Replacements:

o 519/2012, rcplaced 8" gate valve East side of intersection at s. XenonCt. and W. Virginia Dr.

o 511012072, replaced 8" gate valve west side of intersection at s.Xenon Ct. and W. Virginia Drive.

Fire Hydrant Maintenance

o 5l22l20l2,replaced flre hydrant at w. Dakota pr. and w. virginia Dr.

o 512412012, replaced fire hydrant at w. virginia Dr. and s. cole ct.

o 5/2512012,replaced fire hydrant at302 S. Robb Way.

t 5127/20l2,rcpafued fire hydrant at s. Holman circle and w. Auburnct.

Pump and PRV Maintenance

Replaced pilot valve on the Pink Altitude Valve.

Scada System

Difficulties with radio communications on the Scada System whichcontrols the entire tank and pump settings for the District have occurred.Browns Hill Engineering has been work on sites at the North yellow Tankand the old offlrce. The North Yellow Tank needs a new antenna and newcable from the antenna to the RTU; it is being shipped. At both sites theantennas were raised an extra 10' in height. The radio system isapproximately 10 years old and trees have gotten larger which is affectingline of site and there is a lot more air traffic because of cell phone ,rrug.lBrowns Hill is checking on a new system that will upgrade tile speed andprovide better communication and would also allow installation ofcameras at remote locations.

The Board requested Manager Hartkopf ask Larry Moss to obtain pricingfor the Scada system update and report back at the July meeting.

Sewer Cleaning and TV Maintenance

Total footage cleaned: 45,786 feet. Total footage TV'd: 6050 feet.

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Minutes of the Board of Directors ofThe Green Mountain Water and Sanitation DistrictIune 12,2012

7. Valve Exercising

321 valves exercised in areas 30 Nw, 30 sw, 30 sE, and 15 SW.

Boundaries for 30 NW: on the North, w. Jewell Avenue; on the south w.Iliff Avenue; on the East, w. Baltic Drive; on the west, S. Holman cir.

Boundaries for 30 sw: on the North, w. Baltic Avenue; on the South, w.Yale Avenue; on the East, S. Eldridge st.; on the west S. Holman cir.

Boundaries for 30 SE: on the north, w. Iliff Avenue; on the south, w.Bates Ave.; on the East, w. Amherst way; on the west, S. Eldridge St.

Boundaries for 15 SW: on the North, Addenbrooke park; on the South,w. Mississippi Ave.; on the East, s. Garrison St.; on the west, w. Kiplingst.

C. FINANCIAL MATTERS

Manager Hartkopf_ clarified the capital amounts presented at the Maymeeting, and how they are accumulated. Director M,rluy requested atotalamount for capital expenditures be broken out on the report.

Director Malone moved to accept the May/June 2012 monthly and dailyoperating expenses in the amount of $1,17i,135.g6; the May/June 20lZcapital expenses in the amount of $35,7g0.33, and the May 2iJl2 montbtypayroll expenses in the amount of $103,61 5.42. Director Mulay secondeiand after discussion the motion was approved by unanimous vote.

Director Kroneberger moved to accept the May 2al2 rnvestments andInterim Financial Reports. Director Anderson seconded and afterdiscussion the motion was passed unanimously.

Director Malone proposed dividing the $500,000.00 with 1s Bank whichwill mature on July 2, into two $250,000.00 amounts to be deposited inother banks in which the District currently has no deposits, and which maypay a higher rate and be FDIC insured. Manager Hartkopf will contactadditionai banks to obtain current rates.

Capital Expenditures vs. Capital Revenue

The capital Expenditures vs. Capital Revenue report was reviewed by theBoard.

ADMINISRATIVE MATTERS

Old Business

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Minutes of the Board of Directors ofThe Green Mountain Water and Sanitation DistrictJune 12,2012

Qenver Water Adopts New Water Rate Model\The draft water rate model for changing the way Denver Water will calculatewater rates in the future was adopted at Denver water,s last Board ofcommissioners Meeting. Members of the TAC Group and Dave Hartkopfattended the meeting. Pat Fitzgerald spoke as the representative for the TACGroup. A copy of the memo presented to Denver Water was included in theBoard packet. The first page of the memo gives pat,s comments on thepresentation and Denver water's reaction to the .rr.*o. Even though the TACGroup opposed portions of the new rate model, it was adopted as presJnted.

StepWise Utility Advisors will review all of the changes once we see how thenew model will affect next year's water rates. The next portion of the DenverWater Board meeting was dedicated to a presentation on tieir long term CapitalProjects. In those projects Denver Water is planning to increasJ their capitalspending by 40 million dollars each year for the next two years.

District' s Audit ReportDistrict auditor, Eric Barnes joined the meeting at 7:30 p.m. to present the draft2011 Audit Report- Copies of the draft audit ieport were included in the BoardPacket.

A thorough review of the audit report ensued with discussion and questions fromthe Board which were explained by Eric.

The final audit will be presented for approval atthe July meeting.

Informational Items

Attomey's ChargesAt the May meeting the Board requested Manager Hartkopf review charges forthe TAC agreements handled by the District's uuo*"y. Several factors causedthe previous month's.billing to be high. The bill paia in May was payment forboth March and April billings combined, which resulted in itre higirer amount.Manager Hartkopf reviewed the breakdown of the invoice for the Board.

District's Insurance RatesAs part of this year's budget, the District checked with GCG Financial, the carrierfor the District's health insurance, in order to anticipate projected costs increasesfor2012-2013- A 15% increase has been built into thetudget. The actual costincreases for maintaining the District's current levels of health insurance coveragefor the employees was received and it came in under the cost projections. Theactual cost increase for this year will be ll3%.

Minutes of the Board of Directors ofThe Green Mountain Water and Sanitation DistrictJwte 12,2012

SDA ConferenceThe Special District Association Conference will be held in Keystone,September 19-21. Manager Hartkopf asked the Board to confirm theirattendance as soon as possible in order for reservations to be made.

BOARD MEMBER COMMENTS

CO, onplanned

o Education Handout. Director Malone asked if the District utilized theColorado Special District's Property and Liability Pool system to trackemployee education and training. Manager Hartkopf has taken someonline classes but no other employee has utilized the online classes at thistime. Information about the online training program will be passed on tothe employees.

o EPA Requirements Update. Director Beck asked Manager Hartkopf toupdate the Board regarding the EPA requirements, and to continue doingso at each meeting until the matter is resolved.

o Auditor Comments: Questions for the Auditor were clarified in the DraftAudit Report review.

o Director Mulay attended the SDA training session and reported that anytime a quorum of board members convened, it was rr.""r.*y to be posted.The Board advised that this procedure is being followed.

o Director Mulay also reported the SDA addressed Email communicationsand that such communications should be considered carefully.

ADJOURNMENT

There being no further business to come before the BoardDirector Malone, second by Director Kroneberger, andmeeting was adjourned at 8:20 p.m.

and upon motion byunanimous vote, the

'L-.--Thomas R. Malone, Treasurer

Minutes of the Board of Directors ofThe Green Mountain Water and Sanitation DistrictJune 12,2012

,1. ,l jl /( 'rrtf,,l lfi (^ -i*.-t

Assistant Secretary/Treasurer