MINUTES OF THE REGULAR MEETING OF THE BOA OF DIRECTORS OF THE WIDEFIELD WATER AND SANITATION DISTRICT Held: Tuesday, July 19, 2016, at 1:00 p.m. at 37 Widefield Boulevard, in Colorado Springs, Colorado. Attendance Directors in Attendance Were: Frank Watson, Asst. Secretary Brian Huth, Secretary / Treasurer Mark Dunsmoor, Vice President Directors Absent (Excused): Mark Watson, President Marlene Buttle Also in Attendance: Steve Wilson, District Manager Lucas Hale, Finance Manager Brandon Bernard, Water Manager Joe Norris, Collins Cockrel & Cole, P.C. Jean Smith, resident of the District. Call to Order Notice Disclosure Matters Vice President Dunsmoor noted that a quorum of the Board was present and that the Directors had confirmed their continuing qualification to serve, and therefore called the regular meeting of the Board of Directors of the Widefield Water and Sanitation District to order at 1:08 p.m. Steve Wilson stated that notice of the meeting had been properly posted as required by law. The notice also included the agenda items. Certification of such posting is attached hereto. Joe Norris reported that general conflict of interest statements had been received from all directors and previously filed with the Secretary of State at least 72 hours in advance of the meeting. Copies of the statements are on file with and available online from the Colorado Secretary of State. (00521800.DOCX/ 3 } PAGE 1
Approval of The Board reviewed the Minutes of the June 21, 2016 regular meeting. Minutes Upon motion duly made, seconded and unanimously carried, the Minutes of such meeting were approved as presented. Financial Report Mr. Hale reviewed with the Board the District's draft financial report for the period ending May 31, 2016. Mr. Hale reported that 38 water and sewer tap fees were issued in May. Currently, only 1 new tap fee issued in July, likely due to the publicity of the PFC issue. There was a water increase due to summer usage and corresponding revenue increase. Director Dunsmoor asked about the cost of the District's annual audit. Mr. Wilson informed the Board that it cost approximately $13,000. Following further discussion and review, and upon motion duly made, seconded and unanimously carried, the Board accepted the financial reports as presented. Executive Session Rules and Regulations Upon motion duly made, seconded and unanimously carried, the Board entered into Executive Session at 1:19 p.m. pursuant to 24-6-402(4)(b), C.R.S. for the purpose of consulting or receiving advice from the District's attorney on specific legal questions regarding the terms of the District's proposed 2016 Bond issuance. At 1:45 p.m., the Board came out of executive session. No action was taken by the Board during executive session. Director Frank Watson moved that the Rules and Regulations be modified to require approval of the Citizen's Advisory Council prior to issuance of tax-exempt multiple fiscal year debt. Upon said motion duly made, seconded, and unanimously carried by those Board Members present, the Board approved the addition of the following language in the District's Rules and Regulations: When the District was formed in 1996, a Citizens Advisory Council was created which is comprised of citizens living in the District's service area who are appointed by the El Paso County Commissioners. The Citizens Advisory Council is not governed or directed by the District's Board of Directors. Due to recent pronouncements by the Internal Revenue Service, the Citizens Advisory Council's role is being expanded to require that approval by a majority of the members of each of the District Board of Directors and of the Citizens Advisory Council shall be required prior to the District's issuance of tax-exempt multiple-fiscal year debt. If the Citizens Advisory Council does not approve the issuance of such tax-exempt debt, the District may nevertheless issue taxable debt approved by a majority of the District's Board. PAGE 2
District Water Issues - H2O Ranch Update Mr. Wilson informed the Board that the District is now on the title as an equal partner with Fountain Valley Authority ("FVA"). - PFC Update Mr. Wilson discussed the PFC Treatment Planning and Preliminary Estimates with the Board, prepared by Mario DiPasquale. A proposed connection to the FVA system would allow additional introduction of additional PFC free water into the west-end of the system. The connection is estimated to cost $1,000,000; this cost is proposed to be shared between the District, and Security Water and Sanitation District, with the possibility of reimbursement from the Army Corps. Mr. Wilson has already held a meeting with FVA to address this as a group and the idea is to tap into pipe on the west side of 1-25. Another meeting will be held on July 20, 2016 to discuss and make decisions. The Army Corps is being asked to pay for this cost and they have been very receptive to this idea. The goal for the District is to pay for all PFC treatment options from tap fees and only have rate increases for extra testing and maintenance in the future. Director Dunsmoore: What is the timeline? Mr. Wilson: October to have granular activated carbon ("GAC") installed, 90-100 days to connect FVA pipeline. JDS Hydro will coordinate installation of smaller manifolds by the end of the year. The goal is to have PFC free water by summer of 2017. Director Dunsmoore: When are the District's wells typically turned off? Mr. Wilson: Responded that wells are needed for increased summer demands and are typically turned off by the end of October. Director Huth: Question about partnering to share costs with local builders. Mr. Wilson: Reported that they will explore this concept. Mr. Wilson also reported that he has contacted the Association of Realtors and they confirmed the ability to include "PFC Free" in the MLS listings for homes in areas of the District not receiving well water. PAGE 3
District Manager's Mr. Wilson informed the Board that Colorado Spring Utilities prepared Report and provided Mr. McGinn with cost estimates to connect to their line and - Monthly Report: to receive our sludge and their pricing was more than double what it currently cost WWSD, so it is not a feasible option. - Employee Human Resources have conducted a review of and suggested revisions Handbook to the District's Employee Handbook. Mr. Wilson along with legal counsel reviewed and also recommend approval of the proposed revisions. Following discussion and review of the Resolution Authorizing Amended and Employee Handbook (July 2016), and upon motion duly made, seconded and unanimously carried, the Board approved the Employee Handbook as amended. - Other: Mr. Wilson informed the Board that the new administration building is moving along, dirt is moving and the first concrete pouring is set for this week. Engineer's Report Mr. McGinn informed the Board that administration building has started and one issue has arisen with respect to the property lines. Two surveying section corners exist which create ambiguity as to the ownership of a roughly twenty-foot strip of property on the western edge of the District's parcel. Mr. McGinn suggested a solution to have the adjacent lot owner quitclaim or execute a boundary agreement disavowing any interest in the strip of land. The District would compensate the adjacent landowner per square footage (based on the amount paid by the District for its parcel) amounting to approximately $5,300, and the District would achieve clear/unclouded title to the property in question. Following further discussion, and upon motion duly made, seconded and unanimously carried, the Board authorized Mr. McGinn and Mr. Norris to move forward with negotiating and executing an agreement with the adjacent landowners to clear title to the strip of land in question. - Other Mr. McGinn reported that the west to east water line expansion is progressing. All Marksheffel crossings are completed. And had to move one well location but are getting better the expected yield at the new location. PAGE 4
R CORD OF PROCEEDINGS Attorney's Report Mr. Norris discussed that the 45-Day Notice was published, noticed and now the District is waiting for comments from County but have not heard from them and do not expect any at this point. Public Comment Jean Smith: Where will the treatment plant be located? Mr. Wilson: A vacant parcel next to the railroad tracks and just east of 85 is the proposed location. Other Business None. Adjournment There being no further business to come before the Board, and upon motion duly made, seconded and unanimously carried, the meeting was adjourned at approximately 2:49 p.m. I.4 / Secretary for the eeti ng Attorney Statement REGARDING PRIVILEGED ATTORNEY-CLIENT COMMUNICATION Pursuant to Section 24-6-402(2)(d.5)(II)(B), C.R.S., I attest that, in my capacity as the attorney representing the Widefield Water and Sanitation District, I attended the executive session meeting of the Widefield Water and Sanitation District convened at approximately 1:19 p.m. on June 21, 2016 for the sole purpose of receiving advice from the District's attorney on specific legal questions regarding the terms of the District's proposed 2016 Bond issuance. I further attest it is my opinion that all of the executive session discussion constituted a privileged attorney-client communication as provided by Section 24-6-402(4)(b), C.R.S. and, based on that opinion, no further record, written or electronic, was kept or required to be kept pursuant to Section 24-6-402(2)(d.5)(II)(B), C.R.S. The Board did not adopt any proposed policy, position, rule, regulation, or take any formal action during the executive session. Dated: 004 PAGE 5