Wednesday, November 14th, 2018

The November meeting was held at the Firehouse. In attendance were Trustees John Ott, Harvey Paparo, and Tim Vogel. Trustees Steve Whitelande and Peter Voorhees were unable to attend. Also present was Manager Keith Edquist. Kim Clinco of Rocky Mountain Accounting Services was unable to attend.

Meeting topics: financial reports and delinquent accounts, discussion of water tap regulation document and fees, water system report on continuing leaks and expenses from Harris email, Environmental Process Control contract update, pond signage, weed control, playground staining, D and O insurance updates, snow removal vendor engaged, updated reserve study/first draft and review, update regarding covenant changes.

Approval of Minutes

The Board approved the minutes of the October 10th, 2018 meeting without changes. These will be posted to the web site.

Public Comment

Trustee Vogel commented on removal by Pitkin County of a screening shrub adjacent to the intersection of Alexander Avenue and East Sopris Creek Road, which exposed more of his home to passing traffic. Pitco addressed this intersection and views therefrom after LEC management contacted the county about possible dangers as reported by another LEC owner. The clearing work was done without prior contact to management or owners.

Financials

Kim Clinco of Rocky Mountain Accounting was unable to attend, but provided financial reports as of the end of October, and an aging report as of 11/14/18. The balance sheet showed an operating fund balance of $40,032 and a reserve balance of $581,673. The aging report showed $1691 in assessments over 61 days past due. This owner has been sent a Notice of Default letter, and indicated to management that a partial payment could be made in December. Unless paid in full, the next step is to send the Notice of Intent to Lien letter.

It was noted that signers on the operating account now include John Ott, Steve Whitelande, and Tim Vogel. Management was asked to look into the possibility of accepting credit cards in payment of assessments. Keith will discuss this and other payment options with Rocky Mountain Accounting Services, Kim Clinco.

Water system report-Dan Harris sent the Trustees an email prior to the meeting, saying he believes there is now a continuous leak or leaks on the system. His report addressed these, saying daily use is close to 40,000 per day. He believed he has located a possible leak, but hopes to get daily usage down into the 15,000 gallon per day range. At this time he was uncertain if this could be done. He said he has spoken with others to assist with leak detection and will be bringing those into the search. He also mentioned a new LEC owner who has expressed interest in the system and offered Dan his help.

Dan has spent more time this year chasing leaks on the system than ever before, and has begun to believe this is a full time job. He urged the Board to consider compensation for time spent beyond the normal water system work of checking daily use; maintaining records of use; leak detection; leak repair; main location for whatever purpose, exercising water main and hydrant valves; checking curb stops; checking on the storage tank, winter heat system in the storage tank; and other work someone really should be doing. Dan said he would have a written job description ready for the Board’s next meeting.

He felt also that he or others should be compensated for assisting with either curb stop repairs or installations, and new water service taps, such expense to be borne by the owners benefitting from this assistance. Trustee Vogel made such a motion, (specifying that the "agent" of the HOA will be paid by the applicant requesting a new water tap or replacement/repair of a curb stop, or other modification affecting the water system), which was seconded and passed without dissent. Doing these things correctly is critical to the system’s health and cannot go wrong without potentially serious consequences.

After, and related to, this report, the Trustees determined to charge owner Kessler $1500 for the new tap fee to be made on his residence. This is in accord with the present fee structure and documentation/association history. The tap fee regulations will be reviewed and amended to address situations such as that at the Kessler home where an existing 1 inch line is to be plugged and a new 2 inch water line installed in a new saddle tap on the water main.

Dan’s report said also that continuing drought conditions such as last summer’s will make the need for installation of water meters on the LEC system mandatory at some point in the future. He feels this needs to be addressed by LEC in advance, rather than as an unanticipated emergency expense for owners.

Management recommended clarifying and recording in easily findable forms this and any other regulations regarding roads, road cuts, and the water system taps/meters/fees/oversight, including any fines for use of potable water on landscaping. He said a format exists in the amendable Responsible Governance Policies for Little Elk.

In relation to the need for water metering and prior discussions regarding the system water storage tank and its location and access, the Board will begin consideration of a new location for a supplemental storage tank. This is partly due the coming need to drain and recoat the water tank interior sometime in the next several years.

Updates

Edquist reported that a fall application for weed control of Canadian thistle was done on the open space this fall. Pond signage and posts are in the pumphouse, but frozen ground will prevent installation until the coming spring. He said the playground equipment needed staining, that D and O insurance was in place with Traveler’s, and that Daly Property Services had been engaged for winter snow removal.

New Business

Management reported that Association Reserves had completed the update to the 2015 Reserve Study, and that he would be forwarding this to the Trustees for review. He said LEC has until December 9thto make any necessary revisions and/or corrections to the study. The initial revision will also be sent to Dan Harris, and former bookkeeper Bruce Anderson for their comments. In connection with the study and its level of funding, the Trustees again broached the subject of a ‘road impact" fee to be charged –for instance- in relation to new home construction or renovations involving heavy truck traffic. This would offset to a degree the need to fund road maintenance (chip seal or asphalt mill and overlay) entirely from owner assessments.

Unfinished Business

There was brief discussion in regard to the Covenant Committee and the state of the proposed changes. Management offered to review the existing efforts and see what might need to be done to forward the process.

Next meeting

The December meeting will be held the second Wednesday of the month, unless it is determined prior that such meeting will not be necessary.

There being no further business to come before the Board, the meeting was adjourned at 8:25 pm.