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1990-13073-Minutes for Meeting April 18,1990 Recorded 5/10/1990A. 101 0074 90-130'73 MINUTES SEVENTH MOUNTAIN COUNTY SERVICE DISTRICT BUDgE-T.gOMM1,ME April 18, 1990 F 'f,A Chair Throop called the meeting to order. Budget committee members in attendance were Dick Maudlin, Tom Throop and Lois Bristow Prante. Also present was Larry Rice, Budget Officer. 1. ELECTION OF CHAIR OF BUDGET COMMITTEE MAUDLIN: I move that Commissioner Throop be chairman of this committee. THROOP: I'll second. VOTE: PRANTE: YES THROOP: YES MAUDLIN: YES 2. BUDGET MESSAGE Larry Rice said there had been concerns raised by the owners' association about the budget. He said there were two parts to the budget, the debt retirement for the bonds and the operating budget for the maintenance and operation of the plant and the collection system. He said the expenditures included about a 5% cost-of-living adjustment for the Environmental Training Consultants. He proposed a $15,000 capital expenditure for a new pump for the lift station for unit #6. He said they had increased the fees to the consultant to $5,000 to enable specification design and other services during the installation of the lift station pump. There was two years to go on the bonds, and there was a good cash balance. He said another complication coming up was there would be a new interceptor constructed by the developers who are being required by the County to provide a connection to that interceptor which was primarily a four screen connection to the City of Bend sewage treatment facilities. They were not being asked to build any of the line beyond what was needed for the Inn and the Homeowners Association. He said the Owners Association sent him a letter saying they objected to the proposal for a $15,000 pump station. He sent a letter back saying he was still proposing it for the Board's consideration because Unit #6 had had several back up problems over the last several years between the collector system and unit, a couple of which had resulted in substantial damage to the unit. He said the lift station had a three year history of going out of service which required the operator to come out. This was because the pump was not designed to handle foreign material and clogged up very quickly. He said the new PAGE 1 MINUTES: 4-18-90 MfC-OF(LMED AMP 101 r 0075 pump was designed to handle that problem. Also he said there was no back up system on the pump so the district was open to liability for any failure of the pump and any damage to the units as a result of the back up. Because of safety factors, the operator's assistant had refused to go down and lift the pump out and clean it on weekends. He said the lift station would still be required even when the Inn and the Association connected with new force main in the future. He said it was a large assessment that would have to be picked up by the owners. He said the district had no insurance to protect against liabilities of any kind. County Counsel suggested to him that the budget be modified to include about $2,500 for liability insurance which could come out of reserves and contingencies. Volney Sigmond, Chairman of Board of Directors for the Inn of the 7th Mountain Association of Unit Owners, agreed that there had been a history of problems with that particular unit. He said the Mr. Rice's statements about the service district's liability for problems with the system, were denied several weeks ago when there was a problem. He said they had worked with Ken Johnson a number of years before the County took over the service district. He didn't deny there was a serious problem but felt that what they've done with the line would preclude a large expenditure. The monitoring system had worked. He asked Ken if there had been any problems with the line since they put the second clean out in four week ago. Ken Johnson testified as the representative fore Environmental Training Consultants, who contracted through the County to operate the waste water plant and collection system for the 7th Mountain County Service District. He said there hadn't been any trouble since the second clean out was put in about a month ago. He said he cleaned the screen and checked the amperage on the pump weekly which has eliminated the problems, however, it was a safety hazard and he didn't feel he should be doing it. He felt the solution to the problem was to install the appropriate pump that would handle the materials coming through the line. Larry Rice said if the new pump were approved, the work would be started in July and finished in September. Mr. Sigmond said they were in the process of doing a complete overhaul of their heating and cooling system which might cross lines with this system. He said they would be foolish to install a large pump and then, because of where the other lines where going, they might have to tear it out. He would like to see if what has already been done would work before purchasing the pump. He said they would know where the new lines would run by the end of April. He wanted to know who the design engineer on the project was. Rick Isham said PAGE 2 MINUTES: 4-18-90 w ~ 101 - 00 l6 Century West Engineer was not the design engineer. Commissioner Throop suggested tabling the budget approval until the parties had a chance to meet and resolve their issues. The parties agreed to meet at 1 p.m. on Tuesday, April 24, 1990. DESCHUTES COUNTY BOARD OF COMMISSIONERS yThrozoib, tow Prante Commissioner Chair Dick Maudlin, Commissioner BOCC:alb PAGE 3 MINUTES: 4-18-90