Sunscape Board of Directors
Notes from Special Meeting [Sewer Issue]

Tuesday, October 17th, 2006 at 9:00 am
In the Community Center

Item 1 - We will discuss what our situation is regarding the sewer plant and to get input from members regarding solutions. Will also say additional items may be added at a later date.

Board Members present: Gene Curry, Don Hansen, Mary Anne Brunner, Mel Glaze, Herb Gansky, and Billie Hering. Absent: Gene Wallace

Also present: Harriet Deutchman, Sunscape Manager and Lisa Farrington, Waste Water Management Engineer from Farrington Engineers, Inc.

First, let me say that the recorder was not working during the meeting so I do not have an accurate record of the proceedings. I will do my best to reconstruct the major issues discussed.

Harriet began by giving us a brief account of the recent history of our dealings with the wastewater treatment plant.

3-31-06 - Contacted by Christopher Tychowski and told plant was out of compliance and would have to be cleaned. Approximate cost to Sunscape would be $30,000.
4-14-06 - Cleanup of plant completed. Our cost reduced to $5,000 which we paid along with requesting written documentation for causes and costs of cleanup. Mr. Tychowski continued to be in contact with us until June giving us verbal information about the plant and about how to keep our wastewater clean.
7-7-06 - First meeting with Mr. Eloy Cota and Rich Sauppe. Mr. Cota informed Harriet that our rates will be increased as of August 2006 to $25.00 per month per space and $100.00 for community baths and laundry. We would no longer be allowed to empty our septic tanks or backflush our pool into the sewer. At a later meeting, Mr. Cota (who said he represented a group of investors) allowed us to defer the increase until September 2006.
August 2006 - Harriet began contacting engineers so we could find what, if any, choices we had regarding wastewater disposal. We subsequently hired Lisa Farrington.
September 2006 - We paid our first $9300.00 bill on the advice of our lawyer.
9-28-06 - From the information that Lisa learned about the plant we sent a letter to the Sunscape Estates Wastewater Association requesting the following information:

1. Letter of agreement stating the responsibility of all parties regarding the wastewater treatment
facility and its operation.
2. Letter or notice from Arizona Department of Environmental Quality stating the compliance
schedule for the plant.
3. Justification for the rate increase.
4. Sampling data from the influent and effluent of the wastewater treatment plant, including
separate sampling from the RV Resort wastewater to verify wastewater characteristics.

We understand that the plant has difficulty meeting the nitrogen limits, and therefore that may trigger the need for upgrade, or in our opinion, a revised operations strategy. We also understand that while the RV Resort may in part be implicated in conveying some increased nitrogen loading to the plant, there is no data to justify this claim.

Please be advised that to simply "shut off" the sewer from the RV Resort is a direct violation of the Aquifer Protection Permit (No. 100077) since the design report and other information clearly state that the wastewater treatment plant will be treating the wastewater discharge from Sunscape RV Park. It also states that (in section 2.6.5) the plant cannot cause a condition that could pose an imminent and substantial endangerment to public health or the environment It certainly makes more sense for all parties to reach an agreement regarding the costs of operation for the plant.

We also understand that you may be interested in getting out of the wastewater business and are curious as to the price you would ask to transfer ownership in the wastewater treatment plant.

We sent the Wastewater Association the $2,228.00 and opened an escrow account at Bank of America and deposited the excess charges ($7,072.00) and will continue to do so until we receive the information we asked for.

Lisa then told us that the plant had been operating for a long time without a permit but now has a permit. Excess nitrogen was removed in April to bring the system into compliance. The owner of record is B&I Enterprises out of Chicago (does not mean the plant has not been sold - just that sale has not been recorded) and has operated on a nonprofit status for the past three years.

We then had many questions, comments, and suggestions from the large membership in attendance. I will mention the highlights and what I remember here.

Pat Steele cleared up the rumor that Sunscape Board was approached to purchase the plant. Mr. Unger never gave the board that option - he stated that he would not sell it to us because we wouldn't want it.

Don Webber stated that Northview Estates rates were increased from $10.00/month to $30.00/month.

When asked about building our own plant, Lisa said we could possibly buy a used above the ground unit for about $500,000.00 plus permit costs. But we would have to have a place to install it and get State permission for it. We also may be able to purchase the existing plant.

Many people wondered why we hadn't heard anything since we sent the letter requesting information. We will send another request immediately by certified mail. We will also try to contact the former owners and current owners and see if we can get any information from them.

Everyone seemed to agree that the escrow account was a very good idea and to continue depositing excess charges into it until a written agreement can be obtained.

As we needed more information before we could further proceed with this matter, the meeting was adjourned about 11:30 am.

Respectfully submitted,

Billie Hering, Secretary