Upper Thompson Sanitation District
Regular Meeting of the Board of Directors
District Administrative Conference Room
Pursuant to C.R.S., §32-1-903, notice is hereby given to the members of the Upper Thompson Sanitation District Board of Directors and to the general public that the Board will hold its regular meeting, which is open to the public, at 4:00 p.m. on Tuesday, April 16, 2024, at the Upper Thompson Sanitation District Administrative Office, 2196 Mall Road, Estes Park, CO, 80517. Individuals who wish to address the Board via public participation may do so “in-person,” via telephone, or virtually through online participation, facilitated by the Microsoft Teams platform. Members of the public wishing to join the meeting via online or telephone participation, please email a request for the meeting link or telephone number to Ms. Gina Moore, Secretary to the Board, at gina@utsd.org by 2:00 p.m. on April 16, 2024.
Agenda
- Call to Order.
- Pledge of Allegiance.
- Roll Call, Absences Excused.
- Next Meeting Date: Regular Board Meeting, Tuesday, May 21, 2024.
- Agenda: Correction and Approval.
- Disclosure of Potential Conflicts of Interest.
- Public Forum: An opportunity for presentation by the public to provide information to the Board of Directors on any non-agenda item. Note: The Board cannot take any action on non-agenda items but may direct staff to include the item on a future agenda.
Public Comment on Agenda Items: Public comments will be heard by the Board at the conclusion of the presentation of the agenda item. Persons addressing the Board shall first be recognized by the District Manager or Board Chairman and may speak only one time per agenda item. Speakers shall state their name and address for the official minutes, address comments to the Board as a Body, and shall be allotted three (3) minutes for public comment. All public commentary must be made at the podium or offered virtually via Teams Chat. - Minutes: Correction and Approval: Regular Board Meeting, March 19, 2024.
- New Business and Special Orders:
- Cybersecurity Review – presented by Mr. Tom Miller, President, Istonish.
- Review of the Loan Agreement Between Colorado Water Resources and Power Development
Authority and Upper Thompson Sanitation District, Dated As of May 1, 2024 – presented by Ms. Kim Crawford, Attorney, Butler Snow, LLP. - Consideration for Adoption: Resolution No. 2024-04-01 – A Resolution Approving a Loan from the Colorado Water Resources and Power Development Authority (CWRPDA) in the Aggregate Principal Amount not to Exceed $20,000,000, Authorizing the Form and Execution of the Loan Agreement and Governmental Agency Bond to Evidence Such Loan, Authorizing the Construction of the Project and Prescribing Other Details in Connection Therewith – presented by Ms. Kim Crawford, Attorney, Butler Snow, LLP.
- Update: Phase II - Design of the Water Reclamation Facility (WRF) and Lift Station Improvements Project – presented by Mr. Ravel, P.E., Water/Wastewater Project Manager, Merrick & Company.
- Request for Approval: WRF and Lift Station Improvements Project, Garney Construction, CMAR Invoice 6450-006, Dated March 31, 2024 – presented by Ms. Moore.
- Reports of Officers, Committees, and Staff: Questions, Comments, Correction and Approval:
- Treasurer’s Report.
- Plant Report.
- System Development Fee Allocation and Connection Report.
- Collection System Report.
- Operations Manager’s Report.
- Assistant District Manager’s Report.
- District Manager’s Report.
- Adjournment.
Upper Thompson Sanitation District (District) prohibits discrimination against its customers, employees, and applicants for employment on the basis of race (including traits historically associated with race, such as hair texture and length, protective hairstyles), color, ethnic or national origin, ancestry, age, disability, sex, gender, sexual orientation, gender identity and expression, religion, creed, political beliefs, marital status, familial or parental status in employment or in any program or activity conducted by the District. The District will make reasonable accommodations for qualified individuals with known disabilities. If any person has a disability and requires a reasonable accommodation to fully participate in this event, please contact District Manager, Mr. Chris Bieker, three days before the event via email at chris@utsd.org, or telephone at 970.586.4544, or dial 711 to connect with Relay Colorado.
Record of Proceedings
Minutes Of A Regular Meeting Of The Board of Directors Of
Upper Thompson Sanitation District
Held: April 16, 2024, at 4:00 p.m., at the
District Office, 2196 Mall Road, Estes Park, Colorado
Call to Order
A regular meeting of the Board of Directors of the Upper Thompson Sanitation District, Estes Park, Colorado, was called to order at 4:00 p.m. and held as shown above and in accordance with the applicable statutes of the State of Colorado with the following Directors present and acting:
Pledge of Allegiance
The Pledge of Allegiance was recited.
Attendance
Board of Directors:
Christopher Eshelman, Chairman
Susan Doylen, Vice-Chairman/Secretary
Stanley Gengler, Treasurer
Jack Reed, Assistant Treasurer/Secretary
Kent Bosch, Assistant Treasurer/Secretary (joined via web conference call)
Staff:
Chris Bieker, District Manager
Suzanne Jurgens, Assistant District Manager
Gina Moore, Financial Officer
Matt Allen, Operations Manager
Nathanael Romig, Collection Superintendent
Henry Newhouse, Plant Superintendent
Guests:
Tom Miller, President, lstonish Uoined via web conference call)
Amanda Daskam, Account Executive, lstonish (joined via web conference call)
Kim Crawford, Attorney, Butler Snow LLP (joined via web conference call)
Jason Simmons, Senior Managing Director/Regional Head of Investment Banking, Hilltop Securities (joined via web conference call)
Steve Ravel, P.E., Water/Wastewater Project Manager, Merrick & Company
John Kuosman, Water/Wastewater Division Leader, Merrick & Company (joined via web conference call)
Next Meeting Date
A regular meeting of the Board of Directors will be held on May 21, 2024, at 4:00 p.m
Approval of Agenda
The Board considered the Agenda.
It was moved by Ms. Doylen and seconded by Mr. Gengler to approve the Agenda as presented. Motion carried unanimously.
Disclosure of Potential Conflicts of Interest
Disclosure of potential conflicts of interest is a topic of discussion at every Board meeting to address potential conflicts of interest that may arise as new agenda items are introduced. District Directors who have disclosed potential conflicts of interest can vote as issues arise.
Public Forum
Mr. Eshelman opened the meeting for public comment.
Mr. Eshelman explained the Public Forum is an opportunity for presentation by the public to provide information to the Board of Directors on any non-agenda item. He further explained the Board cannot take action on non-agenda items but may direct staff to include the item on a future agenda.
Regarding public comment on Agenda Items, Mr. Eshelman provided the following statement:
Public comments will be heard by the Board at the conclusion of the presentation of the agenda item. Persons addressing the Board shall first be recognized by the District Manager or Board Chairman and may speak only one time per agenda item. Speakers shall stand at the podium, state their name and address for the official minutes, address comments to the Board as a Body, and shall be allotted three (3) minutes for public comment.
One member of the public joined the meeting.
In attendance was Ms. Rebecca Urquhart, of 1955 Homestead Lane, Estes Park. Ms. Urquhart indicated she was observing the meeting on behalf of the League of Women Voters. Ms. Urquhart did not offer comment on a non-agenda item.
Approve Minutes from Prior Meetings
The Board reviewed and discussed the Minutes of the March 19, 2024, Regular Board Meeting.
It was moved by Ms. Doylen and seconded by Mr. Reed to approve the Minutes of the March 19, 2024, Regular Board Meeting as presented. Motion carried unanimously.
New Business and Special Orders
Cybersecurity Review - presented by Mr. Tom Miller, President, lstonish:
Mr. Tom Miller, President of lstonish (the District's information technology (IT) Managed Service Provider), presented a cybersecurity review to the Board including characteristics and impact of IT enterprise maturity, current exposure to personally identifiable information (PII), and recommended next steps for both lstonish and the District.
Mr. Miller defined IT enterprise maturity as the level of sophistication, effectiveness, and integration of information technology systems, processes, and practices within an organization. Mr. Miller stated enterprise maturity encompasses strategic alignment with business objectives, robust infrastructure, effective processes and governance, skilled workforce, innovation, and adaptability. Mr. Miller summarized the characteristics of five enterprise maturity levels: initial, managed, defined, quantitatively managed, and optimizing. Mr. Miller explained that he considers the District to be level two, "managed." This level's processes are characterized by projects and are often reactive. Mr. Miller stated the District meets cybersecurity requirements identified from the previous IT provider and the overlay is managed through lstonish; however, the next step is to evolve the District to implement cybersecurity processes designed by lstonish to align with the District's business goals and budget.
Mr. Miller stated that mature IT enterprises demonstrate cybersecurity resilience, data-driven decision making, stakeholder collaboration, and readiness to leverage technology strategically for operational advantage. Enterprise maturity reflects the organization's capability to effectively manage and leverage technology to achieve organizational goals in a dynamic digital environment.
Mr. Miller then detailed for the Board the impacts of enterprise maturity including enhanced organizational productivity and improved cybersecurity. Up-to-date hardware and software, modern IT tools, and access to latest features and capabilities increase organizational productivity and foster collaboration and faster project completion. Mr. Miller explained that cybersecurity is improved with mature IT practices due to reduced cyber incidents, by 60%, and decreased successful cyber-attacks, by 70%. Mature cybersecurity allows for faster detection and response times to cyber threats and organizations recover from cyber-attacks three times faster than organizations with less mature IT practices. Mr. Miller reported that advanced security technologies reduce the average cost of a data breach by $1.5 million.
Mr. Miller explained to the Board that the District's current exposure to personally identifiable information is robust data encryption protocols implemented to safeguard sensitive information. Regarding the District's personally identifiable information, Mr. Miller indicated, although not urgent, the aspect needing the most attention is the network gear.
Mr. Miller identified next steps to be taken over the next twelve months by lstonish regarding the District's cybersecurity practices. These next steps include:
- Refreshing network gear for maintaining a secure, efficient, and reliable network infrastructure.
- Establishing an Incident Response Plan to outline procedures for detecting, responding to, and recovering from security incidents.
- Educating employees on cybersecurity best practices such as recognizing phishing emails, creating strong passwords, and avoiding suspicious links or attachments.
- Continuing to educate stakeholders via monthly cyber security training about cybersecurity risks and the importance of adhering to security policies and procedures.
- Providing continuous improvement of communication with stakeholders so upcoming changes are less impactful on day-to-day operations.
- Implementing knowledge base articles specific to the District's tools and requests.
- Providing quicker service desk responses.
In conclusion of his presentation, Mr. Miller detailed the following NetDiligence Quiet Audit Recommendations for the District to implement and or enforce:
- Password changes and non-reuse requirement as part of the existing access control functions and consideration of implementing a basic vulnerability scanning regimen within the near-term, along with timely consideration of a suggestion relating to network segregation between the District business and plant network segments.
- A form of network perimeter intrusion detection/prevention system (IDS/IPS) capability.
- A formal vendor security management program and data privacy program.
- A formal incident response plan (IRP) program document that incorporates all District operations, contemplated exposure risks, and role-based remediation tasks.
Mr. Miller commented that the engagement and communication from the District to lstonish is helpful in moving next steps forward. Mr. Miller emphasized the District is an important customer to lstonish and thanked the District for their continued business.
Mr. Miller answered questions of the Board regarding the security impacts of the plant SCADA system on the network, phishing educational programs for District staff, and frequency of password changes.
The Board thanked Mr. Miller for his presentation.
Mr. Miller and Ms. Daskam excused themselves from the remainder of the meeting at 4:23 p.m.
New Business and Special Orders
Review of the Loan Agreement Between Colorado Water Resources and Power Development Authority and Upper Thompson Sanitation District, Dated As of May 1, 2024 - presented by Ms. Kim Crawford, Attorney, Butler Snow, LLP:
Ms. Crawford presented to the Board the Loan Agreement (Agreement) between Colorado Water Resources and Power Development Authority (CWRPDA) and Upper Thompson Sanitation District, dated as of May 1, 2024. Ms. Crawford reviewed the following provisions detailed in the Articles of the Loan Agreement: Definitions, representations and covenants, loan amount payable, disbursement of loan proceeds, general agreements, and defaults and remedies. Ms. Crawford presented Exhibits of the Loan Agreement including security description, loan description, loan repayment schedule, governmental agency bond, opinion of governmental agency counsel from District legal counsel CEGR Law and District bond counsel Butler Snow, and additional covenants, requirements, and tax compliance.
Ms. Crawford highlighted that CWRPDA is issuing a tax-exempt bond to fund the loan amount of $18 Million for the District's construction of a new wastewater treatment facility (Project) for a term of thirty years. The closing date of the loan is scheduled for May 23, 2024.
Ms. Crawford stated that the Authorized Officers identified in the Agreement are the Chairman of the Board - Mr. Eshelman, District Manager - Mr. Bieker, and Assistant District Manager - Ms. Jurgens. These Authorized Officers may execute any document related to the loan.
Ms. Crawford said the District is responsible to pledge net revenue, the gross revenue after deduction of operations and maintenance expenses, to pay the loan.
Ms. Crawford reported to the Board that CWRPDA is exempting the District from the additional bond test.
Ms. Crawford commented that Ms. Linda Glesne of CEGR Law has also reviewed the provisions of the Agreement. She stated both she and Ms. Glesne have performed due diligence in assuring the District is able to enter into the Agreement and has power and authority to execute the Agreement and issue a Governmental Agency Bond. Ms. Crawford described the Governmental Agency Bond as the District's pledge to repay the loan.
Ms. Crawford then explained that CWRPDA reasonably expects the District to expend 85% of the Loan proceeds within three years from the date of delivery of the initial series of the bond and that work on the construction of the Project will proceed with due diligence to completion. The District is also required to expend at least 5% of the loan proceeds within six months from the date of the loan closing. Project construction, initiated by the District, must commence within 12 months after the loan closing.
For the plan of operation for the new facility, Ms. Crawford informed the Board that the District must submit to CWRPDA a draft operation and maintenance manual prior to 50 percent completion of Project construction. The final manual must be submitted prior to 90 percent of the Project being constructed.
Ms. Crawford highlighted additional items outlined in the Agreement such as federal compliance requirements, tax compliance, and disbursement of loan proceeds. Ms. Crawford elaborated that CWRPDA has a Trustee that will requisition the loan funds, once the District incurs Project expenses the Trustee will reimburse the District's submitted expenditures.
Ms. Crawford emphasized that the District needs to reserve 1 /6 and 1 /12 of the annual debt service payment in a holding account for the principal and interest payments that are due semiannually. The District will be required to maintain 110% of the debt service due in each calendar year. In the event the District cannot maintain 110% debt service coverage, service rates must be increased to comply with the Agreement. The District must also maintain an operations and maintenance reserve in an amount equal to three months of operations and maintenance expenses, excluding depreciation, as set forth in the annual budget for the current fiscal year, but in no event greater than $1,250,000. Mr. Eshelman asked Ms. Crawford if the District could have more than $1,250,000 in a reserve fund. Ms. Crawford explained that the $1,250,000 is designated for CWRPDA; however, the District can reserve more if desired.
Ms. Crawford summarized the option to prepay the loan. She explained that prepayments are allowable upon prior written notice; however, if the loan is prepaid in full before the ten-year bond redemption provision, the District will be obligated to pay interest due over the 10-year bond redemption period.
Ms. Crawford answered questions of the Board regarding the administration fee outlined in the Agreement, the option of yielding interest income on the loan amount, and the projected interest rate of the loan. Ms. Crawford clarified that the administration fee is charged annually and equates to 0.8% of the total loan every year. Mr. Simmons added CWRPDA sets the interest rate at 80% of their AAA rated bond and the administration fee is built into this interest rate. Ms. Crawford explained that loan funds will be held with CWRPDA's Trustee and not by the District. Mr. Simmons stated the interest rate on the loan will not be set until closing; however, he estimates it to be approximately 4%.
The Board and Mr. Ravel discussed the operation and maintenance manual requirement detailed in the Agreement. Mr. Ravel indicated that an Environmental Protection Agency manual template is used and will be customized to the District's new facilities.
The Board thanked Ms. Crawford for presenting the Loan Agreement between Colorado Water Resources and Power Development Authority (CWRPDA) and Upper Thompson Sanitation District.
Consideration for Adoption: Resolution No. 2024-04-01 - A Resolution Approving a Loan from the Colorado Water Resources and Power Development Authority (CWRPDA) in the Aggregate Principal Amount not to Exceed $20,000,000, Authorizing the Form and Execution of the Loan Agreement and Governmental Agency Bond to Evidence Such Loan; Authorizing the Construction of the Project; And Prescribing Other Details in Connection Therewith - presented by Ms. Kim Crawford, Attorney, Butler Snow, LLP:
Ms. Crawford presented to the Board Resolution No. 2024-04-01, "A Resolution Approving a Loan from the Colorado Water Resources and Power Development Authority (CWRPDA) in the Aggregate Principal Amount not to Exceed $20,000,000, Authorizing the Form and Execution of the Loan Agreement and Governmental Agency Bond to Evidence Such Loan; Authorizing the Construction of the Project; And Prescribing Other Details in Connection Therewith".
Ms. Crawford stated adopting Resolution No. 2024-04-01 (Resolution) does not require the District to enter into the Loan Agreement (Agreement) between Colorado Water Resources and Power Development Authority (CWRPDA) and Upper Thompson Sanitation District but is the first step to authorize the loan.
Ms. Crawford explained this is a parameter Resolution meaning the aggregate principal amount identified in the Resolution of $20,000,000 is higher than the anticipated loan amount of $18,000,000. She elaborated that, per Colorado state law, the Resolution can be adopted up to a year prior to loan issuance. Approving a higher principal amount prior to closing the loan avoids the necessity of future Board approval of loan proceeds in the event of an excess bond issuance.
Ms. Crawford commented that an election to issue the loan is not required because the District is an "enterprise" (a government owned business) and exempt from limitations imposed by Colorado's Taxpayers Bill of Rights (TABOR). Additionally, the District received less than 10% of annual revenue from Colorado state and local grants in year 2023.
Ms. Crawford highlighted the following loan criteria detailed in the Resolution:
- Interest rate on the loan shall not exceed 5.00%;
- the aggregate principal amount of the loan shall not exceed $20,000,000;
- the maximum annual repayment cost of the loan shall not exceed $1,200,000;
- the total repayment cost of the loan shall not exceed $36,000,000;
- the final maturity of the loan shall not extend beyond December 31, 2056.
Ms. Crawford reiterated the District's representatives, pursuant to the Agreement, are Mr. Eshelman, Mr. Bieker, and Ms. Jurgens, and each are designated as an Authorized Officer for the purpose of performing any act or executing any document relating to the loan, the District, the Bond, or the Agreement.
Mr. Bieker asked Ms. Crawford if job titles could replace the names of the District representatives in the Resolution. Ms. Crawford replied that CWRPDA requests specific names; however, if the District representatives change, then a new Resolution identifying these representatives will need to be adopted by the Board of Directors.
The Board considered the Resolution.
Ms. Doylen commented that adopting this Resolution is a monumental step and opportunity and reflects the District's gravity of commitment in moving the Project forward.
The Board thanked Ms. Crawford for presenting Resolution No. 2024-04-01.
As required in the Resolution, Ms. Doylen conducted and certified an affirmative vote of each Board member; all members voted yes to duly move, second, and adopt Resolution No. 2024-04-01.
It was moved by Ms. Doylen and seconded by Mr. Reed to adopt Resolution No. 2024-04-01, Approving a Loan from the Colorado Water Resources and Power Development Authority (CWRPDA) in the Aggregate Principal Amount not to Exceed $20,000,000, Authorizing the Form and Execution of the Loan Agreement and Governmental Agency Bond to Evidence Such Loan; Authorizing the Construction of the Project; And Prescribing Other Details in Connection Therewith". Motion carried unanimously.
At 5:19 p.m., Ms. Crawford excused herself from the remainder of the meeting.
At 5:23 p.m., Ms. Crawford re-joined the meeting via her mobile phone.
Update: Phase II - Design of the Water Reclamation Facility and Lift Station Improvements Project - presented by Mr. Ravel, PE, Water/Wastewater Project Manager, Merrick & Company:
Regarding the design of the Water Reclamation Facility and Lift Station Improvements Project (Project), Mr. Ravel noted the following updates which occurred after the March 19, 2024, Regular Board Meeting:
- Overall Project:
- Meetings were conducted with the District, the Colorado Water Resources and Power Development Authority (CWRPDA) State Revolving Fund (SRF), the Colorado Department of Public Health and Environment (CDPHE), and the US Environmental Protection Agency (USEPA) Water Infrastructure Finance and Innovation Act (WIFIA) to review project financing and funding.
- Additional information was prepared and submitted to the EPA for the WIFIA loan application.
- The updated environmental assessment (EA) report was submitted to EPA WIFIA and the US Bureau of Reclamation (USBR) for review
- The preconstruction notification (PCN) was prepared for the force main river crossing, wetland area, and outfall construction. The PCN will be submitted to the US Army Corps of Engineers (USACOE) for review and approval.
- The design team is continuing to work towards a 90% submittal with a target submittal date of April 22, 2024.
- A contractor Industry Day is scheduled at the Merrick & Company office in Greenwood Village, Colorado on April 24, 2024, at 10 am. Contractors have been notified via BidNetoirect and direct outreach by team members.
- Fish Creek Lift Station (FCLS), Wapiti Lift Station (WLS), WLS Interceptor, and WLS Force Main:
- The process design report (PDR) and 90% drawings will be submitted to the CDPHE for design review.
- The FCLS, WLS, and WLS Force Main 90% drawings will be submitted to the USBR for approval.
- Water Reclamation Facility (WRF):
- The WRF 90% site plans will be submitted to Larimer County for use with finalizing the site plan approval.
In addition to the Project update provided in the board packet, Mr. Ravel highlighted that a meeting is scheduled for April 17, 2024, with the USBR, to inquire about the review and advertising status of the environmental assessment report. A follow-up meeting with CDPHE is also anticipated to request the status of receiving CDPHE's design review comments for the submitted WRF 90% drawings and process design report. Once the comments are received from CDPHE and design is finalized, the final documents will be submitted for a construction review and approval by CDPHE.
Mr. Bieker then updated the Board about a needed perpetual easement from Andrew and Kelly Kessler/ Kessler Properties LLC allowing a force main to be constructed, operated, and maintained on their property. He further explained the force main will be constructed under the Big Thompson River and across Mall Road. Mr. Bieker said this easement is a critical component of the Project and will facilitate the installation of dual force mains connecting the Wapiti Lift Station to the Water Reclamation Facility. Mr. Bieker commented that this alignment offers the most efficient conveyance of wastewater flow and is the most economical, feasible installation for the District. Mr. Bieker noted that during discussions with the Kesslers, the District was offered the option to purchase the easement property; however, after consultation with District legal counsel, CEGR Law, it was determined that purchasing the easement property was not in the best interest of the District. Obtaining an easement allows the District to maintain the Project schedule and eliminates the cost of subdividing and insuring that parcel of land.
Mr. Bieker reminded the Board of adopted Resolution No. 2022-12-02 "A Resolution Authorizing the District Manager to sign documents and make project management decisions related to the Water Reclamation Facility and Lift Station Improvements Project of up to $100,000 without prior Board approval and further requiring Board action to ratify and approve expenditures". Mr. Bieker stated both parties agree to the easement cost of $13,000. Mr. Bieker relayed to the Board that Ms. Linda Glesne of CEGR Law indicated that an appraisal is not necessary because the easement is critical to the progress of the Project.
Mr. Bieker noted that for internal record purposes, the justification for the District's decision to acquire the easement will be documented.
The Board discussed the proposed easement and asked questions of Mr. Bieker. The Board thanked Mr. Bieker for the update.
Mr. Allen then updated the Board on the Town of Estes Park's request for an easement from the District to install a water main along Mall Road. Mr. Allen reported that the District and Town of Estes Park have had meetings over the past year to share information about each entity's projects. The Town of Estes Park has requested an easement from the District for the water system improvement project along the Mall Road corridor. Mr. Allen stated the District will draft the easement, which will include landscape restoration within the easement. The easement terms would also include language assuring the District would have full use of the easement through the Mall Road corridor.
Mr. Allen, Mr. Bieker, and the Board discussed accessibility to the District's facilities during construction of the water main.
The Board thanked Mr. Allen for the update.
At 5:41 p.m., Mr. Kuosman excused himself from the remainder of the meeting.
At 5:43 p.m., Mr. Simmons excused himself from the remainder of the meeting.
Request for Approval: WRF and Lift Station Improvements Project, Garney Construction, CMAR Invoice 6450-006, Dated March 31, 2024 - presented by Ms. Moore:
Ms. Moore asked the Board for approval to remit payment to Garney Construction (Garney) for an invoice received by the District: Invoice Number 6450-006 in the amount of $154,680.00. Ms. Moore explained Invoice Number 6450-006 is for work performed on the Water Reclamation Facility and Lift Stations Improvements Project (Project) from December 20, 2023, through March 31, 2024. Ms. Moore reported to the Board that per an email received from Mr. Nick Campbell of Garney Construction on April 9, 2024, Invoice 6450-006 is the final pay request for Garney Construction's pre-construction services for the Project.
The Board discussed the reported labor hours and total amount charged on Invoice Number 6450-006. Mr. Ravel clarified that Garney Construction extensively worked over the past three months on a new cost model based on the new engineering design drawings.
Mr. Bosch asked Mr. Ravel if the work performed by Garney Construction would be utilized moving forward. Mr. Ravel responded that the District would utilize the cost model and input provided by Garney Construction as the Project moves forward. Mr. Ravel emphasized Garney's participation in the CMAR process has been beneficial through the design process.
Mr. Bieker added that per the District's contract with Garney and after the final payment, there is an amount remaining of $31,404 that will not be billed to the District.
Mr. Eshelman and Ms. Doylen commented that the District did contractually commit to the predetermined amount for pre-construction services from Garney Construction.
Mr. Bosch stated he will vote against remitting payment to Garney Construction as he is not comfortable with the amount of labor hours charged on the invoice.
Ms. Doylen said the credibility of the District industry wide is best served by paying the invoice to Garney.
It was moved by Mr. Gengler and seconded by Ms. Doylen to approve final payment to Garney Construction for Invoice Number 6450-006 in the amount of $154,680.00. Motion carried with four votes in favor and one vote opposed.
At 5:58 p.m., Ms. Crawford excused herself from the remainder of the meeting.
At 6:07 p.m., Ms. Urquhart excused herself from the remainder of the meeting.
Reports of Officers, Committees, Professional Consultants, & Staff
Ms. Doylen commented that she was pleased that two new employees were hired, Mr. Robert Meinking, Plant Operator, and Mr. Joel York, Collection Operator. Mr. Allen reported both new employees are performing well.
Mr. Newhouse answered questions of the Board regarding the cost of fabricating the Thompson River Lift Station pump volute. Mr. Newhouse reported that the cost for that work will be approximately $23,000 including material, labor, and installation. Mr. Newhouse reported the estimated completion date for the pump to be reassembled is May 3, 2024.
The Board considered the Reports of Officers, Committees, Professional Consultants, and District Staff.
The Board asked questions of the staff regarding the departmental reports.
The Board did not have corrections to the departmental reports.
The Board thanked District Staff for preparing the reports.
It was moved by Ms. Doylen and seconded by Mr. Gengler to accept the Treasurer's Report, Plant Report, System Development Fee Allocation and Connection Report, Collection System Report, Operations Manager's Report, Assistant District Manager's Report, and District Manager's Report. Motion carried unanimously.
Adjournment
Having no further business, at 6:15 p.m. it was moved by Ms. Doylen and seconded by Mr. Gengler to adjourn the meeting. Motion carried unanimously.
Susan L. Doylen, Vice-Chairman/Secretary
Christopher L. Eshelman, Chairman
May 21, 2024