August 20, 2024 Regular Meeting Minutes

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, August 20, 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 Zoom 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 August 20, 2024.

Revised Agenda

Call to Order.
Pledge of Allegiance.
Roll Call, Absences Excused.
Discussion of Board Appointment.
Oath of Office – Director Michael W. Morton.
Recess to File Oath of Office with the Larimer County Clerk of Court.
Next Meeting Date: Regular Board Meeting, September 17, 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 Zoom Chat.
Minutes: Correction and Approval: Regular Board Meeting, Tuesday, July 16, 2024.
Executive Session under Section 24-6-402(4)(b), C.R.S., to confer with District Counsel to obtain legal advice related to Case
No. 24CV30429.
New Business and Special Orders:
1. Discussion: Consideration of the Structure for the Basis of the Metered Service Rate – facilitated by Mr. Ravel.
2. Discussion: Consideration of System Development Fee – facilitated by Mr. Ravel.
3. Discussion: Consideration of Service Rates and Fees – facilitated by Mr. Ravel.
4. 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.
5. Request for Approval: WRF and Lift Station Improvements Project, Merrick & Company, Application for Payment No. 26, Dated July 29, 2024 – presented by Ms. Moore.
6. Appointment of Budget Officer for 2025 Budget – presented by Mr. Bieker.
Reports of Officers, Committees, and Staff: Questions, Comments, Correction and Approval:
1. Treasurer’s Report.
2. Plant Report.
3. System Development Fee Allocation and Connection Report.
4. Collection System Report.
5. Operations Manager’s Report.
6. Assistant 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.

Agenda

Call to Order.
Pledge of Allegiance.
Roll Call, Absences Excused.
Discussion of Board Appointment.
Oath of Office – Director Michael W. Morton.
Recess to File Oath of Office with the Larimer County Clerk of Court.
Next Meeting Date: Regular Board Meeting, September 17, 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 Zoom Chat.
Minutes: Correction and Approval: Regular Board Meeting, Tuesday, July 16, 2024.
New Business and Special Orders:
1. Discussion: Consideration of the Structure for the Basis of the Metered Service Rate – facilitated by Mr. Ravel.
2. Discussion: Consideration of System Development Fee – facilitated by Mr. Ravel.
3. Discussion: Consideration of Service Rates and Fees – facilitated by Mr. Ravel.
4. 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.
5. Request for Approval: WRF and Lift Station Improvements Project, Merrick & Company, Application for Payment No. 26, Dated July 29, 2024 – presented by Ms. Moore.
6. Appointment of Budget Officer for 2025 Budget – presented by Mr. Bieker.
Reports of Officers, Committees, and Staff: Questions, Comments, Correction and Approval:
1. Treasurer’s Report.
2. Plant Report.
3. System Development Fee Allocation and Connection Report.
4. Collection System Report.
5. Operations Manager’s Report.
6. Assistant District Manager’s Report.
Adjournment.
Executive Session under Section 24-6-402(4)(b), C.R.S., to confer with District Counsel to obtain legal advice related to Case No. 24CV30429.

Record of Proceedings

Minutes Of a Regular Meeting of the Board of Directors Of
Upper Thompson Sanitation District
Held: August 20, 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 4:01 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
Kent Bosch, Assistant Treasurer/Secretary
Michael Morton, Director

Staff:
Chris Bieker, District Manager
Suzanne Jurgens, Assistant District Manager
Gina Moore, Financial Officer
Matt Allen, Operations Manager
Nathanael Romig, Collection Superintendent (joined via web conference call)
Henry Newhouse, Plant Superintendent (at 4:00 p.m., joined the meeting via web conference call, at 5:02 p.m., arrived at the meeting in person) Sheryl Panzer, Customer Accounts Manager

Naomi McCracken, Secretary (at 4:00 p.m., joined the meeting via web conference call, at 5:03 p.m., arrived at the meeting in person)

Guests:
Steve Ravel, P.E., Water/Wastewater Project Manager, Merrick & Company (joined via web conference call)
Linda Glesne, Partner, Cockrel Ela Glesne Greher & Ruhland, (CEGR Law) P.C. (at 4:24 p.m., joined via web conference call)

Discussion of Board Appointment

Upon Director Jack Reed's resignation from the UTSD (Upper Thompson Sanitation District) Board of Directors effective July 17, 2024, Director Eshelman and Director Bosch contacted Michael W. Morton to inquire about his interest in filling the office. Mr. Morton served on the UTSD Board of Directors from January 15, 2019, through August 20, 2019. Mr. Morton expressed interest to Director's Eshelman and Bosch to serve again on the UTSD Board of Directors.

Director Eshelman then recommended to Director's Doylen and Gengler that Mr. Morton be appointed to fill the vacant office. The Board agreed to his appointment, commencing at the August 20, 2024, Regular Board Meeting. A Notice of Appointment for the UTSD Board of Directors was sent to Mr. Morton on July 31, 2024.

The Board shared with those attending the meeting Mr. Morton's background and interest in serving on the Board of Directors. Mr. Morton is an eligible elector qualified to serve as a Director. Ms. Doylen stated the District is fortunate to have Mr. Morton serve on the Board of Directors due to his previous Board of Director experience and his extensive financial background.

Oath of Office - Director Michael W. Morton

Pursuant to Colorado Revised Statues, Oaths of Office must be administered to each eligible elector who has been appointed to fill a vacancy on the UTSD Board of Directors.

The Notice of Appointment to Mr. Morton was sent and accepted on July 31, 2024.

Therefore, pursuant to statutory requirement, Mr. Morton shall take an oath of faithful performance to serve as a Director on the Board.

Mr. Eshelman noted that Mr. Morton's term of office will commence at this board meeting as his Oath of Office, Notice of Appointment, and bond will be filed with the Larimer County Clerk and Recorder by the District's legal counsel, Cockrel Ela Glesne Greher & Ruhland, P.C., immediately after the Oath of Office has been executed.

Ms. Doylen then administered the Oath of Office to Mr. Michael W. Morton.

Ms. Doylen stated that given a new Director has been seated, per statutory law, Mr. Morton's office will be voted on at the next regular election in May 2025.

Recess to File Oath of Office with the Larimer County Clerk of Court

At 4:05 p.m. the Board took a thirteen-minute recess.

At 4:18 p.m. the Board reconvened.

During the recess, Mr. Morton's Oath of Office, Notice of Appointment, and bond were filed with the Larimer County Clerk and Recorder by Ms. Micki Mills, of Cockrel Ela Glesne Greher & Ruhland, P.C.

Next Meeting Date

A regular meeting of the Board of Directors will be held on September 17, 2024, at 4:00 p.m.

Approval of Revised Agenda

The Board considered the Revised Agenda that moves the Executive Session up from Item 15 to Item 12, in order to accommodate Ms. Linda Glesne's schedule. Additionally, another item under "New Business" was included: "Request for Approval: WRF and Lift Station Improvements Project, Merrick & Company, Application for Payment No. 27, Dated August 16, 2024". Ms. Moore explained this invoice from Merrick & Company was received after the board packet was emailed to each director.

It was moved by Ms. Doylen and seconded by Mr. Bosch to approve the Revised 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.

In attendance via web conference call, was Mr. Stewart Squires, of 618 Park River Place, Estes Park. Mr. Squires did not offer comment on a non-agenda item.

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.

In attendance was Ms. Patti Brown, of 270 Cyteworth Road, Estes Park. Ms. Brown indicated she was observing the meeting on behalf of the Estes Valley Voice. Ms. Brown did not offer comment on a nonagenda item.

Approve Minutes from Prior Meetings

The Board reviewed and discussed the Minutes of the July 16, 2024, Regular Board Meeting.

It was moved by Ms. Doylen and seconded by Mr. Bosch to approve the Minutes of the July 16, 2024, Regular Board Meeting as presented. Motion carried unanimously.

Executive Session

Prior to entering into Executive Session, Mr. Eshelman emphasized that the District is not directly involved in any litigation; however, were asked to submit documentation related to Case No. 24CV30429.

At 4:23 p.m., it- was moved by Ms. Doylen and seconded by Mr. Gengler to go into Executive Session pursuant to §24-6-402(4)(b), C.R.S. "To confer with District Counsel to obtain legal advice related to Case No. 24CV30429". Motion carried unanimously.

At 4:24 p.m., Ms. Glesne joined the meeting for the Executive Session.

The Executive Session was attended by Directors Eshelman, Doylen, Bosch, Gengler and Morton; and Mr. Bieker, Ms. Jurgens, Mr. Allen, Ms. Panzer, Ms. Moore, and Ms. Glesne.

At 4:58 p.m., Ms. Glesne certified that the Board did not engage in substantial discussion of any matter not enumerated in §24-6-402(4)(b) C.R.S., nor did it adopt any proposed legislative policy, position, resolution, rule, regulation, or formal action.

The Executive Session was adjourned at 4:58 p.m.

Return to Regular Session

At 4:58 p.m., the Board returned to Regular Session.

At 4:58 p.m., public attendees, Ms. Urquhart and Ms. Brown, returned to the meeting and Mr. Squires rejoined the meeting virtually.

At 5:02 p.m., Mr. Newhouse joined the meeting in person. At 5:03 p.m., Ms. McCracken joined the meeting in person.

New Business and Special Orders

Discussion: Consideration of the Structure for the Basis of the Metered Service Rate - facilitated by Mr. Ravel:

Ms. Jurgens reported that the Notice of Meeting for Discussion and Consideration of Rates and Fees (Notice) was published in the Estes Park News and Estes Park Trail Gazette on June 14, 2024. Additionally, the Notice was posted at the District administration building and on the District's Transparency Notice on the Special District Association of Colorado website on June 14, 2024. Additionally, the Notice was posted on the District's website on June 22, 2024. All meeting notices were published and posted as statutorily required.

Ms. Jurgens stated that at the July 16, 2024, Regular Board meeting Mr. Ravel presented, for the Board's consideration, three rate considerations which are recommended by staff:

structural change to the basis of the metered customer rate as recommended in the 2023 Willdan Financial rate study,
updating the system development fee to reflect the increased value and replacement cost of the District's infrastructure utilizing the equity buy in approach, as recommended in the 2014 Raftelis rate study and again recommended in the 2023 Willdan Financial rate study, and
increasing the service rate to support planned capital improvements, anticipated debt service, and ongoing maintenance and operations - also recommended in the 2023 Willdan Financial rate study.

Ms. Jurgens then referenced information that was previously provided to the Board for review and consideration such as individual emails sent to each Director on August 1, 2024, various spreadsheets illustrating service fee scenarios, and a WIFIA (Water Infrastructure and Innovation Act) loan repayment analysis which was prepared by Mr. Jason Simmons of Hilltop Securities. The loan repayment analysis compares three rate increase scenarios 8.5%, 9.5%, and 10.5% and illustrates savings the District may realize (~$20-$30M) with each of those scenarios if the WIFIA loan is prepaid ahead of schedule.

Ms. Jurgens noted that Mr. Ravel will facilitate further discussion regarding these important rate issues.

Ms. Jurgens invited the Board to ask questions of Mr. Ravel and the staff throughout Mr. Ravel's PowerPoint presentation and to discuss the rate issues, planned capital improvements, debt service obligations, and staff recommendations.

Ms. Jurgens asked the Board to consider the importance of communicating the 2025 rate updates in advance of the implementation of the new rates so that District customers may plan financially. Ms. Jurgens explained it is the District's desire to convey rate information to customers during the last three months of 2024.

Ms. Jurgens explained that staff seeks the Board's directive to prepare documents for consideration of adoption at the September 17, 2024, Regular Board Meeting which would implement 2025 rate initiatives discussed at the July 16, 2024, and August 20, 2024, board meetings.

Mr. Ravel then displayed a PowerPoint presentation and reviewed the recommended structural change to the basis of the metered customer service rate.

Mr. Ravel summarized that currently there are approximately 120 total metered customers in the District. Mr. Ravel noted that the District obtains metered customer water use data from the Town of Estes Park's water meter database. The 2024 access fee charged to these metered customers is $11.00 per connection per month, equating to a minimum charge of $132 per year, and the metered rate is $15.35 per 1,000 gallons. Mr. Ravel then defined an access fee as "the minimum fixed base charge applied to metered customers to capture the additional District costs for collection and processing meter data and billing. The access fee is billed at a cost($) per private service lateral tap per month." Mr. Ravel relayed that District staff suggest renaming "access fee" to "data collection fee" to better define the purpose of the fee. Ms. Panzer explained to the Board the data collection fee includes staff time to collect and enter the water meter data.

Mr. Ravel then explained that the District is also considering changing the methodology on how metered customer rates are assessed. Mr. Ravel stated due to seasonal variations in flow for metered customers, there are times when a customer, with their combined access fee and their metered rate fee, may be paying less than one single family equivalent (SFE). There are approximately 26 customers that have low metered usage equating to less than $865 per year, which is the current cost of one single family equivalent (SFE). Mr. Ravel noted that paying less than one SFE does not adhere to the District's current Rules and Regulations. Mr. Ravel explained that to be fair across all District customers, staff propose changing the billing structure for metered customers by implementing the base rate of 1 SFE to metered customer accounts. Metered customers who utilize the system above the base rate allocation of 1 SFE, will pay a metered rate above the quarterly base rate allocation and a monthly data collection fee, which will be assessed on a quarterly basis. Mr. Ravel highlighted that the proposed metered customer rate methodology was recommended in the 2023 Wastewater Rate Study by Willdan. The District did not implement this recommendation in 2024, and staff propose to implement it in the year 2025.

Ms. Doylen commented that in general this approach does not significantly generate more revenue for the District. Mr. Ravel agreed, stating that the intention of the methodology change is to ensure District metered customers are billed in a fair and equitable manner. Ms. Doylen added that it is about fairness, regardless of the number of months a customer utilizes the system, the District must maintain operations 365 days a year, 7 days a week, 24 hours a day.

The Board discussed the structural change to the basis of the metered customer rate and renaming the "access fee" to "data collection fee." The Board expressed support for the change of term name and the proposed change to implement the base rate of 1 SFE to metered customers, a data collection fee, and a metered rate above the quarterly base rate allocation for metered customers who utilize the system above the base rate allocation of 1 SFE. Ms. Doylen added that adopting this change now, for implementation in 2025, will allow the District to notify the metered customers of the change to the structure for the basis of the metered service rate.

Discussion: Consideration of System Development Fee - facilitated by Mr. Ravel:

Mr. Ravel continued his PowerPoint presentation, providing a recommendation to update the System Development Fee (SDF). Mr. Ravel explained that purchasing a SDF is a buy-in approach that allows the customer to connect to an existing and operating wastewater collection system and treatment plant. Mr. Ravel referenced three historical rate studies and detailed the methods for setting the SDF and recommendations per study. The 2014 Raftelis Rate Study recommended an Equity Buy In Approach based on asset unit costs. The 2020 Raftelis Rate Study also included the Equity Buy In Approach recommendation with the added consideration of the annual Engineering News Record (ENR) Construction Cost Index (CCI) to evaluate the SDF and determine if that fee appropriately reflects the replacement cost of the system. The most recent rate study, developed byWilldan in 2023, found that the ENR CCI may not reflect the true value of replacement cost of a system due to recent inflationary increases and alternatively recommended the Equity Buy In approach for the District. Considering the Equity Buy In approach, Mr. Ravel presented to the Board a spreadsheet calculating the SDF to be $18,095 per SFE. The spreadsheet detailed District 2024 asset unit costs and updated pipe lengths added from 2014 through 2024. Mr. Ravel summarized the Equity Buy in approach stating it considers the cost to rebuild the District's collection system, lift stations, and treatment plant. Mr. Ravel stated $18,100 is the recommended cost per SDF for the year 2025.

Mr. Morton added that even though this recommended SDF cost of $18,100 is a significant increase over the current SDF rate of $12,200, it is in line with the increase in general construction costs. Mr. Eshelman commented that with all factors considered $18,100 is a conservative figure for the cost of a SDF. Ms. Doylen noted that to ensure that the system can be maintained over time, an increase to the SDF is necessary. Mr. Eshelman added the Board will discuss this matter further at the September 17, 2024, Regular Board Meeting.

Discussion: Consideration of Service Rates and Fees - facilitated by Mr. Ravel:

For consideration of 2025 service fees, Mr. Ravel noted that the 2023 Willdan Rate Study (Study) states a rate increase is recommended and necessary for the District to finance the Project and other necessary capital improvements. The Study recommends a minimum 8.5% rate increase in the year 2025. Revaluation of rates on an annual basis is also recommended. Mr. Ravel stated Merrick & Company also suggests the District implement a minimum 8.5% rate increase for both non-metered and metered customers and including biosolids and waste hauling charges.

Mr. Eshelman suggested the Board compare and discuss an 8.5%, 9.5% or 10.5% rate and that the 9.5% or 10.5% increase would support repaying the WIFIA loan ahead of schedule, which significantly reduces the total cost of the loan. Mr. Eshelman stated that the 9.5% rate increase scenario allows the District to prepay the loan saving approximately $20 million over the life of the WIFIA loan compared to the 8.5% rate scenario and the 10.5% rate scenario allows an approximate $30 million savings to the District over the 8.5% rate scenario. Mr. Eshelman added that paying down principal in the early years of a loan is beneficial long-term. Mr. Eshelman remarked he is in favor of a 9.5% or 10% rate increase to support savings on the total loan cost.

Mr. Gengler suggested considering senior citizens living on a fixed income when setting rates, indicating that higher rates in the near future place a larger financial burden on today's customer, than on future UTSD customers.

Ms. Doylen stated she is in favor of implementing a 9.5% rate increase, considering the difference between the 8.5% rate increase equates to customers paying less than a dollar a month over the year. However, the District's ability to prepay on the loan can significantly impact the overall cost of the WIFIA loan.

Mr. Morton said it is a compromise between being reasonable to the community and paying less interest on the WIFIA loan over time, concluding he is in favor of a 9.5% rate increase.

Mr. Bosch said it is important to be sensitive to District customers and consider a potential future recession. Mr. Bosch added the District needs the new water reclamation facility and it is imperative to pay it off as quickly as possible.

The Board agreed to continue discussion and potentially take action on the rate increase and other rate considerations in the next regular board meeting scheduled for September 17, 2024.

Ms. Jurgens concluded the discussion stating that at the September 17, 2024, Regular Board Meeting, staff will have prepared documentation in anticipation of moving forward with the proposed methodology for the metered customers and setting the system development fee. Ms. Jurgens added the rate increase percentage will be left blank on the documentation, allowing the Board to further consider, discuss, and listen to any public comments at the September board meeting. She explained the Board may not set a service rate increase at the September meeting and determine to move that decision into meetings held during the last quarter of 2025.

Public Comment:

Mr. Squires provided a comment in the Zoom Chat stating that "certainly an 8.5% increase for nonmetered rates is necessary." Mr. Squires added that "the District sewer rates are currently less than insurance costs and there is value in both, and neither are an excessive burden."

Mr. Bieker read aloud two questions Mr. Squires asked the Board in the Zoom Chat: "When appropriate could we hear about any rate increase for vacation home rentals" and "I would like to hear how Estes Park Sanitation would 'buy in' if they do not get in on the ground floor?"

In response to Mr. Squires' question regarding vacation home rentals, Mr. Bieker stated the District plans in the future to compile verifiable water meter usage data from the Town of Estes Park's data base system. Mr. Bieker commented that this process takes time, and the District is currently managing the demands of the Project. Ms. Panzer further explained to the Board the process necessary for the District to identify meter numbers and data for each short-term rental. Ms. Doylen commented that although evaluating short-term rentals is valid, the District has other priorities at this time, including implementation of a new billing system. Mr. Eshelman stated the matter will be considered at a later date.

Ms. Doylen acknowledged and thanked Ms. Panzer for her efforts in transitioning to the new billing system.

Regarding Mr. Squires' question pertaining to Estes Park Sanitation District (EPSAN), Ms. Doylen replied that Upper Thompson Sanitation District has made efforts in the past to discuss consolidation with EPSAN and will continue to consider and create water reclamation efficiencies for the whole Estes Valley community.

Mr. Eshelman said District staff will contact Mr. Squires to address his questions in more detail.

The Board thanked Mr. Squires for his comments and questions.

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 July 16, 2024, Regular Board Meeting:

The process design reports (PDR) for the Water Reclamation Facility (WRF), Fish Creek Lift Station (FCLS), and Wapiti Lift Station (WLS) are under review by the Colorado Department of Public Health and Environment (CDPHE). The design documents will be updated based on comments received from the CDPHE. The final WRF design documents will be submitted to the CDPHE for construction approval (self-certification) following design approval.
The updated WRF site drawings and supporting reports are under review by Larimer County. The design documents will be updated based on comments received from Larimer County and the final documents will be submitted to the Larimer County Building Department for approval when ready.
The US Bureau of Reclamation (USBR) provided additional comments regarding the Environmental Assessment (EA) for revision of the EA to support the Finding of No Significant Impact (FONSI). The EA will be updated in response to the USBRs additional comments.
Contractor prequalification submittals were received on August 13, 2024, and are under review.
Development of the 100% design documents (drawings and specifications) is underway.

In addition to the Project update, Mr. Ravel highlighted that the District has been working with the U.S. Army Corps of Engineers for Nationwide permits for the outfall of the WRF and for work in the wetlands area. Mr. Ravel added these permits will be issued after the USBR approves the FONSI.

Mr. Ravel then presented to the Board a list of WRF Contractors that attended Industry Day and/or submitted a CMAR Proposal or have shown interest in the Project. Mr. Ravel reported seven contractors have submitted a pre-qualification package.

Mr. Ravel answered questions of the Board throughout his Project update regarding the permitting process.

The Board thanked Mr. Ravel for the Project update.

At 6:43 p.m., Mr. Squires excused himself from the remainder of the meeting.

At 6:50 p.m., Ms. Brown excused herself from the remainder of the meeting.

At 6:51 p.m., Ms. Urquhart excused herself from the remainder of the meeting.

Request for Approval: WRF and Lift Station Improvements Project, Merrick & Company, Application for Payment No. 26, Dated July 29, 2024- presented by Ms. Moore:

Ms. Moore asked the Board for approval to remit payment to Merrick & Company for an invoice received by the District: Invoice Number 10127635 in the amount of $239,170.23. Ms. Moore explained Invoice Number 10127635 is for work performed on the Water Reclamation Facility and Lift Station Improvements Project from June 1, 2024, through June 28, 2024. Ms. Moore stated she has prepared a check for payment of this invoice, and it is ready for signature at this meeting.

It was moved by Ms. Doylen and seconded by Mr. Morton to approve payment to Merrick & Company for Invoice Number 10127635 in the amount of $239,170.23. Motion carried unanimously.

Request for Approval: WRF and Lift Station Improvements Project, Merrick & Company, Application for Payment No. 27, Dated August 16, 2024-presented by Ms. Moore:

Ms. Moore asked the Board for approval to remit payment to Merrick & Company for an invoice received by the District: Invoice Number 10131331 in the amount of $277,655.11. Ms. Moore explained Invoice Number 10131331 is for work performed on the Water Reclamation Facility and Lift Station Improvements Project from June 29, 2024, through July 26, 2024. Ms. Moore stated she has prepared a check for payment of this invoice, and it is ready for signature at this meeting.

It was moved by Ms. Doylen and seconded by Mr. Morton to approve payment to Merrick & Company for Invoice Number 10131331 in the amount of $277,655.11. Motion carried unanimously.

Appointment of Budget Officer for 2025 Budget- presented by Mr. Bieker:

Mr. Bieker reported that C.R.S. §29-1-105 states that the Board must designate a qualified person who shall prepare the 2025 District Budget and submit it to the Board on or before October 15, 2024.

Mr. Bieker added that the 2025 Proposed Budget will be presented to the Board for review and comment at the October 15, 2024, regular board meeting.

Mr. Bieker noted Ms. Moore is the District's Financial Officer and historically has served as the Budget Officer to prepare the budget for the upcoming year. Mr. Bieker proposed to the Board that Ms. Moore be appointed as the District's Budget Officer for the 2025 budget.

Mr. Bieker explained that following the first presentation of next year's proposed budget, revisions to the budget will be made and presented to the Board for review and comment at the November and December 2024 regular board meetings. During those meetings, the Board and public will have an opportunity to ask questions of the staff and make comments about the 2025 proposed budget.

Mr. Bieker stated that at the December 17, 2024, regular board meeting staff will present the final version of the 2025 budget to the Board of Directors for consideration of adoption by resolution.

The Board discussed appointing a Budget Officer.

It was moved by Mr. Bosch and seconded by Mr. Gengler to appoint Ms. Moore as Budget Officer for the 2025 budget. Motion carried unanimously.

Reports of Officers, Committees, Professional Consultants, & Staff

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.

In addition to the Collection System Report, Mr. Allen reported to the Board that District employee, Jeff Harrison, passed the Collection Level 3 exam. Mr. Romig added that Joel York passed the Pipeline Assessment Certification Program (PACP) exam. Mr. Romig stated all collection staff are now certified through the PACP. The Board congratulated staff for their achievements.

In addition to the Assistant District Manager's Report, Ms. Jurgens reported to the Board that the District is anticipating receiving grant funds from FEMA (Federal Emergency Management Agency) for Project Worksheet (PW) 861 in the future. Ms. Jurgens explained PW 861 was for permanent repairs along the Fish
Creek Corridor following the 2013 flood. Ms. Jurgens stated she recently received a notice from FEMA that the total project expenses submitted for the worksheet are considered eligible.

Ms. Jurgens then commended Mr. Bieker, and Plant and Collection staff for their efforts in preparing the District in the event the two nearby fires became threatening.

Ms. Jurgens thanked the Collection staff for their early morning work assessing the Fall River interceptor. Ms. Jurgens then acknowledged Ms. Panzer for her efforts in transitioning to the new customer accounts billing software. Ms. Jurgens thanked Ms. McCracken for coordinating the food for the Open House and the staff summer picnic; Ms. Jurgens reported both were successful events.

It was moved by Ms. Doylen and seconded by Mr. Bosch to accept the Treasurer's Report, Plant Report, System Development Fee Allocation and Connection Report, Collection System Report, Operations Manager's Report, and Assistant District Manager's Report. Motion carried unanimously.

Adjournment

Having no further business, at 7:39 p.m. it was moved by Mr. Bosch and seconded by Mr. Morton to adjourn the meeting. Motion carried unanimously.