December 19, 2023 Minutes

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, December 19, 2023, 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 December 19, 2023.

Agenda

1. Call to Order.
2. Roll Call, Absences Excused.
3. Pledge of Allegiance.
4. Next Meeting Date: Regular Board Meeting, Tuesday, January 16, 2024.
5. Agenda: Correction and Approval.
6. Disclosure of Potential Conflicts of Interest.
7. Public Forum: An opportunity for presentation by the public to provide information to the Board of Directors on any nonagenda 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.
8. Minutes: Correction and Approval: Regular Board Meeting, November 21, 2023.
9. New Business and Special Orders:
   1. Petition for Inclusion: Chris Fisher Family Project LLC and Estes Valley Estates LLC, Larimer County Parcel 3402100023, Located Near the Corner of Mary’s Lake Road and Peak View Drive, Estes Park, Colorado – presented by Ms. Ponzer. 
   2. Presentation: Final 2023 Wastewater Rate Study – presented by Mr. Kevin Burnett, Principal Consultant, Willdan Financial Services. 
   3. Consideration for Adoption: Resolution No. 2023-12-01 A Resolution Adopting Wastewater Rate Study– presented by Mr. Bieker. 
   4. Discussion and Consideration for Adoption: Resolution No. 2023-12-02 Setting Certain Rates and Fees for 2024 –presented by Mr. Bieker. 
   5. 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. 
   6. Request for Approval: WRF and Lift Station Improvements Project, Merrick & Company, Application for Payment No. 20, Dated November 29, 2023 – presented by Ms. Moore. 
   7. Consideration for Adoption: Resolution No. 2023-12-03 A Resolution to Adopt 2024 Budget – presented by Mr. Bieker and Ms. Moore. 
   8. Request for Approval: Revised UTSD Personnel Manual – presented by Ms. Jurgens. 
   9. Discussion: Board of Director Resignation and Director Vacancy. Consideration of Interim Officer Roles.
10. 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.
11. Adjournment.

Upper Thompson Sanitation District (District) prohibits discrimination against its customers, employees, and applicants for employment on the basis of disability, race, creed, color, religion, sex, sexual orientation, gender identity, gender expression, marital status, familial status, national origin, or ancestry, and in employment or in any program or activity conducted by the District. The District will make reasonable accommodation 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: December 19, 2023, 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: 
Jack Reed, Chairman 
Susan Doylen, Vice-Chairman/Secretary 
Kent Bosch, Assistant Secretary/Treasurer 
Ronald I. Duell, Treasurer/Assistant Secretary 
Christopher Eshelman, Assistant Secretary/Treasurer 

Staff: 
Chris Bieker, District Manager 
Suzanne Jurgens, Assistant District Manager 
Gina Moore, Financial Officer 
Henry Newhouse, Plant Superintendent 
Matt Allen, Operations Manager 
Nathanael Romig, Collection Superintendent 
Sheryl Panzer, Customer Accounts Manager 
*Naomi McCracken, Secretary

Guests: 
Kevin Burnett, Principal Consultant, Willdan Financial Services 
*    Steve Ravel, P.E., Water/Wastewater Project Manager, Merrick & Company
*    John Kuosman, Water/Wastewater Division Leader, Merrick & Company Alana Plaus, Senior Associate, GBSM

*     Joined via web conference call

Next Meeting Date 

A regular meeting of the Board of Directors will be held on January 16, 2024, at 4:00 p.m. 

Approval of Agenda 

The Board considered the Agenda. 

It was moved by Mr. Eshelman and seconded by Ms. Doylen 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. Reed opened the meeting for public comment. 

Mr. Reed 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. Reed 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.

Two members of the public joined the meeting, via web conference call. One member of the public joined the meeting in person. 

In attendance via web conference call, was Mr. Stewart Squires, of 618 Park River Place, Estes Park, and Mr. Jack Fisher, Manager of Estes Valley Estates LLC, 700 Colorado Boulevard, Denver, CO 80206-4084. Mr. Squires and Mr. Fisher did not offer comment on a non-agenda item. Mr. Fisher was in attendance pertaining to the Petition of Inclusion for Larimer County Parcel 3402100023. 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. 

Approve Minutes from Prior Meeting 

The Board reviewed and discussed the Minutes of the November 21, 2023, Regular Board Meeting. 
It was moved by Ms. Doylen and seconded by Mr. Bosch to approve the Minutes of the November 21, 2023, Regular Board Meeting as presented. Motion carried unanimously. 

New Business and Special Orders 

Petition for Inclusion: Chris Fisher Family Project LLC and Estes Valley Estates LLC, Larimer County Parcel 3402100023, Located Near the Corner of Mary's Lake Road and Peak View Drive, Estes Park, Colorado - presented by Ms. Ponzer: 

At 4:05 p.m., Mr. Reed opened the Public Hearing on the Petition for Inclusion. 

Ms. Panzer reported to the Board that Mr. Chris Fisher, Manager of Chris Fisher Family Project LLC and Mr. Jack Fisher, Manager of Estes Valley Estates LLC, have filed a Petition for Inclusion of their property, located near the corner of Mary's Lake Road and Peak View Drive: Lot 2 2-4-73, Larimer County Parcel 3402100023, in Estes Park, Colorado. 

Ms. Panzer explained the Chris Fisher Family Project, LLC and Estes Valley Estates, LLC recently petitioned for this property to be included in the Upper Thompson Sanitation District boundary. An application was submitted to the Estes Park Planning Department, proposing annexation and zoning designation for a mix of residential, multi-family and possible small retail usage for this 14.42-acre parcel of undeveloped, vacant land. 

Ms. Panzer stated the inclusion fees have been paid and all necessary documents have been executed by the legal representatives of the Chris Fisher Family Project, LLC and Estes Valley Estates, LLC. 

Ms. Panzer further explained a site inspection by UTSD Collection's Department confirms the UTSD sewer main is accessible from the subject property. 

Ms. Panzer said a "Notice of Open Meeting for Hearing on Petition for Inclusion" was published, in accordance with statutory requirements, in the Estes Park Trail Gazette on Friday, December 8, 2023. 

Ms. Panzer informed the Board that this parcel of land does not have a UTSD tap and will require the purchase of new System Development Fee(s) prior to any connections to the UTSD collection system. 

Ms. Panzer noted that Mr. Jack Fisher has joined the board meeting virtually and is available to answer questions. 

The Board discussed the Petition for Inclusion and asked for clarification on the potential usage of the property. 

Mr. Jack Fisher explained the property is within the unincorporated portion of the Estes Valley, zoned rural estate, and will be developed as single-family residences. 

There were no public comments, objections, or agreements; therefore, at 4: 12 p.m. Mr. Reed closed the Public Hearing. 

It was moved by Mr. Eshelman and seconded by Ms. Doylen to approve the Petition for Inclusion for Lot 2 2-4-73, Larimer County Parcel 3402100023, in Estes Park, owned by Mr. Chris Fisher of Chris Fisher Family Project, LLC and Mr. Jack Fisher of Estes Valley Estates, LLC. Motion carried unanimously. 

Final 2023 Wastewater Rate Study - presented by Mr. Kevin Burnett, Principal Consultant, Willdan Financial Services: 

Mr. Burnett began his presentation by outlining the Final 2023 Wastewater Rate Study presentation contents: The purpose and process of a rate study, summary of proposed revenue increases, recommended rates, comparison criteria of Colorado sewer service providers, and system development fee adjustments. 

Mr. Burnett explained the District's rate study helps in evaluating sufficiency of existing wastewater revenue to provide funding for current and future operating, maintenance, and capital expenses and ensuring the minimum reserve level and future debt service coverage requirements are met. Mr. Burnett stated it is critical to develop rates which will generate sufficient revenue to meet the cost of providing essential services. Mr. Burnett reviewed for the Board the rate study process including working with District staff to identify financial plan options, refining the existing rate structure, and evaluating the cost associated with providing service to District customers. 

Mr. Burnett then recommended to the Board that the District's revenue should be increased to meet increasing operational costs and repairs, and maintenance of the system (including the WRF and Lift Station Improvements Project and existing collection system), meet and maintain targeted reserve levels, and meet future debt service coverage requirements. Mr. Burnett explained this recommendation is based on several study assumptions including expected annual increases in operations and maintenance and capital costs, the inclusion of State Revolving Fund (SRF) and Water Infrastructure Finance and Innovation Act (WIFIA) debt for Project financing, minimum legal requirement or targeted debt service coverage and reserves, and targeted cash reserves based on current industry trends. Mr. Burnett stated the District's current cash reserve target policy is to reserve 90 days of operating expenses; however, he recommends maintaining 180 days of operating expenses per the current industry trend. 

Mr. Burnett then highlighted a proposed financial plan for years 2024 through 2033 showing an annual revenue increase and resulting net cashflow and ending fund and target fund balances. Conclusively, Mr. Burnett recommends the District implement a rate increase of 8.5% in years 2024 through 2028. 

Mr. Burnett presented considerations of revenue generation, stability, and equitable recovery. He explained the importance of generating the revenues required to efficiently and responsibly operate and maintain the system and to ensure seasonal customers are responsible for their proportionate share of system costs. 

Mr. Burnett explained cost-of-service system costs are categorized into flow related costs ($ per 1,000 gallons) and readiness to serve costs ($ per bill). Costs are allocated to either a metered or non­metered customer class, based on assumed flows and number of customers. 

Mr. Burnett summarized potential charges for non-metered and metered customers utilizing two different rate options, recommended and alternative. The recommended option incorporates a higher fixed charge base rate per month and a lower flow base rate per 1,000 gallons of usage, whereas the alternative option proposes a lower monthly fixed charge base rate and higher flow base rate per 1,000 gallons of usage. Mr. Burnett explained that the majority of the District's revenue, approximately 81 %, would be fixed with the recommended option and the District would not need to involve a third party to obtain flow data. Mr. Burnett emphasized having a higher percentage of fixed revenue shows reliability which is more favorable for loan financing purposes than a less reliable lower percentage of fixed revenue. 

Mr. Burnett continued his presentation by comparing the District's existing monthly rates with other Colorado sewer service providers. Mr. Burnett emphasized comparisons are difficult because each sanitation district differs in their geographic location/system density, size of treatment facility, customer base, growth rates, age of assets, site-specific regulatory requirements, type and quality of treatment, use of mill levies to offset rates, prior increases, and system development fees. 

In conclusion, Mr. Burnett described the District's current approach to adjusting System Development Fees (SDFs) compared to a more refined approach. The current approach is to adjust SDFs by the construction cost index which is a common approach in the industry; however, may not be representative in valuing the District's assets. The refined approach would be to look at current cost per gallon of treatment capacity and cost per linear foot of clay and polyvinyl pipe. 

Director Eshelman commented that the 2033 projection for sewer service rates at $136.36 per month is still less expensive than current lifestyle costs, such as streaming services for television and internet. 

Mr. Reed then invited public comments pertaining to the matter of District rates and fees. There were no public comments. 

The Board thanked Mr. Burnett for his presentation of the final 2023 Wastewater Rate Study. 

Consideration for Adoption: Resolution No. 2023-12-01 A Resolution Adopting Wastewater Rate Study - presented by Mr. Bieker: 

Mr. Bieker thanked Mr. Burnett and the Willdan Financial Services team for their preparation and presentation of the wastewater rate study. 

Mr. Bieker then presented Resolution No. 2023-12-01 A Resolution Adopting Wastewater Rate Study. Mr. Bieker stated this resolution was prepared by the District's general counsel, Ms. Linda Glesne, of Cockrel Ela Glesne Greher & Ruhland (CEGR Law). 

The Resolution states the following: 

• The District retained Willdan Financial Services to prepare a financial planning model anticipating increased wastewater revenue needs for both general operating purposes and capital improvements projects, based on financial projections from 2024-2033 to generate sufficient revenue, create revenue stability and to further the equitable recovery of revenues through uniform application of user fees.
• The Board of Directors desire to adopt the wastewater rate study because it is in the best interest of the public health, welfare and safety of residents and visitors to the District.
• The District will collect adequate revenues to pay for ongoing operation and maintenance costs and capital improvements now and into the future.
• The Directors concur that certain modifications to the rate study recommendations will be made to provide for additional analysis of financial assumptions and the impact of changes to methodology for setting rates and other fees.
• The report complies with the laws related to the reasonable basis and practical proportionality for setting rates, fees, tolls, and charges.

The Resolution resolves to adjust recommendations to the rate study pending further Board action as follows: 

• Metered customer rates will be set using the current rate structure, based on metered customer flow volume rate per 1,000 gallons and access fees, as set in the forthcoming Resolution Setting Certain Rates and Fees for 2024.

The Board will further consider the Rate Study recommendation for metered customers in 2024 before adopting the proposed change to the fee structure for the years 2025 and beyond. 

• System Development Fees will be set according to current methodology for 2024, as called out in previous resolutions setting those fees (per the Engineering News Record's ­Construction Cost Index, ENR-CCI).

In 2024, the Board will consider and may approve by resolution the Rate Study recommendation for the methodology described in the report to set system development fees before implementing that methodology for the years 2025 and beyond. 

Regarding rates and fees for 2024 and subsequent years (2025 and into the future) the Resolution resolves:  

• Rates for the 2024 Budget year will be approved by the Board in the forthcoming Resolution Setting Certain Rates and Fees for 2024.
• That the rate study utilizes financial projections based upon assumptions of an estimated Project cost and a certain finance program ($80M Project cost and a $57M loan from WIFIA, and an $18M loan from the SRF program).
• The Board will consider subsequent years of data and financial projections of the District and any rates adopted or method for calculating rates will be approved by Resolution for that purpose.
• Any proposed increases to rates will not be considered without additional advance notice of a rate increase provided to the District's customers and further action by the Board prior to taking effect.

Mr. Bieker stated that this Resolution supersedes any opposing provision contained in the District's Rules and Regulations. 

Mr. Bieker noted that the Rules and Regulations will be modified as soon as reasonably practical to conform with the provisions set in this Resolution. 

Mr. Bieker explained that if there is any charge or fee that is in the Rules and Regulations, or elsewhere, which is not changed by this Resolution, that fee is ratified and remains in full force and effect. 

Mr. Bieker mentioned this Resolution is intended to provide maximum flexibility for the Board to refine the data assumptions based upon financial conditions and projections available in subsequent years. 

Mr. Bieker then referred the Board to Willdan's final rate study attached to the Resolution as Exhibit A. 

Mr. Bieker asked the Board to consider the Wastewater Rate Study for adoption by Resolution No. 2023-12-01 A Resolution Adopting Rate Study. 

The Board considered Resolution No. 2023-12-01. 

Ms. Doylen stated that adopting the Wastewater Rate Study is a huge step forward for the District, community, and future infrastructure. Ms. Doylen thanked Mr. Burnett for his diligent work. 
Mr. Eshelman noted that this decision to adopt the rate study does not come lightly as he, the other Directors, and District staff also pay the same sewer bills as the community does. Mr. Eshelman emphasized the importance of moving forward so as not to get further behind. 

It was moved by Ms. Doylen and seconded by Mr. Eshelman to adopt Resolution No. 2023-12-01 Adopting Wastewater Rate Study. Motion carried unanimously. 

Discussion and Consideration for Adoption: Resolution No. 2023-12-02 Setting Certain Rates and Fees for 2024 - presented by Mr. Bieker: 

Mr. Bieker stated at the November 21, 2023, regular meeting the Directors discussed rates recommended in the rate study and directed staff to prepare a resolution setting rates for the year 2024. 

Mr. Bieker informed the Board since the November 21, 2023, regular board meeting, the District has received one comment regarding rates and fees from District customers, Mr. Paul Nickel, and Mrs. Barbara Nickel of 3318 Rockwood Lane South, Estes Park. Mr. Bieker read aloud the following comment to the Board: 

"We have lived in Estes Park, Larimer County, since 1983. Maybe I should say, we have endured. This year, we have seen our taxes increase 91 % with no relief. We have endured the high cost of energy, water, and sanitation every year. If your goal is to force people to move out of Colorado, you are achieving your goal. According to national statistics, people are already leaving the Denver area. I would imagine only the wealthy will remain in the high country and you will still have your taxes and fees maintained. From 2020 to 2023, we have seen an increase of 36% in the cosUbilling of Upper Thompson Sanitation per residence. There is no stability in the. costs to maintain a home in Estes Park with each year seeing higher and higher energy, water, and sanitation bills. There is always something to justify the increase. The City spends money on beautification but not infrastructure. I know I am writing a "lost cause." You will do as you choose. This is a letter of forewarning. Endurance will only last so long." 

Mr. Bieker noted that this comment, received via email from Mr. and Mrs. Nickel, was carbon copied to Estes Park Mayor, Ms. Wendy Koenig. 

In response to the comment from the Nickels, Mr. Eshelman said he understands their viewpoint. Mr. Eshelman noted there are regulations that are now required of small communities. Ms. Doylen stated she appreciated the Nickel's comment. Ms. Doylen said the Board of Directors are ratepayers too; however, it is the job of the Directors to ensure the District incorporates required federal and state regulations, environmental expectations, and responsible practices. Ms. Doylen elaborated that the existing plant does not meet certain standards and is increasingly costly to maintain. 

Mr. Bieker then presented to the Board for consideration and adoption Resolution No. 2023-12-02 Setting Certain Rates and Fees for 2024. 

Mr. Bieker stated this Resolution was prepared by the District's general counsel, Ms. Linda Glesne, of Cockrel Ela Glesne Greher & Ruhland (CEGR Law). 

The Resolution states the following: 

• The Board of Directors have previously adopted Rules and Regulations, and methodology has been established to set rates for:
  • non-metered fixed charges,
  • metered customer access fees and flow rate per 1,000 gallons,
  • bio-solids and waste hauling for in-district and out-of-district classes of waste,
  • and system development fees using the Engineering News Record's Construction Cost Index.
• The Board retained Willdan Financial Services to prepare a financial planning model (Rate Study) for fees commencing in 2024.
• The Rate Study was prepared in accordance with professional standards and was previously approved by the Board in Resolution No. 2023-12-01.
• The Board wishes to set certain rates and fees for 2024 and to further evaluate recommendations of the Rate Study which may be adopted for future budget years.
• It is in the best interest of the public health, welfare and safety of the District residents and visitors that the District collect adequate revenues as recommended in the Rate Study.
• More than thirty (30) days advance notice of the Board's intent to consider rate increases on November 21, 2023, and at this meeting was provided to the District's customers in accordance with the law.

The Resolution resolves the following: 

• The 2024 rates will be adjusted according to the rate study except where further adjusted or deviated by the Board Resolution Adopting Rate Study, as follows:
  • Non-metered customer (residential) service rates shall be increased 8.5% as recommended in the Rate Study.
  • Metered (commercial) customer rates will be set using the current methodology and increase 8.5% for both the customer flow rate per 1,000 gallons and access fee. Metered flow rate per 1,000 gallons will be $15.35; and the monthly access fee for all metered customers will be $11.00.
  • Waste hauling fees shall be those set forth in the Rate Study.
  • The System Development Fee will be set using the current methodology and is$12,200 (per the Engineering News Record's-Construction Cost Index).
• The Board will further consider methodologies recommended in the Rate Study to set rates and fees for future years.
• The Board will set rates for years subsequent to 2024 following the procedure required to set fees, rates, and charges.
• This Resolution supersedes any contrary provision contained in the District's Rules and Regulations, which will be modified as soon as reasonably practical to conform with the provisions set in this Resolution.
• If there is any charge or fee that is in the Rules and Regulations, or elsewhere, which is not changed by this Resolution, that fee is ratified and remains in full force and effect.

Mr. Bieker stated as directed by the Board at the November meeting, the final 2024 budget has been prepared using rates established in this resolution. 

Mr. Bieker invited the Board to further discuss the District's rates and fees and consider adopting Resolution No. 2023-12-02 Adopting Certain Rates and Fees for 2024. 

Mr. Eshelman commented that as the District evaluates a new methodology for adjusting the system development fee, replacement values need to be considered. Mr. Eshelman stated the system development fee is reasonable in comparison to other sanitation districts. 

Mr. Bieker then read aloud a comment from the Teams Platform Chat, provided by Mr. Stewart Squires of 618 Park River Place, Estes Park: "I believe most of the customer base certainly appreciates the Board's sensitivity to customer's concerns as to a rate increase. To be frank this (Resolution 2023-12- 02) was the only common-sense way to move forward. The Board may not avoid its responsibility to its customers to provide the necessary waste management services going forward. It will not be provided by any other entity in the Estes Valley anytime soon if ever and current costs to do so are what they are. Thank you! Many of us that own homes here appreciate that we truly can flush and forget about it thanks to UTSD. We go forward with eyes open to the realities of Colorado mountain community living. We all have to make choices. We choose to continue to enjoy the Estes Valley."

The Board thanked Mr. and Mrs. Nickel and Mr. Squires for their comments. Mr. Reed stated his appreciation for Mr. Squires' loyalty and taking the time and effort to understand District business over the years. 

It was moved by Mr. Eshelman and seconded by Mr. Bosch to adopt Resolution No. 2023-12-02 Setting Certain Rates and Fees for 2024. Motion carried unanimously. 

At 4:57 p.m., Mr. Fisher excused himself from the remainder of the meeting. 

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 November 21, 2023, Regular Board Meeting: 

• Overall Project:
  • Meetings were conducted with the District and Garney Construction to review the project.
  • A Finding of No Significant Impact (FONSI) environmental summary has been prepared and submitted to the US Bureau of Reclamation (USBR), the CDPHE, and the EPA.
  • 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 and Innovation Act (WIFIA) to review project financing and funding opportunities.
  • Additional information was submitted to the EPA for the WIFIA loan application.
  • The revised 60% design drawings were submitted to the District on December 13, 2023, for review.
  • The revised 60% design drawings were reviewed with Garney Construction on December 13, 2023, for Garney's use with developing an updated 60% construction cost estimate. Garney anticipates providing an updated 60% cost estimate by January 31, 2024.
  • The District presented the project to the EPA WIFIA team members on December 19, 2023.
  • The design team will continue to work towards a 90% submittal.
    o    The CWRPDA SRF application will be completed for submittal to the CWRPDA and CDPHE on January 5, 2024.
  • An updated project schedule including permitting, financing, and design considerations will be further developed for completion of the project as the team understands the impact of the value engineering (VE) and final design decisions.
• Fish Creek Lift Station (FCLS), Wapiti Lift Station (WLS), WLS Interceptor, and WLS Force Main:
  • The process design report (PDR) and updated 60% drawings will be submitted to the CDPHE for design review.
• Water Reclamation Facility (WRF):
  • The process design report (PDR) and updated 60% drawings will be submitted to the CDPHE for design review.
  • The updated 60% WRF site plans will be submitted to Larimer County for use with finalizing the site plan approval.

Mr. Ravel highlighted that moving forward biweekly meetings will be held between the District and EPA WIFIA team. Mr. Ravel noted WIFIA issued a schedule for loan closing and anticipates the District closing on the loan in April 2024. 

Mr. Ravel updated the Board on recent developments with Buy America Build America (BABA) federal legislation. Mr. Ravel explained that per an email received on December 6, 2023, from WIFIA Underwriter Marnin Lebovits, the whole Project, including the SRF portion, qualifies for a BABA waiver because the Project was planned and under consideration prior to May 14, 2022. In addition, Mr. James Wheatley, Project Manager for the Grants and Loans Unit of CDPHE confirmed, via email, that if WIFIA has a BABA waiver that applies to the Project then CDPHE will also waive the BABA requirements for the Project. 

Mr. Ravel answered questions of the Board regarding current construction costs and trends, and if there is a 90-day public comment period for the FONSI environmental summary. Mr. Ravel stated the comment period is 30 days. 

Mr. Kuosman added that construction pricing is remaining high relative to pipeline work because of labor shortages in high quality trades, particularly in Colorado. Mr. Kuosman explained labor is being imported from out of state to Colorado, which is keeping construction pricing high. 

The Board thanked Mr. Ravel for the Project update. 

At 5:19 p.m., Mr. Squires excused himself from the remainder of the meeting. 

Request for Approval: WRF and Lift Station Improvements Project, Merrick & Company, Application for Payment No. 20, Dated November 29, 2023 - 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 10063219 in the amount of $137,811.74. Ms. Moore explained Invoice Number 10063219 is for work performed on the Water Reclamation Facility and Lift Station Improvements Project from October 28, 2023, through November 24, 2023. 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 Mr. Eshelman and seconded by Mr. Duell to approve payment to Merrick & Company for Invoice Number 10063219 in the amount of $137,811.74. Motion carried unanimously. 

Consideration for Adoption: Resolution No. 2023-12-03 A Resolution to Adopt 2024 Budget -presented by Mr. Bieker and Ms. Moore: 

Mr. Bieker stated he is pleased to present the final version of the 2024 Budget to the Board for consideration of approval. 

Mr. Bieker said the final budget has been revised since it was presented to the Board at the public hearing during the November 21, 2023, Regular Board Meeting. The budget message and spreadsheets reflect updated information and data through November 30, 2023. 

Mr. Bieker reminded the Board that the budget is in compliance with legal requirements showing estimated beginning and ending fund balances, previous year audited figures, year-end estimated figures for 2023, and figures for the year in which the budget will be adopted. 

Ms. Moore then reviewed the changes made to the 2024 budget figures since the November 21, 2023, Regular Board Meeting, at which a public hearing regarding the proposed budget was conducted. 

Ms. Moore stated, as directed by the Board of Directors at the November 21, 2023, Board meeting, she included an 8.5% rate increase on non-metered, metered, and access fees revenue. Ms. Moore informed the Board that she also increased the system development fee rate from $11,400 to $12,200. Including these increases, Ms. Moore calculated the net increase to revenue from the November version of the budget to the final budget is $478,870 higher. 

Ms. Moore reported revisions to the following expenditure accounts since the November 21, 2023, Board meeting: 

The following notable revisions made to the 2024 Administration budget include: 

• Account 5190 (Budget Page 36) - Publication Expense - Increased from $3,000 to$8,000 to allow for three new hire advertisements in Indeed and both local newspapers.

The following notable revisions made to the 2024 Plant budget: 

• Account 5225 (Budget Page 37) - Software Maintenance - Increased Allmax Software from $1,700 to $2,850 per recent vendor quote received.

The following notable revisions have been made to the 2024 Collection budget: 

• Account 6310 (Budget Page 41 )-Fuel Expense -Added $3,000 for Operation's Manager to commute to and from work using a District utility vehicle. (Was $14,000 and is now $17,000).

The following notable revisions have been made to the 2024 Capital budget: 

• Account 7020 (Budget Page 42) - Increased from $10,000 to $60,000 for the budgeted video conferencing equipment per recent vendor quote received.
• Account 7062 (Budget Page 42) - Capital Contingency - Decreased from $500,000 to$250,000 as recommended in the Wastewater Rate Study.
• Account 7070 (Budget Page 42) -Vehicle Improvements -Added $10,000 for the 2011 International Dump Truck Body Conversion, per recent revised quote received. Was $30,000 and is now $40,000.

Ms. Moore then stated the 2023 forecast spreadsheet has been updated to reflect actual year to date revenues and expenses through November 2023. 

Additionally, Ms. Moore stated the 2023 estimated revenues and expenses have been revised based on year-to-date figures and staff input and reflect a best effort to predict final totals. 

Mr. Bieker then reported to the Board that since the November 21, 2023, Board meeting, he has not received comments and questions from customers of the District or other members of the community regarding the 2024 budget. 

Mr. Bieker summarized the revenue budget stating that after final revisions to the 2024 budget, the General Fund Budget Summary indicates operational revenues to be $6,356,770, and capital revenues to be $152,400. The total revenue for 2024 is budgeted conservatively at $6,509,170. 

Mr. Bieker highlighted that budgeted overhead expenditures for the year 2024 total $4,429,075, and budgeted operation expenditures total $1,041,153. Budgeted operation and overhead expenditures total $5,470,228 and capital expenditures in 2024 are budgeted at $6,873,942. All expenditures for the year, including overhead, operation, and capital, equal $12,344,170. 

Mr. Bieker noted that the 2024 budget indicates a net operating/capital deficit of $5,835,000 which will be funded with reserve funds. The 2024 deficit is resultant of planned capital expenses for the year. 

Mr. Bieker explained that the anticipated 2024 beginning fund balance is $15,433,349 and the anticipated 2024 ending fund balance is $9,598,349. 

Mr. Bieker invited the Board to consider adopting Resolution No. 2023-12-03 A Resolution to Adopt 2024 Budget. 

The Board asked questions of Mr. Bieker regarding the minimal comments and questions received from the community and District customers pertaining to the 2024 budget and rate increases. 

Mr. Eshelman and Ms. Doylen commented that they would like to see more District customers provide input and become engaged with the District. Ms. Rebecca Urquhart, of 1955 Homestead Lane, Estes Park, stated she feels the District does an excellent job of informing the public. 

Ms. Jurgens added that Ms. Panzer and Ms. McCracken do an excellent job responding to District customers who call about the District's rates and managing customer service relations; she expressed compliments for their professionalism. The Board thanked District staff for their efforts in public outreach. 

Ms. Jurgens also thanked Alana Plaus and the GBSM team for their elevated approach of delivering communication to the community and District customers. The Board also thanked GBSM for all their public relations efforts on behalf of the District. 

It was moved by Mr. Eshelman and seconded by Mr. Bosch to adopt Resolution No. 2023-12-03, Adopting the 2024 Budget. Motion carried unanimously. 

At 5:30 p.m., Mr. Kuosman excused himself from the remainder of the meeting. 

Request for Approval: Revised UTSD Personnel Manual - presented by Ms. Jurgens: 

Ms. Jurgens stated Upper Thompson Sanitation District's Personnel Manual is a valuable communication resource for both management and the employees. She explained the Personnel Manual provides a consistent set of policies and procedures, and offers guidance and information related to the District's mission, values, policies, procedures, and benefits. It is an easily accessible guide to the company's policies and practices as well as an overview of the expectations of management. 

Ms. Jurgens explained over the course of managing the District's business and human resources, it becomes apparent for the need to revise the Personnel Manual. The updates and revisions also keep the Personnel Manual relevant to the changing workplace (i.e., benefits, employment laws and digital aspects and applications). 

Ms. Jurgens reminded the Board that the most recent updater to the Personnel Manual was made in December 2022, where employee benefits (holidays and year-round on-call pay) were enhanced and other matters were added or further defined (Family and Medical Leave Insurance, clothing/uniform protocol, chain of command per the organization chart). 

Ms. Jurgens explained that proposed revisions to the Personnel Manual were provided in the board packet for review and consideration for approval. 

Ms. Jurgens noted both The Employers Council and legal counsel, Ms. Linda Glesne, of Cockrel, Ela, Glesne, Greher & Ruhland have both reviewed and offered edits to the Personnel Manual. Ms. Jurgens expressed her appreciation for the Employers Council's and Ms. Glesne's oversight and guidance on the employment law revisions. 

Ms. Jurgens then reviewed revisions to the Personnel Manual and stated several revisions incorporate new Federal and State employment law. 

The notable revisions to the Personnel Manual are as follows: 

• Section I - Introduction -
  • Item 1.43, page 7 - Nursing Mothers Accommodation has been added per new Federal law (2023).
  • Item 1.44, page 8 - Anti-Harassment Policy - Colorado's Protecting Opportunities and Workers' Rights (POWR) Act language has been added to incorporate Colorado's POWR law.
  • Item 1.46, page 10 - Complaint Procedure - updates were made to incorporate Colorado law.
• Section Ill - Compensation - Item 3.50, page 17, added information about Colorado's Secure Savings Program and the District's exemption from the program due to the District's participation in PERA's 401 a Defined Contribution Plan.
• Section V - Paid Time Off/Holidays/Vacation edits are as follows:
  • Item 5.2 Vacation Leave, page 20 - increased vacation leave for employees who have worked for the District more than 20 years (5 weeks), 25 years (5.5 weeks), and 30 years (6 weeks).
  • Item 5.30 - Sick Leave, page 22 - incorporates changes to the Colorado Healthy Families and Workplaces Act.
  • Item 5.33 - Sick Leave, Partial Pay Out at Termination, page 24 - increases payout of accrued sick leave upon an employee's termination for employees who have been employed by the District for more than 25 years (60 %) and 30 years (70%).
  • Item 5.50 - Holidays, page 25 - adds three additional paid holidays: Washington's Birthday (3rd Monday in Feb.), Columbus Day (2nd Monday in Oct.), and Veterans Day (Nov. 11th).
  • Item 5.70 - Family and Medical Leave Insurance Program, page 27 - added information about Colorado's Family and Medical Leave Insurance program and that the District has declined participation in that program.
  • Item 5.80- Military Leave, page 28 incorporates Colorado law making employees entitled to use any paid leave available for military training.
  • Item 5.100 - Bereavement/Funeral Leave, page 29 - enhances the definition of a family member and references bereavement leave included in the Colorado Healthy Families and Workplaces Act.
  • Item 5.120 - Authorized Closures - provides reasons for why an authorized closure may be determined.
• Section VI I - District Property -
  • Item 7.10 - Use of District Property and Services, page 34 - adds that employees should not bring personal items or valuables on District property. Those items are not insured, and the District is not responsible for personal items left on District property.
  • Item 7.90- Data Disposal Policy, page 37- new addition regarding the District's collection of personal identifying information (PII) and the District's destruction of that information following best practices to render it unreadable of indecipherable.

Ms. Jurgens noted all other edits to the Personnel Manual do not materially change the document. 

Ms. Jurgens then thanked Ms. Shellie Tressel! for her assistance with the revisions to the Personnel Manual. 

Ms. Jurgens asked the Directors to consider approval of the revised Personnel Manual, as presented. 

Ms. Jurgens answered questions of the Board and Mr. Bieker throughout her presentation. The Board discussed existing policies and the requested changes to the Personnel Manual. 

It was moved by Mr. Bosch and seconded by Mr. Duell to approve the revisions to UTSD's Personnel Manual, Revised December 19, 2023. Motion carried unanimously. 

Discussion: Board of Director Resignation and Director Vacancy. Consideration of Interim Officer Roles: 

Mr. Duell announced his resignation from the UTSD Board of Directors effective December 22, 2023.

Mr. Duell explained he is no longer eligible to serve as a Board Director due to the sale of his residence and relocating outside of the District's boundary. Mr. Duell submitted a letter of resignation dated December 11, 2023. 

Mr. Duell stated he has enjoyed working with District staff and serving on the Board. 

The Board acknowledged that consequent to Mr. Duell's resignation, there will be an upcoming vacancy on the UTSD Board of Directors. 

Ms. Doylen noted due to Mr. Duell's resignation the Board Treasurer position is open. The Board discussed officer roles. 

It was moved by Ms. Doylen and seconded by Mr. Bosch to appoint Mr. Eshelman as interim Treasurer. Motion carried unanimously. 

The Board then discussed the importance of proactively interviewing potential candidates to fill the open board director position. Ms. Jurgens added that although there is no deadline to offer a Notice of Appointment, the Board is required to demonstrate they are actively pursuing a candidate. Ms. Jurgens suggested that until an appointment is offered, at future board meetings, the Board provide a status update for selecting a candidate. 

Mr. Duell suggested the Board have an interview committee comprised of two directors. Ms. Doylen recommended each director communicate availability to participate on the selection committee. 

The Board, Mr. Bieker, Ms. Jurgens, Mr. Allen, and District staff expressed gratitude for Mr. Duell's service, leadership, and efforts towards moving the District forward. 

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. 

It was moved by Ms. Doylen and seconded by Mr. Eshelman 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 6:23 p.m. it was moved by Mr. Eshelman and seconded by Mr. Bosch to adjourn the meeting. Motion carried unanimously.