July 15, 2025 Regular Meeting

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, July 15, 2025, 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, Financial Officer, at gina@utsd.org by 2:00 p.m. on July 15, 2025.

Agenda

1. Call to Order.
2. Pledge of Allegiance.
3. Roll Call, Absences Excused.
4. Pledge of Allegiance.
5. Next Meeting Date: Regular Board Meeting, Tuesday, August 19, 2025.
6. Agenda: Correction and Approval.
7. Disclosure of Potential Conflicts of Interest.
8. 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.
9. Minutes: Correction and Approval: Regular Board Meeting, June 17, 2025.
   Special Board Meeting, June 26, 2025.
10. New Business and Special Orders:
    1. Cybersecurity Review – presented by Mr. Jason Bovee, Vice President of Client Partnerships, Istonish and Ms. Carol Taylor, Service Delivery Manager, Istonish.
    2. 2024 Financial Audit – presented by Ms. Alanna Moses, CPA, Anderson & Whitney.
    3. Request for Approval: Sale of Kenworth Dump Truck – presented by Mr. Allen.
    4. Board Discussion: Water Reclamation Facility and Lift Station Improvements Project.
11. Reports from 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. District Manager’s Report.
12. 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, Ms. Suzanne Jurgens, three days before the event via email at suzanne@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: July 15, 2025, 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: 
Susan Doylen, Vice-Chairman/Secretary 
Michael Morton, Treasurer 
Kent Bosch, Assistant Treasurer/Secretary, joined via web conference call 
Andrew Kessler, Assistant Secretary/Treasurer 

Absent: 
It was moved by Mr. Morton and seconded by Mr. Kessler to excuse the absence of Director Eshelman. Motion carried unanimously. 

Staff: 
Suzanne Jurgens, District Manager 
Gina Moore, Financial Officer 
Matt Allen, Operations Manager 
Nathanael Romig, Collection Superintendent 
Henry Newhouse, Plant Superintendent (at 4:00 p.m., joined via web conference call, at 5:28 p.m., arrived at the meeting in person) 
Sheryl Panzer, Customer Accounts Manager 
Cristie Rambeau, Customer Accounts Specialist 
Naomi McCracken, Secretary (at 4:00 p.m., joined via web conference call, at 5:01 p.m., arrived at the meeting in person) 

Invited Guests: 
Jason Bovee, Vice President of Client Partnerships, lstonish 
Carol Taylor, Service Delivery Manager, lstonish 
Alanna Moses, CPA, Anderson & Whitney 
Steve Ravel, P.E., Senior Project Manager, AE2S (joined via web conference call) 

Next Meeting Date 

A regular meeting of the Board of Directors will be held on August 19, 2025, at 4:00 p.m. 

Approval of Agenda 

The Board considered the Agenda. 

It was moved by Mr. Morton and seconded by Mr. Kessler 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 

Ms. Doylen opened the meeting for public comment. 

Ms. Doylen 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. She 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, Ms. Doylen 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 was Ms. Rebecca Urquhart of 1955 Homestead Lane, Estes Park. Ms. Urquhart offered comment on a non-agenda item. Ms. Urquhart addressed the Board as an Estes Park resident, not representing any organization. She noted she has been monitoring proposed changes to the development code and comprehensive plan for the Town of Estes Park, which aims to double the Estes Valley population in five years. Ms. Urquhart suggested the Board consider whether there is capacity for such expansion, especially regarding utilities and other services. She encouraged the Board to communicate with town officials on this matter. The Board thanked Ms. Urquhart for her comment. 

Approve Minutes from Prior Meetings: 

The Board reviewed and discussed the Minutes of the June 17, 2025, Regular Board Meeting and the June 26, 2025, Special Board Meeting. 

It was moved by Mr. Kessler and seconded by Mr. Morton to approve the Minutes of the June 17, 2025, Regular Board Meeting as presented. Motion carried unanimously. 

It was moved by Mr. Morton and seconded by Mr. Bosch to approve the Minutes of the June 26, 2025, Special Board Meeting as presented. Motion carried unanimously. 

New Business and Special Orders: 

Cybersecurity Review - presented by Mr. Jason Bovee, PE, Vice President of Client Partnerships, lstonish and Ms. Carol Taylor, Service Delivery Manager, lstonish: 

The Board welcomed to the meeting Mr. Jason Bovee, Vice President of Client Partnerships and Ms. Carol Taylor, Service Delivery Manager, with lstonish (the District's information technology (IT) Managed Service Provider). 

Mr. Bovee introduced himself stating he has 30 years of experience in information technology with expertise spanning state, local, and federal government sectors. Mr. Bovee explained his background is rooted primarily in operations delivery, encompassing incident response, technical issue resolution, and cybersecurity recovery. 

Mr. Bovee then presented a cybersecurity overview to the Board including security stack functions, patch compliance processes, email security, and ongoing security training. 

Mr. Bovee defined security stack as a comprehensive, multi-layered security approach put in place to protect systems, users (including personally identifiable information (PII)), and data. These cybersecurity tools and technologies work together to ensure threat prevention, detection, and response across the District. Mr. Bovee elaborated that one tool lstonish utilizes for the District's cybersecurity protection is endpoint detection and response (EDR). EDR functions as a next-generation antivirus through an Al­powered platform that is deployed across all active District systems to monitor and respond to malicious activity in real time. Endpoint management forms the foundation of lstonish's approach, ensuring robust protection against malware, ransomware, and other threats. For PII and access management protection, the District is utilizing multi-factor authentication which helps in prevention of malicious activity. For comprehensive endpoint coverage, SentinelOne is actively deployed across all of the District's Windows devices and is effective in providing insight into the current threat environment. 

Mr. Bovee then provided an overview of the patch compliance process lstonish provides for the District. lstonish has established Remote Monitoring and Management (RMM) tools ensuring that servers and workstations remain up to date with critical security patches, reducing exposure to vulnerabilities and improving overall system integrity. Mr. Bovee explained that lstonish's approach to monitoring and remote support is proactive rather than reactive; for instance, indicators such as available disk space to prevent disruptions before they impact user productivity are consistently tracked. The goal is to address issues before they become problems, embodying the core purpose of the RMM platform. 

Mr. Bovee noted that the District's email security is protected through the Barracuda platform. Barracuda provides critical frontline defense against phishing, spoofing, and impersonation attempts targeting end users. He provided statistics illustrating that over the past month, the system has actively detected and blocked suspicious messages before reaching inboxes. 

Mr. Bovee indicated that in addition to maintaining comprehensive endpoint coverage and monitoring critical patches, the District's next step in strong cybersecurity practices entails District employees ongoing participation in monthly security training. Mr. Bovee stated that all District employees are enrolled in monthly awareness training to reinforce best practices and reduce human error risk. Mr. Bovee commended the District's achievement of maintaining a 100% training completion rate each month since March 2025. The trainings emphasize skepticism toward unsolicited offers or unfamiliar links and reporting anything potentially malicious. He stated continuous staff education remains crucial and that vigilance is key to recognizing and responding appropriately to suspicious activities. Staff engagement in cybersecurity trainings fosters more secure user behavior across both professional and personal settings. 

Mr. Bovee and Ms. Moore answered questions of the Board regarding cybersecurity insurance. 

The Board thanked Mr. Bovee for the cybersecurity review presentation. 

Ms. Jurgens acknowledged Mr. Bovee and Ms. Taylor for their exceptional partnership in advancing the District's IT structure and noted that they have been a pleasure to work with. 

Mr. Bovee and Ms. Taylor excused themselves from the remainder of the meeting at 4:33 p.m. 

2024 Financial Audit- presented by Ms. Alanna Moses, CPA, Anderson & Whitney, PC: 

Ms. Alanna Moses, CPA, of Anderson & Whitney, presented the District's 2024 Audit comprising the following contents: Independent Auditors' Report, Management Discussion and Analysis, Statement of Net Position, Statement of Revenue, Expenses and Changes in Net Position, Statement of Cash Flows, Notes to Financial Statements, Required Supplementary Information, and Supplementary Information. 

Ms. Moses highlighted the responsibilities of District Management and the Auditor's pertaining to the Audit. The Management responsibilities include financial statement preparation and implementation of internal controls. The Auditor's responsibilities are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and issue an auditor's report that includes their opinion. 

Ms. Moses reviewed the Independent Auditor's Report. She stated Anderson & Whitney reviewed and evaluated the District's financial processes, records, and internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement. She reported that, in Anderson & Whitney's opinion, the financial statements referred to in the audit present fairly, in all material respects, the financial position of the District as of December 31, 2024. She also stated the changes in the District's financial position and cash flows for the year 2024 concluded in conformity with accounting principles generally accepted in the United States. 

Ms. Moses reviewed financial highlights presented in the Management Discussion and Analysis, including the amounts held in net position and capital assets. Ms. Moses reported a net position increase of about $2 million, or 5%, in 2024 compared to 2023. Ms. Moses explained this increase is primarily from increased service charges. Ms. Moses highlighted that a key change for the District in year 2024 was a significant decrease in receivables, largely resulting from the collection of a longstanding FEMA receivable. Ms. Moses noted that the closeout of Project Worksheet 861 (Fish Creek Permanent Repair), resulting from the 2013 flood, was reconciled and the final grant reimbursement was fully paid to the District in September 2024 from the Federal Emergency Management Agency (FEMA).

Ms. Moses explained that a new line item is included in net position, "unrequisitioned project funds" totaling $15.8 million which reflects Colorado Water Resources and Power Development Authority (CWRPDA) loan funds to be requisitioned over the next three years. Ms. Moses added that as of December 31, 2024, $1.5 million had been requisitioned from this loan. Ms. Moses reported during year 2024, the District paid $39,000 towards principal of the $17.4 million CWRPDA long term debt. Ms. Moses noted in total the $17.4 million debt will incur a cost of $28.2 million for the District.

Ms. Moses reported that in 2024, operating revenue increased approximately 10% from 2023 and operating expenses increased15% from 2023. Net income for the year was reported at $1.9 million.

Ms. Moses noted the District treated 276 million gallons of wastewater in 2024 and the cost of treatment was $.0157 per gallon, which is a $.003 increase from 2023.

Ms. Moses then detailed the Statement of Revenue, Expenses and Changes in Net Position and emphasized the District's investments increased in 2024 in comparison to 2023, due to higher interest rate yields.

Ms. Moses explained to the Board that effective 2024, the Governmental Accounting Standards Board (GASB) issued GASB 101 regarding compensated absences, requiring governments to estimate and record a liability for earned but unpaid leave. Since the District already provides partial payouts for sick leave, the impact was minimal, though disclosure requirements increased. 

Ms. Moses then stated the recording of the net pension liability is a requirement of PERA and the 2024 Audit details the basis of accounting for the District's pension fund with PERA. 

Ms. Moses provided a summary of the Schedule of Revenue and Expenditures - Actual (Budgetary Basis) Compared to Budget report in the audit document. Ms. Moses reported general expenditures did not exceed appropriated 2024 budgeted amounts and the District was in compliance with Colorado budget law. Ms. Moses noted that the District spent less than budgeted mainly due to delays in the Water Reclamation Facility and Lift Station Improvements Project (Project). Ms. Moses emphasized that payroll samples tested emphasized compliance and accuracy in payroll processing.

Ms. Moses informed the Board that there is an upcoming standard, GASB 103. This new standard will take effect for the 2026 audit. GASB 103 introduces significant modifications to the management's discussion and analysis section as well as to the budgetary comparison information. Ms. Moses stated Anderson & Whitney will examine these forthcoming changes in greater detail and are committed to keeping their clients informed of relevant accounting developments.

Ms. Moses commended the District for their strong internal controls, which contribute significantly to reliable reporting and maintaining effective controls and operational practices. Ms. Moses commented that Anderson & Whitney appreciates the professionalism and diligence demonstrated by all District staff involved in the audit process, particularly in light of the recent transition to new billing software and its integration with other systems. Ms. Moses stated Ms. Moore and Ms. Panzer played a pivotal role in reconciling these changes, and their efforts are greatly appreciated.

Ms. Moses concluded her report stating that Anderson & Whitney values the productive partnership and excellent cooperation from District personnel and that working with the District over the years has been a pleasure.

Ms. Jurgens and Ms. Moore expressed their gratitude and appreciation for Anderson & Whitney's professionalism and efforts in conducting the 2024 audit.

Ms. Doylen thanked District staff for their participation and oversight of the 2024 Audit.

The Board accepted the 2024 Audit and thanked Ms. Moses for her presentation.

Ms. Moses excused herself from the remainder of the meeting at 4:55 p.m.

Request for Approval: Sale of Kenworth Dump Truck- presented by Mr. Allen:

Mr. Allen stated he is seeking approval for the sale of the District owned 2018 Kenworth dump truck at auction. Mr. Allen noted the vehicle was purchased new and has reliably served the District's needs; however, recent evaluations indicate that the costs associated with maintaining and insuring the truck now exceed the purpose it provides. Mr. Allen reported that over the past year, discussions have ensued regarding the feasibility of retaining this asset given evolving operational activities. 

Mr. Allen explained that the District's primary consideration of selling the dump truck revolves around the expense of repairing complex emission systems and other maintenance items typical of this vehicle. Mr. Allen detailed the process of selling the dump truck using an auction house. 

The Board concurred with the decision to sell the Kenworth dump truck and discussed setting a reserve price for auctioning the vehicle. They considered the District's past vehicle purchases and current market values for fleet vehicles including depreciation, condition, and features. The Board considered options on the appropriate reserve amount. The Board noted that silent reserves are possible and discussed the pros and cons of setting the reserve too high or too low, emphasizing the importance of ensuring the reserve reflects both market value and organizational needs. 

It was moved by Mr. Morton and seconded by Mr. Kessler to authorize the District to sell the 2018 Kenworth dump truck through the auction process and to set the reserve amount at $85,000. Motion carried unanimously. 

Board Discussion: Water Reclamation Facility and Lift Station Improvements Project (Project): 

The Board and Ms. Jurgens welcomed Mr. Ravel to the meeting. Ms. Jurgens stated Mr. Ravel has joined the meeting to provide an update on Project developments that have occurred since the Special Board Meeting held on June 26, 2025. At that meeting, subsequent to an executive session, the Board directed Ms. Jurgens to not execute agreements with Merrick & Company (Merrick) and RN Civil Construction. 

Mr. Ravel provided an update to the Board, noting that he has changed employers and is now with engineering firm, Advanced Engineering and Environmental Services (AE2S) as of July 7, 2025, following his resignation from Merrick on July 3, 2025. Mr. Ravel stated while at Merrick, he worked with the District on the Water Reclamation Facility and Lift Station Improvements Project for approximately four years, serving as Project Manager. Mr. Ravel noted that AE2S has been serving as a subconsultant to Merrick on the structural and electrical design for the Project, as well as on the processes for the membrane components. 

Mr. Ravel communicated to the Board that meetings have been held between representatives of both Merrick and AE2S to discuss continuity on the Project and optimal ways to move the Project forward. At these meetings, AE2S proposed assumption of the role of prime consultant, with Merrick serving as subconsultant, effectively reversing the lead engineering roles. He explained that discussions occurred among supervisors and managers at both organizations regarding this change. Mr. Ravel relayed that Merrick indicated openness to this new structure if it aligns with the District's preferences. 

Mr. Ravel explained that if the District opts to maintain Merrick as the prime consultant, AE2S would continue as a subconsultant for value engineering and design development phases. Mr. Ravel stated both teams expressed commitment to the Project's success and are awaiting the District's direction. 

Mr. Ravel noted that if the District desires that AE2S serve as the prime consultant, a new professional services agreement would be required. A draft contract has been submitted to the District for consideration. Key personnel from both companies would remain involved to ensure continuity. 

Mr. Ravel highlighted that in regard to the next phase of the Project, which is development of a 20% value engineer redesign, which was previously proposed by Merrick, no significant changes are anticipated in scope or total projected cost; for AE2S to complete that work only the roles of prime and subconsultant would be reversed. The goal is for both AE2S and Merrick to execute the Project as originally planned, maintaining collaboration between both firms. 

Mr. Ravel concluded by inviting questions or discussion about the potential transition of prime professional engineering consultant and how best to move the Project forward in alignment with the District's objectives. 

The Board considered both options and highlighted the importance of continuity with Mr. Ravel as Project Manager. The Board concurred that Mr. Ravel's familiarity with the Project, extensive experience, and rapport with the District is imperative and highly valued. The Board expressed their appreciation for both Merrick and AE2S' prioritization of the District's best interests. 

The Board then discussed the process to terminate Merrick's general engineering services agreement, reconcile any outstanding payments, and transition AE2S into the primary engineering role for the Project and to provide general engineering services. 

Ms. Jurgens stated that legal counsel advises issuing a termination letter to Merrick, coordinating final billing, and notifying lenders of Project loans to confirm compliance for the transition. The Board agreed that lender approval is necessary before proceeding with commitment to AE2S. 

It was moved by Mr. Morton and seconded by Mr. Kessler for District staff to notify lenders of Project loans (Colorado Water Resources and Power Development Authority and Water Infrastructure Finance and Innovation Act) of the transition of engineering services and Project-related agreements from Merrick & Company to AE2S as the primary engineering consultant. Motion carried unanimously. 

It was moved by Mr. Morton and seconded by Mr. Kessler, contingent upon lender approval, to issue a termination notice to Merrick & Company for general engineering services and to process final invoices for payment. Motion carried unanimously. 

It was moved by Mr. Morton and seconded by Mr. Kessler to evaluate AE2S's agreement with legal counsel for approval at a future board meeting. Motion carried unanimously. 

Ms. Jurgens and the Board expressed gratitude to both firms for their cooperation and commitment to the Project. 

Ms. Jurgens and the Board then discussed the pending Pre-Construction Services Agreement (Agreement) for the Water Reclamation Facility and Lift Station Improvements Project with RN Civil Construction. The Board concurred that the Agreement for Pre-Construction Services with RN Civil Construction should be executed. 

Reports of Officers, Committees, Professional Consultants, & Staff 

The Board considered the Reports of Officers, Committees, Professional Consultants, and District Staff. 

The Board asked the staff questions 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 Plant Report, Mr. Newhouse reported that recent hire, Mr. Drew Dudley, has adapted well to his duties and is doing an excellent job in plant operations. 

In addition to the System Development Fee Allocation and Cof)nection Report, Ms. Panzer introduced Ms. Cristie Rambeau, Customer Accounts Specialist, to the Board. Ms. Panzer stated Ms. Rambeau has quickly adapted to her role. and is performing her responsibilities efficiently. The Board welcomed her to the District. Ms. Panzer also highlighted that the District has nearly doubled the initial target of 12 system development fees sold for year 2025, with the current number sold at 20. 

In addition to the District Manager's Report, Ms. Jurgens reminded the Board of the upcoming annual District family summer picnic scheduled for July 22nd, noting the staff and their families enjoy that event. 

Ms. Jurgens also invited the Board, staff, and public to the summer UTSD Open House scheduled for August 11th from 3:30 to 5:30 at the Treatment Facility, located at 2201 Mall Road in Estes Park. 

Ms. Doylen commented that she attended the recent Sunrise Rotary meeting with Ms. Jurgens and Mr. Allen and was impressed with their demonstrated professionalism throughout their presentations. 

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

Adjournment 

Having no further business, at 5:59 p.m., it was moved by Mr. Morton and seconded by Mr. Kessler to adjourn the meeting. Motion carried unanimously. 

Susan L. Doylen, Vice-Chairman/Secretary

Christopher L. Eshelman, Chairman

Date: August 19, 2025