July 16, 2024 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, July 16, 2024, at the Upper Thompson Sanitation District Administrative Office, 2196 Mall Road, Estes Park, CO, 80517. Individuals who wish to address the Board via public participation may do so “in-person,” via telephone, or virtually through online participation, facilitated by the Microsoft Teams platform. Members of the public wishing to join the meeting via online or telephone participation, please email a request for the meeting link or telephone number to Ms. Gina Moore, Secretary to the Board, at gina@utsd.org by 2:00 p.m. on July 16, 2024.

Agenda

Call to Order.
Pledge of Allegiance.
Roll Call, Absences Excused.
Next Meeting Date: Regular Board Meeting, August 20, 2024.
Agenda: Correction and Approval.
Disclosure of Potential Conflicts of Interest.
Public Forum: An opportunity for presentation by the public to provide information to the Board of Directors on any non-agenda item. Note: The Board cannot take any action on non-agenda items but may direct staff to include the item on a future agenda.
Public Comment on Agenda Items: Public comments will be heard by the Board at the conclusion of the presentation of the agenda item. Persons addressing the Board shall first be recognized by the District Manager or Board Chairman and may speak only one time per agenda item. Speakers shall state their name and address for the official minutes, address comments to the Board as a Body, and shall be allotted three (3) minutes for public comment. All public commentary must be made at the podium or offered virtually via Teams Chat.
Minutes: Correction and Approval: Regular Board Meeting, Tuesday, June 18, 2024.
Special Board Meeting, Tuesday, June 25, 2024.
New Business and Special Orders:
1. 2023 Financial Audit – presented by Anderson & Whitney.
2. 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.
3. Discussion: Consideration of Rates and Fees – facilitated by Mr. Ravel.
4. Request for Approval: Revisions to the Investment Policy – presented by Mr. Bieker.
5. Consideration for Adoption: Resolution No. 2024-07-01 – A Resolution Confirming Succession of Suzanne Jurgens from Assistant District Manager and Appointment to District Manager – presented by Mr. Bieker.
6. Discussion: Board of Director Resignation, Director Vacancy, Director Appointment.
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.

Record of Proceedings

Minutes Of A Regular Meeting Of The Board of Directors Of
Upper Thompson Sanitation District
Held: July 16, 2024, at 4:00 p.m., at the
District Office, 2196 Mall Road, Estes Park, Colorado

Call to Order

A regular meeting of the Board of Directors of the Upper Thompson Sanitation District, Estes Park, Colorado, was called to order at 4:00 p.m. and held as shown above and in accordance with the applicable statutes of the State of Colorado with the following Directors present and acting:

Pledge of Allegiance

The Pledge of Allegiance was recited.

Attendance

Board of Directors:
Christopher Eshelman, Chairman
Susan Doylen, Vice-Chairman/Secretary
Stanley Gengler, Treasurer
Jack Reed, Assistant Treasurer/Secretary
Kent Bosch, Assistant Treasurer/Secretary

Staff:
Chris Bieker, District Manager
Suzanne Jurgens, Assistant District Manager
Gina Moore, Financial Officer
Matt Allen, Operations Manager
Nathanael Romig, Collection Superintendent
Henry Newhouse, Plant Superintendent (at 4 p.m. joined via web conference call; at 6:41 p.m. joined the meeting in person)
Sheryl Panzer, Customer Accounts Manager
Naomi McCracken, Secretary (at 4 p.m. joined via web conference call; at 5 p.m. joined the meeting in person)

Guests:
Alanna Moses, CPA, Anderson & Whitney, PC (joined via web conference call)
Steve Ravel, P.E., Water/Wastewater Project Manager, Merrick & Company
John Kuosman, Water/Wastewater Division Leader, Merrick & Company (joined via web conference call)

Next Meeting Date

A regular meeting of the Board of Directors will be held on August 20, 2024, at 4:00 p.m.

Approval of Agenda

The Board considered the Agenda.

It was moved by Ms. Doylen and seconded by Mr. Bosch to approve the Agenda as presented. Motion carried unanimously.

Disclosure of Potential Conflicts of Interest

Disclosure of potential conflicts of interest is a topic of discussion at every Board meeting to address potential conflicts of interest that may arise as new agenda items are introduced. District Directors who have disclosed potential conflicts of interest can vote as issues arise.

Public Forum

Mr. Eshelman opened the meeting for public comment.

Mr. Eshelman explained the Public Forum is an opportunity for presentation by the public to provide information to the Board of Directors on any non-agenda item. He further explained the Board cannot take action on non-agenda items but may direct staff to include the item on a future agenda.

Regarding public comment on Agenda Items, Mr. Eshelman provided the following statement:

Public comments will be heard by the Board at the conclusion of the presentation of the agenda item. Persons addressing the Board shall first be recognized by the District Manager or Board Chairman and may speak only one time per agenda item. Speakers shall stand at the podium, state their name and address for the official minutes, address comments to the Board as a Body, and shall be allotted three (3) minutes for public comment.

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 non-agenda item.

Approve Minutes from Prior Meetings

The Board reviewed and discussed the Minutes of the June 18, 2024, Regular Board Meeting and the June 25, 2024, Special Board Meeting.

It was moved by Mr. Gengler and seconded by Mr. Bosch to approve the Minutes of the June 18, 2024; Regular Board Meeting as presented. Motion carried unanimously.

It was moved by Ms. Doylen and seconded by Mr. Gengler to approve the Minutes of the June 25, 2024; Special Board Meeting as presented. Motion carried unanimously.

New Business and Special Orders

2023 Financial Audit- presented by Ms. Alanna Moses, CPA, Anderson & Whitney, PC:

Ms. Alanna Moses, CPA, of Anderson & Whitney, presented the District's 2023 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, 2023. She also stated the changes in the District's financial position and cash flows for the year 2023 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 that as of December 31, 2023, approximately $38.8 million was held in net position, which is a $1.7 million or 4.8% increase from 2022. Ms. Moses explained this increase is primarily from increased service charges.

Ms. Moses stated that in 2023, operating revenue increased approximately 10.6% from 2022 and operating expenses increased18% from 2022.

Ms. Moses noted the District treated 283 million gallons of wastewater in 2023 and the cost of treatment was $.0128 per gallon, which is a $.001 increase from 2022.

Ms. Moses then detailed the Statement of Net Position and Changes in Net Position and emphasized the District's investments increased in 2023 in comparison to 2022, due to higher interest rate yields.

Regarding the Statement of Net Position, Ms. Moses noted there was no progress from the Federal Emergency Management Agency (FEMA) in the year 2023 for net allowance of grant receivables. The closeout of Project Worksheet 861 is expected to be reviewed in 2024.

Ms. Moses then stated the recording of the net pension liability is a requirement of PERA and the 2023 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 2023 budgeted amounts and the District was in compliance with Colorado budget law.

Ms. Moses explained financial implications for the District if in the future the existing wastewater treatment plant is decommissioned. She stated that depreciation expense, not taken in the year of decommissioning, will be recorded as a non-cash expense on the financial statements along with potential asset recovery costs.

Ms. Moses stated, for year 2024, a single audit is required in conjunction with the annual financial statement audit for federal loan funding received if $750,000 or more is expended by the District. The Board asked Ms. Moses if a single audit is required for each loan received or if the loans can be combined under one single audit. Ms. Moses replied that it depends on the catalog number used by the federal government, if both loans are categorized under the same Catalog of Federal Domestic Assistance (CFDA) number then one single audit is required; however, if there are two separate CFDA numbers identifying each loan then two separate single audits will be required. Ms. Moses further explained that a single audit would entail a schedule of expenditures of federal awards.

Ms. Moses concluded her report stating that District staff were enjoyable to work with and throughout the audit testing process all requested supporting documentation was provided and there were no questionable findings. Ms. Moses added that payroll samples tested were accurate.

Mr. Eshelman asked Ms. Moses if she would recommend any accounting procedural changes. Ms. Moses said there are no recommendations at this time.

Ms. Moses then congratulated Ms. Jurgens for her new role as District Manager effective January 3, 2025, and wished Mr. Bieker a happy retirement.

Ms. Doylen thanked District staff for their participation and oversight of the 2023 Audit.

The Board thanked Ms. Moses for presenting the 2023 Audit.

It was moved by Ms. Doylen and seconded by Mr. Gengler to accept the 2023 Audit as presented. Motion carried unanimously.

Ms. Moses excused herself from the remainder of the meeting at 4:30 p.m.

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 June 18, 2024, Regular Board Meeting:

Meetings were conducted with the District and Hilltop Securities to review project financing options.
The process design reports (PDR) for the Fish Creek Lift Station (FCLS) and Wapiti Lift Station
(WLS) were submitted to the Colorado Department of Public Health and Environment (CDPHE) for design review.
The updated WRF site drawings and supporting reports were submitted to Larimer County for use with finalizing the site plan approval.
Development of the 100% design documents (drawings and specifications) is underway.

In addition to the Project update, Mr. Ravel highlighted that Merriek and Company submitted to District staff, for review, a draft prequalification document for contractors interested in bidding on the Water Reclamation Facility portion of the Project. Mr. Ravel explained that this prequalification document is an on line survey response format which allows contractors to respond to Project related questions.

Mr. Ravel informed the Board that an official Flood Plain Permit from Larimer County was received by the District on July 15, 2024, approving a Conditional Letter of Map Revision (CLOMR). Mr. Ravel stated this Flood Plain Permit was submitted to the Bureau of Reclamation (BOR).

Mr. Ravel updated the Board that the BOR has indicated the final Finding of No Significant Impact (FONS!) will be filed. Mr. Ravel stated he will follow up with the BOR to ensure the FONS! was officially filed.

Mr. Ravel answered questions of the Board.

The Board thanked Mr. Ravel for the Project update.

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

Ms. Jurgens reported that the Notice of Meeting for Discussion and Consideration of Rates and Fees (Notice) was posted on the District's website on June 22, 2024. The 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. All meeting notices were published and posted as statutorily required.

Ms. Jurgens asked the Board to discuss three specific items related to District rates and fees including a structural change for the base rate of metered customers, consideration of increasing system development fees utilizing the methodology presented in the 2014 Wastewater Rate Study from Raftelis and recommended by Willdan in the 2023 Wastewater Rate Study, and service rate increases for the year 2025.

Mr. Ravel then displayed a Power Point Presentation regarding updates for the metered customer base rate methodology, the system development fee (SDF), and the 2025 service fee.

For the metered customer base rate methodology update, Mr. Ravel noted that currently there are approximately 120 total metered customers in the District. The 2024 access fee charged to these metered customers is $11.00 per tap per month and the metered rate is $15.35 per 1,000 gallons. Mr. Ravel stated approximately 26 customers 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 those customer accounts. Metered customers who utilize the system above the base rate allocation of 1 SFE, will pay a metered rate above the base rate allocation and a data collection fee, which will be assessed on a quarterly basis. Mr. Eshelman added that the District obtains metered customer water use data from the Town of Estes Park's water meter database. Mr. Eshelman stated it is imperative to compare various metered base rate structure scenarios to assure the proposed structure change can be fairly applied to all metered customers.

Mr. Ravel then presented an update to the system development fee. Mr. Ravel explained the SDF is a onetime fee customers pay for growth related capital expansion of the District's system. 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). The most recent rate study, developed by Willdan in 2023, found that the ENR CCI may not reflect the value of replacement cost of a system due to recent inflationary increases and alternatively recommended the Equity Buy In Approach for the District. Mr. Ravel suggested the District update the 2014 Equity Buy In Approach to include 2024 asset unit costs and updated pipe lengths added from year 2014 to 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 calculated the SDF to be $18,095 per SFE using the Equity Buy In Approach method that factors in updated 2024 asset unit costs and pipe lengths.

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 also recommends a minimum 8.5% rate increase in year 2025. Revaluation of rates on an annual basis is also recommended. Mr. Eshelman and Ms. Doylen commented that determining the rates in a timely manner is imperative for the District's customer's planning and budgeting purposes.

The Board thanked Mr. Ravel for his presentation.

The Board then reviewed and discussed an email from Mr. Jason Simmons of Hilltop Securities to Mr. Bieker and Ms. Jurgens, dated July 10, 2024, that was distributed to the Board before the meeting. The email included spreadsheets presenting three rate increase scenarios, 8.5%, 9.5%, and 10.5% in support of repaying the WIFIA loan. In his email, Mr. Simmons concludes that the higher rate increases, implemented earlier rather than later, support paying the loan off ahead of schedule. This is because the District would be able to begin paying interest earlier and pay off the WIFIA loan earlier, which significantly reduces the total cost of the loan. Mr. Simmons also references in his email that the 9.5% rate increase scenario saves about $20 million over the life of the WIFIA loan compared to the 8.5% rate scenario and the 10.5% rate scenario saves close to $30 million over the 8.5% rate scenario. Ms. Doylen commented that paying down principal in the early years of a loan is beneficial long-term.

The Board discussed the rate increase options and the process of setting rates for year 2025.

The Board agreed to continue discussion of the proposed rate increase and other rate considerations in the next regular board meeting scheduled on August 20, 2024.

Ms. Jurgens asked the Board to consider setting rates and fees including a structural change for the base rate of metered customers and the system development fee at the September 17, 2024, Regular Board Meeting. She explained this would allow District staff to communicate rate changes in a timely manner to District customers and to budget accordingly.

Mr. Eshelman then invited public comments pertaining to the matter of District rates and fees.

There were no public comments.

Request for Approval: Revisions to the Investment Policy- presented by Mr. Bieker:

Mr. Bieker stated that in March 2016, the Board of Directors adopted Resolution No. 2016-03-01 Authorizing Establishment of Investment Policy (Policy). That resolution, which was prepared by District legal counsel, Ms. Linda Glesne, adopted the District's investment policy as a guiding instrument applicable to all the District's financial investments and management of all moneys in funds of the District including the general fund, capital fund, enterprise fund, pension fund, and restricted and special accounts.

Mr. Bieker noted the resolution also delegates all authority over the investment management of all monies in all funds of the District to the Investment Committee to be effectuated by the District Manager as the Investment Officer. The resolution also indicates that all monies may be invested or deposited in any legal investment or depository specified in the Investment Policy.

Additionally, Mr. Bieker explained, the resolution addresses release of liability and indemnification noting that no elected or appointed Director, official or employee of the District who complies with the provisions of the investment policy shall be held personally liable for the loss of District monies resulting from such investment and the District will indemnify any agent of the District who complies with provisions of the Investment Policy.

Mr. Bieker commented that upon the adoption of that Resolution the Investment Policy became a guiding instrument outlining eligible investments. The Investment Policy adheres to Colorado Revised Statutes, Title 24, Section 24-75-601.1 which defines legal investments of public funds.

Mr. Bieker said that in August 2016, the Board of Directors approved minor revisions to the Investment Policy which more clearly defined the District's investment parameters of general obligation and revenue bond purchases and included the Tennessee Valley Authority as an eligible government agency in which the District could invest. Since 2016, utilizing the Investment Policy guidelines, the District has successfully invested money in eligible funds realizing a positive net gain over the terms of many investments. Historically, the District has invested funds with UBS Financial Services, Public Investment Consultants, LPL Financial, and ColoTrust.

Mr. Bieker reported that the District's Investment Policy has not been thoroughly reviewed or revised since 2016 and Financial Officer, Ms. Moore, has worked diligently to review and update the document to ensure it adheres to current state statutes and provides relevant investment guidance to the District's Board, Investment Officer, and staff. Ms. Moore has engaged the services of District legal counsel, Ms. Glesne, of CEGR Law and CPA, Ms. Alanna Moses, of the District's accounting firm Anderson & Whitney, to assist her in the review and to provide appropriate updates to the policy.

Mr. Bieker noted the revised document is in the board packet for the Board's review and consideration of approval at today's meeting.

Mr. Bieker concluded that there have been no significant material changes to the Investment Policy document.

The Investment Policy revisions include the following:

The document has been converted to be an accessible document making it easily readable by a low vision or non-sighted reader.
Various terms were updated to be called out correctly within the document.
Under Section I. Introduction (Page 1) the first two sentences in the third paragraph were added to read: "The Investment Policy addresses the methods, procedures and practices which must be exercised to ensure effective and judicious fiscal and investment management of the District's funds. It replaces any previous investment policy or investment procedures of the District."
Under Section Ill. Item B. Liquidity, (top of Page 3) the sentence: "Investments shall be limited to maturities not exceeding five (5) years from the date of trade settlement.", was added to the paragraph.
Under Section IV. Standards of Care, Item A. Delegation of Authority (top of Page 4) a new paragraph was added which states: "The Investment Officer may engage the support services of outside investment advisors with respect to the District's investment program, so long as it can be demonstrated that these services produce a net financial advantage or necessary financial protection of the District's financial resources. Such services may include engagement of financial advisors in conjunction with debt issuance, portfolio management, third party custodial services, and appraisals by independent rating services."
Section IV. Standards of Care, Item B. Prudence (middle of Page 4) was revised by CEGR Law to restate the definition of a prudent investor.
Under Item V. Eligible Investments and Transactions (Pages 5-8) minor corrections were made to the definitions and details of transaction types.
Under Item VII. Internal Controls (top of Page 10), the term "independent review" was eliminated because the annual financial statement audit serves the same purpose. The internal controls will be adhered to.
Under Section VIII. Performance (bottom of Page 10) the following sentence was added to the beginning of the first paragraph: "The investment portfolio shall be designed to attain a market rate of return throughout budgetary and economic cycles, consider prevailing market conditions, risk constraints for eligible securities, and cash flow requirements."
Under Section VIII. Performance, (top of Page 11 ), the Investment Officer will review the portfolio on an annual basis rather than a quarterly basis. The Financial Officer also reports the portfolio's performance monthly in the financial report.

Annex I (Page 13) lists the persons who are authorized to transact investment business and wire funds for investment purposes on behalf of the District. Those persons are:

the Board Chairman,
Board Treasurer,
District Manager,
Assistant District Manager,
and Financial Officer.

Anex IV (Pages 16-18) has been updated with the most current version of the Government Finance Officers Association's "Code of Professional Ethics".

Mr. Bieker thanked Ms. Moore for her thorough work to revise and update the District's Investment Policy. Mr. Bieker added that Ms. Jurgens and Ms. Shellie Tressell, of Simplicity Organizing Services, also contributed heavily in this revision.

Mr. Bieker then invited questions from the Board regarding the document and invited Ms. Moore to provide responses to those questions.

Ms. Moore answered questions of the Board pertaining to specific accessibility changes made to the Investment Policy and banks included in the document.

It was moved by Ms. Doylen and seconded by Mr. Gengler to approve the revised Investment Policy, dated July 16, 2024. Motion carried unanimously.

Consideration for Adoption: Resolution No. 2024-07-01 - A Resolution Confirming Succession of Suzanne Jurgens from Assistant District Manager and Appointment to District Manager - presented by Mr. Bieker:

Mr. Bieker presented to the Board Resolution No. 2024-07-01, A Resolution Confirming Succession of Suzanne Jurgens from Assistant District Manager and Appointment to District Manager.

Mr. Bieker stated since year 2008 he has proudly served as District Manager.

Mr. Bieker said in September of 2020, with anticipation of his impending retirement and with approval of the Board, he implemented a succession plan appointing Suzanne Jurgens to serve as the Assistant District Manager. Since that time, Ms. Jurgens, has worked under his direction and demonstrated the skills and experience required to complete the succession plan, in alignment with both the goals of the succession plan and the job description for the position of District Manager.

Mr. Bieker noted that at the June 18, 2024, board meeting he announced to the Board of Directors his intent to retire after 38 years of service to Upper Thompson Sanitation District effective January 2, 2025. An executive session was called at that meeting for the purpose of the Board's discussion of the position of District Manager. After the executive session, in open session, the Board determined to convene a special board meeting on June 25, 2024, to provide opportunity to meet with Ms. Jurgens and discuss her qualifications and interest in following the succession plan.

Mr. Bieker highlighted that at the June 25, 2024, special meeting the Board convened in executive session with Ms. Jurgens, and in open session determined that Ms. Jurgens had:

fulfilled the prerequisites of the succession plan and career path established by Mr. Bieker, and
demonstrated leadership and planning skills, foresight and direction, intelligence, and commitment to the position upon which her established career path leads her.

Therefore, the Board elected to avoid any unnecessary expense and time in initiating a job for an outside candidate, and instead confirm the succession and appointment of Ms. Jurgens to the position of District Manager.

Mr. Bieker stated Resolution No. 2024-07-01 resolves the following matters related to Ms. Jurgens' succeeding him as District Manager for the District:

The Board, in concurrence with Mr. Bieker's recommendation to follow the succession plan and career path established for Ms. Jurgens, based on her competence and readiness for the position, declares unanimously that Ms. Jurgens has successfully completed the succession plan.
That Ms. Jurgens will succeed Mr. Bieker with the designation and duties of District Manager of the District.
The position of Assistant District Manager shall remain vacant until the need to consider an individual to serve in that role is determined and the Board approves such action.
Ms. Jurgens and Mr. Bieker will take reasonable steps to transition the duties of District manager during the period between the date of this Resolution and January 2, 2025, after which Ms. Jurgens shall be responsible for the daily operational management and control of the District.
The resolution becomes effective immediately upon its approval by the Board of Directors and shall be effective until the designation and appointment is replaced or revoked by the Board of Directors.

Mr. Bieker expressed that he and the Board of Directors extend gratitude to Ms. Linda Glesne, of CEGR Law for her guidance through this leadership transition and preparation of this Resolution.

Ms. Jurgens added she looks forward to serving in the role of District Manager and appreciates the Board appointing her to the position. Ms. Jurgens commented that she is thrilled to continue working with District staff, is grateful for the District's professional services team, and for the Board of Director's leadership. Ms. Jurgens stated her appreciation for Mr. Bieker's mentorship and said he would be missed.

Mr. Bieker and the Board expressed their confidence in Ms. Jurgens serving in the role of District Manager.

Mr. Bieker asked the Board to consider adoption of Resolution No. 2024-07-01 A Resolution Confirming Succession of Suzanne Jurgens From Assistant District Manager and Appointment to District Manager.

The Board considered and discussed the Resolution.

It was moved by Ms. Doylen and seconded by Mr. Bosch to adopt Resolution No. 2024-07-01, A Resolution Confirming Succession of Suzanne Jurgens from Assistant District Manager and Appointment to District Manager. Motion carried unanimously.

Discussion: Board of Director Resignation, Director Vacancy, Director Appointment:

Mr. Eshelman announced Mr. Reed's resignation from the UTSD Board of Directors effective July 17, 2024. Mr. Eshelman read aloud a letter of resignation submitted to the District by Mr. Reed, dated July 8, 2024. Mr. Reed received a standing ovation from all meeting attendees.

Mr. Reed indicated after 17 years of service, including nine years as Chairman, the time has come for him to step down and allow new leadership to continue guiding the District forward. Mr. Reed stated he has enjoyed serving on the Board.

The Board and District staff thanked Mr. Reed for all his years of dedicated service to the District and expressed their gratitude to have worked alongside him. Mr. Eshelman presented a plaque to Mr. Reed honoring his commitment to the District over the past 17 years.

At 6:09 p.m., Mr. Kuosman excused himself from the remainder of the meeting.

At 6:09 p.m. the Board took a 32-minute recess. At 6:41 p.m. the Board returned to the meeting.

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

The Board then discussed the importance of proactively considering and potentially interviewing eligible candidates to fill the open board director position. The Board is required to demonstrate they are actively pursuing a candidate until the Board offers a Notice of Appointment to an eligible elector. The Board discussed that until an appointment is offered, at future board meetings, a status update for selecting a candidate will be addressed.

Reports of Officers, Committees, Professional Consultants, & Staff

In addition to the Plant Report, Mr. Newhouse answered questions of the Board regarding arsenic permit compliance.

In addition to the Assistant District Manager's Report, Ms. Jurgens reported that Mr. Bieker received gratitude from a District customer regarding a reduction in a high-pitched noise that was coming from the aeration basins at the Plant. Ms. Jurgens explained that Plant staff insulated air pipes that traverse the aeration basins which reduced noise levels.

Ms. Jurgens then informed the Board that the District Open House will be held on August 7, 2024, from 4 to 7 p.m. and the summer picnic is scheduled for the afternoon of August 9, 2024, at Ride-A-Kart.

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. 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 6:55 p.m. it was moved by Ms. Doylen and seconded by Mr. Bosch to adjourn the meeting. Motion carried unanimously.