July 19, 2022 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, July 19, 2022, 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 19, 2022.

Revised Agenda

1. Call to Order.
2. Pledge of Allegiance.
3. Roll Call, Absences Excused.
4. Oath of Office - Director Eshelman.
5. Recess to File Oath of Office with the Larimer County Clerk of Court.
6. Next Meeting Date - Regular Board Meeting, Tuesday, August 16, 2022.
7. Agenda: Correction and Approval.
8. Disclosure of Potential Conflicts of Interest.
9. 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.
10. Minutes: Correction and Approval: Regular Board Meeting, June 21, 2022.
11. New Business and Special Orders:
    1. 2021 Audit – presented by Anderson & Whitney.
    2. Update: Phase II - Design of the new Water Reclamation Facility, Lift Station, and Interceptor Improvements Project – presented by Mr. Ravel, P.E., Water/Wastewater Project Manager, Merrick & Company.
12. 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. Assistant District Manager’s Report.
    6. District Manager’s Report.
13. 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 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

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
Ronald I. Duell, Treasurer/ Assistant Secretary 
Kent Bosch, Assistant Secretary/Treasurer
Christopher Eshelman, Director

Absent: 
It was moved by Mr. Bosch and seconded by Mr. Duell to excuse the absence of Board Chairman, Jack Reed. Motion carried unanimously.

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

Invited Guests:
Alanna Moses, CPA, Senior Audit Manager, Anderson & Whitney, PC 
Steve Ravel, P.E., Water/Wastewater Project Manager, Merrick & Company
John Kuosman, Water/Wastewater Division Leader, Merrick & Company

* Joined via web conference call

Oath of Office

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

At the Regular Board Meeting held on June 21, 2022, a motion carried unanimously to issue a "Notice of Appointment to the UTSD Board of Directors" to Mr. Christopher Eshelman. Ms. Moore sent the Notice of Appointment to Mr. Eshelman on June 28, 2022, and he has accepted the appointment.

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

Ms. Doylen stated the District is fortunate to have Mr. Eshelman serve on the Board of Directors due to his previous experience serving on the UTSD Board of Directors, knowledge of collection lines and wastewater/water utilities, and a depth of understanding regarding membranes.

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

Ms. Doylen then administered the Oath of Office to Mr. Christopher L. Eshelman.

Ms. Doylen stated that given a new Director has been seated, Mr. Eshelman's term will be up for election in May 2023.

Director Doylen indicated reconsideration of officer appointments should be made at the August 16, 2022, Regular Board Meeting.

Recess to File Oath of Office

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

At 4:14 p.m. the Board reconvened.

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

Next Meeting Date

The next regular meeting of the Board of Directors will be held on August 16, 2022.

Approval of Agenda

The Board Considered the Agenda.

It was moved by Mr. Bosch and seconded by Mr. Eshelman 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 Chair 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.

One member of the public joined the meeting via web conference call.

In attendance was Mr. Stewart Squires, of 618 Park River Place, Estes Park.

At 4:14 p.m., Mr. Squires excused himself from the remainder of the meeting.

Approve Minutes from Prior Meeting

The Board reviewed and discussed the Minutes of the June 21, 2022, Regular Board Meeting.

It was moved by Mr. Bosch and seconded by Mr. Duell to approve the Minutes of the June 21, 2022; Regular Board Meeting as presented. Motion carried unanimously.

New Business and Special Orders

2021 Audit- presented by Ms. Alanna Moses, CPA, Senior Audit Manager, Anderson & Whitney:

Ms. Alanna Moses, CPA, Senior Audit Manager, of Anderson & Whitney, presented the District's 2021 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 emphasized an independent audit is required per Colorado Statute if annual revenue is more than $750,000. She stated new auditing standards were implemented for year 2021.

Ms. Moses highlighted the responsibilities of District Management pe1iaining to the Audit including financial statement preparation and implementation of internal controls.

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 in 2021, operating revenue increased approximately 14%, primarily due to increased rates for service charges, and operating expenses increased 2% with a portion of this increase attributed to inflation. Ms. Moses explained these changes in net position resulted in an increased net income in 2021, compared to 2020.

Ms. Moses detailed the Statement of Net Position and emphasized the District's investments increased in 2021 in comparison to 2020.

Ms. Moses then 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, 2021. She also stated the changes in the District's financial position and cash flows for the year 2021 concluded in conf01mity with accounting principles generally accepted in the United States.

Ms. Moses further reported that in accordance with Government Auditing Standards, Anderson & Whitney's assessment confirm results of the audit tests disclosed no instances of non-compliance required to be reported under Government Auditing Standards.

Regarding the Statement of Net Position, Ms. Moses noted there was no progress from the Federal Emergency Management Agency (FEMA) in the year 2021 for net allowance of grant receivables.

Ms. Moses then stated the recording of the net pension liability is a requirement of PERA and the 2021 Audit details the basis of accounting for the District's pension fund with PERA. She elaborated the overall net pension liability is gradually decreasing and the District's allocation is .016% of the total PERA collective pension amount.

Additionally, Ms. Moses noted there were no matters involving District internal control procedures over financial rep01iing and operation, which Anderson & Whitney considered to be material weaknesses; nor were there any deficiencies identified.

Ms. Moses provided a summary of the Schedule of Revenue and Expenditures - Actual (Budgetary Basis) Compared to Budget rep01i in the audit document. Ms. Moses repo1ied general expenditures did not exceed appropriated 2021 budgeted amounts and the District was in compliance with Colorado budget law. She emphasized the District is in a good financial position.

Ms. Moses added there a few minor edits to the 2021 Audit and then her firm, Anderson & Whitney, will submit the Final 2021 Audit to the Office of the State Auditor, Local Government Audits Division, by the July 31, 2022, deadline.

The Board did not have questions for Ms. Moses and thanked her for presenting the 2021 Audit.

It was moved by Mr. Eshelman and seconded by Mr. Bosch to accept the 2021 Audit as presented. Motion carried unanimously.

Ms. Moses excused herself from the remainder of the meeting at 4:28 p.m.

Update: Phase II - Design of the New Water Reclamation Facility, Lift Station, and Interceptor Improvements Project - presented by Mr. Ravel, PE, Water/Wastewater Project Manager, Merrick & Company:

Regarding the design of the New Water Reclamation Facility, Lift Station, and Interceptor Improvements Project (Project), Mr. Ravel noted the following updates following the June 21, 2022, Regular Board Meeting:

• Wapiti Lift Station (WLS):
  • Discussions and workshops occurred with the design team and District regarding the proposed WLS site, WLS interceptor, and WLS force main layouts.
  • The proposed layouts were developed further for use with the 30% submittal; the site location application for the Colorado Department of Public Health and Environment (CDPHE); and the Larimer County Planning and Building Department review and approval.
  • A draft site location application process design report (PDR) was provided to the District on July 13, 2022, for review prior to submittal to the CDPHE for approval.
  • The District posted a public notification sign on the site.
  • A 30% submittal review workshop was held on July 14, 2022.
• Water Reclamation Facility (WRF):
  • Discussions and workshops occurred with the design team and District regarding the proposed WRF site layout and process equipment.
  • Site Location Application The site location application is under review by the CDPHE. Preliminary and final design may proceed without prior site location application approval.
  • WRF Site Layout - The proposed layouts were developed further for the 30% submittal and for use with the Larimer County Planning and Building Department review and approval.
  • A 30% submittal WRF process review workshop was held on July 12, 2022.
  • A 30% submittal architectural review workshop was held on July 15, 2022.
• WRF Membrane Procurement:
  • Answers to questions have been provided directly to membrane suppliers.
  • An addendum was issued to provide clarification of the documents based on supplier questions.
  • Bids are due on July 21, 2022.
  • Award of a membrane procurement contact is scheduled for the August 16, 2022, Board meeting.
• Fish Creek Lift Station (FCLS) Site Acquisition and Layout:
  • Discussions and workshops occurred with the design team and District regarding the proposed FCLS layout.
  • The proposed revised layouts were developed further for use with the 30% submittal; the site location application for the CDPHE; and the Larimer County Planning and Building Department review and approval.
  • A site location application Process Design Report (PDR) and site location application is under development for District review prior to submittal to the CDPHE for approval.
  • The District posted a public notification sign on the site.
  • A 30% submittal review workshop was held on July 14, 2022.
• Specifications and Drawings for Construction - A draft version of the Contract Forms (Division 00) and General Requirements (Division 01) were submitted to the District with the 30% submittal. Technical specifications (equipment, trenching, structural, mechanical, electrical, etc.) will be developed as the project proceeds. 30% Drawings were provided to the District with the 30% submittal.
• United States Bureau of Reclamation (USER) - The USBR is developing requirements regarding additional effo1is required for the environmental assessment (EA). We will continue to coordinate the location of the FCLS, WLS, WLS Interceptor, WLS Force Main, and modifications at the existing wastewater treatment facility (WWTF). A meeting with the USBR is scheduled for July 21, 2022. Additional geotechnical borings are scheduled for USBR property (FCLS, WLS, WLS Interceptor, and WLS Force Main) in late August 2022. A special use application will be submitted following finalization of the FCLS, WLS, and WLS force main.
• Western Area Power Authority (WAPA) - Coordination continues with W AP A regarding the status of the power line removal project. The power lines are expected to be removed by December 31, 2023.
• Town of Estes Park-Coordination will begin with the Town regarding the water main extension along Highway 34. The WLS and FCLS will require new water services to replace the existing water services.
• Larimer County - Larimer County has not responded to the March 15, 2022, letter requesting clarification of Planning and Building Department requirements.
• Financial Planning:
  • The project needs assessment (PNA), and preliminary engineering report (PER) is under review by the CDPHE.
  • The application and PER are under review by the US Department of Agriculture (USDA).
  • A letter of interest will be submitted to Water Infrastructure Finance and Innovation Act (WIFIA) to initiate the WIFIA process once the application period opens in September 2022.
• Construction Manager at Risk (CMAR):
  • Answers to questions have been provided directly to proposed CMAR contractors.
  • Addenda were issued to provide clarification of the documents based on CMAR contractor questions.
  • Proposals are due July 19, 2022.
  • Award of a CMAR contractor contract is scheduled for the August 16, 2022, Board meeting.

Adding to the above noted Project activity, Mr. Ravel reported the Cost Opinion, prepared by Glacier Construction Co, Inc., reported estimated total Project construction costs at approximately $80 million, including an $8 million contingency.

Mr. Ravel informed the Board that the CMAR Contractor proposals were received.

Mr. Ravel indicated during the progress toward the 60% design submittal, Merrick & Company and the chosen CMAR Contractor will collaborate to perform value engineering, including possibly eliminating or reducing equipment from the Project.

Mr. Kuosman added as infrastructure priorities continue to be determined and strategies are implemented, the potential for Project cost reduction is likely.

Mr. Ravel then reported that the membrane bioreactor (MBR) bids are due on Thursday, August 18, 2022. He is anticipating at least two, if not three bids from potential membrane suppliers. Once these proposals are reviewed, the cost portion of the Project related to membranes can be more accurately determined.

Mr. Ravel highlighted the draft Site Location Application is ready for review for the FCLS and WLS; however, the District is still waiting on finalization of the Site Location Application for the WRF. Mr. Ravel explained to the Board this delay is due to the revised preliminary effluent limits requirement from the Colorado Department of Health and Environment.

Mr. Ravel stated Ms. Christine Sedneck of Merrick & Company, has begun work on the Project flood plain approval process.

Mr. Ravel then informed the Board the District will not be required to submit a 1041 permit to Larimer County.

Mr. Ravel answered questions from the Board regarding Build America Buy America Act (BABA) requirements, plant capacity options, equipment integration, and posting of the signs at the lift stations.

The Board thanked Mr. Ravel for the Project update.

Reports of Officers, Committees, Professional Consultants, & Staff

The Board considered the Rep01is of Officers, Committees, Professional Consultants, and District Staff.

Adding to the Plant Report, Mr. Newhouse explained the UTSD Wastewater Treatment Facility Operations Rep01i for June 2022 was revised because there were values not initially rep01ied due to delayed receipt of test results from outside laboratories. Mr. Newhouse reported one of the permit values missing in the original report was copper; however, he has since collated the laboratory results and June's copper value exceeds the District's discharge permit limit. Consequently, the District is in noncompliance, and this constitutes a violation of the Colorado Water Quality Control Act.

Mr. Newhouse prepared a revised UTSD Treatment Facility Operations Report for June 2022 and distributed it to the Board. Mr. Newhouse explained plant staff tested fourteen samples for copper in June and are investigating potential sources of excess copper entering the collection system.

The Board discussed the copper exceedance, possible causes, and various methods of lab testing.

Mr. Newhouse explained the copper results will be sent to the Colorado Department of Public Health and Environment. Ms. Jurgens and Mr. Ravel added the District's response to this permit violation and proactive follow through to resolve the copper exceedance is critical.

Mr. Romig highlighted from the Collection System Report that Mr. Harrison, Collection Operator, did an excellent job rebuilding the CCTV Camera. The Board commended Mr. Harrison for his eff01is to repair the camera.

Adding to the Assistant District Manager's Report, Ms. Jurgens announced the UTSD Summer Picnic will be held on August 9th at Ride-A-Kart.

Ms. Jurgens then emphasized that the administration staff is investigating a new utility billing software, due to limitations within the current billing software, and participated in a demonstration of Continental Utility Solutions, Inc. (CUSI) software. Ms. Jurgens reported Ms. Shellie Tressell, of Simplicity Organizing Services, researched utility billing software on behalf of the District and recommends CUSI. CUSI is a leading provider of utility billing and customer information system software throughout the United States. Ms. Jurgens concluded that further investigation of CUSI software is scheduled at the end of July.

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 Mr. Eshelman and seconded by Mr. Duell to accept the Treasurer's Report, Plant Report, System Development Fee Allocation and Connection Report, Collection System Report, Assistant District Manager's Repo1i and District Manager's Report. Motion carried unanimously.

Adjournment

Having no further business, at 5:54 p.m. it was moved by Mr. Bosch and seconded by Mr. Eshelman to adjourn the meeting. Motion carried unanimously.