June 20, 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, June 20, 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 June 20, 2023.

Revised Agenda

Call to Order.
Pledge of Allegiance.
Roll Call, Absences Excused.
Next Meeting Dates:
Regular Board Meeting, Tuesday, July 18, 2023.
Special Board Meeting/Leadership Study Session, Tuesday, June 27, 2023.
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.
Minutes: Correction and Approval: Regular Board Meeting, May 16, 2023.
New Business and Special Orders:
1. Update: Phase II - Design of the Water Reclamation Facility and Lift Station Improvements Project – presented by Mr. Ravel, P.E., Water/Wastewater Project Manager, Merrick & Company.
2. Request for Approval: WRF and Lift Station Improvements Project, Merrick & Company, Application for Payment No. 14, Dated May 25, 2023, and Payment No. 15, Dated June 19, 2023 – presented by Ms. Moore.
3. Consideration for Adoption: Resolution No. 2023-06-01 – A Resolution Authorizing Assistant District Manager to Execute Documents and to Act on Behalf of the District with Regard to the District’s Bank Accounts and in the Absence of the District Manager – presented by Mr. Bieker.
Reports of Officers, Committees, and Staff: Questions, Comments, Correction and Approval:
1. Treasurer’s Report.
2. Plant Report.
3. System Development Fee Allocation and Connection Report.
4. Collection System Report.
5. Operations Manager’s Report.
6. Assistant District Manager’s Report.
7. District Manager’s Report.
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.

Agenda

Call to Order.
Pledge of Allegiance.
Roll Call, Absences Excused.
Next Meeting Date: Regular Board Meeting, Tuesday, July 18, 2023.
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.
Minutes: Correction and Approval: Regular Board Meeting, May 16, 2023.
New Business and Special Orders:
1. Update: Phase II - Design of the Water Reclamation Facility and Lift Station Improvements Project –presented by Mr. Ravel, P.E., Water/Wastewater Project Manager, Merrick & Company.
2. Request for Approval: WRF and Lift Station Improvements Project, Merrick & Company, Application for Payment No. 14, Dated May 25, 2023 – presented by Ms. Moore.
3. Consideration for Adoption: Resolution No. 2023-06-01 – A Resolution Authorizing Assistant District Manager to Execute Documents and to Act on Behalf of the District with Regard to the District’s Bank Accounts and in the Absence of the District Manager – presented by Mr. Bieker.
Reports of Officers, Committees, and Staff: Questions, Comments, Correction and Approval:
1. Treasurer’s Report.
2. Plant Report.
3. System Development Fee Allocation and Connection Report.
4. Collection System Report.
5. Operations Manager’s Report.
6. Assistant District Manager’s Report.
7. District Manager’s Report.
Adjournment.

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 4:05 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
Ronald I. Duell, Treasurer/ Assistant Secretary
Kent Bosch, Assistant Secretary/Treasurer
Christopher Eshelman, Assistant Secretary/Treasurer

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

Guests:
* John Kuosman, Water/Wastewater Division Leader, Merrick & Company
* Robert D. Spangler, MPA, Chief Operating Officer, Leading Associations (joined the meeting at 4:16 p.m.)

* Joined via web conference call

Next Meeting Dates

A special meeting of the Board of Directors will be held on June 27, 2023, from 8:30 a.m. to 3:00 p.m.

The next regular meeting of the Board of Directors will be held on July 18, 2023, at 4:00 p.m.

Approval of Agenda

The Board considered the Revised Agenda.

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

Disclosure of Potential Conflicts of Interest

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

Public Forum

Mr. 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 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. Gerald (Jerry) Darmafall of 1331 Willow Lane, Estes Park. Mr. Squires and Mr. Darmafall did not offer comment on a nonagenda item. In attendance was Ms. Rebecca Urquhart, of 1955 Homestead Lane, Estes Parle 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 May 16, 2023, Regular Board Meeting.

It was moved by Ms. Doylen and seconded by Mr. Bosch to approve the Minutes of the May 16, 2023, Regular Board Meeting as presented. Motion carried unanimously.

New Business and Special Orders

Update: Phase II - Design of the Water Reclamation Facility and Lift Station Improvements Project - provided 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 provided the following updates which occurred after the May 16, 2023, Regular Board Meeting:

Overall Project:
- Meetings were conducted with the District and Garney Construction, Inc. (Garney) to review the Project.
- Meetings were conducted with the District to review project financing and funding opportunities.
- A credit rating presentation was completed on May 25, 2023. The results of the credit rating presentation are expected in late June and will support next steps with WIFIA (Water Infrastructure Finance and Innovation Act) and the CWRPDA (Colorado Water Resources and Power Development Authority) regarding a State Revolving Fund (SRF) loan application.
- An updated project schedule including permitting, financing, and design considerations has been developed for completion of the project.
Wapiti Lift Station (WLS), WLS Interceptor, and WLS Force Main:
- The site location application Process Design Report (PDR) is under review by the Colorado Department of Public Health and Environment (CDPHE).
Water Reclamation Facility (WRF):
- The site location application is under review by the CDPHE. The CDPHE has not committed to a completion date.
Larimer County:
- The WRF site plan submittal is under review by Larimer County.
- Larimer County will consider the WRF site Re-Zoning Application at the June 21, 2023, Planning Commission meeting and July 10, 2023, Land Use Hearing.

Ms. Jurgens reported to the Board that on June 15, 2023, she and Mr. Allen met with Ms. Traci Robb and Ms. Elizabeth Rush from the Bureau of Reclamation (BOR). Ms. Jurgens stated at this meeting, she and Mr. Allen communicated that the District may choose to move forward with the construction of the Fish Creek Lift Station (FCLS) separately from the Water Reclamation Facility and Wapiti Lift Station components of the Project. Ms. Robb's response was that an environmental assessment of the entire Project area would need to be approved before the District can proceed with the FCLS as a separate project. Ms. Jurgens relayed that Ms. Robb indicated she would confirm the accuracy of this environmental assessment approval requirement with Mr. Terry Stroh, Regional NEPA Coordinator for the BOR. Ms. Jurgens mentioned that an environmental assessment for the entire Project has been completed and Mr. Ravel offered to confirm with the BOR if the existing assessment can be submitted and suffice for the approval requirement.

Mr. Bieker and Ms. Jurgens emphasized the great working relationship that exists between the BOR and the District.

Ms. Jurgens and Mr. Bieker answered questions of the Board.

Mr. Allen then reported to the Board that he received an inquiry from the Town of Estes Park Water Department (Town) regarding the status of the Project's water supply design. The WRF will require extension of the water main to provide water to the site and the Town plans to complete a water line loop for the Town of Estes Park's benefit. Mr. Allen stated that the Town is releasing a Request for Proposal to design the water supply and seeks to coordinate cost sharing between the Town's water project and the District's Project. Mr. Allen communicated to the Town the determination of the District's water supply needs is pending until further design completion. Mr. Allen stated the virtual meeting with the Town was helpful in determining the status of each individual project.

Ms. Jurgens updated the Board on the results of the Standard & Poor Global (S&P) indicative investment grade rating. Ms. Jurgens said on May 25, 2023, Mr. Jason Simmons, Ms. Mattie Prodanovic, and Ms. America Murillo of Hilltop Securities, along with Mr. Ravel of Merrick & Company, and Mr. Bieker, Ms. Moore, and herself, presented the District's history, current infrastructure capacity and condition, financial status, customer data, and information about the WRF and Lift Stations Project to S&P Associate Directors, Mr. John Schulz, and Ms. Jamie Blansit. The presentation was for the purpose of seeking an investment grade rating needed for Project funding programs. Ms. Jurgens stated she is pleased to announce on June 15, 2023, the District received the preliminary rating of BBB+, which is considered investment grade and supports the District's application to Water Infrastructure Finance and Innovation Act (WIFIA). Ms. Jurgens reviewed next steps with the Board including submitting a revised letter of interest to WIFIA. Once WIFIA responds to the loan application, a formal rating will be received from S&P. The Board concurred that this positive rating result supports moving forward with Project design.

Mr. Bieker commented that Hilltop Securities has brought value and financial expertise to the District. Mr. Bieker relayed to the Board that Jason Simmons of Hilltop Securities said the Board of Directors' foresight over the years to raise customer rates was favorable to the S&P rating.

The Board thanked Mr. Bieker, Mr. Allen, and Ms. Jurgens for the Project update.

Request for Approval: WRF and Lift Station Improvements Project, Merrick & Company, Application for Payment No.14, Dated May 25, 2023, and Payment No. 15, Dated June 19, 2023 - presented by Ms. Moore:

Ms. Moore asked the Board for approval to remit payment to Merrick & Company for two invoices received by the District: Invoice Numbers INV-10003869 in the amount of $43,316.81 and INV-10010286 in the amount of $77,559.68. Invoice INV-10003869 is for work performed on the Water Reclamation Facility and Lift Station Improvements Project from February 25, 2023, through March 31, 2023. Invoice INV-10010286 is for work performed on the Project from April 1, 2023, through May 26, 2023. Ms. Moore stated she has prepared a check for each payment, and they are ready for signatures at this meeting.

It was moved by Mr. Eshelman and seconded by Ms. Doylen to approve payment to Merrick & Company for Invoice Number INV-10003869 in the amount of $43,316.81. Motion carried unanimously.

It was moved by Mr. Eshelman and seconded by Ms. Doylen to approve payment to Merrick & Company for Invoice Number INV-10010286 in the amount of $77,559.68. Motion carried unanimously

Consideration for Adoption: Resolution No. 2023-06-01 - A Resolution Authorizing Assistant District Manager to Execute Documents and to Act on Behalf of the District with Regard to the District's Bank Accounts and in the Absence of the District Manager - presented by Mr. Bieker:

Mr. Bieker presented Resolution No. 2023-06-01, authorizing the Assistant District Manager to execute documents and to act on behalf of the District with regard to the District's bank accounts and in the absence of the District Manager.

Mr. Bieker stated at the April 18, 2023, Regular Board Meeting, the Board adopted Resolution No. 2023-04-01, A Resolution Authorizing the District Manager to Execute Documents and Take Action as Owner's Representative of the District. Upon adoption of this Resolution, the Board directed staff to draft an additional resolution for consideration, authorizing the Assistant District Manager to execute documents and take action as Owner's Representative of the District, with inclusion of signatory authority on the District's bank accounts Mr. Bieker explained Resolution No. 2023-06-01 states that in order to assure the efficient operation of the District it is necessary and appropriate for the Board of Directors to delegate authority to the Assistant District Manager to execute documents and sign on behalf of the District, on all of the District's banking and financial accounts and be authorized to arrange for any wire or electronic transfers from any of the District's banking and financial accounts. Additionally, the Resolution resolves that the Assistant District Manager may also act on behalf of the District for all acts authorized to the District Manager, upon and in the absence of the District Manager.

In summary, the document resolves the following:

(Item 1) States that the Assistant District Manager may execute documents on behalf of the District, without a second signature, to authorize and carry out District business and for District expenditures that have been properly budgeted, and funds appropriated sufficient to make all required payments on any such contracts. This Item also gives the Assistant District Manager authorization to sign documents authorized for signature by the District Manager, upon and in the absence of the District Manager.
(Item 2) Clarifies that, by way of example and not limitation, the Assistant District Manager is authorized, on behalf of the District, to sign on all the District's banking and financial accounts and arrange wire or electronic transfers from any of the District's banking and financial accounts.
(Item 3) States that invalidity of one section of the Resolution will not affect validity of the remaining provisions.
(Item 4) Declares the Resolution takes effect immediately upon approval by the Board.

Mr. Bieker informed the Board that this Resolution was prepared by District legal counsel, Ms. Linda Glesne, of CEGR Law (Cockrel Ela Glesne Greher & Ruhland, P.C.). Ms. Glesne shared that Item 2 of the Resolution states that financial powers are "by way of example and not limitation", meaning there will not be a limit on what documents may be signed by the Assistant District Manager in the absence of the District Manager.

Mr. Bieker explained that Ms. Glesne also noted the Resolution is expanded beyond named individuals currently serving in certain roles, allowing this signatory policy to serve the District beyond an individual's service in a specific role or title.

Mr. Bieker invited the Board to discuss and consider adopting the resolution.

The Board discussed and considered Resolution No. 2023-06-01.

It was moved by Mr. Eshelman and seconded by Ms. Doylen to adopt Resolution No. 2023-06-01 Authorizing Assistant District Manager, Suzanne Jurgens, to execute documents and to act on behalf of the Upper Thompson Sanitation District with regard to the District's bank accounts and in the absence of the District Manager. Motion carried unanimously.

Mr. Squires excused himself from the remainder of the meeting at 4:44 p.m.

Reports of Officers, Committees, Professional Consultants, & Staff

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

The Board acknowledged recent retiree, Mr. Eric Mankin for his five years of service to the District as a Collection Operator.

The Board asked staff about the status of the Federal Emergency Management Agency (FEMA) funds (PW861), submitted for reimbursement in September 2022, for the Fish Creek corridor repairs. Mr. Bieker responded that staff would follow up with FEMA regarding the reimbursement status.

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 Ms. Doylen 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 5:25 p.m. it was moved by Ms. Doylen and seconded by Mr. Bosch to adjourn the meeting. Motion carried unanimously.