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 a special meeting, which is open to the public, at 4:00 p.m. on Tuesday, October 10, 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 October 10, 2023.
Agenda
- Call to Order.
- Roll Call, Absences Excused.
- Pledge of Allegiance.
- Next Meeting Date: Regular Board Meeting, Tuesday, October 17, 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. - Proposed 2024 Budget – presented by Mr. Bieker, Ms. Jurgens, and Ms. Moore.
- New Business and Special Orders:
- Request for Approval: To include the District on a List of Supporters Regarding the Introduction of the National Special District Coalition’s (NSDC’s) Special District Definition to Federal Chapter 13 – presented by Ms. Doylen.
- Adjournment.
Upper Thompson Sanitation District (District) prohibits discrimination against its customers, employees, and applicants for employment on the basis of disability, race, creed, color, religion, sex, sexual orientation, gender identity, gender expression, marital status, familial status, national origin, or ancestry, and in employment or in any program or activity conducted by the District. The District will make reasonable accommodation for qualified individuals with known disabilities. If any person has a disability and requires a reasonable accommodation to fully participate in this event, please contact District Manager, Mr. Chris Bieker, three days before the event via email at chris@utsd.org, or telephone at 970.586.4544, or dial 711 to connect with Relay Colorado.
Record of Proceedings
Minutes of a Special Meeting of the Board of Directors of
Upper Thompson Sanitation District
Held: October 10, 2023, at 4:00 p.m., at the District Office, 2196 Mall Road, Estes Park, Colorado
Call to Order
A special meeting of the Board of Directors of the Upper Thompson Sanitation District, Estes Park, Colorado, was called to order at 4:02 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:
Attendance
Board of Directors:
Jack Reed, Chairman
Susan Doylen, Vice-Chairman/Secretary
Kent Bosch, Assistant Secretary/Treasurer
Christopher Eshelman, Assistant Secretary/Treasurer
Absent:
It was moved by Mr. Eshelman and seconded by Ms. Doylen to excuse the absence of Director Duell. Motion carried unanimously.
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
Pledge of Allegiance
The Pledge of Allegiance was recited.
Next Meeting Dates
A regular meeting of the Board of Directors will be held on October 17, 2023, 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. 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.
No members of the public joined the meeting.
Proposed 2024 Budget - presented by Mr. Bieker and Ms. Moore
Mr. Bieker and Ms. Moore presented the 2024 proposed budget to the Board.
Mr. Bieker stated the District is obligated by statutory law, §1-13.5-111, C.R.S., to submit the proposed budget to the Board of Directors no later than October 15, 2023. The board packet, containing the 2024 proposed budget, was distributed to the Board and staff on October 6, 2023.
Mr. Bieker encouraged the Board to ask questions of the staff, throughout his presentation, for further clarification about 2023 financial information and 2024 budgeted items.
Mr. Bieker said the first section of the 2024 budget document is the budget message which provides a review of District activity through September 30, 2023, and summarizes the basis of the 2024 budget. He noted the 2024 budget message identifies the District's operating philosophy and outlines the priorities for the year 2024 and beyond.
Mr. Bieker then highlighted the budget schedule and asked the Board and staff to review the schedule and budget message, and to submit questions and comments to him by October 31, 2023.
Mr. Bieker noted the budget message highlights that District staff and the design team have advanced the Water Reclamation Facility and Lift Station Improvements Project (Project) by attaining required permits, performing value engineering, securing financing, and communicating with stakeholders such as the Bureau of Reclamation and Town of Estes Park. Mr. Bieker stated during the last quarter of 2023, District staff and the Project team (Merrick & Company and Garney Construction) will focus on final design of the facilities and associated infrastructure.
Mr. Bieker added that the budget message speaks to the District's mail ballot election held in May 2023. Mr. Bieker summarized the election stating three incumbent Directors were elected, and the ballot question passed favorably allowing the District to retain funds received from all financial sources and use those funds for lawful purposes.
Mr. Bieker provided further details of the budget message including the engagement of Willdan Financial Services to conduct a wastewater rate study, the continuation of the District's public outreach campaign, and the ongoing rehabilitation and repair of existing wastewater treatment facilities and collection infrastructure.
Mr. Bieker stated that residential and commercial growth in the Estes Valley, year to date 2023, is moderate. The District has experienced a slight decrease in the purchase of system development fees through September 2023 as compared to 2022. Mr. Bieker noted that this decrease is likely due to economic factors such as rising mortgage rates and increases in construction costs and cost of living.
Mr. Bieker explained the 2024 proposed budget prioritizes capital equipment purchases and satisfies ongoing operation and maintenance costs. The budget document includes operating and capital revenue projections, overhead, operational, and capital expenses and ending fund balances. The budget incorporates planned capital improvement projects. Mr. Bieker said planned capital improvements for the years 2024 through 2033 total $36,918,994.
Mr. Bieker then commended the staff for their dedication to maintaining the careful balance between providing exceptional service, meeting surface water regulations, and containing the costs of treatment. Mr. Bieker stated that staff is the District's most valued asset. Mr. Bieker continued that the 2024 proposed employee compensation is reflective of the value the District places on the staff.
Mr. Bieker added the budget message outlines the preparation and goals of budget development and an overview of the statutory requirements of the document. The budget message also reviews and delineates operation and capital activities as they relate to the revenue and expense budget.
Ms. Moore then thanked the Board for appointing her as the Budget Officer and thanked District staff for their quotes and estimates provided for the 2024 proposed budget. Ms. Moore informed the Board that the budget process began back in August 2023 with staff participation in budget committee meetings held regularly between herself, Mr. Bieker, Ms. Jurgens, Mr. Allen, Mr. Newhouse, Mr. Romig, and Ms. Ponzer. These meetings were productive in discussing the year-to-date progress of 2023 budgeted projects and estimated projections through the end of 2023. In these meetings, the committee identified District needs for the 2024 budget year. Ms. Moore thanked the team for their participation in the committee meetings and contributions for the 2024 proposed budget.
Ms. Moore then reported that the public notice of the budget hearing scheduled for November 21, 2023, will be posted on the District's website and at the District Office. Additionally, she indicated that notice of the budget hearing will be published in both the Estes Park News and Trail Gazette on October 13, 2023, and October 20, 2023. Additionally, the Notice of Special Meeting and Agenda for this meeting were posted, as statutorily required, on both the District website and at the UTSD Administration Office.
Ms. Moore informed the Board the proposed budget complies with legal requirements showing estimated beginning and ending fund balances, previous year audited figures, year-end estimated figures for the current year and figures for the year in which the budget will be adopted. She mentioned the 2024 proposed budget was emailed to legal counsel, Ms. Linda Glesne, of CEGR Law.
Ms. Moore stated the estimated figures for 2023 revenue and expenses were based on actual revenue and expenses through September 30, 2023, and then forecasted through the end of 2023. Ms. Moore noted that at the budget hearing in November 2023, the proposed budget will be updated to reflect estimated revenues and expenses through October 31, 2023.
Ms. Moore shared that Customer Accounts Manager, Ms. Panzer, assisted in forecasting 2024 revenue. Ms. Moore referenced interest income is a conservative estimate for 2024. Ms. Moore explained the 2024 proposed budget does not include an increase in rates as no final decision about 2024 rates has been discussed or determined at this time.
Ms. Moore then explained that 2024 system development and permit revenue forecast the sale of fifteen new system development fees (SDF) at the proposed rate of $11,400 per SDF. A total of twenty permit fees were projected to be sold in 2023. She added that through September 30, 2023, nineteen system development fees were sold.
The Board suggested decreasing the forecasted number of fifteen SDF's to ten to better reflect current market trends and future potential economic downturn. Ms. Jurgens commented that anticipating revenue stability and growth is critical for Project financing purposes. The Board considered Ms. Jurgens comment and decided to reassess the number of SDF's budgeted as the year progresses.
Ms. Moore also informed the Board that many of the 2024 budgeted figures for overhead and operation expenses were based on 2023 estimated expenses and/or 2023 budgeted expenses. Ms. Moore mentioned budgeted costs for computer maintenance, professional services, and equipment were based on vendor quotes received.
Ms. Moore noted the District received an economic perspective summary from the Employers Council for October 2023 which provided a consumer price index (CPI) forecast of up to 5.8% for Colorado. Ms. Moore explained the information provided in the summary was considered when preparing the 2024 budget.
Ms. Moore stated the District and employees will experience an increase of 3.5% in medical insurance benefit expenses, no increase in dental premiums and either a slight decrease or increase in vision insurance premiums, depending on the plan, in 2024. The health insurance figures projected in the 2024 budget are based on 2023 employee selections and include the addition of four new hires, one in the collections department, two in the plant department, and one in the administration department.
Ms. Moore stated the District's premiums for property and liability and worker's compensation insurance are yet to be determined. She explained the Colorado Special District Property and Liability Pool recently began the renewal process to determine worker's compensation and property and liability coverage for 2024. Ms. Moore indicated the proposed budget figures for property and liability and worker's compensation insurance are high to allow for premium increases, audit premium payments, deductibles, and additions of new equipment in 2024. A contribution increase for worker's compensation insurance is expected due to a 10% base rate. The overall worker's compensation increase is limited to 25 percent. Ms. Moore continued stating, property and liability insurance is anticipated to increase as well with an expected rate increase ranging from 2% to 5% for year 2024. A 10% discount is anticipated due to 100% employee participation in Vector Solutions Training. The District also participates in other available and beneficial programs offered by the Colorado Special District Property and Liability Pool such as the safety grant reimbursement, increased cybersecurity limit, and sanitation maintenance warranty program, which provide savings to the District.
Ms. Moore said the 2024 proposed budget includes a $10,000 overhead contingency, a $50,000 operation and maintenance contingency, and a $500,000 capital contingency allowing the Board and District Manager to appropriate funds to unforeseen, yet essential, expenditures.
Ms. Moore then provided a summary review of information in the 2024 proposed budget spreadsheets, including the general fund budget summary, revenue and expenses, general fund summary budget notes, and the 2023 budget to actual forecast.
Ms. Moore stated she will revise the 2024 proposed budget after the Board, staff, and public have submitted questions and comments to Mr. Bieker. She restated that a hearing for public comment on the 2024 proposed budget is scheduled during the Regular Board Meeting on Tuesday, November 21, 2023, at 4:00 p.m.
Mr. Bieker then noted the 2024 budget incorporates several planned capital improvement projects outlined in the Capital Improvement Plan (CIP). The CIP allocates funds needed for high priority structural repairs and rehabilitation of critical equipment and includes ongoing expenses for development of the new water reclamation facility and other capital purchases in support of the District's business activities. The 2024 proposed capital improvements expenditures total $6,714,942, including the $500,000 contingency.
Mr. Bieker then reviewed proposed capital expenditures for 2024 through 2033 using the Capital Improvement Plan (CIP) spreadsheet dated September 30, 2023. Mr. Bieker stated capital expenditures were developed with input from Mr. Newhouse, Mr. Allen, Mr. Romig and Mr. Steve Ravel, P.E., of Merrick & Company.
Mr. Bieker asked the Board to consider increasing the annual budget for ongoing collection rehabilitation from $200,000 to $500,000. Mr. Bieker explained that this increase will allow for needed collection system improvements including additional pipe bursting and sewer line repairs.
Mr. Bieker, Mr. Allen, and Mr. Newhouse then answered questions of the Board regarding the 2024 budgeted capital expenditures.
Mr. Bieker summarized the 2024 proposed budget highlighting that the expenditures exceed revenues primarily due to the 2024 capital improvement projects driving the operating/capital net position. These capital improvement projects are subject to approval by the Board of Directors and the District Manager. Mr. Bieker explained financing of approved 2024 capital improvement projects that are not funded by 2024 revenues, will be funded through use of the District's net position, appropriated reserves, and loans from Federal and State funding programs.
The Board thanked Mr. Bieker and Ms. Moore for their preparation and presentation of the 2024 Proposed Budget.
New Business and Special Orders
Request for Approval: To Include the District on a List of Supporters Regarding the Introduction of the National Special District Coalition's (NSDC's) Special District Definition to Federal Chapter 13 - presented by Ms. Doylen:
Following up from the September 19, 2023, Regular Board Meeting, Ms. Doylen reported to her fellow Directors that she sent the letter she wrote on behalf of the Board to NSDC in support of their mission to define "special district" under federal law, with the primary objective to enhance special districts' access to federally funded programs and other funding opportunities. Ms. Doylen stated she also sent NSDC information to other local special districts to encourage collaborative advocacy.
Ms. Doylen explained she would like the District to further support the initiative from NSDC to define "special district" under federal law. This support would entail including the District on a List of Supporters of the initiative.
The Board discussed supporting the initiatives of NSDC.
It was moved by Mr. Eshelman and seconded by Mr. Bosch to include the District on the National Special District Coalition's (NSDC's) List of Supporters regarding the Special District Definition to Federal Chapter 13. Motion carried unanimously.
Mr. Bieker commended Ms. Doylen for her efforts in reaching out to elected officials and initiating support for NSDC on behalf of the District.
Adjournment
Having no further business, at 5:41 p.m. it was moved by Ms. Doylen and seconded by Mr. Bosch to adjourn the meeting. Motion carried unanimously.